Business Law chp 1-5 True and False

Law and “rule of law” are synonymous terms
False
The first known written set of laws was the code of Hammurabi
True
Rule of law nations adopt laws supporting the private market because it is in everyone’s interest, including the lawmakers’
True
Common property, applies to public resources owned by the government (or state) like roads, public buildings, public lands, and monuments.
False
Contract law compensates owners whose resources are wrongfully harmed by the actions of others
False
The secret to economic prosperity and the wealth of nations lies in the foundation of property law and the legal system to implement it under the rule of law
True
Jurisprudence is the rule of law
False
natural law theory asserts the law contains universal moral principles
True
Sociological jurisprudence emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation
False
Jurisprudence refers to the general body of law interpretations by judges as different from legislation passed by legislators
True
Legal realism is the idea that courts should understand the meaning of the constitution relative to the times in which they interpret it
False
The UK, the US, Canada, Jamaica, India, Nigeria, NZ, and a few other countries – all colonized by England – follow common law
True
Civil law arose n the 11th & 12th centuries as the English monarch appointed royal judges to ride circuits around the English countryside and to resolve disputes in the names of the king (or queen)
False
Louisiana is the only state in the US that follows a partial civil law system due to Louisiana’s historical ties with France, a civil law nation
True
Common law relies more on legislation than judicial decisions to determine what the law is
True
In administrative law, a government official represents society, or “the people,” and the official is responsible for seeking justice to achieve the ends of society
False
Although property law is categorized as one kind of private law; in our legal system, it is at the heart of both public and private law
True
Contract law often but not always requires actual injury to the owner’s resources
False
Legislation passed by the Congress is called a statute or an act
True
The Second Amendment to the Constitution hold that “No State shall… deprive any person of life, liberty or property without due process of law.”
False
Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis.
True
Judges in future Cases are not so likely to follow the dicta in prior cases as they are the holdings.
True
Conflicting precedents when applying the principle of stare decisis do not create confidence in the certainty of law
True
With reference to the hierarchy of sources of law, Case law prevails over local ordinances
False
The 14th Amendment to the Constitution recognizes that the law is enforces by taking a person’s life, freedom, or the resources that he or she owns.
True
Whether it’s stated in the contract or not, when a breach of contract occurs, the injured party will usually recover her attorney fees as part of her compensatory damage
False
The single largest number of lawsuits today, especially in the federal courts, involves one business suing another business for tortious conduct
True
Tort law helps protect property boundaries by providing compensation when someone wrongfully crosses such boundaries
True
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
False
Drake verbally lashes out at his neighbor one evening following a drunken party. He also beats him up when Drake tries to back away from the argument. He is said to have committed a strict liability tort
False
Corporate governance can fail even when corporate managers do nothing illegal.
True
Federal sentencing guidelines reduce criminal fines for legal violations in companies that have taken specific steps to self police ethical/legal conduct (chp 2)
True
Economist Adam Smith believed that humans could not look beyond self interest (chp 2)
False
Growing diversity in the workplace has reduced concerns over ethical values (chp 2)
False
Diverse societies are characterized as societies that have a single, unified system of ethical values that guide behavior (chp 2)
False
Because of the increased influence of the internet and extensive coverage of business in the news media, it has become increasingly difficult for businesses t hide questionable behavior (chp 2)
True
Federal law reduces criminal penalties for companies that take steps to control their ethical conduct (chp 2)
True
Adam Smith, author of “The Wealth of Nations”, denied the existence of any moral element in the human nature that goes beyond self interest (chp 2)
False
It is appropriate for those engaged in international business to assume that all countries have the same ethical and moral values (chp 2)
False
Ultimately, the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior (chp 2)
True
Formalism is primarily a duty based view of ethics that creates moral obligations that one must satisfy in order to be ethical (chp 2)
True
The foundation of John Rawls’s social contract theory is a firm belief that self knowledge and self promotion will create the most just society
False
Businesses working in the international arena find social contract theory especially valuable because it promotes the idea that all parties deserve an equal opportunity for achievement, regardless of the country or system of laws they come from. (chp 2)
True
The social contract theory acknowledges that there are significant social and economic inequalities, but these inequalities should exist solely based upon what a person does, no who a person it. (chp 2)
True
Within a strict utilitarian system of ethics, an action is considered unethical if it is inherently wrong, regardless of the circumstances under which the action is taken (chp 2)
False
Modern business ethics reflects elements of both formalism and consequentialism, but tends to focus more heavily on consequentialism. (chp 2)
True
The protestant ethic proves to be a great influence on modern capitalism, but its focus on absolute moral values was replaces by a focus on wealth and mass consumption (chp 2)
True
A formalist would conclude that a business’s secret monitoring of employees is ethical if the monitoring reveals a significant number of crimes or malfeasance, providing a net good for the business (chp 2)
False
Looking into the initial intentions of parties to a business contract evidences consequentialism (chp 2)
False
It is unlikely that a business or professional organization would look to law or legislation when drawing up an internal code of ethical conduct (chp 2)
False
Courts often use a balancing test when examining whether a party acted with due care in negligence cases (chp 2)
True
The legal requirement of honoring confidentiality contains both formalist and consequentialist ethical values (chp 2)
True
There is no way to create enough rules to cover all possible ethically significant situations, even if they could be identified in advance (chp 2)
True
Ambrose Bierce posited that individuals in large groups such as corporations feel more responsibility and accountability for what happens in the group than they do for what happens in their individual lives (chp 2)
False
Of the world’s 100 largest economies, 49 of them are countries and 51 are companies (chp 2)
True
Profits and business ethics are not contradictory (chp 2)
True
Those who argue that a system of property ownership is ethically moral do so by appealing to strict formalism, arguing that the morality of property rights should be determined on an individual basis (chp 2)
False
A business that does not act ethically severs itself from society, from the good, and ultimately from its own source of support (chp 2)
True
Because property is a legal system created to focus on individual ownership, it contains no issue of morality (chp 2)
False
To harm others’ safety and health, freedom of choice, or liberty of movement is to infringe their right of property. (chp 2)
True
A major concern of those who criticize property is the power over others conveyed by the possession of great capital resources (chp 2)
True
The members of the US Supreme Court are called magistrates (chp 3)
False
In cases tried before a jury, the function of the jury is to decide questions of facts, but the judge still is responsible for deciding questions of the law (chp 3)
True
The judiciary can review the laws passed by the legislative body (chp 3)
True
Many states have rules allowing for juries of less than 12 in civil cases but all states continue to require juries of twelve in criminal matters (chp 3)
False
The results arrived at by the juries of 6 and juries of 12 show quite discernable differences (chp 3)
False
In most states, a jury’s decision must be unanimous (chp 3)
True
The US constitution does not specify the size of juries required in civil and criminal trails. (chp 3)
True
The 6th and 7th Amendments of the US Constitution guarantee the right to a jury trial in civil and criminal cases (chp 3)
True
Jurors are required to give reasons for their decisions (chp 3)
False
The US court system is an adversarial system (chp 3)
True
A lawyer cannot be actively involved in the personal decisions of clients (chp 3)
False
A lawyer’s first duty is to his client (chp 3)
False
A lawyer cannot testify against a client, even if called to do so at a trial (chp 3)
True
The judicial power of the federal courts is defined and limited by the US Constitution (chp 3)
False
All taxpaying American citizens automatically have the right to begin any lawsuit in an court they choose (chp 3)
False
Diversity of citizenship requires that all plaintiffs be citizens of different states from all defendants (chp 3)
True
Congress has created a separate US Court of Appeals for each state (chp 3)
False
When the US Supreme Court reviews petitions for a writ of certiorari, the writ is granted if 4 our of the 9 justices votes to take the case (chp 3)
True
A writ of certiorari is a request from the winner in a case to have the favorables judgement confirmed by a higher court (chp 3)
False
Every citizen must have his or her petition for a writ of certiorari granted by the US Supreme Court by right. (chp 3)
False
Proponents of judicial restraint do not view the role of attorneys and the practice of law as that of social reform (chp 3)
True
The terms judicial restrain and judicial activism are not exclusive to particular judges and many may share aspects of both in their judicial philosophy (chp 3)
True
The philosophy of judicial restraint is sometimes referred to as strict constructionism (chp 3)
True
Those who believe in judicial restrain believe that social, political, and economic change in society should result from the political process rather than from court action (chp 3)
True
Activist courts tend to be more result conscious and to place less reliance on precedent (chp 3)
True
Declaring that seniority has preference over Affirmative Action layoffs is an example of a typical judicial restraint decision (chp 3)
True
The government cannot ban political spending by corporations (chp 3)
True
The person against whom a criminal charge is filed by the prosecution is called the defendant, whereas the person sued in a civil case is called the respondent (chp 4)
False
When a defendant wants to sure the plaintiff, the defendant files a counterclaim (chp 4)
True
If a defendant alleges that there cannot be a complete determination of a controversy without the presence of other parties, he many bring in the new parties who are called third-party defendants (chp 4)
True
An individual may not assert the rights of the general public or of a group of which he or she is not a member as a plaintiff (chp 4)
True
A shareholder of one of the two companies involved in a merger could sue to stop the combination of these companies (chp 4)
True
Standing in a case is determined upon resolution of the case, rather than at the outset (chp 4)
False
The only way to obtain personal jurisdiction over a defendant is to have them served with a summons (chp 4)
False
Personal jurisdiction over the defendant is automatically obtained when the plaintiff files the complaint (chp 4)
False
Statutes that permit service of process beyond the borders of an originating state are referred to as long-arm statutes (chp 4)
True
Due process requires that a defendant must have a certain minimum contacts with a state in order to be hailed into court under a long arm statute (chp 4)
True
At the federal level, the Supreme Court encourages class action suits by consolidating cases and reducing the total caseload burden on the courts (chp 4)
False
In recent years, the federal courts have developed a much higher standard for approving class action settlements (chp 4)
True
Typically, the least expensive method of discovery is to present interrogatories to the opposing parties (chp 4)
True
One method of discovery, called depositions, involves written questions for the opposing parties to answer (chp 4)
False
Discovery procedures are intended to be used freely by the parties to litigation without the court’s direct supervision (chp 4)
True
Each state has prescribed a time limit after which a suit cannot be filed, called a statute of limitations (chp 4)
True
A statute of limitations determines the maximum amount of money that a plaintiff may sue for (chp 4)
False
Evidence in the form of sworn statement is called an affidavit (chp 4)
False
If a lawsuit is filed that is totally lacking in merit, the attorney filing the lawsuit can be fined according to Federal Rule 11 (chp 4)
True
In jury selections, challenges for cause are also called peremptory challenges (chp 4)
False
If one of the potential jurors is the defendant’s brother, the only way for the plaintiff to get the brother off of the jury panel is by using a peremptory challenge (chp 4)
False
Only the defendant may challenge or excuse a prospective juror for a specific cause or reason (chp 4)
False
Peremptory challenges may not be used to shape the gender makeup of a jury (chp 4)
True
The jury should use anything said in the opening statement as evidence when deciding the verdict of the trial (chp 4)
False
Following the closing arguments in a case, the judge acquaints the jury with the law applicable to the case, referred to as the jury instructions (chp 4)
True
The plaintiff in a civil case must prove his beyond a reasonable doubt (chp 4)
False
The verdict is the final decision of the case entered by the judge (chp 4)
False
A judgement notwithstanding the verdict is generally a pretrial motion (chp 4)
False
the party appealing is usally referred to as the appellant (chp 4)
True
Res judicata means that a final decision is conclusive on all issues between the parties, whether raised in the litigation or not. (chp 4)
True
Litigation is the quickest method os dispute resolution (chp 5)
False
A dispute arises when one party makes a claim that another party denies (chp 5)
True
Negotiation is the process used to persuade or coerce someone to do what you want them to do (chp 5)
True
Positional bargaining is an approach based on principled, interest-based negotiations (chp 5)
False
Positional negotiation creates barriers to resolution that may be removed by using principles instead of positions (chp 5)
True
Once a lawsuit has been filed, ADR may not be used until the suit has gone to judgement or has been dismissed (chp 5)
False
A negotiated settlement is generally more expensive and time consuming that litigation (chp 5)
False
Juries often close questions of liability, as well as size of the verdict, against business organizations (chp 5)
True
Focus groups can deliver binding decisions in civil cases (chp 5)
False
To avoid costly public litigation, parties can agree to have a private third party decide the merits of their dispute (chp 5)
True
The arbitrator should be disinterested in any financial impact of the decision (chp 5)
True
The arbitrator is empowered by the parties to reach a binding decision in a voluntary arbitration (chp 5)
True
Normally, the decision to submit a dispute to arbitration is irrevocable (chp 5)
True
If a party is unhappy with the way a private arbitration is going, it may unilaterally close the proceeding and move the dispute to public litigation (chp 5)
False
In most state statutes authorizing voluntary arbitration, the agreement to submit to arbitration may be written or oral (chp 5)
False
Private arbitrators are not permitted to decide on questions of law
False
The arbitrator chooses the issues of the hearing to be resolved (chp 5)
false
An arbitrator must be a lawyer or a judge in good standing in the community where the arbitration is to take place (chp 5)
False
The sole source of qualified expert arbitrators is the American Arbitration Association (chp 5)
False
Each state has its own licensing regulations for arbitrators (chp 5)
False
Generally an arbitrator’s award does not need to set forth findings of fact, conclusions of law, or the reasons for an award (chp 5)
True
The Federal Arbitration Act is largely responsible for the prominent role and positive perception of arbitration clause
True
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 (chp 5)
True
Individual states are not limited by the Constitution when they makes laws that deny arbitration of certain disputes (chp 5)
False
The federal system and all state systems require arbitration hearings to comply with established rules of evidence (chp 5)
False
From the perspective of judicial review, voluntary arbitration is a more effective alternative to litigation than mandatory arbitration (chp 5)
True
Absent fraud or other inappropriate behavior, arbitration awards in voluntary proceedings are not subject to judicial review on the merits of the decision (chp 5)
True
The judicial review of an arbitrator’s award in voluntary proceeding is quite restricted and is more limited than the appellate review of a trial court’s decision (chp 5)
true
If an arbitrator makes a clearly erroneous ruling pursuant to a voluntary contract-based arbitration, there will be sufficient grounds for a judge to set aside the award (chp 5)
False
Mandatory arbitration proceedings are generally subject to a de novo judicial review if a party is dissatisfied with the award (chp 5)
True
The failure of a party to be present at an arbitration hearing constitutes a waiver of the right to reject the award and seek de novo judicial review (chp 5)
True
Statutorily mandated arbitration requires a higher level of judicial review of an award than voluntary arbitration (chp 5)
True
An arbitrator may be considered partial or corrupt by independently investigating a materials matter after the close of hearings without telling either party about the investigation (chp 5)
True
Rules related to court-annexed mediation are federally mandated (chp 5)
False
A mediator cannot impose a binding solution on the parties (chp 5)
True
The court mandates an enforcement mechanism that ensures the parties will mediate in good faith (chp 5)
True