Law and Government: Branches, Sources, and Administrative Agencies, Exams of Business and Labour Law

Download Law and Government: Branches, Sources, and Administrative Agencies and more Exams Business and Labour Law in PDF only on Docsity! Business Law C713 Exam 228 Questions with Verified Answers. The Law serves to - ANS 1) keep the peace 2) Maintain the status quo 3) Preserve individual rights 4) Protect minorities against majorities 5) Promote social justice 6) Provide for orderly social change 3 Branches of government - ANS Legislative, Executive, Judicial The Bill of Rights - ANS The first ten amendments to the Constitution Sources of Law - ANS statutory law, regulatory law, common law Statutory Law - ANS the term used to define written laws that criminalize certain actions and spell out penalties for violation Common Law - ANS Judge-made law that originated in England from decisions shaped according to prevailing custom. Decisions were applied to similar situations and gradually became common to the nation. Stare devises - ANS let the decision stand Precedent - ANS may shift or change over time Roe v. Wade (1973) - ANS Abortion rights fall within the privacy implied in the 14th amendment Brown v. Board of Education - ANS 1954 - The Supreme Court overruled Plessy v. Ferguson, declared that racially segregated facilities are inherently unequal and ordered all public schools desegregated. Administrative Law - ANS a branch of law that governs the creation and operation of administrative agencies Administrative Agencies - ANS created to protect a public interest rather than to vindicate private rights (OSHA, EPA, and FTC) Rules and regulations - ANS Laws made by administrative agencies Enabling Legislation - ANS How Congress creates a federal agency FTC - ANS Federal Trade Commission. Protects consumers from misleading and fraudulent advertising. Reviews advertising claims. Can order a company to change their ad What kind of law is made when an appellate court endorses a rule to be used in deciding court cases? - ANS Common Law Which kind of law is based on the interpretation of an existing law? - ANS Common Law Which kind of law is enacted by state or federal legislatures? - ANS Statutory Law Which type of law is used when the Federal Communications Commission publishes a regulation on cigarette advertising on television? - ANS Administrative Law The FDA prohibits Drug A from being marketed in the US. What is this an example of? - ANS Agency Regulation P a g e 1 | 14 Statutory Law is to legislative bodies as common law is to - ANS courts If in 1900, the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority, and, in 2014, the courts in Minnesota still follow this ruling, what is this an example of? - ANS precedent What do administrative agency rules consist of? - ANS Legislative and interpretive rules Litigation - ANS the process of bringing in a court to settle a dispute Prosecution - ANS criminal trial Plaintiff - ANS civil trial Opposing side - ANS the defense Defendant - ANS the alleged wrongdoer Claim - ANS a claim is a separate violation of the law Alternative Dispute Resolution (ADR) - ANS a common method of dispute resolution that avoids many of the challenges associated with litigation Circuit City Stores v. Adams - ANS the U.S. Supreme Court noted that avoiding the cost of litigation was a real benefit of arbitration Arbitration - ANS the use of an arbitrator to settle a dispute Arbitrator - ANS an independent person or body officially appointed to settle a dispute Discovery Phase - ANS phase of a trial is nonexistent or sharply reduced in arbitration (costly) Nonconforming goods - ANS goods that do not conform to the buyer's order. Under the Uniform Commercial Code (UCC), nonconforming goods can be rejected by the buyer Negotiation - ANS a method of alternative dispute resolution (ADR) that retains power to resolve the dispute to the parties involved Bargaining Power - ANS the pressure that a supplier or buyer can exert on a company Mediation - ANS a method of alternative dispute resolution (ADR) in which parties work to form a mutually acceptable agreement Federal Arbitration Act (FAA) - ANS a federal statute that provides for the enforcement of most arbitration agreements Intermediate Appellate Courts - ANS courts that examine allegations concerning uncorrected errors that occurred during trials; usually called courts of appeals in state and federal court systems (BOTH FEDERAL AND STATE COURT SYSTEM!) Full Faith and Credit Clause - ANS Each state court is obligated to respect the final judgments of courts in other states Diversity of Citizenship Jurisdiction - ANS the amount in controversy exceeds $75,000, and all opposing parties live in different states Federal Question Jurisdiction - ANS Jurisdiction given to federal courts in cases involving the interpretation and application of the U.S. Constitution, acts of Congress, and treaties. P a g e 2 | 14 Private Necessity - ANS is when the tort is committed to help one or a few people Compensatory Damages - ANS A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party. Punitive Damages - ANS Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future. Doctrine of Transferred Intent - ANS doctrine originating in common law under which an actor's criminal intent associated with an act against an intended victim is transferred to an unintended victim who suffers the consequences of the defendant's act What is a tort? - ANS A civil wrong In a work parking garage, a recently terminated employee approaches his boss and verbally mocks him. The boss punches the employee in the face, knocking him out. Later, the employee sues the boss for assault. The boss claims it was self-defense, as his life was threatened by the employee. The boss's defense is valid. - ANS False Oliver decides to shoot a rubber band at his friend Kamal. The rubber band misses Kamal, but goes on to hit Sophia in the eye, injuring her. This is an example of - ANS Doctrine of Transferred Intent Sophia is a tattoo artist and asks her friend Daniel if she can practice on him. Daniel verbally agrees, and Sophia tattoos a small letter on his ankle. A week later, Daniel decides he does not like the tattoo and sues Sophia. What is Sophia's defense? - ANS Consent Maria graduated with her engineering degree and moved out of her rental property when the lease ended. She cleaned the property well, returned the keys, and noted no damage to the apartment, meeting all requirements of the rental contract. However, her landlord has refused to return her security deposit, stating he is using it to pay to repaint the apartment. Maria may sue her landlord for which of the following torts? - ANS Conversion Negligence - ANS careless neglect, often resulting in injury Malpractice - ANS Failure by a health professional to meet accepted standards Actual Cause - ANS the determination that the defendant's breach of duty resulted directly in the plaintiff's injury Proximate cause - ANS Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability. Res Isa Loquitur - ANS "the thing speaks for itself" Circumstantial evidence - ANS (indirect evidence) evidence used to imply a fact but not prove it directly Contributory Negligence - ANS A legal defense that may be raised when the defendant feels that the conduct of the plaintiff somehow contributed to any injuries or damages that were sustained by the plaintiff. Comparative Negligence - ANS a tort rule for allocating damages when both parties are at least somewhat at fault P a g e 5 | 14 Assumption of risk - ANS A defense against negligence that can be used when the plaintiff was aware of a danger and voluntarily assumed the risk of injury from that danger. Which doctrine protects children who trespass on another's property due to the presence of something such as an unfenced swimming pool? - ANS Attractive nuisance The intentional commission of an act that a reasonable person knows would cause injury to another is known as - ANS culpable negligence A managed care company was found liable for denying valid claims for health insurance coverage. The company was ordered to pay compensatory damages to a group of plaintiffs. To "make an example" of the insurer, the court also ordered the insurer to pay an additional $10 million to deter other insurers from engaging in the same wrongful acts. - ANS Punitive Damages What must the plaintiff establish in a negligence case? - ANS Duty of care, breach, causation, foreseeable harm, and damages Fatima accepts a ride from Sara, knowing that Sara does not have her license. Sara causes an accident, and Fatima sues Sara. What is Sara's defense? - ANS Assumption of Risk Strict liability is used only in product liability cases. - ANS False Patrick installed a new window shade. He used his brand-new Bullae cordless electric drill and followed the directions that came with the window shade. Unfortunately, Patrick struck a piece of metal in the ceiling, which caused the electric drill to bounce back and jerk out of his hand. Even though Patrick released the button that activated the drill, the drill did not stop, but fell on his arm and cut him badly. Federal safety regulations require that all electric drills stop when the activating buttons are released. The Bullae electric drill was designed to stop when its activating button was released, but Patrick's drill did not conform to Bullae’s specifications. Patrick seeks to sue Bullae for his injuries. Based on these facts, what is the best prediction? - ANS Patrick will likely recover damages from Bullae because the electric drill failed to conform to Bullae’s manufacturing or assembly specifications. Endothon Company drilled an oil well on property it owned in a residential neighborhood in South Beach. Bill lived next door. Although the company followed standard operating procedures and obeyed all relevant regulations, the oil well "blew," spraying mud and oil on Bill's property. What best describes the company's liability to Bill? - ANS It should be held strictly liable for engaging in an abnormally dangerous activity. If you are found to be strictly liable by a court, this means - ANS you are liable for the harms you cause regardless of your fault Strict product liability is imposed by law as a matter of public policy. On which assumption does the policy rest? - ANS Consumers should be protected from unsafe products. Intellectual property - ANS A product of the intellect, such as an expressed idea or concept that has commercial value. Patents, copyrights, and trademarks - ANS Three types of intellectual property Trade secret - ANS A formula, device, idea, process, or other information used in a business that gives the owner a competitive advantage in the marketplace. P a g e 6 | 14 Right of Publicity - ANS The appropriation tort protecting a celebrity's right to have his or her name, picture, likeness, voice and identity used for commercial or trade purposes only with permission. Patent Infringement - ANS Unauthorized use of another's patent. A patent holder may recover damages and other remedies against a patent infringer. Shop Right - ANS right of an employer to use in business without charge an invention discovered by an employee during working hours and with the employer's material and equipment Doctrine of Equivalents - ANS under this, a device or method can infringe on a patent if it is substantially equivalent to the patented device or method Copyright - ANS the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same. Public Domain - ANS Creative work that's not copyrighted and therefore free for you to use whenever you want. Fair Use - ANS the conditions under which you can use material that is copyrighted by someone else without paying royalties Lanham Act - ANS a 1946 law that spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them Trademark Infringement - ANS use of another company's business name or logo without permission Misappropriation - ANS the act of taking what belongs to someone else and using it illegally for one's own gain How long can a trademark be protected under federal law? - ANS Indefinitely One reason for the legal protection of intellectual property is to promote - ANS Innovation What is a work considered once copyright has expired? - ANS Public Domain Improper misappropriation occurs when you obtain which protected item by using improper means? - ANS Trade secrets In addition to phrases, symbols, and designs, which of the following can also be trademarked? - ANS Words What is the term for when copyrighted material is used in a satire or parody? - ANS Application of fair use doctrine What is the legal right that gives the author of qualifying subject matter, if the author meets other requirements established by law, the exclusive right to publish, produce, sell, license, and distribute the work? - ANS Copyright A soft drink manufacturer protects a closely guarded formula for a recipe. What is this recipe an example of? - ANS Trade secret What is a grant by the federal government to the inventor of an invention for the exclusive right to use, sell, and license the invention for a limited amount of time? - ANS Patent Which of the following intellectual properties is protected by the Lanham Act? - ANS Trademark P a g e 7 | 14 purchases the painting on credit. When she sees Lotto the following week, he tells Nora he changed his mind; he will not give her the money. Nora sues Lotto for the money. Who will win and why? - ANS Nora will win because she relied on Lott's promise to her detriment Jack has a contract with Mei to repair Jack's steering column on his car. Mei works on Jack's car and returns it to him. A few days later, Jack is driving to the store and his steering will not work, causing him to crash into a street sign. Which remedy is available to Jack? - ANS Consequential damages A customer has a contract to buy a new refrigerator that costs $750 from a store and makes a deposit of $200. The store sells out of refrigerators, so the customer buys one from a different store for $800. What are the customer's damages? - ANS The difference between contract prices Oliver owns Quality Apple Farms. He has a 2-year contract with Whole Pine, Inc., to deliver mulch monthly to his farm. After 16 months of obliging this contract, Whole Pine, Inc., ceases to deliver the mulch. Oliver must drive to the garden store and spend $560 in transportation and mulch. Oliver sues Whole Pine, Inc. What type of damages is Oliver seeking? - ANS Incidental Agent - ANS a person who acts in the name of and on behalf of another Principal - ANS Agent acts on behalf of Agency Law - ANS is an area of law dealing with working relationships created between two parties. (Agent, Principal, and 3rd party) Agency relationship - ANS exists when one party delegates decision-making responsibility to a second party for compensation. Either expressly or by operation of law Fiduciary duty - ANS That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure. Duty of Loyalty - ANS a fiduciary duty owed by an agent not to act adversely to the interests of the principal Estoppel - ANS A legal impediment to denying a fact or restoring a right that has been previously waived. Ratification - ANS Formal approval Direct Liability - ANS A liability which arises in cases in which the officer committed an intentional or negligent tort in violation of the employing agency's orders or policies. Vicarious Liability - ANS Legal doctrine under which a party can be held liable for the wrongful actions of another party. Undisclosed Principal - ANS A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract. A real estate agent representing the buyer tells the seller that the buyer would be willing to pay much more than the asking price. Which duty did the agent owe the principal in this situation? - ANS Duty of loyalty P a g e 10 | 14 An employee of a flower shop has been purchasing buckets of flowers for the shop from a farmer's market weekly for almost six months. What type of authority does the flower shop employee have at the market? - ANS Apparent Anika is an agent of Auto or, a technology company that sells subscriptions to its cloud- based software. Anika has the general title of manager but has no express authority in her employment agreement. Anika routinely negotiates sales agreements with large companies that are clients of Auto or. Anika enters into an agreement with Urquhart Tech that is far larger than any deal Anika previously negotiated. The agreement is very poorly negotiated and will cause a huge loss for Auto or. True or False In entering into the agreement with Urquhart Tech, Anika exceeded her authority. - ANS True Which circumstance would allow the continuation of an agency relationship? - ANS The Company hires a new manager of the agent's division A trainer agrees to fly to another state to train a new group of employees. Her flight home is delayed due to a major storm and she must pay to stay in a hotel for two nights. What duty does the company who requested the training owe the trainer? - ANS Duty to reimburse A real estate agent is an example of which type of agent? - ANS Special agent Li is an independent contractor who has been hired to create a sculpture for Bullae, Inc. While heading to the company to install the sculpture, he is in a car accident and injures another driver. Is the employer liable? - ANS No because Li is an independent contractor Michael is a statistician. He works from home on a company-provided computer and has set hours. He is paid by Company A, which determines his pay rate and withholds federal taxes from his paycheck. Is Michael an employee or an independent contractor? - ANS Employee because Company A withholds taxes Title VII of the Civil Rights Act of 1964 - ANS forbids discrimination in all areas of the employment relationship Equal Employment Opportunity Commission - ANS Federal agency created to enforce the Civil Rights Act of 1964, which forbids discrimination on the basis of race, creed, national origin, religion, or sex in hiring, promotion, or firing. Reverse discrimination - ANS using race or sex to give preferential treatment to some people Sex discrimination - ANS treating people differently because of their sex unless a BFOQ applies Quid pro quo - ANS something given in exchange or return for something else Americans with Disabilities Act - ANS Passed by Congress in 1991, this act banned discrimination against the disabled in employment and mandated easy access to all public and commercial buildings. P a g e 11 | 14 FMLA (Family and Medical Leave Act) - ANS Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty OSHA (Occupational Safety and Health Administration) - ANS an agency within the US Department of Labor At-will employee - ANS can be fired at any time for any reason Collective bargaining - ANS Process by which a union representing a group of workers negotiates with management for a contract Norris-LaGuardia Act - ANS Act that guarantees workers' right to organize and restricts issuance of court injunctions against nonviolent union activity such as strikes, picketing, and boycotts. Which of the following is not a subject of mandatory bargaining? - ANS New products to manufacture True or False At Kamal Kalian’s church, the members fast and spend the entire day in prayer on Fridays. He works as a pharmacist, and many times he is the only pharmacist scheduled to work on Fridays. Based on his religious beliefs, he tells his employer that he will refuse to work on Fridays. Kamal's employer must make a reasonable accommodation for his religious beliefs. - ANS True True or False Diego Sousa, an employee at an online service provider, is called for jury duty in Wayne County, Michigan. His immediate supervisor, Oliver Tray, lets him know that he "must" avoid jury duty at all costs. Sousa tells the judge of his circumstances and his need to be at work, but the judge refuses to let Sousa avoid jury duty. Sousa spends the next two weeks at trial. He sends regular emails and texts to Tray during this time, but on the fourth day gets a text message from Tray that says, "Don't bother to come back." When he does return, Tray tells him he is fired. Sousa has a cause of action for the tort of wrongful discharge. - ANS True Rainbow Airlines is a new air carrier headquartered in Chicago. The company extensively studied the psychology of passengers and determined that more than 93 percent of its passengers felt most comfortable with female flight attendants between the ages of 21 and 34. To increase its profitability, the company issued a policy of hiring only such people for jobs in the air but opened all ground jobs to anyone who could otherwise qualify. The policy made no racial distinction and, in fact, nearly 30 percent of the flight attendants hired were black. What violations of federal law has Rainbow committed, if any? - ANS Rainbow Airlines has violated Title VII of the Civil Rights Act and the Age Discrimination in Employment Act. Lucas lost both his legs in combat in Vietnam. He has applied for a job with Artistry in the company's quality control lab. The job requires inspectors to randomly check products coming off the assembly line for defects. Historically, all inspectors have stood for two-hour shifts. Lucas proposes to sit in his wheelchair. The company refuses to hire him, because it says he will be less efficient. Lucas's previous employment record shows him to be a diligent, serious worker. P a g e 12 | 14