Business Law 201 Test Number 1 Fall 2004

True/False

Indicate whether the sentence or statement is true or false.

____1.A finding by a court that a defendant committed a tort will sometimes result in a prison sentence.

____2.To commit an intentional tort, a person must act with an evil or harmful motive.

____3.Store owners do not have the authority to detain customers under any circumstances.

____4.Slander involves the oral communication of defamatory language.

____5.Puffery, or seller's talk, is fraud.

____6.Unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship.

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

____7.Attendance Question Number 1

The Chief Justice of the United States is:

a. / Antonin Scalia
b. / David Souter
c. / Oliver Wendell Holmes
d. / William Rehnquist

____8.Stare decisis is:

a. / The name of the first case ever written by the United States Supreme Court / c. / a doctrine obligating judges to follow precedents established within their jurisdictions.
b. / The name of the first court of equity in England / d. / a doctrine that permitted you to seek help in a court of equity and then in a court of law.

____9.To bring a case before the U.S. Supreme Court, a party requests the Court to:

a. / Issue a writ of habeas corpus / c. / Issue a writ of certiorari
b. / Grant diversity jurisdiction / d. / allow alternative dispute resolution

____10.The key difference between arbitration and mediation is that:

a. / A mediator’s decision may be binding on the parties / c. / An arbitrator’s decision may be binding on the parties
b. / Arbitration is always binding / d. / Arbitrators are expensive

____11.An automobile accident occurred when a car driven by Antonio Carvello, a resident of New Jersey, collided with a car driven by Jill Kirby, a resident of New York. The accident took place at an intersection in New York City. Kirby suffered personal injuries, which caused her to incur medical and hospital expenses as well as lost wages for four months. In all, she calculated that the cost to her of the accident was $100,000. Carvello and Kirby have been unable to agree on a settlement, and Kirby now must decide where to sue Carvello for the $100,000 compensation she feels she deserves. Where Can Kirby sue?

a. / Federal District Court / c. / New Jersey State Court
b. / A New York State Court / d. / a or b

____12.An automobile accident occurred when a car driven by Antonio Carvello, a resident of New Jersey, collided with a car driven by Jill Kirby, a resident of New York. The accident took place at an intersection in New York City. Kirby suffered personal injuries, which caused her to incur medical and hospital expenses as well as lost wages for four months. In all, she calculated that the cost to her of the accident was $100,000. Carvello and Kirby have been unable to agree on a settlement, and Kirby now must decide where to sue Carvello for the $100,000 compensation she feels she deserves.

Kirby decides to sue on her own and finds a book called West’s Business Law, a book assigned to Professor Isler’s Business Law Class that his students do not feel is important. This book advises that Kirby about the pleadings. What are the pleadings?

a. / Service of process / c. / The complaint and answer
b. / The default judgment / d. / The answer only

____13.Kobe Bryant decides to sue Shaquille O’Neal for slander because O’Neal has written horrible things about Bryant and published it in the Shaquille O’Neal Times, a newspaper that 100,000 people read every day. Kobe buys a book called West’s Business Law, a book assigned to Professor Isler’s Business Law Class that his students do not feel is important. This book advises Kobe about service of process and states that “personal service is notifying the defendant of a lawsuit.” The book goes on to say “A process server must be 21 years of age and not a party to the lawsuit.” Kobe hires Carmelo Anthony, a nineteen year old who lives around the corner to serve Shaq. Carmelo hands Shaquille O’Neal the documents and says “You have been served.”

What statement best describes what has happened?

a. / The service of process was valid but Kobe should not sue for slander / c. / The service of process was invalid and Kobe should sue for slander
b. / The service of process was invalid and the book’s advice about process servers was correct / d. / The service of process was valid, Kobe should not sue for slander, and the book’s advice about process servers was incorrect

____14.Gary Sheffield, a great hitter who plays for the New York Yankees is involved in his first case as a lawyer. Gary is representing the defendant in a criminal case involving an interracial couple and is trying to select fair-minded jurors. Gary asked juror number one “How do you feel about interracial marriages?”

What is absolutely true about this case?

a. / The prosecution must prove it’s case “beyond a reasonable doubt,” there must be twelve jurors, and Sheffield is engaged in a process called “peremptory challenges.” / c. / The prosecution must prove it’s case “beyond a reasonable doubt,” there need not be twelve jurors, and Sheffield is engaged in a process called “Jury Selection.”
b. / The defendant must prove his case “beyond a reasonable doubt,” there must be twelve jurors, and Sheffield is engaged in a process called “Jury Selection.” / d. / The prosecution must prove it’s case “beyond a reasonable doubt,” there need not be twelve jurors, and Sheffield is engaged in a process called “voir dire.”

____15.When there is a direct conflict between a federal law and a state law:

a. / The state law will be ruled invalid / c. / The state law controls and will be ruled valid as long as the state is acting for the health education and safety of its citizens
b. / The state law will be ruled invalid if the federal government intended to occupy the field / d. / The federal law controls and will be ruled valid as long as the federal government is acting for the health education and safety of its citizens

____16.The state of California may tax citizens:

a. / any time it damn well pleases / c. / of other states to keep them from coming to California
b. / to raise revenue / d. / none of the above

____17.This was contributed by one your classmates. If you read the Student Forum you will know the answer.

John, who lives in California, sells Bill, who lives in Nevada, a boat. Bill found John's ad on eBay and they exchange email, phone calls, and a letter about the sale. Bill is anxious to take his son Billy out on the lake nearby and he drives 8 hours to go pick up the boat in California. This is a really nice speed boat and Bill offers to pay $25,000. As soon as Bill takes it to the water for the first time, he realizes that he's been taken advantage of--the boat leaks like crazy.

So we have diversity, but we don't meet the $75,000 threshold for Federal court. So could Bill sue John in Nevada using Nevada's long arm statute?

a. / Yes because John had minimum contacts with Nevada by using eBay / c. / Yes, even if there were no minimum contacts
b. / No / d. / I do not know because I never read the forum.

____18.Snoop Doggy Dogg was rolling down the street smoking indo while he was sipping on Gin and Juice. (For the “hip impaired,” this means Snoop was in his car, smoking marijuana drinking Gin mixed with grapefruit juice). The cops stopped Snoop and asked “Can we search your car?” Snoop responds “Well fizzel me nizzel, do I look like Sam Sausage Head?” “Hell no you can’t search my ride because I had Professor Isler’s class and he told me that the only time you can ever search my car or my house is with a warrant based on probable cause, now shake the spot Mr. Poo Poo before I crack your bulb. (This means get out of here Mr. Policeman before I break your skull).

Is Snoop correct?

a. / No / c. / Who the hell is Snoop?
b. / Fo Shore (This means yes) / d. / No because sometimes there are exceptions to the warrant requirements

____19.Snoop Dogg went to City Hall in San Mateo because he wanted to give a speech. He walked up to the counter and said “What up cuz? It’s the Snoopy D-O-double Gizzle in da Hizzel and I want to give a speech tomorrow at 5. My speech will be the shiznit, know what I’m sayin? (In other words Snoop wanted to give a speech in Central Park in San Mateo).

The county clerk asked Snoop for a copy of his speech so that she could see if it was the kind of speech that would cause a riot. The clerk determined that the speech was a good one and told Snoop that he could only speak at 2:00 in the afternoon not 5:00 because of rush hour traffic. Snoop accepted.

The next day at 2:00 Snoop delivered a speech and said “I am for killing all policeman.” The police that were at the speech were not amused and made Snoop stop speaking. Snoop now wants to sue the San Mateo police department and the county clerk. What is the likely outcome?

a. / Snoop should sue and he will win as long as he received the license and spoke at the time allowed by the clerk. / c. / Snoop will lose
b. / Is Snoop sues he will lose after alleging that his First Amendment rights were violated because it was permissible for the clerk to see the contents of the speech in advance and the police had every reason to stop him / d. / Snoop should sue and win after alleging that his First Amendment rights were violated because the clerk should not have asked to see the contents on the speech in advance and the police should not have stopped him.

____20.Yelling “fire, fire” in a crowded movie theatre or making defamatory remarks is:

a. / Protected speech / c. / Protected sometimes
b. / Unprotected speech / d. / Constitutionally protected most of the time

____21.Under the Fourth Amendment law enforcement officers must obtain a search warrant in order to conduct a legal search. This statement is:

a. / Absolutely true / c. / written in a very nice way
b. / Not always true because there are exceptions to the warrant requirement / d. / Always true because there are no exceptions to the warrant requirement

____22.Ms. Johnson decides to sue Kobe Bryant for false imprisonment. Ms. Johnson was in Kobe’s room and refused to have sex with him. After Ms. Johnson refused, Kobe tied Ms. Johnson to a chair and made her watch a tape of the final game of last year’s basketball championship series between the Lakers and Pistons. Ms. Johnson was an avid Laker fan and was not amused.

Ms. Johnson sued Kobe in civil court for $75,000 and after a jury of 12 people was assembled, Ms. Johnson lawyers called Kobe to testify. Kobe took the witness stand and said “I am not saying anything. You cannot make me testify against myself.”

Kobe’s statement is:

a. / Correct / c. / Correct if the case is in federal court
b. / Incorrect and he can be compelled to testify / d. / Correct if the case is in state court

____23.Yesterday, United Airlines decided that it would not allow people that donate money to terrorist organizations to enter the United States. Cat Stevens, known as Yusuf Islam since he stopped his singing and songwriting career and became a Muslim in the 1970s was on an airplane bound for Washington D.C and United Airlines diverted the flight to Bangor Maine. Stevens was turned over to the Office of Homeland Security.

Homeland Security spokesman Brian Doyle said Islam was being put on the first available flight back to Britain because he (Islam) is on a “watch list.” "Why is he on the watch lists? Because of his activities that could be potentially linked to terrorism. The intelligence community has come into possession of additional information that further raises our concern," Doyle said. A law enforcement official who asked not to be identified said the United States had information that Islam, who visited the United States in May, had donated money to the militant Islamic group Hamas.

Islam seeks you help and wants to sue. He feels his Equal Protection Rights under the U.S. Constitution have been violated. What is true of this situation?

a. / Islam could sue the Office of Homeland Security and United Airlines and will win both cases / c. / Islam could sue United Airlines but United Airlines will win because the Rational Basis Test will be used.
b. / Islam could sue the Office of Homeland Security but not United Airlines if he uses an Equal Protection theory / d. / Islam could sue United Airlines but United Airlines will lose because the Rational Basis Test will be used.

____24.Alan writes Beth a private letter falsely accusing her of stealing office supplies from their employer, Consolidated Industries, Inc. This is

a. / defamation, but not libel or slander.
b. / libel.
c. / slander.
d. / none of the above.

____25.Actual malice must be demonstrated for recovery of damages in an action for defamation brought by

a. / a public figure only.
b. / a private individual only.
c. / public figures and private individuals.
d. / none of the above.

____26.Excel Dry-Cleaning advertises so effectively that Next Day Cleaners's regular customers patronize Excel instead of Next Day. Excel has committed

a. / appropriation.
b. / wrongful interference with a business relationship.
c. / wrongful interference with a contractual relationship.
d. / none of the above.

____27.At common law, one owned his land from the center of the Earth up to the heavens. This was known as the

a. / Stare Decisis / c. / Ad coleum doctrine
b. / Voir Dire / d. / No ass atallis

____28.In Ed's suit against First National Bank, the discovery phase would include all of the following except

a. / Ed's complaint.
b. / Ed's deposition.
c. / Ed's requests for First National's admissions.
d. / First National's replies to Ed's interrogatories.

____29.In United Data Corporation's suit against International Industries, Inc., the jury returns a verdict in United's favor. International Industries files a motion asking the judge to issue a judgment in its favor. This is a motion for

a. / a judgment in accordance with the verdict.
b. / judgment n.o.v. or JNOV
c. / a new trial.
d. / none of the above.

____30.Irma files a civil suit against Jim. To succeed, Irma must prove her case

a. / beyond a reasonable doubt.
b. / by a preponderance of the evidence.
c. / by indisputable proof.
d. / within an iota of the truth.

Business Law 201 Test Number 1 Fall 2004

Answer Section

TRUE/FALSE

1.ANS:F

2.ANS:F

3.ANS:F

4.ANS:T

5.ANS:F

6.ANS:F

MULTIPLE CHOICE

7.ANS:D

8.ANS:C

9.ANS:C

10.ANS:C

11.ANS:D

12.ANS:C

13.ANS:D

14.ANS:D

15.ANS:B

16.ANS:B

17.ANS:A

18.ANS:D

19.ANS:D

20.ANS:B

21.ANS:B

22.ANS:B

23.ANS:B

24.ANS:D

25.ANS:A

26.ANS:D

27.ANS:C

28.ANS:A

29.ANS:B

30.ANS:B