It is good practice to include in a contract which state's laws will govern disputes that arise under the contract.
It is a violation of the separation of powers doctrine for state A to adopt the exact same laws as state B
A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than the general provisions.
I deciding a case, a court will not use common law if there is a statute that applies to the dispute.
Tort law is a subset of private law that seeks to compensate the injured party for the loss caused by the actions of another
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.
Codes of Ethical Conduct adopted by businesses and professions often provide for sanctions against individuals who violate the code.
In complex litigation involving the laws of several states, the state whose law will be used is determined by reference to:
Conflict of Laws
The Uniform Commercial Code (UCC) consists of identical statutes enacted by the states to provide businesses with consistent and predictable laws.
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 law has the status of an:
Congress passed the soldiers and sailors relief act of 1940 and President Roosevelt signed it into law. This Act has the status of a:
The Executive, Legislative, and Judicial branches of the federal government all have their own unique duties and functions. This arrangement constitutes what type of seperation of powers?
The federal government and state governments have separate and distinct powers. This contitutes what type of separation of powers?
stand by the decision
Federal law requires that employers with 15 or more employees take steps to "reasonably accomodate" the religious needs and practices of their employees.A law such as this one that gives rights and imposes duties is an example of what type of law?
Supreme court case that created the doctrine of judicial review
Marbury v. Madison
Under what doctrine are both parties bound to the decision in a law suit so that neither can re-litigate the case?
Justices serve on final reviewing courts while judges serve on trial and intermediate court levels.
It is unconstitutional to conduct a trial with a jury of fewer than 12 jurors.
Each state must have at least 2 federal district courts, one to hear federal questions and one to hear diversity cases
Scooter was indicted for a federal crime. He can only be tried in a federal district court.
For diversity of citizenship jurisdiction, each plaintiff must have suffered over $100,000 in damages
In a diversity case, the federal court will use the substantive law of the state in which it is located.
A person who violates a decree from a court of equity can be jailed for contempt of court.
The number of Supreme Court justices who must agree to accept a case is 5.
Which of the following is NOT a power of the courts?
To create administrative agencies
An indictment is
a grand jury's finding that there is sufficient evidence to bring someone accused of a crime to trial.
Federal district courts are the only trial courts that can hear cases involving
The function of the grand jury is to
determine if there is sufficient evidence to bring someone accused of a crime to trial.
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?
Federal District Court in Maryland
In deciding which cases it will hear, the United States Supreme Court
Has virtually total discretion to decide which cases it will hear.
The number of U.S. Supreme Court justices who must vote to hear a case is
The jurist who presides over an equitable proceeding is called the
The need to go to different courts for legal and equitable remedies can be traced to
The early English court system.
In deciding a case brought in equity, a court would draw upon which of the following sources of law?
In deciding a case brought in equity, a court would draw upon which of the following sources of law?
The state in which it is incorporated and
The state in which it has its principal place of business
A plaintiff must have minimum contacts with a state in order to file suit there.
Peremptory challenges (or strikes) may not be based on race or gender.
A major purpose of discovery is to encourage the parties to settle the case without going to trial.
The party who loses at trial and brings an appeal is called the appellee.
The written questions that parties to a suit send each other that are answered in writing under oath are interrogatories.
Plaintiff's attorney in a personal injury case has a legal duty to tell the jury whether or not the defendant has insurance.
"Clear and convincing evidence" is the easiest level of proof for a party with the burden of proof to meet.
The party who files a civil suit at law is called the_____________.
The document issued by a court directing a defendant to appear in court in response to a suit filed against him is a(n)_______________.
In the appeals process, the document submitted by each side arguing the points of law that support its claim that the verdict should (or should not) be overturned is a(n) _____________________.
Judge Roe rendered a verdict for the defendant before trial. It was a suit for breach of contract, and the judge used the complaint and answer, the contract, and sworn affidavits to determine that there were no facts in dispute to put before a jury. For which of the following did Judge Roe grant a motion?
At the end of the trial, the judge will tell the jury the law that applies to the case and which issues they must decide. This is known as jury________________.
The first of the pleadings in a civil case is filed by the plaintiff and contains the allegations he is making against the defendant. This document is called the_________.
Mark is suing Al for alienation of affection, claiming that Al stole his fiancée, Amy. His state no longer recognizes alienation of affection as an issue that can be litigated. Which motion should Al file in response to this suit?
A motion to dismiss
What is the purpose of the pre-trial conference in a civil case?
Settle a case without having to go to trial
The United Pipefitters Union objects to benefit reductions proposed by Employer. Both sides agree to call in a 3rd party to help them develop points of agreement and compromise. This is an example of mediation.
Business are more and more likely to submit disputes to arbitration because it is less time consuming and costly than litigation.
The general rule is that each party in a law suit pays his own attorneys fees, though the losing party will also have to pay the court costs.
The decisions of mediators are legally binding on the parties to a dispute.
Procedural and evidentiary rules are much less rigid in courts of law than in arbitration proceedings.
Only lawyers or judges can serve as arbitrators.
State law may require that certain disputes be settled by arbitration.
When parties to a dispute work out a solution for themselves without recourse to outside help or the courts, they have resolved the dispute through
The National Mediation and Conciliation Service mediates conflicts involving
State A has a law requiring that all disputes under $15,000 be submitted to arbitration. This is an example of
The decision of an arbitrator or arbitration panel is a(n)________________.
Another term for court-annexed arbitration is
Which of the following issues would the National Mediation and Conciliation Service mediate?
State statutes governing arbitration are generally designed to
Encourage arbitration because it reduces congestion in the courts
Which of the following would be grounds for a court to vacate (overturn) an arbitration award?
There was fraud or corruption in the arbitration hearings
One function of the Constitution is to protect individual rights by limiting the role of government.
When there is a conflict between federal and state law, federal law prevails because of the Supremacy Clause.
It is the exclusive right of the House of Representatives to approve treaties made by the President.
The federal government may regulate any activity that "substantially affects interstate commerce" even if that activity takes place entirely within the borders of the state.
The power of the federal government to completely regulate an activity, to the exclusion of any state regulation, is the power of occlusion.
Arizona cannot have different standards for admitting in-state and out-of-state residents to the practice of medicine because of the Full Faith and Credit Clause.
If a person claimed that a law was denying him employment opportunities based on gender, the Court would review the law under the rational basis test.
A private employer's refusal to give an employee overtime pay would meet the requirements for state action in a suit brought by the employee.
The federal government has exclusive control over all aspects of private and commercial aviation in the United States. This is an example of the federal government's power to _______________an area of regulation.
A state law will be invalid if it conflicts with a federal law because of the ________Clause.
The power of the courts to declare legislation invalid because it violates the Constitution is the power of ___________________.
When both the states and the federal government can regulate an activity they are said to exercise __________________.
The provision in the Constitution that requires that the courts in each state recognize the validity of contracts and court decisions from other states is the _________Clause.
Full Faith and Credit
Which of the following is a provision of the USA Patriot Act designed to protect the right of privacy?
Establishment of a special court to issue warrants for certain types of searches
The dormant commerce refers to
Restrictions on state regulations that burden interstate commerce
The doctrine of substantive due process is designed to address
Violations of fundamental rights, such as voting and interstate travel.
Courts in the United States will not enforce arbitration clauses in international contracts because these clauses are against public policy.
ABC Foods is an American Company doing business in Canada. Canada is considered the host country for ABC Foods.
International law is only binding on countries that agree to be bound by it.
Force majeure clauses are used to enforce anti-boycott laws.
Unlike American judges, judges in countries that follow a civil-law system actively question witnesses during trials.
The United States will generally enforce the court judgments of other countries as long as the judgments do not violate United States public policy.
In an international contract, a term of payment clause should designate the country whose currency will be used for payment.
In international contracts, the country named in the choice of law clause must be the same country as the one named in the choice of forum clause.
It is legal for a host country to require that foreign corporations doing business there be 50 percent owned by citizens of the host company.
International law does not permit host countries to give tax breaks to foreign companies.
Under the Calvo doctrine, foreign companies are entitled to more favorable treatment when industries are nationalized than indigenous companies.
The end-user certification is a requirement in any contract governed by the Convention on International Sale of Goods.
The Foreign Corrupt Practices Act forbids American companies from making personal payments to any official in any country at any level of government.
The federal government can control what goods are imported into the United States but not what goods are exported to foreign countries.
An American company cannot be liable for violating American anti-trust laws if the activity complained of takes place in another country.
What is an IBE?
Any business entity with relationships that transcend national boundaries
Texaco, which is incorporated in Delaware, does business in Portugal, a country that is a member of the European Union. The laws of Portugal to which Texaco is subject are classified as what type of regulations?
Which of the following statements about the civil-law system of justice is false?
Courts rely heavily on the precedents established by earlier cases.
Assume that Royal Foods of Scotland sells its products to an American company, Good Foods, Inc. Title to the goods passes to Good Foods, which then sells them to supermarkets throughout the United States. Good Foods has no relationship with Royal Foods other than the contractual agreement to buy certain of its products. Good Food's relationship to Royal Foods is that of a _______________.
International contracts often contain clauses that excuse parties from performance because events beyond the parties' control, such as acts of God, war, riots, police actions, etc. made performance impossible. These are what type of clauses?
According to the classification system of the United Nations, what is a business whose parent corporation has more than one national identity?
What is the process whereby a government takes control of private property in a way that is legal under international law called?
Assume that Fusswear is a German manufacturer of athletic shoes. In an attempt to gain control of the United States market, it is selling its shoes in the United States for less than it costs to manufacture them. This business practice is known as__________.
If an American company sells goods to a business in a foreign company, which in turn sells the goods to a customer in an unauthorized country, the American company
Can be held criminally and civilly liable for the transaction
By which of the following can a firm be punished, if it violates American anti-boycott laws?
civil penalties, criminal penalties, and loss of foreign tax credits
The Securities and Exchange Commission is responsible for enforcing the provision of the Foreign Corrupt Practices Act that requires that American companies do which of the following?
Keep accurate records so that illegal payments to foreign officials come to light.
During the start-up phase of a business, it is good practice to save on attorney fees by going on line for legal information and documents.
The attorney-client privilege terminates by operation of law when the client dies.
The purpose of the attorney-client privilege is to encourage clients to disclose all pertinent information so that they can receive the best possible legal advice.
Courts may "pierce the veil" of a standard corporation and hold shareholders liable for the debts of the corporation.
Shareholders of an LLC can never be held liable for the debts of the LLC.
One advantage to doing business as a standard corporation is that profits "pass through" to the shareholders and are taxed only at the owner level.
LLC's are taxed at both the entity level and at the owner level.
Owners of trade secrets must make reasonable efforts to maintain the secrecy or the legal protection is lost.
Banks often require, as a condition for loaning money to a start -up enterprise, that the owners assume personal liability for the loan.
Venture capital investment funds can only invest in standard corporations.
Courts will not enforce provisions in contracts that violate public policy.
Agreements not to compete are also known as non-disclosure agreements.
The duty of loyalty is an obligation imposed on employees by law.
No-moonlighting provisions in employment contracts prohibit current employees from operating rival businesses or working for competitors during the term of their employment.
The loan from a bank to a start-up enterprise is an example of equity financing.
Venture capital funds may invest in
ABC, a start-up enterprise organized as a LLC, took out a $250,000 loan with First Bank. First Bank's loan is classified as ___________financing for the business.
Al, Beth, and Cal are wealthy individuals who invested $150,000 each in a start-up LLC. These investments are classified as _________financing for the business.
Communications between a client and an attorney concerning legal matters cannot be used against the client in any legal proceeding because of the _____________.
Individuals who invest in start- up LLC's in order to use the business's losses to offset other taxable income are called________________.
An employee may be required to put the interest of the employer above his or her own because of the common law duty of ______________.
The provision in an employment contract that prohibits current employees from operating side businesses or working for other employers is a (n) _________________.
Another term for a confidentiality agreement is a (n) ______________agreement.
Al, a former key employee at Big Firm, used proprietary and confidential information he had learned while at Big Firm to further his own business. Al may be liable under state law for _______________of trade secrets.
Which of the following statements about LLC's is true?
The profits and losses of LLC's pass through to the owners for tax purposes.
Crimes such as murder and rape, which are recognized as heinous in all civilizations, are examples of malum prohibitum crimes.
The function of the grand jury is to decide the guilt or innocence of a criminal defendant.
The standard of proof for issuing a search warrant is clear and convincing evidence.
It is unconstitutional to imprison someone for petty offenses.
A "no true bill" from a grand jury means that there is insufficient evidence to bring an accused to trial.
A victim of has an incentive to sue under the civil provision of the RICO Act because he will get four times the amount of damages he actually suffered.
Crimes are classified as strict liability crimes when specific intent is required.
In common law, a child under age seven is presumed to lack the mental capacity to form criminal intent.
The Supreme Court has ruled that electronic surveillance violates the Fourth Amendment protections against unreasonable searches and seizures
A corporation need not turn over its internal records in a criminal proceeding because that would violate the corporation's right not to incriminate itself.
Alan was convicted in a criminal trial of assaulting Ben. Ben cannot now sue Alan in tort for personal injuries because Alan is protected against double jeopardy.
Evidence gathered under a defective search warrant may still be used at trial if the police had a good faith belief that the warrant was good.
Embezzlement is an example of a white collar crime.
Ignorance of the law is one of the traditional defenses to criminal liability.
The Fifth Amendment requires a grand jury indictment for any felony charge.
Acts which are wrongful in themselves and prohibited by almost all civilizations are classified as ______________crimes.
malum in se
Behaviors, such as gambling, which become criminal because governments want to discourage them, are classified as ________________crimes.
For crimes that are misdemeanors, the government gives the defendant notice of the charges against him in a(n)_________________.
Which of the following statements about administrative crimes is false?
Administrative crimes cannot be punished by imprisonment
To be found guilty under the RICO act, a person or business must have committed ______RICO crimes within a period of ____________years.
Which of the following statements about criminal intent is false?
The intent to commit a crime is the same thing as the motive for committing a crime.
Owen, the owner of Owen's Bar and Grill, repeatedly warns his bartenders to check ID's and to be on the lookout for fake ID's. Bartender was caught by police serving alcohol is a minor. Despite his many warnings, under which doctrine would Owen be held criminally liable?
The insanity defense that allows someone to avoid criminal liability if the criminal act was the "product of a mental disease or defect" is the _____________rule.
What is the purpose of bail?
insure that the defendant shows up for trial
Which of the following is the standard of proof necessary for issuing a search warrant?
Cruel and unusual punishment and excessive bail is forbidden by the _________Amendment.
Jude willfully and maliciously burned down the store of a competitor by spreading gasoline around it and then throwing an incendiary device. Because he committed the crime of arson, Jude necessarily also committed the lesser crime of attempted arson. In this circumstance attempted arson is what type of offense?
The Supreme Court has ruled that evidence gathered in violation of a defendant's Fourth, Fifth, or Sixth Amendment rights cannot be used at trial. This is called the ______________rule.
The purpose of criminal law is to punish while the purpose of tort law is to compensate the victim.
A wrongful act is either a tort or a crime; it cannot be both.
A construction company that damaged the property of others while blasting would be liable in strict liability.
Some states impose liability on the owner of a car for damages caused by anyone driving the car.
Damages for pain and suffering from a personal injury are classified as non-economic damages and are often difficult to calculate.
Sid and Carrie were found liable in joint and several liability for $200,000 in damages to Nancy's property. This means that the maximum amount of the award that Sid will have to pay is $100,000.
Market share liability imposes liability on all the manufacturers of a defective product based on how much of the market in a particular area each company controlled when the injury occurred.
The measure of damages for conversion is the full value of the goods taken or damaged
The tort of conversion does not apply to intangible property.
Another term for punitive damages is ___________damages.
Money awarded to an accident victim to make up for lost wages would be classified as ______________damages.
Frank bought a diamond ring for his girlfriend from Bill. Bill told him he had given the ring to his fiancée, who returned it when she broke off the engagement. In fact, Bill had stolen the ring at a party. Frank had no reason to know or suspect that the ring was stolen. What is Frank's liability in these circumstances?
Frank has committed conversion.
Coca Cola wants to sue Coda Cola for trademark infringement. Coda soda cans have the same colors and ribbon letters as Coca Cola, and the names are very similar. Which of the following is the test used to determine if Coda's packaging is deceptively similar to Coca Cola's packaging?
Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola?
A common carrier is an insurer of both the goods and the passengers it transports.
The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance.
The famous American case that established that risks and damages have to be foreseeable in negligence cases was Marbury v. Madison.
In contributory fault states, if the plaintiff was responsible for 20 percent of his own injuries, he will still be able to collect the other 80 percent from the negligent defendant.
Assumption of the risk is an element of negligence that must be proved by the plaintiff.
Under the doctrine of privity, the buyer of a defective product would only be able to sue the person he bought it from and not the manufacturer who was responsible for the defect.
The "state of the art" defense is available to any manufacturer in a product liability suit based on strict liability
Which of the following is not an element of negligence that must be proved by a plaintiff?
The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is
Palsgraph v Long Island Railroad Co
The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is
Res ipsa loquitur
Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________.
Pure comparative fault negligence
What is another term for strict liability?
liability without fault
The gift of money in a will is classified as a devise.
The consignor is the party named in a bill of lading as the one to whom the goods are to be delivered.
Leases of personal property, as opposed to leases of land and buildings, are governed by Article 2A of the Uniform Commercial Code.
The gift of real property in a will is a(n)_____________.
If at the end of a life estate the property goes back to the grantor or his heirs, the grantor's interest is called a remainder.
Licenses are temporary rights given to an individual to personally use a piece of land.
Sylvia and Alice were sisters who owned a piece of property as joint tenants. When Sylvia died, her children inherited her share of the property.
Tim borrowed money from Second Bank to buy a home and gave Second Bank a mortgage on the property. Second Bank is the mortgagee.
Doris was the owner in fee simple absolute of a house in Nevada. In her will she gave her husband Ed a right to live in the house until he died. Upon his death, the house would belong to her daughter from an earlier marriage, who would take the property in fee simple absolute. Until Ed dies, what is the daughter's interest in the house?
estate in remainder
Which of the following forms of property ownership is available only to married couples?
tenancy by the entireties
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