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Full file at http://TestbankCollege.eu/Test-Bank-Business-Law-with-UCC- Applications-12th-Edition-Brown Chapter 02 Sources of the Law True / False Questions 1. (p. 27) A primary objective of law is to maintain harmony, stability and justice within a society. TRUE Difficulty: Easy Learning Objective: 1 2. (p. 27) Law is a complex adaptive system that is constantly changing. TRUE Difficulty: Medium Learning Objective: 1 3. (p. 28) There are no natural complex adaptive systems in the world. FALSE Difficulty: Easy Learning Objective: 2 4. (p. 28) In the U.S. legal system, the United States Supreme Court has absolute authority. FALSE Difficulty: Hard Learning Objective: 2 2-1

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Page 1: Chapter 02 Sources of the Law - testbankcollege.eutestbankcollege.eu/sample/...with-UCC-Applications-12t…  · Web viewChapter 02. Sources of the Law True / False Questions 1. (p

Full file at http://TestbankCollege.eu/Test-Bank-Business-Law-with-UCC-Applications-12th-Edition-Brown

Chapter 02Sources of the Law

 

True / False Questions 

1. (p. 27) A primary objective of law is to maintain harmony, stability and justice within a society. TRUE

 

Difficulty: EasyLearning Objective: 1 

2. (p. 27) Law is a complex adaptive system that is constantly changing. TRUE

 

Difficulty: MediumLearning Objective: 1 

3. (p. 28) There are no natural complex adaptive systems in the world. FALSE

 

Difficulty: EasyLearning Objective: 2 

4. (p. 28) In the U.S. legal system, the United States Supreme Court has absolute authority. FALSE

 

Difficulty: HardLearning Objective: 2 

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5. (p. 29) Levels of influence within a complex adaptive system are called embedded niches. TRUE

 

Difficulty: MediumLearning Objective: 2 

6. (p. 29) State legislation dealing with surrogate parenting contracts is an illustration of the adaptive attribute of the law. TRUE

 

Difficulty: MediumLearning Objective: 2 

7. (p. 29) The law does not have a life of its own. FALSE

 

Difficulty: MediumLearning Objective: 2 

8. (p. 31) The Articles of Confederation created a strong national government. FALSE

 

Difficulty: MediumLearning Objective: 2 

9. (p. 31) The principle of separation of powers divides power between the state and federal government. FALSE

 

Difficulty: MediumLearning Objective: 2 

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10. (p. 32) Article III of the U.S. Constitution gives executive power to the President. FALSE

 

Difficulty: MediumLearning Objective: 3 

11. (p. 32) The amendments to the U.S. Constitution are attempts to fine-tune the Constitution and update its provisions to meet the demands of a changing socioeconomic structure. TRUE

 

Difficulty: MediumLearning Objective: 3 

12. (p. 33) The perennially low voter turnout in the U.S. is an expression of disillusionment with democracy. TRUE

 

Difficulty: EasyLearning Objective: 3 

13. (p. 33) The structure of the U.S. Constitution establishes a republic. TRUE

 

Difficulty: MediumLearning Objective: 3 

14. (p. 34) The Eighth Amendment of the U.S. Constitution guaranteed jury trials in common law cases. FALSE

 

Difficulty: HardLearning Objective: 3 

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15. (p. 35) The devolution of a right destroys the right. FALSE

 

Difficulty: MediumLearning Objective: 4 

16. (p. 36) A code is a compilation of all the statutes of the federal government. TRUE

 

Difficulty: MediumLearning Objective: 5 

17. (p. 37) The job of a drafting committee is to write the actual uniform law, point by point. TRUE

 

Difficulty: MediumLearning Objective: 6 

18. (p. 38) The advent of the Information Age has sparked the need for specific electronic law statutes that address the problems associated with e-commerce. TRUE

 

Difficulty: MediumLearning Objective: 6 

19. (p. 39) Binding precedent is a precedent that a court must follow. TRUE

 

Difficulty: EasyLearning Objective: 8 

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20. (p. 41) Legislators are usually experts in all areas over which they have power. FALSE

 

Difficulty: MediumLearning Objective: 10  

Multiple Choice Questions 

21. (p. 27) It is said that law is often a balancing act because A. Political parties compete for powerB. Individuals require restraint to prevent chaosC. One company's contract rights may be upheld at the expense of another'sD. One company may overcharge consumers

 

Difficulty: MediumLearning Objective: 1 

22. (p. 28-29) Which of the following is not true of a complex adaptive system? A. It reaches a balance where there is no changeB. It has no central controlling actorC. It operates as the result of the interaction of a variety of actorsD. It contains embedded niches

 

Difficulty: EasyLearning Objective: 2 

23. (p. 30) The basic law of a nation or state typically is the A. Common lawB. Power of the chief executiveC. ConstitutionD. Legislation

 

Difficulty: MediumLearning Objective: 2 

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24. (p. 30) The weaknesses of the Articles of Confederation were caused by the A. Pre-industrial economyB. Distrust of dictatorial central governmentsC. Small population that the nation hadD. Competition between states for business

 

Difficulty: EasyLearning Objective: 2 

25. (p. 32) While living in Oregon, Lillian was accused by the state of Idaho of molesting several children while she was working as a social worker in Idaho five years earlier. Lillian could be brought back to Idaho for trial A. Under the Uniform Commercial CodeB. Through persuasive precedentC. Under the Third Amendment to the U.S. ConstitutionD. Under Article IV of the U.S. Constitution

 

Difficulty: HardLearning Objective: 3 

26. (p. 32) Article III of the U.S. Constitution A. Determines that a presidential term of office runs for six yearsB. States that Congress consists of the Senate and the House of RepresentativesC. Provides for trial by jury for crimesD. Establishes the principle of supremacy

 

Difficulty: MediumLearning Objective: 3 

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27. (p. 32) This Article of the U.S. Constitution provides for the original ratification of the Constitution. A. Article IB. Article IIIC. Article VIID. Article V

 

Difficulty: MediumLearning Objective: 3 

28. (p. 33) In terms of democracy, which of the following statements is true? A. There is no competition among political parties to elect representativesB. The government's power to interfere in the rights of the people is totalC. Everyone agrees automatically that democracy is a good thingD. In the long run, all other forms of government are less satisfying than democracy

 

Difficulty: MediumLearning Objective: 3 

29. (p. 34) This comprises the first ten amendments to the United States Constitution. A. Bill of RightsB. Modern AmendmentsC. Articles of ConfederationD. Federal Register

 

Difficulty: MediumLearning Objective: 3 

30. (p. 34) Which of the following Amendments prevents the Congress from voting itself instant pay raises? A. Amendment 24B. Amendment 25C. Amendment 26D. Amendment 27

 

Difficulty: MediumLearning Objective: 3 

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31. (p. 35) If Texas attempted to make a trade agreement with Mexico, as opposed to the constitution, that establishes tariffs and importing conditions for goods made in Mexico, the U.S. Constitutional objection to Texas' actions would be based upon A. The Full Faith and Credit ClauseB. The doctrine of devolutionC. The separation of national powersD. The principle of supremacy

 

Difficulty: HardLearning Objective: 4 

32. (p. 36) Codes subdivided into groupings of statutes that deal with a particular area of the law are A. TitlesB. ArticlesC. ChaptersD. Divisions

 

Difficulty: MediumLearning Objective: 5 

33. (p. 37) Which of the following statements about the UCC is false? A. It is a unified set of statutes designed to govern almost all commercial transactionsB. Amendments, suggested from time to time by the UCC, have been accepted by all statesC. By clarifying misunderstood legal terms, the UCC helps parties involved in transactions prepare their contractsD. The basic principles of commercial law were not changed by the UCC provisions

 

Difficulty: MediumLearning Objective: 6 

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34. (p. 38) This is the body of previously recorded legal decisions made by the courts in specific cases. A. StatuteB. AmendmentC. ConstitutionD. Common law

 

Difficulty: MediumLearning Objective: 7 

35. (p. 39) If there are no modern court decisions or statutes dealing with an issue in dispute, the court hearing the case A. Will apply common lawB. Will inevitably devolveC. Will be unable to decide the caseD. Will ask the U.S. Supreme Court for an advisory opinion

 

Difficulty: MediumLearning Objective: 8 

36. (p. 39) Typically, if a decision is made by the Florida Supreme Court, it would be A. Persuasive in some Florida states courtsB. Binding in all Florida state courtsC. Binding in all other state courtsD. Persuasive in all Florida states courts

 

Difficulty: MediumLearning Objective: 8 

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37. (p. 39) A business asks a court to interpret the way in which newly enacted shoplifter detention legislation will be applied if the business, at some future point, detains a suspected shoplifter. The court will likely A. Issue an advisory memorandumB. Convene a conference of business and consumer representativesC. Not interpret the statute until faced with a caseD. Ask the legislature to issue an advisory memorandum

 

Difficulty: HardLearning Objective: 9 

38. (p. 39) A new administrative regulation allowed the Social Security Administration to charge women for Social Security cards yet enable men to obtain the cards for free. This regulation was contradictory to the constitution. Hence the U.S. Supreme Court is likely to A. Review common law to see whether a precedent existsB. Use statutory interpretation to clarify the lawC. Rule the regulation as unconstitutionalD. Let the regulation stand

 

Difficulty: HardLearning Objective: 9 

39. (p. 39) The process of determining the constitutionality of various legislative statutes, administrative regulations or executive actions is A. PreemptionB. Statutory interpretationC. DevolutionD. Judicial review

 

Difficulty: MediumLearning Objective: 9 

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40. (p. 42) Which of the following statements about the Federal Register is false? A. It operates within the National Archives and Records Administration under the authority of the Office of the Federal RegisterB. It is a publication that produces a weekly compilation of new regulations issued by federal administrative agenciesC. The Government Printing Office is responsible for printing the document, though it is also available onlineD. Most of the documents included in the Federal Register are directly related to the federal administrative agencies

 

Difficulty: MediumLearning Objective: 10  

Essay Questions 

41. (p. 33, 34) Pierce was arrested under a city ordinance that made distributing handbills on the city streets a crime. Pierce argued that the U.S. Constitution guaranteed his right to free speech under the First Amendment. The local prosecutor argued that the First Amendment to the U.S. Constitution did not apply to state laws. Was the prosecutor correct? Explain? 

The prosecutor was wrong. Pierce's argument was correct in that the First Amendment extends the protections of the Bill of Rights to state governments.

 

Difficulty: EasyLearning Objective: 3 

42. (p. 33, 34) Matrix Corp. is fined by the Occupational Safety and Health Administration for violations of workplace safety regulations. Matrix challenges the fine on the basis that it was not allowed to have a jury trial before being fined. Discuss? 

The Seventh Amendment to the U.S. Constitution only guarantees trials in common law cases, not administrative agency action. Matrix Corp. loses.

 

Difficulty: EasyLearning Objective: 3 

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43. (p. 35) A state law restricts the sulfur dioxide emissions from electric generation plants more severely than those of the federal Clean Air Act. Must an electric generation plant obey the state law or may it follow the federal statute? 

Clean Air Markets Group v. Pataki (2d Cir., 2003) found preemption based on a statutory analysis. Students could argue that pollution involves significant public health and safety issues.

 

Difficulty: MediumLearning Objective: 4 

44. (p. 35) A number of states including New York regulate or prohibit the interstate shipment of wine to consumers on the basis that alcoholic beverages only be sold to consumers by responsible, licensed and accountable in-state retailers. A U.S. wine wholesale association challenges these statutes representing wholesalers licensed under California state laws? 

This issue is presented in Granholm v. Heald in which the Sixth Circuit struck down the ban as discriminating against interstate commerce.

 

Difficulty: HardLearning Objective: 4 

45. (p. 35) Small towns want to restrict the speed of trains passing through the town to 20 miles per hour. The Federal Railroad Administration allows trains to travel through the towns at up to 70 miles per hour. Discuss whether or not the towns may restrict the speed of the trains? 

A variety of decisions have found preemption under the doctrine of supremacy in spite of the strong local safety concerns. Students might argue in support of these local interests.

 

Difficulty: EasyLearning Objective: 4 

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46. (p. 35) A local city council enacts an ordinance that prohibits aircraft from taking off before 7:00 A.M. and disturbing the city's residents. An airline whose schedule is subject to federal regulation challenges this ordinance. Discuss the legal basis of this challenge and the likely outcome? 

The principle of supremacy, the commerce clause in this case, allows federal regulations enacted under Constitutional authority to be superior to state law. The airline wins.

 

Difficulty: MediumLearning Objective: 4 

47. (p. 35) A Massachusetts law prohibited governmental agencies of Massachusetts from buying goods from companies that conducted business with Myanmar. What are the basis on which this law can be struck down by the Supreme Court of the United States? 

The Supreme Court of the United States can use the preemption doctrine to strike down this Massachusetts law. The courts can preempt a state statute that has entered an area of the law that is traditionally an area that the federal government handles, such as foreign affairs or banking.

 

Difficulty: HardLearning Objective: 4 

48. (p. 36) The U.S. Senate proposed a bill that would extend the selective service sign-up to cover women who reach the age of 18 years. Judy Corelli states that the statute will probably not become law because it will have to be approved by a majority of the state legislatures. Is she correct? Explain? 

No. Congressional statutes do not have to be approved by the state legislatures.

 

Difficulty: EasyLearning Objective: 5 

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49. (p. 38) Missouri statutes authorize the collection of taxes "equivalent to four percent of the amount paid in any place of amusement, entertainment or recreation games and athletic events". The state wants to collect tax on the rental of bowling shoes at a bowling alley. There is a 1977 precedent finding that sales tax applies to bowling related fees and charges at a bowling alley. There is a 1999 precedent that operating video games are rentals of personal property in a place of amusement and since the owners paid tax on the video machines when they purchased them, there is no tax on a subsequent rental. Tropicana Lanes wishes to challenge the tax on rental of bowling shoes. Discuss the legal doctrine applicable to this challenge and its application to Tropicana Lanes? 

The Missouri Supreme Court in Tropicana Lanes v. Director of Revenue followed the 1977 precedent as more precisely relevant under the doctrine of stare devises.

 

Difficulty: HardLearning Objective: 7 

50. (p. 39) Helen, a 15-year-old citizen of Illinois, was about to go to the doctor for an abortion when the Supreme Court of Michigan ruled that minors could not receive an abortion without parental consent. What effect might the Michigan Supreme Court's decision have on Helen? 

The ruling of the Michigan Supreme Court will have only persuasive power in Illinois, where Helen lives.

 

Difficulty: EasyLearning Objective: 8 

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