Introduction to Law
Exam Answer Key
Course Introduction
Introduction to Law provides students with a foundational understanding of the legal system and its role in society. The course explores core legal concepts, sources of law, and the structure and functions of courts and other legal institutions. Students will examine the basic principles of constitutional, civil, and criminal law, as well as the processes of legal reasoning and analysis. Through case studies and current events, the course encourages critical thinking about justice, rights, and responsibilities in contemporary society, preparing students for further legal studies or informed citizenship.
Recommended Textbook
The Legal and Regulatory Environment of Business 16th Edition by O. Lee Reed
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Page 2
Chapter 1: Law As a Foundation for Business
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Q1) Louisiana is the only state in the U.S. that follows a partial civil law system due to Louisiana's historical ties with France, a civil law nation.
A)True
B)False
Answer: True
Q2) In addition to compensatory damages, breach-of-contract cases may award punitive damages, when the breaching party knew or had reason to know that special circumstances existed that would cause the other party to suffer additional losses if the contract were breached.
A)True
B)False
Answer: False
Q3) What are opinions, precedents and citations?
Answer: When judges, especially judges who decide appeals from trial courts, make decisions on legal issues, they write their decisions, or opinions, setting out reasons. These case opinions are collected and published in book volumes known as "reporters," and these opinions now become precedents for future cases involving similar facts and legal issues. To locate prior precedents, it is helpful to know the citation for the case where a precedent is found.
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Page 3
Chapter 2: The Role of Ethics in Decision Making
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Q1) Federal law reduces criminal penalties for companies that take steps to control their ethical conduct.
A)True
B)False
Answer: True
Q2) Opponents of the Civil Rights Act of 1964, in an attempt to prevent its passing, inserted a prohibition against _____ discrimination in employment, thinking that such discrimination was acceptable and that many others agreed with them.
A) age
B) religious
C) sex
D) race
E) ethnic Answer: C
Q3) Courts often use a balancing test when examining whether a party acted with due care in negligence cases.
A)True
B)False
Answer: True
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Page 4
Chapter 3: The Court System
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Q1) Discuss your opinion about the Citizens United case. Thoroughly discuss the legal issues decided, the reasons given for the majority opinion, and whether you agree or disagree with the majority.
Answer: Student answers will vary but should involve discussions on the justifications of First Amendment freedoms as they pertain to the political process. Further, the students should discuss the concepts covered in the chapter regarding the power of the judiciary to overturn precedent and alter legislative decisions from the bench.
Q2) The U.S. Constitution does not specify the size of juries required in civil and criminal trials.
A)True
B)False
Answer: True
Q3) Activist courts tend to be more result conscious and to place less reliance on precedent.
A)True
B)False Answer: True
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Page 5
Chapter 4: Litigation
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Q1) If bias is admitted, a juror is struck from the jury with a:
A) peremptory challenge.
B) challenge for cause.
C) motion for a directed verdict.
D) motion to compel.
E) res judicata.
Q2) How does the process of jury selection affect the progress and outcome of a trial?
Q3) In addition to proving a case or controversy, what must the plaintiff prove to have standing to sue?
A) Power of attorney
B) A personal stake in the resolution
C) At least $100,000 in damages
D) Gross negligence
E) Pain and suffering
Q4) A judgment notwithstanding the verdict is generally a pretrial motion.
A)True
B)False
Q5) In your opinion, would the American court system be better off if it eliminated the use of peremptory challenges?
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Chapter 5: Alternative Dispute Resolution
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Q1) In order for a federal court to assume that parties did not intend to arbitrate, a court must believe with positive assurance that the parties did not intend to include the particular dispute in the arbitration clause.
A)True
B)False
Q2) What functions do experts serve in an arbitration?
Q3) Mediators are similar to arbitrators in that:
A) they can impose binding decisions on the parties.
B) they must be qualified and trained to practice.
C) their decisions can be imposed in a court of law.
D) they operate in cases of federal rather than local importance.
E) they must be disinterested third parties.
Q4) Generally an arbitrator's award does not need to set forth findings of fact, conclusions of law, or the reasons for an award.
A)True
B)False
Q5) Discuss the importance of arbitration for labor relations disputes.
Q6) What impact has the Federal Arbitration Act had on how the courts view arbitration?
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Chapter 6: The Constitution
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Q1) When may a state law limit picketing?
Q2) Mention the main purpose of the Fourteenth Amendment. List the three important clauses of the Fourteenth Amendment.
Q3) Which of the following is true about commercial speech?
A) It is not protected by the First Amendment.
B) Corporations have First Amendment rights in the political speech arena.
C) The public interests served by freedom of expression protect the listener but not the speaker.
D) Freedom of speech for corporations is as extensive as the right of an individual.
E) Corporations are not protected and do not have the right to free speech.
Q4) The _____ test is used if the classification involves either a suspect class or a fundamental constitutional right.
A) minimum rationality
B) quasi-scrutiny
C) rational basis
D) intermediate scrutiny
E) strict scrutiny
Q5) Explain the aspects of the freedom of the press.
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Chapter 7: The Property System
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Q1) A(n) _____ lien arises when someone contributes materials and/or services to real estate, usually a building, and is not paid.
A) general
B) chattel
C) surety
D) mechanic's
E) assayer's
Q2) Generally, mortgages and deeds of trust must be registered in a recording office in the county where the land is located.
A)True
B)False
Q3) If foreclosure and auction does not produce enough money to satisfy the debt owed by the mortgagor, the creditor-mortgagee can still sue the debtor for the balance owed, called a "remainder."
A)True
B)False
Q4) Easements by prescription pertain only to land around hospitals.
A)True
B)False
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Chapter 8: Contract Formation
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Q1) What is a novation?
Q2) An important exception to the rule requiring consideration to support a promise is the doctrine of _____. This doctrine arises when a promisee justifiably relies on a promisor's promise to his or her economic injury.
A) firm offer
B) consideration
C) termination
D) promissory estoppel
E) accord and satisfaction
Q3) A deposited acceptance creates a binding contract even if there is a revocation in the mail.
A)True
B)False
Q4) Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.
Q5) Explain the mailbox rule.
Q6) What are the five essential elements of a valid contract?
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Chapter 9: Contractual Performance and Breach
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Q1) Shareholders of corporations and members of LLCs are protected from tort liability that exceeds the amount of their investment.
A)True
B)False
Q2) Homer hired Bob Builders Pvt. Ltd to construct his house. They signed a contract, which stated that Bob Builders wouldill complete the work by April 4th 2012, and Homer wouldill pay them in full. Homer has the right to deny them payments if they miss the date.
A)True
B)False
Q3) Kent and Turner get into an argument over the money Turner had loaned Kent. They decide to allow Erika, their friend and a professor, to make a decision. Turner and Kent agree to abide by whatever decision Erika makes. This is an example of _____.
A) a negotiated settlement
B) compensatory damage
C) arbitration
D) specific performance
E) a rescission
Q4) Discuss substantial performance?
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Chapter 10: Torts Affecting Business
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Q1) The negligence of professionals is called malpractice.
A)True
B)False
Q2) Negligence takes place when one who has a duty to act reasonably acts carelessly and causes injury to another.
A)True
B)False
Q3) A statute of _____ specifies a period of time following a product sale after which a plaintiff would lose their right to bring a law suit for product related injuries.
A) repose
B) repast
C) repentance
D) reproach
E) reform
Q4) When are punitive damages applicable?
Q5) Name and explain the three main categories of torts.
Q6) What must the plaintiff prove in a negligence case?
Q7) When does a strict products liability arise?
Q8) Explain willful and wanton negligence.
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Chapter 11: Intellectual Property
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Q1) Discuss the developments internationally to protect intellectual property rights.
Q2) _____ refers to the ability of an invention to produce surprising or unexpected results; that is, results not anticipated by prior art.
A) Subject matter
B) Nonobviousness
C) Patent litigation
D) Utility
E) Obviousness
Q3) The alphabetic arrangement of names in a telephone directory's white pages meets meet the necessary criteria to warrant a copyright.
A)True
B)False
Q4) To qualify as a trade secret, the knowledge protected must have economic value.
A)True
B)False
Q5) It has been estimated that intangible assets represents a significant portion of the total assets of many large U.S. companies. Name some of the different intangible assets that businesses might possess.
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Page 13
Chapter 12: International Law
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Q1) International law is generally classified as either public or private international law. Compare and contrast these two types.
Q2) Which of the following statements is true of sources of international law?
A) Public international law examines relationships between businesses.
B) Public international law uses rules that are binding on all countries in the international community.
C) Private international law examines relationships created by private individuals.
D) Private international law utilizes U.S. law to resolve international business disputes.
E) Public international law examines the relationships between different populations.
Q3) The CISG applies to contracts for the commercial sale of goods (consumer sales for personal, family, or household use are excluded) between parties whose businesses are located in different nations.
A)True
B)False
Q4) Discuss the Agreement on Trade-Related Aspects of Intellectual Property Rights.
Q5) Discuss the International Court of Justice in brief.
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Chapter 13: Criminal Law and Business
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Q1) A person can be charged with conspiracy even if the individual becomes involved after the conspiracy is stopped and the criminal conduct does not occur.
A)True
B)False
Q2) Discuss the most common forms of identity thefts.
Q3) Discuss good faith as a defense to accusations of fraud.
Q4) Any person, including the debtor, in possession of property belonging to the estate of a debtor in bankruptcy is guilty of _____ if he or she conceals the property from the person charged with control of the property in the bankruptcy proceeding.
A) a misdemeanor
B) counterfeiting
C) a felony
D) conspiracy
E) larceny
Q5) What is the different between grand jury and petit jury?
Q6) Discuss intent as an important element in criminal laws.
Q7) What must be shown to prove a conspiracy?
Q8) Discuss the provisions of fraud under the U.S. Code.
Q9) What are accessories before a crime and accessories after a fact?
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Chapter 14: Business Organizations
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Q1) Jonathan wants to start a business. Which form of business organization will give him the most complete and exclusive control over business decisions?
A) Sole proprietorship
B) Partnership
C) Corporation
D) S corporation
E) Limited liability company
Q2) The crucial issue with the continuity factor of a business's organizational form is:
A) management style.
B) profit distribution.
C) the method by which the business can be dissolved.
D) the method of customer service observed.
E) the control exercised by managers.
Q3) Which of the following qualifies a sole proprietorship?
A) Owned by one person
B) Owned by one family
C) Has only one location
D) Activities in only one state
E) Has only one activity
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Page 16
Chapter 15: The Regulatory Process
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Q1) The procedures developed by administrative agencies are less formal than judicial procedures.
A)True
B)False
Q2) How broad is the power of Congress over commerce?
Q3) To what extent do the federal and state governments have power to regulate foreign commerce?
Q4) The Commerce Clause gives rise to the federal government's power to regulate business activity.
A)True
B)False
Q5) The dormant commerce clause concept:
A) is the term used to refer to the police powers being limitless.
B) does not allow the state regulation to violate commerce clause.
C) refers to the exclusive Congressional authorization on a matter of trade.
D) comes into focus when the state is acting in the business.
E) permits the state regulation to be arbitrary.
Q6) What are the basic functions of administrative agencies?
Q7) Explain the difference between the two doctrines that guide courts in the judicial review of agency adjudications.
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Chapter 16: Regulating Competition_Antitrust Laws
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Q1) What is the Noerr-Pennington doctrine?
Q2) What is required to prove a conspiracy to monopolize?
Q3) A merger in which the companies neither compete nor are related as a customer or supplier is called a:
A) product market extension merger.
B) vertical merger.
C) horizontal merger.
D) conglomerate merger.
E) geographic market extension merger.
Q4) Horizontal price fixing occurs when manufacturers attempt to set the ultimate retail price for their products.
A)True
B)False
Q5) What are franchise contracts?
Q6) What necessitated the Robinson-Patman amendment to the Clayton Act?
Q7) Violations of the original Clayton Act were crimes, and the act contained sanctions for forfeiture of property.
A)True
B)False
18
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Chapter 17: Financial and Securities Regulations
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Q1) A tipster is a person who learns of nonpublic information from an insider.
A)True
B)False
Q2) Explain the concept of fraud under Section 10(b) of the Securities Exchange Act of 1934.
Q3) What are the three different forms of registration that apply to a state's application of blue sky laws?
Q4) Restatements of financial reports have risen in number as a result of Sarbanes-Oxley because companies have made efforts to maintain appropriate compliance with the law.
A)True
B)False
Q5) The Securities Exchange Act makes it illegal to sell a security on a national exchange unless a registration is effective for the security.
A)True
B)False
Q6) The law prohibits the sale of worthless securities.
A)True
B)False
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Chapter 18: Privacy and Consumer Protection
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Q1) Which of the following regulates the consumer credit reporting industry?
A) The Equal Credit Opportunity Act
B) The Fair Credit Reporting Act
C) The Truth-in-Lending Act
D) The Fair Debt Collection Practices Act
E) The Uniform Consumer Leases Act
Q2) Under bankruptcy laws, certain creditors receive priority over others in the distribution of a debtor's assets.
A)True
B)False
Q3) The regulatory center for federal consumer protection is the:
A) United States Consumer Product Safety Commission.
B) Bureau of Consumer Protection.
C) Federal Consumer Protection Agency.
D) Bureau of Consumer Trade.
E) Department of Consumer Affairs.
Q4) What is the essential difference between a Chapter 7 and a Chapter 13 bankruptcy?
Q5) Explain the concept of corrective advertising.
Q6) What are the five powers granted to a trustee in bankruptcy?
Page 20
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Chapter 19: Environmental Regulation and Resource Sustainability
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Q1) The destruction of the world's rainforests is occurring primarily on privately owned land because it is more difficult to enforce the laws in private property ownership cases.
A)True
B)False
Q2) What problem does the Kyoto Protocol address and what conclusions were reached?
Q3) A defendant is liable for _____ if, without right, he/she intentionally enters land in possession of another or causes something to do so.
A) strict liability
B) negligence
C) trespass
D) private nuisance
E) public nuisance
Q4) Mandy sees a watermelon in Mrs. Brown's garden and immediately wants it. In order to get the watermelon, she crosses Mrs. Brown's yard without her permission. Under tort law, which action can be brought against Mandy?
Q5) Describe the Clean Water Act sequence for cleanup of industrial wastes discharged into rivers and streams.
Q6) What is the technology-forcing aspect of the Clean Air Act?
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Chapter 20: Discrimination in Employment
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Q1) What do the final regulations published by EEOC, while implementing Title II of Genetic Information Nondiscrimination Act (GINA), intend to do?
Q2) Stella is an automobile engineer and she works in one of the plants of an automobile giant. The women in the plant are routinely fondled, verbally abused, and subjected to obscene jokes, behavior, and graffiti. Stella is denied promotion when she refuses to grant sexual favors. She makes a complaint against such behavior. The company defends itself by saying that the behavior of the male workers is normal and that Stella is simply overreacting. Does Stella have any legal recourse in such a situation?
Q3) The Health Insurance Portability and Accountability Act (HIPAA) applies to individuals who purchase individual health insurance.
A)True
B)False
Q4) State antidiscrimination laws cannot protect categories of persons not stipulated by federal law.
A)True
B)False
Q5) What are the types of employer action in which discrimination is prohibited?
Q6) What is the difference between affirmative action and the setting of quotas?
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Chapter 21: Employment Laws
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Q1) Which of the following acts is directed at protecting employees' health care?
A) COBRA
B) FMLA
C) FLSA
D) ERISA
E) WARN
Q2) Liability of the employer exists regardless of lack of negligence or fault, provided the necessary association between the injuries and the business of the employer is present.
A)True
B)False
Q3) New York police officers Brad Williams and Michael Durant volunteered to participate in the Iraq War as part of the National Guard soldiers. Upon their return home from war, the City overlooked the officers' heroism and sacrifice by denying them the annual leave, seniority, and pay-steps they would have otherwise accrued but for their devoted service in the armed forces. Do the officers have the right to sue the City of New York?
Q4) The right to receive a WARN notice excludes part-time workers.
A)True
B)False
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Chapter 22: Labor-Management Relationship
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Q1) The Landrum-Griffin Act prohibits:
A) secondary boycotts.
B) strikes.
C) lockouts.
D) yellow-dog contracts.
E) whistleblowing.
Q2) An employer may legally permit a union to use their telephones and copy machines as long as they do not charge the union a fee.
A)True
B)False
Q3) One reason for the relative strength enjoyed by management was the fact that it argued that employees acting together were restraining trade illegally under the
A) Taft-Harley Act
B) Wagner Act
C) Norris-LaGuardia Act
D) Clayton Act
E) Sherman Act
Q4) What is meant by the term, "unfair labor practices"?
Q5) Mention the personnel who are exempt from the NLRB'S authority?
Page 24
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