Test Bank For Business Law: Text And Cases: Legal, Ethical, Global, And Corporate Environment, 12th Edition

Test Bank For Business Law: Text And Cases: Legal, Ethical, Global, And Corporate Environment, 12th Edition provides an exam-oriented approach, helping you study effectively with real-world examples.

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1© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.Chapter 1Introduction to Law andLegal ReasoningN.B.:TYPEindicates that a question is new, modified, or unchanged, as follows.NAquestionnewto this edition of the Test Bank.+A questionmodifiedfrom the previous edition of the Test Bank.=A questionincludedin the previous edition of the Test Bank.TRUE/FALSE QUESTIONSA1.The stability and predictability of the law is essential to business activities.ANSWER:TPAGE:2TYPE:=NAT: AACSB AnalyticAICPA Critical ThinkingA2.Law is a body of enforceable rules governing relationships among individuals andbetween individuals and their society.ANSWER:TPAGE:2TYPE:=NAT: AACSB AnalyticAICPA LegalA3.Abreach of a contract is a failure to perform it.ANSWER:TPAGE:3TYPE:NNAT: AACSB EthicsAICPA Critical ThinkingA4.Constitutional law includes only the U.S. Constitution.

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2TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.ANSWER:FPAGE:4TYPE:=NAT: AACSB AnalyticAICPA Legal

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING3© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A5.A state constitution is supreme within the state’s borders.ANSWER:TPAGE:4TYPE:=NAT: AACSB AnalyticAICPA LegalA6.Whether a law is constitutional depends on its source.ANSWER:FPAGE:4TYPE:=NAT: AACSB AnalyticAICPA LegalA7.Uniform laws apply in all states, including those in which the laws have not beenadopted.ANSWER:FPAGE:4TYPE:=NAT: AACSB AnalyticAICPA LegalA8.A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.ANSWER:TPAGE:4TYPE:=NAT: AACSB AnalyticAICPA LegalA9.Statutory law does not include county ordinances.ANSWER:FPAGE:4TYPE:=NAT: AACSB ReflectiveAICPA LegalA10.No state has adopted the Uniform Commercial Code in its entirety.ANSWER:FPAGE:5TYPE:=NAT: AACSB ReflectiveAICPA LegalA11.Common law is a term for law that is common throughout the world.ANSWER:FPAGE:7TYPE:=NAT: AACSB AnalyticAICPA Critical ThinkingA12.Damages is a remedy at law.

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4TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.ANSWER:TPAGE:7TYPE:=NAT: AACSB AnalyticAICPA LegalA13.Remedies in equity include injunctions and decrees of specific performance.ANSWER:TPAGE:7TYPE:=NAT: AACSB AnalyticAICPA LegalA14.In most states, the courts no longer grant “equitable” remedies.ANSWER:FPAGE:8TYPE:=NAT: AACSB AnalyticAICPA LegalA15.A defendant is a person against whom a lawsuit is brought.ANSWER:TPAGE:8TYPE:=NAT: AACSB AnalyticAICPA LegalA16.Courts do not depart from precedents.ANSWER:FPAGE:9TYPE:=NAT: AACSB ReflectiveAICPA Critical ThinkingA17.A judge’s function is to make the law.ANSWER:FPAGE:13TYPE:NNAT: AACSB AnalyticAICPA LegalA18.Criminal law focuses on duties that exist between persons.ANSWER:FPAGE:14TYPE:=NAT: AACSB AnalyticAICPA LegalA19.A reference to “28 U.S.C. Section 1332” means that a statute can be found in section1332 of title 28 of theUnited States Code.ANSWER:TPAGE:15TYPE:=NAT: AACSB AnalyticAICPA Research

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING5© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A20.Most state trial court decisions are not published.ANSWER:TPAGE:16TYPE:=NAT: AACSB AnalyticAICPA ResearchMULTIPLE CHOICE QUESTIONSA1.The legislature of the state of Mississippi enacts a new statute that sets standards forthe liability of businesses selling defective products. This statute appliesa.only in Mississippi.b.only in Mississippi and its border states.c.in all states.d.in all states but only to matters not covered by other states’ laws.ANSWER:APAGE:4TYPE:NNAT: AACSB ReflectiveAICPA Critical ThinkingA2.Lewis is a state court judge. Like other judges, Lewis often refers to secondary sourcesof law for guidance. These sources includea.official comments to statute.b.other states’ statutes.c.state constitutions.d.the U.S. Constitution.ANSWER:APAGE:4TYPE:NNAT: AACSB ReflectiveAICPA LegalA3.Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforcedbya.no one.b.the federal government only.c.the state of Hawaii only.d.the United States Supreme Court only.

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6TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.ANSWER:APAGE:4TYPE:=NAT: AACSB ReflectiveAICPA Legal

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING7© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A4.The Federal Trade Commission is a government agency that issues rules, orders, anddecisions. The Georgia state legislature enacts statutes. The Jackson County Board andthe Peach City Council enacts ordinances. Administrative law includesa.all law that affects a business’s operation.b.the rules, orders, and decisions of the Federal Trade Commission.c.statutes enacted by the Georgia state legislature.d.ordinances created by the Jackson County Board and the city council of PeachCity, Georgia.ANSWER:BPAGE:5TYPE:=NAT: AACSB ReflectiveAICPA LegalA5.The Securities Exchange Commission is an administrative agency. The chief purpose ofsuch agencies is toa.act as liaisons between federal and state governments.b.impose uniform laws on the states.c.perform specific government functions.d.standardize laws for the executive and judicial branches.ANSWER:CPAGE:5TYPE:=NAT: AACSB ReflectiveAICPA LegalA6.In a suit against Corbin, Donatella obtainsdamages. This isa.an order to do or to refrain from doing a particular act.b.an order to perform what was promised.c.a payment of money or property as compensation.d.the cancellation of a contract.ANSWER:CPAGE:7TYPE:NNAT: AACSB ReflectiveAICPA LegalA7.In an action against Elin, Frank obtains aremedy. This isa.an administrative agency’s enforcement of its rule.b.a principle of the law derived from earlier court cases.c.a statute enacted by a state legislature or Congress.

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8TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.d.the legal means to recover a right or to redress a wrong.ANSWER:DPAGE:7TYPE:=NAT: AACSB ReflectiveAICPA Legal

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING9© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A8.In a suit against Evan, Floyd obtains aninjunction. This isa.an order to do or to refrain from doing a particular act.b.an order to perform what was promised.c.a payment of money or property as compensation.d.the cancellation of a contract.ANSWER:APAGE:7TYPE:NNAT: AACSB ReflectiveAICPA LegalA9.In a suit against Vladimir over the performance of a contract, Wyler obtainsrescission.This isa.an order to do or to refrain from doing a particular act.b.an order to perform what was promised.c.a payment of money or property as compensation.d.the cancellation of a contract.ANSWER:DPAGE:7TYPE:NNAT: AACSB ReflectiveAICPA LegalA10.In a suit against Sandy, Tippy obtains damages. In the U.S. legal system, this remedy atlaw isa.equitable.b.normal.c.unlikely.d.unusual.ANSWER:BPAGE:7TYPE:NNAT: AACSB ReflectiveAICPA LegalA11.Maggie and Nate enter into a contract for the sale of car, but Nate later refuses todeliver the goods. Maggie asks a court to order Nate to perform as promised. Orderinga party to perform what was promised isa.an equitable remedy.b.an unenforceable demand.

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10TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.c.a remedy at law.d.a type of harm.ANSWER:APAGE:7TYPE:NNAT: AACSB ReflectiveAICPA Critical Thinking

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING11© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A12.As a judge, Diane applies common law rules. These rules develop froma.decisions of the courts in legal disputes.b.regulations issued by administrative agencies.c.statutes enacted by Congress and the state legislatures.d.uniform laws drafted by legal scholars.ANSWER:APAGE:8TYPE:=NAT: AACSB ReflectiveAICPA LegalA13.Craig is a state court judge. In his court, as in most state courts, legal and equitableremedies have merged.But it is important to distinguish between equitable and legalremediesa.because neither type of remedy can be granted today.b.for no good reason.c.to negotiate an enforceable business contract.d.to request a proper remedy.ANSWER:DPAGE:8TYPE:NNAT: AACSB ReflectiveAICPA LegalA14.InBen v. City Car Dealership, a state supreme court held that a minor could cancel acontract for the sale of a car. Now a trial court in the same state is decidingDaphne v.Even Steven Auto Deals, Inc.,, a case with similar facts. Under the doctrine ofstare de-cisis, the trial court is likely toa.allow the minor to cancel the contract.b.disregard the previous case.c.order the minor to cancel the contract.d.require the minor to fulfill the contract.ANSWER:APAGE:9TYPE:=NAT: AACSB ReflectiveAICPA Critical Thinking

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12TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A15.InExport Co. v. Imports, Inc.,there is no precedent on which the court can base adecision. The court can consider, among other things,a.neither public policy nor social values.b.public policy only.c.public policy or social values.d.social values only.ANSWER:CPAGE:10TYPE:=NAT: AACSB ReflectiveAICPA Critical ThinkingA16.A federal statute regulates an employment practice. To resolve a dispute concerningthe practice, Paula, a judge, will most likely applya.a common law doctrine that applied before the statute was enacted.b.a common law doctrine that applies to other, different practices.c.Paula’s personal philosophy of law.d.the statute.ANSWER:DPAGE:12TYPE:=NAT: AACSB ReflectiveAICPA Critical ThinkingFactPattern 1-A1 (Questions A17A19 apply)The Texas Supreme Court decides the case ofLivewire Entertainment Co. v. Power Play Corp.Of nine justices, six believe the judgment should be in Livewire’s favor. Justice Bellamy, one ofthe six, writes a separate opinion. The four justices who believe the judgment should be inPower’s favor join in a third separate opinion.A17.Refer to Fact Pattern 1-A1. These opinions are collected and published in volumescalleda.citations.b.codes.c.reporters.d.reviews.ANSWER:CPAGE:16TYPE:+NAT: AACSB ReflectiveAICPA Research

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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING13© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.A18.Refer to Fact Pattern 1-A1. Bellamy’s opinion is known asa.a concurring opinion.b.a dissenting opinion.c.a majority opinion.d.aper curiamopinion.ANSWER:APAGE:21TYPE:+NAT: AACSB ReflectiveAICPA ResearchA19.Refer to Fact Pattern 1-A1. The opinion joined by the four justices who favor Power isknown asa.a concurring opinion.b.a dissenting opinion.c.a majority opinion.d.aper curiamopinion.ANSWER:BPAGE:21TYPE:+NAT: AACSB ReflectiveAICPA ResearchA20.At a prison in Ohio, inmate Steve recruits other inmates to play Towers & Trolls, apotentially violent, fantasy, role-playing game. Ryan, the prison’s warden, confiscatesthe game materials and bans its play at the prison. Under the principles discussed in“A Sample Court Case,”Singer v. Raemisch, Ryan most likely acteda.in violation of Steve’s rights under the First Amendment.b.reasonably in taking the game materials but not in banning its play.c.reasonably in banning the game but not in taking the materials.d.reasonably in the circumstances and under the law.ANSWER:DPAGE:26TYPE:NNAT: AACSB ReflectiveAICPA ResearchESSAYQUESTIONSA1.Americans with a Better Cause (ABC), a nonprofit organization, files a suit against theU.S. Department of Justice (DOJ), claiming that a certain federal statute the DOJ is

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14TEST BANK AUNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.empoweredtoenforceconflictswiththeU.S.Constitutionandwithastateconstitution. In each situation, which source of law has priority?ANSWER:The U.S. Constitution is the supreme law of the land. A law in violationof the Constitution, no matter what its source, will be declared unconstitutional andwill not be enforced. Thus, the federal statute does not have priority over theConstitution. The federal statute would have priority over the state constitution,however, because under the U.S. Constitution, when there is a conflict between afederal law and a state law, the state law is rendered invalid.PAGE:4TYPE:=NAT: AACSB ReflectiveAICPA Decision ModelingA2.Blizzard Entertainment, Inc., one of the owners of the World of Warcraft (WoW)computer game, is involved in a lawsuit with MDY Industries, LLC, the owner of Glider,a software program that plays WoW for its players while they are away from theirkeyboards. Blizzard asks the court to direct MDY to stop selling and distributing Glider.The court’s opinion in the case is atMDY Industries, LLC v. Blizzard Entertainment, Inc.,616 F.Supp.2d 958 (D.Ariz. 2010). What is the name for the remedy that Blizzard isseeking? What type of remedy is it? What court decided this case? Specifically wherecan the court’s opinion be found?ANSWER:The remedy that Blizzard asks the court to provide is an injunctiondefined as an order to do or to refrain from doing a particular act. An injunction is anequitable remedy. The U.S. District Court for the District of Arizona decided this casein 2009. The opinion of the court in this caseMDY Industries, LLC v. BlizzardEntertainment, Inc.,616 F.Supp.2d 958 (D.Ariz. 2010)can be found in its entirety involume 616 of theFederal Supplement,Second Series, on page 958. The case wasdecided by the U.S. District Court for the District of Arizona in 2010.PAGES:16 & 1819TYPE:NNAT: AACSB ReflectiveAICPA Research

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59© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, orposted to a publicly accessible website, in whole or in part.Appendix A for Unit OneQuestionson the FeaturesN.B.:TYPEindicates that a question is new, modified, or unchanged, as follows.NAquestionnewto this edition of the Test Bank.+A questionmodifiedfrom the previous edition of the Test Bank.=A questionincludedin the previous edition of the Test Bank.CHAPTER1SHIFTING LEGAL PRIORITES FOR BUSINESS:SUSTAINABILITY AND THE LAWA1.Sustainabilityeconomic development that meets the needs of the present withoutcompromising the ability of future generations to meet their needsis directlyaddressed bya.no U.S. statute or other nation’s law.b.U.S. federal environmental laws.c.other nations’ laws but no U.S. statute.d.international law only.ANSWER:BPAGE:6TYPE:NNAT:AACSB ReflectiveAICPA Legal
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