Business Law Test 1

Changes are done, please view the flashcard.

Preview Flashcards

True or False? The Supreme Court held that although a state can regulate attorneys, prohibiting lawyers from sending letters to solicit business from potential clients is not constitutional.
Taken together, the Necessary and Proper Clause and the Commerce Clause, provides justification for:
broad Congressional regulation of business
Negotiation is always:

True or False? Before a jury has retired to consider its verdict, either party may ask the court to grant a directed verdict based on the evidence.
True or False? If a party to a negotiation misrepresents the truth of his or her statements, this may lead to a claim of fraud.
True or False? If a business is found to have records in such a mess that the other side of in a lawsuit cannot find documents it wants, the court may punish the messy party or even rule against it in the case.
Amanda is a twenty-four year old student. For two years Amanda has been going to gym and using weight equipment, stationary bicycles, and step machines to improve muscle tone. One spring afternoon Amanda was using a weight machines in the usual way (and the way she was showed how to use it), when the machine malfunctioned causing her serious injury. The company that made the machine, Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem. Reference: Amanda
True or False? One thing that Musclematic will not need to consider if Amanda threatens to sue is the company's goodwill.

If a negotiation is conducted properly:
almost nothing said in negotiation will be usable in a later court case

One key area in which mediation is often used is:

for labor disputes
True or False? A judge has the power to order a party to attend a pre-trial settlement conference, even if the party refuses to settle the case before trial.
True or False? In Skinner v. Railway Labor Executives Assn, the Supreme Court held that all mandatory breath, urine, and blood tests are unconstitutional warrantless searches.
True or False? The Supreme Court has gradually moved more and more to restrict political speech by commercial interests.
True or False? The exclusionary rule that improperly gathered evidence may not be used at trial applies to natural persons, not to artificial entities such as corporations.
True or False? In general, the Supreme Court holds it constitutional for Congress to regulate most every aspect of business.
True or False? The punishments for crimes are determined at the discretion of a court at trial.
The copying of a genuine item without authorization, especially when passed off as the original item is

When a person deals in a security when in possession of non-public information, and they have an obligation not to reveal or use the information it is:
insider trading
True or False? In People v. Salas, where Salas was convicted of selling unregistered securities, the California high court held that since he was ignorant of the requirement to register the securities, he did not have criminal intent needed for conviction.
In Wassell v. Adams the plaintiff was 97% responsible for the attack she suffered in a hotel room when she opened her door for a stranger. As a result, the jury awarded her 3% of an $850,000 verdict, or $25,500. The appeals court held that:
she would recover the three percent properly allocated by the jury
In Republic Tobacco v. North Atlantic Trading, where Republic sued North Atlantic for telling common customers of the two firms that Republic was in trouble for antitrust and trademark problems, the appeals court held that Republic:

had a suit for defamation
While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You:
cannot sue Bob for misrepresentation
Flush-O, a strong toilet bowl cleaner, states clearly on its package that it is poison. Flush-O's cap is easy to remove. A small child opens a bottle left in a bathroom cabinet, drinks some Flush-O, and is injured. If the child's parents sue the makers of Flush-O, Flush-O is likely to:
lose because of failure to warn or design defect

A medical worker was sued by a patient for discussing the patient's medical condition with a mutual friend. The patient most likely sued the medical worker for the tort of:
invasion of property
"Big Red" is a popular car. The dash board is covered with little steel studs. In an accident, Betty, sitting next to her boyfriend and not wearing a seat belt, smashes her face on the dash board. The steel studs make the injuries worse. Her boyfriend is at fault in the accident. Betty sues the maker of "Big Red" for injuries. She is likely to:
win; the manufacturer did not exercise reasonable care to prevent foreseeable dangers

Anna transfers, to her mother Mildred, the right to use Anna's second home so long as Mildred is alive. This is known as:

a life estate

According to the Supreme Court, if a government regulation reduces the value of property, it must compensate the landowner for the loss in value if the loss:
is most of the entire value of the property
The law provides protection to intellectual property owners through which legal action?
Which of the following has the power of eminent domain?
all levels of government

The Federal Circuit Court of Appeals has primary responsibility for reviewing which kinds of cases:

Upgrade and get a lot more done!