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Fall 2014 Business Law Midterm This is a take-home-open-book-midterm. This is NOT a group effort. Work alone. DO NOT WORK TOGETHER! Use a scantron. Write your name on the scantron. True or False (Mark A for True B for False): 1. It is a violation of the separation of powers doctrine for State A to adopt a law identical to one adopted by State B. 2. A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than general provisions. 3. The town of Somerset passed a law forbidding parking on Main Street between the hours of 9:00 a.m. and 4:00 p.m. This is an example of an ordinance. 4. If one obeys the law, one is necessarily also acting ethically because ethical standards of conduct and legal standards of conduct are identical. 5. One of the important powers of courts in the United States is to interpret legislation. 6. It is the function of the jury to decide the facts that are in dispute in a case. 7. It is unconstitutional to conduct a trial with a jury of fewer than 12 jurors. 8. For diversity of citizenship jurisdiction, each plaintiff must have suffered over $100,000 in damages. 9. Sam Sophomore is suing the school board of Small Town, Iowa for suspending him because he held up a sign at a pep rally denouncing war. He claims that his First Amendment right of free speech was violated. He may file suit in federal district court in Iowa, even though he and the defendant school board members are citizens of Iowa. 10. A person who violates a decree from a court of equity can be jailed for contempt of court. 11. Each state must have at least 2 federal district courts, one to hear federal questions and one to hear diversity cases. 12. A plaintiff must have minimum contacts with a state in order to file suit there. 13. A major purpose of discovery is to encourage the parties to settle the case without going to trial. 14. A defendant who wants to have the trial moved to a different geographic location in the state because of likely jury prejudice would ask for a change of venire. 15. An appeals court does not have the power to review the findings of law made by the judge during the trial, only the jury’s findings of fact. 16. The written questions that parties to a suit send each other that are answered in writing under oath are interrogatories. 17. Summary judgments cannot be granted if there are any questions of material fact still in dispute by the parties.
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18. “Clear and convincing evidence” is the easiest level of proof for a party with the burden of proof to meet. 19. Alice and Ben were involved in a dispute which they resolved on their own through discussion and compromise with no outside help. This is an example of mediation. 20. The United Pipefitters Union objects to benefit reductions proposed by Employer. Both sides agree to call in a 3rd party to help them develop points of agreement and compromise. This is an example of mediation. 21. In arbitration, parties to a dispute go to a court of equity for a resolution. 22. The vast majority of disputes in our society are settled without recourse to either arbitration or litigation. 23. Once an attorney has been hired to represent a client’s interests, he has an ethical duty to advise against compromise and out of court settlement in favor of litigation. 24. The decisions of mediators are legally binding on the parties to a dispute. 25. Procedural and evidentiary rules are much less rigid in courts of law than in arbitration proceedings. Multiple Choice: 26. The Constitutional basis for the right of privacy is a. A specific guarantee found in the 5th Amendment. b. A specific guarantee found in the 14th Amendment c. A judicial construction based on the pursuit of happiness guarantee in the Declaration of Independence d. The Supreme Court’s finding that the right of privacy, although not expressly stated, is inherent in a number of Amendments. 27. Assume that Connecticut took 600 acres of private property to build an overpass over a major state road. This is an exercise of the state’s power of _________. a. Preemption b. Attainder c. Quo warranto seizure d. Eminent domain 28. A state law will be invalid if it conflicts with a federal law because of the ________Clause. a. Supremacy b. Commerce c. Privileges and Immunities d. Establishment 29. The power of the courts to declare legislation invalid because it violates the Constitution is the power of ___________________. a. Judicial discretion b. Res judicata c. Judicial review d. Judicial oversight
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30. Under the Constitution, the powers of the executive, legislative and judicial branches are designed to restrain the powers of the other branches. This process is know as a. Governmental restraint b. Checks and balances c. Executive oversight d. Legislative prerogative 31. The American political system, which divides the power of government between sovereign states and a sovereign federal government, is an example of___________. a. Bicameral government b. Federalism c. Socialism d. Capitalism 32. What level of proof is required for an indictment? a. Beyond a reasonable doubt b. Beyond a shadow of a doubt c. Clear and convincing evidence d. Probable cause 33. Non violent crimes based on fraud and concealment are classified as what type of crimes? a. Blue collar b. White collar c. Strict liability d. Public nuisance 34. Frank and Joe agree that they will break into and steal money and goods from Local Liquor Store on Sunday at 3:00 a.m. Frank buys some tools to force open the back door. Before they actually break into the store, however, the police catch them. Frank and Joe can be charged with which of the following crimes? a. Embezzlement b. Conspiracy c. Grand larceny d. Arson 35. Which of the following statements about criminal intent is false? a. The intent to commit a crime is the same thing as the motive for committing a crime. b. Behavior can be so negligent that it meets the element of criminal intent. c. A person can be guilty of committing a strict liability crime even if he did not have the intent to commit a crime, d. In a specific intent crime, the prosecution has the burden of proving beyond a reasonable doubt that the defendant was in fact acting with that specific intent.

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36. Which of the following is the standard of proof necessary for issuing a search warrant? a. Preponderance of the evidence b. Probable cause c. Beyond a reasonable doubt d. Clear and convincing evidence. 37. The Supreme Court has ruled that evidence gathered in violation of a defendant’s Fourth, Fifth, or Sixth Amendment rights cannot be used at trial. This is called the ______________rule. a. Evidentiary b. Exclusionary c. Exculpatory d. Durham 38. The damages that are awarded to a victim to make the victim “whole” are ____________ damages. a. Punitive b. Compensatory c. Nominal d. Consequential 39. Al, Bill, Chad and Dan were found jointly and severally liable for $100,000 of property damages caused when a fraternity initiation event got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay the plaintiff is a. $25,000 b. $50,000 c. $75,000 d. $100,000 40. What is the primary purpose of tort law? a. Punish wrongdoers b. Compensate victims for their losses c. Support society by fining wrongdoers d. Create precedents in the common law 41. The legal classification for all property that is not real property is ________________. a. Chattel b. General intangibles c. Contraband d. Res in se

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42. The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is___________. a. Joint and several liability b. Respondeat superior c. Negligence per se d. Res ipsa loquitur. 43. What is the difference between libel and slander? a. Libel is a written communication, and slander is an oral communication. b. Libel is also a felony, but slander is not. c. Libel requires that plaintiff prove malice on the part of the defendant, but slander does not. d. Businesses can only sue for defamation based on libel, not slander. 44. Which of the following is not an element of negligence that must be proved by a plaintiff? a. Superseding cause b. Proximate cause c. Actual cause d. All of the above must be proved by the plaintiff in a negligence case. 45. The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is a. Marbury v. Madison b. Plessey v Fergerson c. Roe v Wade d. Palsgraph v Long Island Railroad Co. 46. The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___________________. a. Malpractice b. Negligence per se c. Negligence ad hominem d. Res ipsa loquitur 47. Which of the following statements is true about the use of the reasonable person standard in negligence cases? a. The reasonable person is presumed to have a minimum level of knowledge and common sense. b. The reasonable person of the standard takes on the physical characteristics of the defendant. c. The standard of care for the reasonable person would be less stringent in emergency situations. d. All of the above are true statements.

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48. The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is a. Res ipsa loquitur b. Negligence per se c. Malpractice d. Contributory negligence 49. Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________. a. Contributory negligence b. Modified comparative fault negligence c. Pure comparative fault negligence d. Situs negligence 50. What is another term for strict liability? a. Liability without fault b. Gross negligence c. Reckless misconduct d. Criminal negligence.

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