Practice Test For Mid-Term Business Law 201

True/False

1. A reference to “RCW 4.12.020" means that a statute can be found on page 12 of volume 4 of the Revised Code of Washington, part 20.

2. The United States Congress has adopted one particular approach to ethics, and made it a part of the United States Code; all United States businesses must follow only those statutes in the United States Code, and are not allowed to determine what their businesses’ approaches to ethics will be.

3. An arbitrator in “court-annexed” or “judicial” arbitration makes decisions like a judge, which will be binding on the parties, unless one of the parties to the arbitration seeks a trial de novo.

4. In Washington, the tort of “intentional infliction of emotional distress” is called the tort of “outrage.”

5. In Price v. Purdue Pharma Co., precedent prohibiting a plaintiff patient from recovering against defendant doctors, if the plaintiff patient’s own criminal acts contributed to the circumstances causing the injury, supported the court’s ruling granting summary judgment in favor of the defendant doctors.

6. In Washington, the doctrine of contributory negligence means that if a plaintiff is found to be 40 percent negligent, any jury calculation and award of damages to plaintiff will be reduced by 40 percent. (Note: be sure to review the Torts lecture notes for this question—do not just rely on the online text or the online text’s links.)

7. Depending upon the facts of the particular situation, trespass to chattels can occur either as a traditional tort or as a cybertort.

8. Slander involves the written communication of a defamatory statement.

9. Parties can agree by contract to submit to binding arbitration, and give up their rights to file a lawsuit against each other.

10. In the mediation process, the mediator’s conversations with the parties are a matter of public record.

11. A long-arm statute is a state law that permits courts to obtain subject matter jurisdiction over non-resident defendants.

12. In the tort of “intentional interference with contract,” one party to a contract defrauds the other party to the contract, and the defendant is the defrauding contract party.

13. A Washington state district court currently has subject matter jurisdiction over many types of civil cases, if the amount in controversy is $150,000 or less.

14. A motion is an application for an order, and may be brought during litigation anytime a party needs a court order, beginning with a motion to dismiss, at the pleading stage of a lawsuit.

15. Washington is a member state that follows SSUTA (“Streamlined Sales and Use Tax Agreement”).

16. An answer usually includes only a defendant’s responses to plaintiff’s complaint allegations (that is, only admissions or denials of the allegations in plaintiff's complaint).

17. The formal process called “discovery” involves the gathering of evidence concerning the case, before the complaint is filed.

18. A motion for summary judgment can only be granted by a trial court when there are no genuine issues of material fact in a pending case, and the moving party is entitled to judgment as a matter of law.

19. A defendant who has been served with a Washington state court complaint has 30 days to serve an answer or other allowed response, to avoid being held in default by the court.

20. A shopper cannot ever be detained by a store for investigation of suspected shoplifting, because the store would be committing the tort of “false imprisonment.”

21. There are no Washington statutes providing for damage claims for the use of “spam” on the Internet.

22. Defamation lawsuits are never allowed to proceed, if the defamation occurred online.

23. The Fifth Amendment privilege against self-incrimination also provides a defendant protection from civil liability.

24. Child pornography is “speech” protected by the First Amendment.

25. There is a specific guarantee of a right to privacy in the Washington Constitution, but not in the U.S. Constitution.

MULTIPLE CHOICE Choose the one best answer for each of the following questions.

26. The complaint and answer documents are two examples of

A. pleadings.

B. hearsay.

C. depositions and interrogatories.

D. discovery.

27. Bonnie steals some very expensive cooking equipment from a restaurant supply store. Bonnie has committed the intentional tort of

A. slander of title.

B. conversion.

C. petty theft.

D. grand theft.

28. The elements of the tort of negligence include

A. defendant's breach of defendant's duty

B. plaintiff's injury or damages

C. a causal connection between defendant's breach of duty and plaintiff's injury or damages

D. defendant's breach of defendant's duty, plaintiff's injury or damages, and a causal connection between defendant's breach of defendant's duty and plaintiff's injury or damages

29. Nancy owns a pet store in Seattle, and one of her dogs escapes and runs out onto the sidewalk in front of her store. If a passerby is bitten by Nancy’s dog, despite the passerby's attempts to avoid and then run away from the dog, under the theory of strict liability, as applied in Washington, Nancy must pay for the injury

A. only if Nancy intended to injure the passerby.

B. only if Nancy knew that the dog had dangerous tendencies, and did not keep the dog restrained.

C. regardless of whether Nancy was at fault in failing to restrain the dog.

D. even if the passerby provoked the dog.

30. The citation of a case includes

A. the names of the parties.

B. the names of the attorneys who represented the parties.

C. the abbreviation for the reporter where the case can be found.

D. two of the listed items.

31. A corporation likely has ethical duties to

A. its owners

B. its employees

C. the general public (society)

D. its owners, its employees, and the general public

32. Intentional torts include

A. Defamation

B. Negligence

C. Trespass to land

D. Defamation and trespass to land

33. Assume that the case of Jones v. Smith has just been decided by the Washington Supreme Court. Of the nine justices, seven agreed that Jones should win; two justices thought that Smith should win. Justice Stephens, one of the two justices who thought that Smith should win, wrote a separate opinion, in which she indicated why she did not agree that Jones should win. Justice Stephens’ opinion would be a

A. dissenting opinion.

B. concurring opinion.

C. unanimous opinion.

D. minority opinion.

34. Primary sources of law do not include

A. statutory law

B. violations of law under the Restatement.

C. administrative agency regulations.

D. case law

35. According to the United States Supreme Court’s decision in the McCutcheon case, which of the following were interpreted to have more free “political speech” rights than they had previously been interpreted to have?

A. individuals

B. corporations

C. judges, in their official capacity as judges

D. none of the above

36. The Fourteenth Amendment includes a series of protections for the individual against invasions of civil rights by

A. a state government.

B. business entities.

C. private individuals.

D. the federal government.

37. If Jerry and Terry are drivers whose cars collide with each other at Hwy 99 and 196th Street in Lynnwood, WA (Snohomish County), and Jerry is a resident of Seattle, WA (King County), while Terry is a resident of Everett, WA (Snohomish County), then in a subsequent lawsuit by Jerry against Terry, venue would be proper in

A. Seattle

B. Lynnwood

C. Snohomish County

D. King County

38. When a person’s life, liberty, or property is taken away by the government without giving the person notice of the taking, and the opportunity to have a hearing, there has likely been a violation of the person’s rights to

A. procedural due process.

B. substantive due process.

C. equal protection.

D. the interstate commerce clause.

39. A federal district court has the power to decide a contract dispute lawsuit if

A. the amount in dispute exceeds $75,000.

B. the plaintiff and defendant are citizens of different states.

C. the plaintiff and defendant are citizens of different states, and the amount in dispute exceeds $75,000.

D. the plaintiff and defendant are citizens of different states, and the amount in dispute exceeds $50,000.

40. Which of the following is a method of alternative dispute resolution?

A. Mediation

B. Negotiated settlement

C. Arbitration

D. Mediation, Negotiated settlement, and Arbitration

41. Methods by which parties can gather evidence to prove their cases at trial include

A. requests for admission

B. hearsay

C. requests for admission and interrogatories.

D. interrogatories

42. Requests for production of documents can be directed to

A. the judge in the case.

B. witnesses who are not parties to the lawsuit.

C. a plaintiff by a defendant, or a defendant by a plaintiff.

D. none of the listed persons.

43. In the voir dire (jury selection) process, a prospective juror may not be challenged, due to

A. the prospective juror’s bias

B. the prospective juror’s race

C. the prospective juror’s gender

D. the prospective juror's race or gender.

44. The corporate social responsibility approach that would make the corporation's sole responsibility that of maximizing profits, as long as it was done legally, is called

A. the stakeholder approach.

B. the alliance approach.

C. the shareholder approach.

D. the Kantian approach.

45. The acronym that represents the components of legal analysis of case law is

A. MAR

B. Wn.App.

C. S.Ct.

D. IRAC

46. In a typical civil case, a plaintiff must prove her case

A. beyond a reasonable doubt.

B. through a preponderance of the evidence.

C. by clear and convincing evidence.

D. by showing that she has complied with all of the procedural court rules.

47. Of the following opinions that could be issued in a case by appellate justices, which would qualify as “precedent?”

A. dissenting opinion.

B. concurring opinion.

C. majority opinion.

D. none of the above.

48. States may regulate individuals' activities under the states' "police powers," which include the power to protect or promote the public's

A. health.

B. safety.

C. welfare.

D. health, safety, and welfare.

49. The full faith and credit clause of the Constitution

A. protects the public acts, records and judgments in each state, by requiring other states to honor or respect them.

B. requires that if the government decides that it wishes to deprive a person of life, liberty or property, it must do so fairly.

C. requires that banks allow all persons equal access to become bank customers.

D. requires that each state have fair credit reporting practice laws.

50. The ethical approach to business that is based upon concepts originating with Aristotle is

A. utilitarianism.

B. principle of rights.

C. Kantian duty-based ethics.

D. virtue ethics.