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Chapter 1

Law and Legal Reasoning

TRUE/FALSE QUESTIONS

1.The stability and predictability of the law are essential to business activities.

ANSWER:tPAGES:Introduction

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2.Law is a body of enforceable rules governing relationships among individuals and between individuals and their society.

ANSWER:TPAGES:Introduction

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3.A key to avoiding business disputes is to go ahead without thinking ahead.

ANSWER:FPAGES:Section 1

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4.Constitutional law includes only the U.S. Constitution.

ANSWER:FPAGES:Section 2

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5.A state statute is constitutional only if it does not violate either the state constitution or the U.S constitution.

ANSWER:TPAGES:Section 2

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6.A state constitution is supreme within the state’s borders.

ANSWER:TPAGES:Section 2

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7.A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.

ANSWER:TPAGES:Section 2

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8.Statutory law does not include county ordinances.

ANSWER:FPAGES:Section 2

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9.Uniform laws apply in all states, including those in which the laws have not been adopted.

ANSWER:FPAGES:Section 2

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10.No state has adopted the Uniform Commercial Code in its entirety.

ANSWER:FPAGES:Section 2

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11.The term common law refers to law that is common throughout the world.

ANSWER:FPAGES:Section 3

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12.Damages are a remedy at law.

ANSWER:TPAGES:Section 3

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13.Remedies in equity include injunctions and decrees of specific performance.

ANSWER:TPAGES:Section 3

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14.In most states, the courts no longer grant “equitable” remedies.

ANSWER:FPAGES:Section 3

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15.A defendant is a person against whom a lawsuit is brought.

ANSWER:TPAGES:Section 3

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16.Courts do not depart from precedents.

ANSWER:FPAGES:Section 3

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17.A judge’s function is to make the law.

ANSWER:FPAGES:Section 4

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18.Criminal law focuses on duties that exist between persons.

ANSWER:FPAGES:Section 5

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19.“15 U.S.C. Section 1” is a citation to the United States Code, Section 1 of Title 15.

ANSWER:TPAGES:Section 6

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20.Most state trial court decisions are not published.

ANSWER:TPAGES:Section 6

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multiple-choice questions

1.Helen is a state court judge. Like other judges, Helen often refers to secondary sources of law for guidance. These sources include

a.legal encyclopedias.

b.other states’ statutes.

c.state constitutions.

d.the U.S. Constitution.

ANSWER:APAGES:Section 2

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2.The legislature of the state of Wyoming enacts a new statute that sets standards for the liability of businesses selling defective products. This statute applies in

a.Wyoming only.

b.only Wyoming and its bordering states only.

c.all states.

d.all states but only to matters not covered by other states’ laws.

ANSWER:APAGES:Section 2

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3.The Consumer Product Safety Commission is a government agency that issues rules, orders, and decisions. The Colorado state legislature enacts statutes. The Washington County Board and the Silver City Council enact ordinances. Administrative law includes

a.all laws that affect a business’s operation.

b.the rules, orders, and decisions of the Consumer Product Safety Commission.

c.statutes enacted by the Colorado state legislature.

d.ordinances enacted by the Washington County Board and the Silver City Council.

ANSWER:BPAGES:Section 2

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4.Arizona enacts a state law that violates the U.S. Constitution. This law can be enforced by

a.no one.

b.the federal government only.

c.the state of Arizona only.

d.the United States Supreme Court only.

ANSWER:APAGES:Section 2

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5.The Occupational Safety and Health Commission is a federal administrative agency. Oregon has a parallel state agency, the Oregon Occupational Safety and Health Division. If Oregon’s administrative agency enacts regulations that are in conflict with the federal regulations

a.state regulations take precedence.

b.federal and state regulations will both apply.

c.federal regulations take precedence.

d.neither the federal or state regulations will apply.

ANSWER:CPAGES:Section 2

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6.In a suit against Ethan, Francisco obtains an award of damages. This is

a.an order to do or to refrain from doing a particular act.

b.an order to perform what was promised.

c.a payment of money or property as compensation.

d.the cancellation of a contract.

ANSWER:CPAGES:Section 3

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7.In an action against Gina, Haji obtains a remedy. This is

a.an administrative agency’s enforcement of its rule.

b.a principle of the law derived from earlier court cases.

c.a statute enacted by a state legislature or Congress.

d.the legal means to recover a right or to redress a wrong.

ANSWER:DPAGES:Section 3

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8.In a suit against Myron, Neva obtains damages. In the U.S. legal system, this remedy at law is

a.equitable.

b.normal.

c.unlikely.

d.unusual.

ANSWER:BPAGES:Section 3

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9.In a suit against Ian, Jenna obtains an injunction. This is

a.an order to do or to refrain from doing a particular act.

b.an order to perform what was promised.

c.a payment of money or property as compensation.

d.the cancellation of a contract.

ANSWER:APAGES:Section 3

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10.In a suit against Kavalier over the performance of a contract, Louann obtains rescission. This is

a.an order to do or to refrain from doing a particular act.

b.an order to perform what was promised.

c.a payment of money or property as compensation.

d.the cancellation of the contract.

ANSWER:DPAGES:Section 3

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11.Obie and Peg enter into a contract for the sale of car, but Obie later refuses to deliver the car. Peg asks a court to order Obie to perform as promised. Ordering a party to perform what was promised is

a.an equitable remedy.

b.an unenforceable demand.

c.a remedy at law.

d.a type of harm.

ANSWER:APAGES:Section 3

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12.Reba is a state court judge. In her court, as in most state courts, legal and equitable remedies have merged. In these circumstances, distinguishing between equitable and legal remedies is

a.no longer important because neither type of remedy can be granted today.

b.no longer necessary.

c.still important to negotiate an enforceable business contract.

d.still important so that the proper remedy is requested.

ANSWER:DPAGES:Section 3

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13.In Bad Boyz Toyz v. Caleb, a state supreme court held that a minor could cancel a contract for the sale of a motorcycle. Now a trial court in the same state is deciding Dirk’s Dirt Bikes v. Eden, a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to

a.allow the minor to cancel the contract.

b.disregard the previous case.

c.order the minor to cancel the contract.

d.require the minor to fulfill the contract.

ANSWER:aPAGES:Section 3

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14.As a judge, Qiana applies common law rules. These rules develop from

a.decisions of the courts in legal disputes.

b.regulations issued by administrative agencies.

c.statutes enacted by Congress and the state legislatures.

d.uniform laws drafted by legal scholars.

ANSWER:APAGES:Section 3

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15.There are no precedents on which the court deciding the case Standard Resource Co. v. Topline Inventory, Inc., can base its decision. The court can consider, among other things,

a.the opinions of the friends and relatives of the judge.

b.the results of a poll of those in the courtroom.

c.public policy or social values.

d.none of the choices.

ANSWER:CPAGES:Section 3

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16.A federal statute regulates a marketing practice. To resolve a dispute concerning the practice, Sawyer, a judge, will most likely apply

a.a common law doctrine that applied before the statute was enacted.

b.a common law doctrine that applies to other, different practices.

c.Sawyer’s personal philosophy of law.

d.the statute.

ANSWER:DPAGES:Section 3

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Fact Pattern 1-1 (Questions 17–19 apply)

The Florida Supreme Court decides the case of Metro Convention Center, Inc. v. Urban Sports Team LLC. Of the nine justices, six believe the judgment should be in Metro’s favor. Justice Rubio, one of the six, writes a separate opinion. The three justices who believe the judgment should be in Urban’s favor join in a third separate opinion.

17.Refer to Fact Pattern 1–1. These opinions are collected and published in volumes called

a.citations.

b.codes.

c.reporters.

d.reviews.

ANSWER:CPAGES:Section 6

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18.Refer to Fact Pattern 1–1. Rubio’s opinion is known as a

a.concurring opinion.

b.dissenting opinion.

c.majority opinion.

d.per curiam opinion.

ANSWER:APAGES:Section 7

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19.Refer to Fact Pattern 1–1. The opinion joined by the three justices who favor Urban is known as a

a.concurring opinion.

b.dissenting opinion.

c.majority opinion.

d.per curiam opinion.

ANSWER:BPAGES:Section 7

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20.In 2005, Facebook launched a social media site that allows its users to designate certain other users as “friends.” Facetrak, a gaming site that allows its users to play with designated “friends,” claims that Facebook’s use of the word constitutes false advertising and trademark infringement. Under the principles discussed in “A Sample Court Case,” Apple, Inc. v. Amazon.com, Inc., Facebook’s use most likely

a.creates an impression of seamless integration with Facetrak’s “friends.”

b.implies something false about the quality of Facebook’s “friends.”

c.makes no statement about the quality of Facetrak’s “friends.”

d.misleads gamers about the quality of Facebook’s “friends.”

ANSWER:CPAGES:Section 7

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Essay Questions

1.National Rights Council, a nonprofit organization, files a suit against the U.S. Department of Justice (DOJ), claiming that a certain federal statute the DOJ is empowered to enforce conflicts with the U.S. Constitution and with a state constitution. In each situation, which source of law has priority?

ANSWER:The U.S. Constitution is the supreme law of the land. A law in violation of the Constitution, no matter what its source, will be declared unconstitutional and will not be enforced. Thus, the federal statute does not have priority over the Constitution. The federal statute would have priority over the state constitution, however, because under the U.S. Constitution, when there is a conflict between a federal law and a state law, the state law is rendered invalid.

PAGE:Section 2

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2.Pierre Domville was charged with certain crimes when he learned that the prosecutor assigned to his case was a Facebook “friend” of the trial judge. Domville filed a motion to disqualify the judge, alleging that he could not be “fair and impartial.” The judge denied the motion, and Domville appealed. The court’s opinion in the case is at Domville v. State, 103 So.3d 184 (Fla.App. 4 Dist. 2013). What court decided this case? What type of court is this? Specifically where can the court’s opinion be found?

ANSWER:The District Court of Appeal of Florida, Fourth District, decided this case in 2013. This court is an appellate court—a state intermediate appellate court. The opinion of the court in this case—Domville v. State, 103 So.3d 184 (Fla.App. 4 Dist. 2013)—can be found in its entirety in volume 103 of the Southern Reporter, Third Series, on page 184.

PAGES:Section 6

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