Legal Environment of Business 56 Answers

1.) Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of: Answer: administrative law 2.) The Illinois state legislature passes a law raising the speed limit on certain roads. This law becomes part of a body of law known as: Answer: statutory law 3.) The National Conference of Commissioners of Uniform State Laws (NCCUSL) passes a new uniform act related to texting while driving. This uniform act: Answer: becomes the law in every state that adopts the uniform act through legislative action 4.) Richard is a state appeals court judge. In making judicial decisions, Richard issues rulings that are consistent with precedents established in similar cases within his jurisdiction. Richard is following the principle of Answer: stare decisis 5.) All of the cases that have been decided by U.S. judges, as well as by English judges prior to the American Revolution, constitute a body of law known as: Answer: the common law 6.) Sarah prevails in her lawsuit against Carl for injuries she sustained in a car accident. As a result, Sarah is entitled to a remedy. In the U.S. legal system, Sarah's remedy will most likely be in the form of: Answer: damages 7.) A case on the subject of free speech on the Internet comes before a Wisconsin state trial court. It is a case of first impression, which means that no case involving the same issue has been decided by the Wisconsin courts. In deciding such a case, it would be considered the least proper for the judge to consider: Answer: survey data from the local community 8.) Tyler believes that some laws passed by his state's legislature are bad, and he refuses to comply with them. He believes that there is a universal law above all others that grants rights to all people and that it is above all other laws. Tyler subscribes to what school of jurisprudential thought? Answer: The natural law school 9.) Elaine is involved in a car accident where the other driver ran a red light. To determine whether she has a case, her attorney would apply which of the following classifications of law? Answer: Substantive law 10.) Cyberlaw consists of: Answer: traditional legal principles that have changed because of technology. 11.) Most appellate court judges write opinions in which they give the reasons for their decisions. These opinions are collected and published in volumes of books known as: Answer: reporters 12.) Monroe is reviewing an appellate case for class and must correctly identify the parties to the case. The party appealing the case is known as the: Answer: appellant 13.) The city of Flagstaff passes legislation to make it illegal to carry an open container of alcohol on any city street at any time. This legislation is called: Answer: an ordinance 14.) When a judge uses legal encyclopedias, law review articles, and Restatements to guide a decision, that judge is using: Answer: secondary sources of law 15.) If a plaintiff waited to bring a lawsuit for several years, and in those years witnesses died and evidence was lost or destroyed, one equitable defense that the defendant may have is called: Answer: laches 16.) John is a resident of Iowa. While driving through California, he has an accident involving Marisol, a California resident. Marisol files a lawsuit in a California state court. Over John, the California court has Answer: in personam jurisdiction 17.) Marco files a lawsuit against Allied Company in an Oregon court with limited jurisdiction. The difference between general and limited jurisdiction is based on Answer: the subject matter of the cases that the court can decide 18.) Toybox, Inc., manufactures the Spintop, a toy that the company discovers can cause harm. Before anyone is injured, Anne, a pediatric nurse who has not purchased a Spintop, files a suit against Toybox, Inc. In seeking to have the suit dismissed, Toybox, Inc., best argument is that Anne does not have Answer: standing to sue 19.) Stan, a citizen of Iowa, files a lawsuit in an Iowa state trial court against Jalisco Farm Supply, a Texas company that sells supplies in Iowa. The court has original jurisdiction because Answer: the case is being heard for the first time 20.) Robert, who lives in Ohio, files a lawsuit against Trading Post, a Washington company, in an Ohio state court. The Trading Post's only sales activity outside the state of Washington occurs via its Web site. According to the sliding-scale standard, the Ohio court can always exercise personal jurisdiction over out-of-state defendants based on Internet transactions if the court finds that the defendant has Answer: conducted substantial business with Ohio residents through its web site 21.) Cal-Ban 3000 was a weight-loss drug made by Health Care, a Florida corporation. Tart, a citizen of North Carolina, read ads for the product in a newspaper and bought Cal-Ban in North Carolina from a local pharmacy. Within a week of taking the supplement, Tart suffered a ruptured colon. Alleging that the injury was caused by Cal-Ban, Tart sued Health Care in a North Carolina state court. Health Care asked the court to dismiss the case, arguing that the North Carolina court could not exercise personal jurisdiction over Health Care. The court most likely Answer: refused to dismiss the case, because the defendant had placed the product in the stream of commerce in North Carolina and was subject to being sued in North Carolina 22.) Charles loses his breach-of-contract case against Micheletta in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with Answer: the Georgia Supreme Court 23.) Transpac Corp. and Alliance, Inc., agree to a contract that includes an arbitration clause. After a dispute arises, the case goes to arbitration. The arbitrator finds in Transpac's favor. Alliance files a lawsuit, alleging that the award should not be enforced because the arbitrator made an error in her findings of fact. The court will likely Answer: do nothing 24.) Jackson, a homeowner, files a lawsuit against Michael, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as: Answer: negotiation 25.) Tina decides to take her claim against her Internet service provider to FairDeal.com, a private, online dispute resolution provider. This limits her access to the court system: Answer: not at all 26.) Miller signed an employment contract containing an arbitration clause stating that "any dispute" arising during employment must be resolved by binding arbitration. Two years later, after she was injured on the job and took leave to recover, she was fired. She filed a complaint for disability discrimination with the Equal Employment Opportunity Commission, which gave her a "right to sue" letter. She then filed suit in federal court against her employer for disability discrimination. The court Answer: dismissed the suit because of the arbitration agreement 27.) Marshall is working on a contract with a U.S. company involving the manufacturing of goods in China, and wants to ensure that U.S. law applies in the event of a dispute. He should include which of the following clauses in the contract. Answer: Choice of law clause 28.) Lily has suffered severe injuries from a car accident. She would like to sue for compensation, but does not have enough funds on hand to retain an attorney on her own. What is the best type of fee arrangement for Lily? Answer: Contingency fee 29.) Vinny decides to sue Allison. To begin the suit, Vinny must file a complaint. Vinny's attorney argues in the complaint that the Connecticut Superior Court is the most acourt in which the case should be heard. Vinny's attorney is asserting: Answer: a statement of the basis for the court's jurisdiction 30.) Juan files a lawsuit against Liliana. Liliana responds to the complaint by filing an answer. After the pleadings are closed, Juan can file: Answer: a motion for judgment on the pleadings 31.) In preparation for a trial between George and the ABC Corporation, ABC's attorney places George under oath and asks George questions that are recorded by a court reporter. This is known as: Answer: a deposition 32.) Motor Sports, Inc., sues A-Z Speed. Motor Sports alleges that A-Z breached (failed to perform) a contract that required A-Z to sell ten Jet Skis to Motor Sports. Under the rules governing discovery, Motor Sports is most likely entitled to obtain: Answer: documents in A-Z's possession relating to the contract 33.) Karl sells Jason his house. After moving in, Jason learns that Karl failed to disclose serious defects in the house. Jason sues Karl. After the pretrial procedures are completed, the case enters the trial phase. The attorneys begin the process of voir dire. During voir dire: Answer: jurors are picked from a jury pool 34.) Stewart, a construction worker, fell from a beam and suffered serious injuries. He sued his employer, Sunrise Construction, for damages. In most jurisdictions, a court will first impose lighter sanctions but eventually will dismiss a case if a party shows blatant disregard for court orders. Over six years of pretrial motions, Stewart was repeatedly asked to provide the names of expert witnesses he intended to call for his case. Sunrise filed motions three times asking the court to compel Stewart to answer the questions. The trial court entered three orders to compel Stewart to answer and four orders allowing him extra time to answer. Stewart did not respond. Sunrise filed a motion to dismiss because of Stewart's failure to comply with the orders. What would the court most likely do? Answer: Dismiss the case because of Stewart's refusal to provide information to Sunrise 35.) A Florida law provides that any person who "knowingly serves" a person "habitually addicted" to alcohol may be liable for an injury caused by the intoxication of that person. Hoag was driving while intoxicated when his car struck Sabo's car. Sabo suffered injuries as a result. Before the accident, Hoag had consumed many drinks at Peoples Restaurant. Sabo sued Peoples, alleging that the restaurant violated the statute. Peoples filed a motion for summary judgment, asking the court to grant a judgment in its favor without a trial because it had no knowledge of Hoag's drinking habits. The court most likely: Answer: denied the motion for summary judgment because there were questions of fact about the restaurant's knowledge of Hoag's drinking habits that had to be determined by trial 36.) Mason brought a civil rights action against his employer, the New York Department of Mental Hygiene, after it failed to promote him. His complaint stated that the department had discriminated against him by denying him "the authority, salary, and privileges commensurate with this position." The department filed a motion to dismiss for failure to state a claim for which relief could be granted. The court probably: Answer: dismissed the case because the complaint did not state a claim 37.) Dominic sues Gemalt, Inc. for negligence. At trial, Dominic testifies that he heard Francis, a manager at Gemalt, say that he thought Gemalt was acting carelessly. Dominic's testimony about Francis will most likely be: Answer: not admitted as evidence because it is hearsay 38.) Anna sues Whitney. While presenting her case, Anna's attorney calls Whitney's doctor to the witness stand. The questioning of this witness at this point in the trial is known as: Answer: direct examination 39.) A trial between Shane and Verna results in a jury verdict in Shane's favor. After the jury renders its verdict, Verna's attorney can file a motion: Answer: for a new trial 40.) A judgment is entered against Michael in Anderson's case against him. Michael appeals to an intermediate appellate court, which agrees to review the case. On appeal, most appellate courts: Answer: affirm trial court findings of fact 41.) While hospitalized at the Washoe Medical Center, Swisher fell out of bed and died. Her family sued Washoe. Judges are required to remain impartial and to provide a courtroom that promotes order and decorum. During voir dire at the trial, when the plaintiff's attorney arrived late after a break, the trial judge led the prospective jurors in a standing ovation. The judge joked with one juror whom he had known in college and endorsed another juror's business. The judge's comments were made in the presence of the plaintiff and the defendant, their attorneys, and all prospective jurors. The jury found for Washoe. The plaintiff moved for a new trial, but the judge denied the motion. The plaintiff appealed, arguing that the tone set by the judge prejudiced the plaintiff's right to a fair trial and violated Nevada's Code of Judicial Conduct, which requires judicial neutrality. The appellate court most likely: Answer: held that Nevada judicial code applied and ordered a new trial 42.) Maya prevails in her lawsuit against Anthony. Anthony can satisfy the judgment by: Answer: transferring property he owns directly to Maya or selling property he owns and using the proceeds to pay her 43.) Congress passes a law prohibiting cigars made in Cuba from being sold in the United States. The Florida state legislature then passes a law allowing the sale of Cuban cigars in Florida. If the constitutionality of the Florida law is challenged in court, it will most likely be: Answer: struck down on the basis of the supremacy clause 44.) Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett's state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was: Answer: unconstitutional under the supremacy clause 45.) The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Consolidated Freightways (CF) drove big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The court most likely found that the Iowa statute was: Answer: unconstitutional under the "dormant" commerce clause 46.) A state legislature passes a statue prohibiting business from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will tje law be upheld? Answer: No, because the law is an unconstitutional restriction on free speech 47.) Mary is a line cook at a restaurant and unknowingly has a highly contagious disease, "Syfoid". She hasn't shown any symptoms herself, but she has passed it through the food she handles to several customers who later died. The Center of Disease Control (CDC) traced the disease back to Mary and order her to "appear for testing and treatment as well as to cease all handling of food". When Mary refuses, the CDC and law enforcement arrive at her home and forcibly take her to a hospital where she is quarantined though she is not charged with any crime. Several months later Mary still has not been released from quarantine because she is still communicable, however, she has never been provided an opportunity to contest her quarantine. In the meantime, Mary had lost her job. Has any of Mary's fundamental rights been violated? Answer: Possibly, because she was deprived of her liberty without due process 48.) A Minnesota statute required all operators of slow-moving vehicles to display a fluorescent red triangular sign. Henderson, a member of the Amish religion, was charged with violating the statute. His defense was that the law violated his First Amendment right to freedom of religion because displaying "loud" colors on his slow-moving black buggy conflicted with his religious belief that he should remain separate from the modern world. Henderson stated that he was willing to display the sign if he could use silver, instead of red, reflective tape, which was equally effective. The state argued that the law applied to all equally. The court most likely found that the statute, as it applied to Henderson, was: Answer: unconstitutional under the free exercise clause 49.) Ocean City passes an ordinance that prohibits all churches from meeting within its city limits. This rule affects the residents' constitutional right to: Answer: substantive due process 50.) A city ordinance allows only two hot-dog stands to operate in the city's downtown area. If someone who would like to add another hot-dog stand challenges this ordinance under the equal protection clause, the rile will be subject to: Answer: the rational basis test 51.) Fred sued Document Security Company, alleging he had suffered injuries to his hands as a result of attempting to fix a jam in one of Document Security's paper shredders. Fred alleged the shredder was defective because it failed to contain warnings regarding the dangers to fingers and hands while attempting to fix jams. In order to succeed, Fred will have to show Answer: foreseeable risks of harm could have been reduced or avoided by the provision of reasonable instructions or warnings by the seller âšIï¸ 52.) Martha is walking from her office building to her car in a torrential downpour with an umbrella manufactured by Umbrellas USA, Inc. She is struck by lightening, and files suit claiming the manufacturer failed to include a warning. A court would likely find that Answer: there is no duty to warn about risks that are obvious or commonly known, such as the risk of lightning occurring during a rainstorm 53.) Harry discovers that a chemical compound has had an adverse impact on his land. The chemical compound is manufactured by five companies. Harry cannot identify which manufacturer's chemical caused the adverse impact to his land. Harry files a product liability lawsuit against all five companies. Harry's case will: Answer: not be dismissed against any manufacturer because of market-share liability 54.) David, a ten-year-old, purchased a plastic snow sled from K-Mart. He went sledding, lost control, hit a tree, and was injured. David's parents filed a negligence lawsuit in a state court against K-Mart, alleging that the store should not have sold this type of sled because it was difficult to steer and had no brakes, making it unreasonably dangerous. K-Mart contended that sledding is an inherently dangerous activity and that David assumed the risks involved when he went sledding. The court probably found that K-Mart was Answer: not liable because David assumed the risks of sledding 55.) Harvey is driving while intoxicated in his new truck when his tire blows out. He loses control of the truck and crashes into a tree causing injury to himself and to his vehicle. The tire is determined to be defective. Which of the following defenses would be the most viable to be raised by the tire manufacturer in a product liability cause of action? Answer: Comparative negligence 56.) A fast-food chain restaurant would not be liable for the failure to disclose the adverse health effects of eating its fatty food based on the defense of: Answer: the knowledgeable user