Business Law 1, Lesson 1

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1. Marney sued Chuck for sexual harassment. The jury awarded Marney $1 million. If Chuck thinks the award is unfair, he may file
A. for relief in the trial court.
B. an appeal in the appropriate appellate court.
C. an appeal in the United States Supreme Court.
D. an appeal with an administrative agency.

2. In which of the following scenarios could a federal court exercise jurisdiction over the case?
A. Joe, a citizen of Texas, files suit against Deb, also a citizen of Texas, for unspecified damages resulting from his wrongful termination, based upon stat law.
B. Alice, a citizen of Missouri, files suit against Bob, a citizen of California. For damages of $10,000 resulting from a car accident.
C. Kellen, a citizen of Georgia, files suit against Justin, also a citizen of Georgia, for damages of $80,000 resulting from a car accident.
D. Jamal, a citizen of New York, files suit against Hillary, a citizen of Pennsylvania, for damages of $80,000 resulting from Jamal’s wrongful termination, based upon state law.

3. Which of the following serves as the most significant source of law in the American legal system?
A. Federal statutes C. The United States Constitution\
B. Administrative regulations D. Case law

4. Jane notices that the sole clerk in a convenience store has left the building to take a cigarette break. Jane decides against taking a candy bar from the store because she has always believed that stealing is wrong. Jane’s decision would be classified as
A. duty-based ethics. C. utilitarianism.
B. outcome-based ethics. D. cost-benefit analysis.

5. Which of the following disputes would be considered a good candidate for online dispute resolution?
A. Britney Spears discovers, to her dismay, that Jose previously registered for the domain name Britney.com.
B. Monica purchases a shirt from Eddie’s, a store in a local mall, which also has a Web site called Eddies.com. The shirt unravels after one wash, and the store refuses to refund Monica’s money.
C. Ricky Marks agrees to endorse a new product, Handsome Hunk aftershave, on television and radio ads. Marks discovers, to his disbelief, that the aftershave smells like oranges, which he detests. Marks refuses to endorse the product.
D. Sally agrees to accept a freelance writing assignment for Harry Publishing. According to the agreement, Sally is to submit all of her work through e-mail. However, Sally thinks e-mail is overrated and refuses to submit her work by any means other than conventional mail.

6. Hillary sues Mona for damages for what Hillary alleges was her wrongful termination. As what type of law would Hillary’s suit against Mona be classified?
A. National law C. Criminal law
B. International law D. Civil law

7. Which of the following is a true statement about bribery of foreign officials?
A. If the purpose of payment is to get the official to act in his or her official capacity to provide a business opportunity, bribery of foreign government officials is prohibited.
B. Bribery of minor officials is prohibited, even if the payments would hasten an administrative process.
C. Even if bribery of minor officials in the United States is lawful within a foreign country, it is illegal for U.S. companies to participate in the corrupt process.
D. Officers or directors who violate the Foreign Corrupt Practices Act may be fined up to $200 million and imprisoned for up to twenty years. The company, though, may pay the fine for the officer or director.

8. ABC Corp. develops a soda named Caroline Cola. The sodas are to be canned with labels that feature a picture of a famous actress, Carol Burnett. State authorities refused to grant ABC Corp. the authority it needed to market the sodas. This issue should focus primarily on which amendment to the United States Constitution?
A. Fifth Amendment C. Seventh Amendment
B. First Amendment D. Ninth Amendment

9. In which of the following types of cases would courts make decisions based on a “reasonable consumer”standard?
A. Price gouging C. Deceptive advertising
B. Product liability D. Employment discrimination

10. McDougal’s Restaurant possesses trademark rights to its name. McDougal’s Larry registered the Internet domain name, McDougals.com, to sell his 100% nonbeef food products. McDougal’s wants Larry to stop using its name, but doesn’t want a lengthy court battle. McDougal’s may
A. submit a complaint to an ICANN-approved dispute-resolution provider..
B. file an appeal with the appropriate appellate court.
C. file for relief with the United States Supreme Court.
D. contact the district attorney.

11. Which of the following illustrates an issue that could be settled by online dispute resolution?
A. A product liability suit against an automobile manufacturer
B. A lawsuit for sexual harassment filed against an Internet company and one of its executives
C. A suit against Walport Discount Stores (which also owns an Internet site called walport.com) regarding a product purchased at a store located in New Jersey
D. A trademark infringement case based upon a dispute regarding a domain name dispute

12. Which of the following situations presents a case over which a federal court may exercise federal jurisdiction?
A. A suit filed by Ally against the city of Boston alleging that a city ordinance restricts her constitutional right to free speech
B. A sit by Joe, a citizen of Tennessee, against Bill, a citizen of New York, seeking damages of $60,000 for intentional infliction of emotional distress
C. A suit filed by Nicole, a citizen of California, against Bob, also a citizen of California , for alimony and child support
D. A suit filed by Company A, a Delaware corporation, against Company B, a South Dakota corporation, alleging that Company B wrongfully interfered with Company A’s contract with one of its employees.

13. Sara isn’t pleased with the quality of a computer she purchased from Byte Computers over the Internet. Byte Computers refuses to refund Sara’s money. If the parties agree to online dispute resolution, the online forum will probably apply
A. the law of the state where Sara lives.
B. universal legal principles.
C. proposed Internet law.
D. the law of the state in which Byte is incorporated.

14. Company A just finished investing millions of dollars in a new product, which should make the company lots of money. Shortly before the product arrives in stores, the company discovers the product may not meet federal guidelines regarding the amount of testing required for the product. Which of the following questions might the product fail?
A. Is the action profitable? C. Is the action ethical?
B. Is the action legal? D. Is the action reasonable?





15. The only way Company A can afford to develop a drug that will cure cancer is to test the drug on a small group of individuals who have cancer. A small risk exists that the experimental drug could actually worsen the cancer in the individuals taking the drug. The company determines that because society as a whole will reap the benefits, it should test the drug on the individuals. Of course, the company explains the risks to the tested individuals. The rationalization engaged in by the company would best be described as
A. duty-based ethics. C. the principle of rights.
B. the Kantian philosophy. D. outcome-based ethics.

16. In which of the following disputes might state law compel arbitration?
A. A school district teachers’ strike
B. A loss of cargo at sea
C. An interstate truckers’ strike
D. An online commerce dispute.

17. Company A owns 1,000 acres of timberland in California. The United States government contacts Company A and informs the company the government needs the timber owned by Company A to build shelters for the homeless. The government informs the company it will be paid $100 for the timber on the land it owns. Which of the following constitutional amendments has the government likely violated?
A. Seventh Amendment C. Ninth Amendment
B. Fifth Amendment D. First Amendment

18. Shannon wants to sue Spelling Industries for her alleged wrongful termination. Shannon should file
A. suit in the appropriate trial court
B. an appeal in the appropriate appellate court
C. suit in the United States Supreme Court
D. suit in the United States Court of Appeals.

19. Marc and Ricky have been involved in an ongoing argument, in which Marc alleges that Ricky stole a song written by Marc, and that Ricky made millions after recording the song. Marc threatens to file suit. However, after he and Ricky meet on several occasions, Ricky agrees to pay Marc $500,000 and to show Marc some of his famous dance moves if Marc agrees not to file suit. Marc eagerly agrees. Marc and Ricky resolved their dispute through
A. mediation. C. negotiation.
B. binding arbitration. D. nonbinding arbitration.

20. Which of the following disputes could be properly resolved by online dispute resolution?
A. A dispute regarding the quality of a computer purchased over the Internet
B. A dispute regarding the quality of an electric razor purchased from a Walport store located in Jacksonville, Florida
C. A dispute between Company A and Company B, Internet companies, where Company A claims Company B stole its program that increases Internet access speed for home computer users
D. Susie files suit against Old Town Clothes due to allegedly defective lowrider jeans. Susie purchased her lowrider jeans at an Old Town Clothes store located in Orlando, Florida. However, the same jeans are available on the Web site OldTownClothes.com

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