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It is good practice to include in a contract which state’s law will govern disputes that arise under the contract.
A) True
B) False

2. Stare decisis is typically of lesser importance to the Supreme Court in deciding constitutional issues than to trial courts in deciding specific controversies.
A) True
B) False

3. It is a violation of the separation of powers doctrine for State A to adopt a law identical to one adopted by State B.
A) True
B) False

4. Many areas of law important to businesses are governed by the Uniform Commercial Code.
A) True
B) False

5. A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than general provisions.
A) True
B) False

6. Only decisions by the United States Supreme Court can have the status of res judicata.
A) True
B) False

7. In deciding a case, a court will not use common law if there is a statute that applies to the dispute.
A) True
B) False

8. Criminal law is a subset of private law.
A) True
B) False

9. Tort law is a subset of private law that seeks to compensate the injured party for the loss caused by the actions of another.
A) True
B) False

10. The town of Somerset passed a law forbidding parking on Main Street between the hours of 9:00 a.m. and 4:00 p.m. This is an example of an ordinance.
A) True
B) False

11. The body of law that will be used to determine which state’s law will apply in a multi-state transaction is conflict of laws.
A) True
B) False

12. Dicta is another term for “controlling precedent.”
A) True
B) False

13. Codes of Ethical Conduct adopted by businesses and professions often provide for sanctions against individuals who violate the code.
A) True
B) False

14. If one obeys the law, one is necessarily also acting ethically because ethical standards of conduct and legal standards of conduct are identical.
A) True
B) False

15. One of the important powers of courts in the United States is to interpret legislation.
A) True
B) False

16. In complex litigation involving the laws of several states, the state whose law will be used is determined by reference to
A) Stare decisis
B) Dicta
C) Conflict of laws
D) Widely held ethical norms

17. Comments contained in judicial opinions that are not necessary to the decision of the case are called
A) Dicta
B) Res judicata
C) Substantive law
D) Procedural law

18. Anne, a resident of New York, is suing Bill, also a resident of New York, in a contract dispute that is governed by New York state law. This controversy would be classified as a(n) __________________case.
A) Interstate
B) Intrastate
C) Sited
D) Bifurcated

19. Which of the following statements about the Uniform Commercial Code (UCC) is correct?
A) The UCC us a federal statute governing businesses engaged in interstate commerce.
B) The UCC is used only in Texas, California and Louisiana because it is based on French and Spanish civil law.
C) The UCC is a provision of Article I, Section 8 of the U.S. Constitution.
D) The UCC consists of identical statutes enacted by the states to provide businesses with consistent and predictable laws.

20. Courts often use transcripts of the legislative hearings and debates that preceded a law’s passage to determine the purpose and reach of a law. This background is called a law’s legislative______________.
A) Legacy
B) History
C) Antecedents
D) Precedents

21. The Internal Revenue Service (IRS) wants to fine Mike for violating a section of the Tax Code. Mike believes that the IRS is misinterpreting the Code and that he has violated no laws. The Code section is complex and its application is not clear. Using standard rules of statutory interpretation, the court that hears this case will
A) favor the government (IRS) because it is the author of the law.
B) look to dicta in previous cases involving the IRS.
C) construe the punishment provision of the statute strictly in favor of Mike.
D) refer the issue to a special master in equity.

22. The trend is for more and more states to adopt uniform laws governing
A) Criminal law
B) Probate
C) Procedures in Small Claims Courts
D) Building codes

23. The City of Sunnydale enacted a law limiting to 4 the number of unrelated individuals who can live together in a house or apartment. This city law has the status of a(n)____________.
A) Uniform code
B) Ordinance
C) Executive agency regulation
D) Statute

24. Assume that the Vermont legislature passed a bill prohibiting the sale within the state of detergents containing certain chemicals harmful to the environment. Assume further that the governor signed the bill into law. This law has the status of a(n)____________ .
A) Uniform code
B) Ordinance
C) Executive agency regulation
D) Statute

25. The Congress of the United States passed the Soldiers’ and Sailors’ Relief Act of 1940 and President Franklin Roosevelt signed it into law. This Act has the status of a(n)____________.
A) Uniform code
B) Ordinance
C) Executive agency regulation
D) Statute

26. A state Statute of Limitations which requires that suits for breach of contract be filed within 2 years of the date of breach are examples of ___________laws.
A) Substantive
B) Procedural
C) Inculpatory
D) Judge-made

27. The Executive, Legislative, and Judicial branches of the federal government each have their own unique duties and functions. This arrangement constitutes a(n)__________separation of powers.
A) Vertical
B) Horizontal
C) Transitional
D) Equitable

28. The federal government and state governments have separate and distinct powers. This arrangement constitutes a(n)_______________separation of powers.
A) Vertical
B) Horizontal
C) Transitional
D) Equitable

29. The power of the judicial branch to declare that laws are invalid because they violate the Constitution is known as____________________.
A) Stare decisis
B) Res judicata
C) Quasi in rem jurisdiction
D) Judicial review

30. Stare decisis translates as
A) the thing is done that ought to be done
B) stand by the decision
C) stand and be recognized
D) the decision of the sovereign

31. Common law is also known as _____________law.
A) Judge-made
B) Statutory
C) Public
D) Codified

32. A federal law requires that employers with 15 or more employees take steps to “reasonably accommodate” the religious needs and practices of their employees. A law, such as this one, that gives rights and imposes duties is an example of a(n)________________law.
A) Procedural
B) Substantive
C) Inculpatory
D) Exculpatory

33. The Supreme Court case that created the doctrine of judicial review is
A) Kelo v. City of New London
B) Roe v. Wade
C) Marbury v. Madison
D) Wickard v. Filburn

34. Which of the following statements about res judicata is correct?
A) It establishes a precedent that will be applied to future cases with similar fact patterns.
B) It is another term for dicta.
C) It binds the parties to the decisions in a law suit so that neither can re-litigate the case.
D) It is the legal basis of the courts power of judicial review.

35. Bill sued Ted for libel over statements Ted published in the company newsletter. A jury heard the case and found that no libel had occurred because the statements were true. Bill is very unhappy with this decision, but cannot sue Ted again over these statements because of the doctrine of
A) Judicial restraint
B) Prior restraint
C) Stare decisis
D) Res judicata

1.Justices serve on final reviewing courts while judges serve on trial and intermediate level courts.
A) True
B) False

2. It is the function of the jury to decide the facts that are in dispute in a case.
A) True
B) False

3. It is unconstitutional to conduct a trial with a jury of fewer than 12 jurors.
A) True
B) False

4. Customers who want to sue businesses for damaged goods or poor services often choose small claims court.
A) True
B) False

5. Each state must have at least 2 federal district courts, one to hear federal questions and one to hear diversity cases.
A) True
B) False

6. It is the function of a grand jury to determine the guilt or innocence of a defendant in a capital case.
A) True
B) False

7. Scooter was indicted for committing a federal crime. He can be tried only in federal district court.
A) True
B) False

8. If there is diversity of citizenship, the plaintiff may file the suit in federal district court.
A) True
B) False

9. For diversity of citizenship jurisdiction, each plaintiff must have suffered over $100,000 in damages.
A) True
B) False

10. Sam Sophomore is suing the school board of Small Town, Iowa for suspending him because he held up a sign at a pep rally denouncing war. He claims that his First Amendment right of free speech was violated. He may file suit in federal district court in Iowa, even though he and the defendant school board members are citizens of Iowa.
A) True
B) False

11. In a diversity case, the federal court will use the substantive law of the state in which it is located.
A) True
B) False

12. When the Supreme Court agrees to hear a case it issues a writ of execution.
A) True
B) False

13. A person who violates a decree from a court of equity can be jailed for contempt of court.
A) True
B) False

14. Only the United States Supreme Court can issue an interlocutory decree.
A) True
B) False

15. The number of Supreme Court justices who must agree to accept a case is 5.
A) True
B) False

16. In a jury trial, the judge would decide questions of _______and the jury would decide questions of ________.
A) fact……..law
B) law…….fact
C) fact…….precedent
D) law…….precedent

17. Which of the following is NOT a power of the courts?
A) To declare laws unconstitutional
B) To interpret statutes
C) To create administrative agencies
D) To establish precedents in common law
E) All of the above are powers of the courts.

18. An indictment is
A) grand jury’s finding that there is sufficient evidence to bring someone accused of a crime to trial.
B) the final decree in a court of equity.
C) the papers served on a defendant in a civil suit notifying him that he is being sued.
D) the order of a reviewing court to a trial court to retry an issue.

19. Each state has at least ______federal district courts for trying cases.
A) One
B) Two
C) Four
D) Five

20. Federal district courts are the only trial courts that can hear cases involving
A) contract disputes between citizens of two different states.
B) federal crimes
C) claims arising under the U.S. Constitution
D) cases involving more than $200,000 in damages

21. When a federal district court hears a case based on a federal question, the minimum amount in controversy must be
A) $75,000
B) $100,000
C) $200,000
D) There is no minimum amount for federal question jurisdiction.

22. The function of the grand jury is to
A) decide the guilt or innocence of a criminal defendant.
B) decide the liability of a defendant in a civil suit.
C) determine if there is sufficient evidence to decide the case on summary judgment.
D) determine if there is sufficient evidence to bring someone accused of a crime to trial.

23. The function of a petit jury is to
A) Decide if there is enough evidence to send a case to the grand jury.
B) Decide if there is enough evidence to decide the case on summary judgment.
C) Decide whether a civil defendant is liable and whether a criminal defendant is guilty.
D) Decide if there is sufficient evidence to bring an indictment against a criminal defendant.

24. Delia, a citizen of Delaware, wants to sue the state of Maryland for negligently maintaining a boat ramp on which she sustained personal injuries. In which of the following courts could Delia file suit against Maryland?
A) The Third Circuit Court of Appeals
B) The Fourth Circuit Court of Appeals
C) Federal District Court in Maryland
D) State Court in Delaware.

25. Diversity of citizenship gives the defendant the right to
A) File a counterclaim in a court of equity.
B) File an appeal without having to post a bond
C) Have a suit filed in state court removed to federal court
D) Have a suit filed in federal court removed to state court.

26. In deciding which cases it will hear, the United States Supreme Court
A) Must hear cases referred to it by the Justice Department.
B) Must hear cases referred to it by a state master in chancellery
C) Must hear cases that challenge the constitutionality of federal laws
D) Has virtually total discretion to decide which cases it will hear.

27. When the U.S. Supreme Court agrees to hear a case, it issues a writ of________.
A) Acceptance
B) Certiorari
C) Nolo contendere
D) Percipiari

28. The number of U.S. Supreme Court justices who must vote to hear a case is
A) One
B) Three
C) Four
D) Five
E) Six

29. Which of the following statements about the role of juries in cases in equity is correct?
A) The constitution guarantees the right to a jury trial in equity.
B) Twelve chancellors sit as a jury in equity cases.
C) Twelve masters in chancellery sit as a jury in equity cases.
D) Juries in equity cases have only an advisory role and cannot decide the outcome of a case.

30. The jurist who presides over an equitable proceeding is called the
A) Grand master
B) Chancellor
C) Justice
D) Judge pro tempore

31. The term used in law to denote the power of a particular court to hear a case and render a binding decision is
A) Jurisprudence
B) Jurisdiction
C) Interlocutory competence
D) Vis res judicata

32. The need to go to different courts for legal and equitable remedies can be traced to
A) The early English court system.
B) The Code of Napoleon
C) Article II of the Constitution
D) The Articles of Confederation

33. For diversity of citizenship to apply, each plaintiff must allege more than ____________in damages.
A) $75,000
B) $100,000
C) $200,000
D) There is no minimum amount for diversity jurisdiction

34. The decision issued by a court of equity is called a(n)
A) Indictment
B) Decree
C) Award
D) Conviction

35. In deciding a case brought in equity, a court would draw upon which of the following sources of law?
A) Federal common law
B) State common law
C) Equitable maxims
D) a, b and c above would all be used by a court of equity.

36. Whether a suit is filed “at law” or “in equity” depends on which of the following?
A) The amount of money in dispute
B) The remedy the plaintiff is seeking
C) Whether or not the statute of limitations has expired
D) Whether or not the parties are from different states.

37. For diversity of citizenship purposes, a corporation is considered a citizen of
A) The state in which it is incorporated.
B) The state in which it has its principal place of business.
C) The state of residence of its majority shareholder
D) a and b
E) a, b and c

38. Cal, a resident of New York, and Tomas, a resident of New Jersey had a car accident in New York. Cal is alleging that Thomas failed to obey a New York traffic sign that gave Cal the right of way. The case is being heard in federal district court in New York. In deciding this case, the court will apply ______________substantive law and ________procedural law.
A) New York……..New York
B) New York……..federal
C) federal……….federal
D) federal……..New York

39. U. S. District Court in Vermont is hearing a case brought by a citizen of Vermont challenging the constitutionality of one of the provisions of the U.S. Patriot Act, a federal statute. In deciding this case, the court will use ______________substantive law and __________procedural law.
A) Vermont--------Vermont
B) Vermont…….federal
C) federal………federal
D) federal………Vermont

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...Case 1 1. An agent is a person (which can include an entity, like a corporation, partnership, or LLC) who acts on behalf of and subject to the control of another by authority from him. The category of agent can affect their liability to any claims and the two main categories of agent: General agent: a general agent is an agent authorized by the principal to conduct a series of transactions involving continuity of service, like a manager of a business. A general agent does not require fresh authorization for each transaction. Special agent: a special agent is an agent who is authorized to conduct a single transaction or a series of transactions not involving continuity of service. In other words, an agent who is given specific authority and specific instructions for a specific purpose is called special agent. Jane’s contract, which gives her authority to act on their behalf for the purchase of all ladies fashion ranges fulfills three elements-consent, control and on behalf of-of an agency relationship indicating that the case satisfies the definition of agency relationship between the Jane and her employer. Jane is supposed to be regarded as a special agent since the contract specifically mentions the range of her authority which is all ladies fashion ranges. We should pay attention that, as generally, the principal will not be liable for third parties who deal with special agents in areas outwith their specific instructions. 2. Before an agency can be formed...

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Business Law

...Business Entities Lisa Ramos BUS311: Business Law I Instructor:  July 28, 2014 Business Entities I. Introduction “Business owners are wise to consider the fundamental issue of organizational formbefore they become too deeply immersed in business operations.” (Rogers, 2012) When it comes the laws of business there are is a large range of categories and topics which include the type of entity to become and how it affects contracts, liabilities and tax information. We must be aware that there is more than just one type of entity and determining what type of business to become can have some legal implications and therefore must be reviewed thoroughly. II. Types of Entities A. Sole Proprietorships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities B. Partnerships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities C. Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities D. S Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities E. Limited Liability Company (LLC) 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities III. How are contracts enforceable? A. Five...

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