Type:
Test Bank
Business Law A Storytelling Resource: Approach Edition:
1st Edition
Author(s):
Michael Frickle
Business Law: A Storytelling Approach, 1e (Fricke) Chapter 1 Sources of Laws 1) Multiple individuals and entities create the laws that govern American businesses. Answer: TRUE Explanation: The United States has shared governance between federal and state authorities. The courts also set out law through case law. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 2) A state law that contradicts the U.S. Constitution is allowed to stand because the states have the right to regulate their own citizens. Answer: FALSE Explanation: The Constitution is the supreme Law of the Land and overrides all lower laws. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 3) A federal treaty has the force of law throughout the states. Answer: TRUE Explanation: Federal treaties are fully binding on the states. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 4) U.S. law is an example of a purely common law system. Answer: FALSE Explanation: The United States blends statutory and common law. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 5) The concept of judicial review, which stems from the case Marbury v. Madison, allows the Supreme Court to provide a check on congressional action, but not executive action. Answer: FALSE Explanation: Judicial review allows the courts to evaluate both legislative and executive action for constitutionality. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge
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6) The federal circuit courts of appeals are each numbered from 1 to 13. Answer: FALSE Explanation: Two of the Circuits are known by name: DC and Federal. Learning Objective: 1.2 Skill: Comprehension AACSB: Application of Knowledge 7) Each state has the same hierarchy of courts from lowest to highest: district court, circuit court, supreme court. Answer: FALSE Explanation: Some states invert some of the layers. In some states the circuit court is the lowest and the district court is in the middle, for example. Learning Objective: 1.2 Skill: Comprehension AACSB: Application of Knowledge 8) The U.S. Supreme Court does not hear every case submitted to it. There is an evaluation process to determine which cases it hears. Answer: TRUE Explanation: There is no automatic right to be heard by the U.S. Supreme Court. Learning Objective: 1.2 Skill: Comprehension AACSB: Application of Knowledge 9) There are more federal district courts than state district courts because more cases are brought with federal jurisdiction than with state jurisdiction. Answer: FALSE Explanation: There are only 94 total federal district courts, but many more state district courts. Learning Objective: 1.2 Skill: Comprehension AACSB: Application of Knowledge 10) The equal protection clause applies to both federal and state courts. Answer: TRUE Explanation: This is provided for in the 14th Amendment to the U.S. Constitution. Learning Objective: 1.2 Skill: Comprehension AACSB: Application of Knowledge 11) In order to sue someone, the court must have jurisdiction over both the parties and the subject matter. Answer: TRUE Explanation: Courts must have both personal and subject matter jurisdiction. Learning Objective: 1.3 Skill: Comprehension AACSB: Application of Knowledge 2 .
12) "Minimum contacts" is a subject matter jurisdiction concept. Answer: FALSE Explanation: Minimum contacts relate to personal jurisdiction. Learning Objective: 1.3 Skill: Comprehension AACSB: Application of Knowledge 13) To have jurisdiction, a court must have jurisdiction over either the parties or the subject matter. Answer: FALSE Explanation: To have jurisdiction, a court must have both personal and subject matter jurisdiction. Learning Objective: 1.3 Skill: Comprehension AACSB: Application of Knowledge 14) There are both courts of general and limited jurisdiction. Answer: TRUE Explanation: Courts of limited jurisdiction hear cases on a specific subject matter, such as traffic or probate. Learning Objective: 1.3 Skill: Comprehension AACSB: Application of Knowledge 15) The statute of limitations always runs from the time the wrongful act was done. Answer: FALSE Explanation: The statute of limitations is tolled in some cases until the wrongful act is discovered. Learning Objective: 1.3 Skill: Comprehension AACSB: Application of Knowledge 16) The concept that the federal and state governments share authority is called: A) Imperialism B) Supremacy C) Federalism D) Stare decisis Answer: C Explanation: The concept of federalism is captured in the U.S. Constitution. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge
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17) The U.S. Constitution provides for specific powers to rest with the U.S. Congress. They are known as: A) Enumerated powers B) Federalism C) Policing powers D) Federated powers Answer: A Explanation: The U.S. Constitution lays out the enumerated powers of Congress in Article I. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 18) The U.S. Constitution specifically describes the executive branch as: A) The president, only B) The president and vice president, only C) The leaders of the administrative agencies D) The president, vice president, and Cabinet Answer: B Explanation: The U.S. Constitution makes no reference to the Cabinet or administrative agencies in Article II. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 19) Which of the following is NOT true regarding treaties? A) A treaty is an agreement between countries. B) The president has the authority to negotiate treaties. C) Treaties are approved by a simple majority of both the House and Senate. D) Treaties are approved by a two-thirds vote in the Senate. Answer: C Explanation: Only the Senate provides advice and consent to the president on treaties. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 20) The vast majority of laws arise from: A) Statutes B) Treaties C) Executive orders D) Administrative rules Answer: A Explanation: Laws are most commonly statutes that have been approved by both houses of Congress and signed by the president. Learning Objective: 1.1 Skill: Comprehension AACSB: Application of Knowledge 4 .