BUSAD 120 - Business Law » Fall 2021 » Chapter 4 Quiz

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Question #1
The amount of business a corporation does within a state can serve to subject or exempt the firm from that state’s jurisdiction.
A.   TRUE
B.   FALSE
Question #2
Any court can exercise jurisdiction over any person.
A.   FALSE
B.   TRUE
Question #3
Judicial review is the process through which Congress approves or rejects judicial appointments.
A.   TRUE
B.   FALSE
Question #4
Most states encourage or require parties to undertake a trial before alternative dispute resolution.
A.   TRUE
B.   FALSE
Question #5
Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.
A.   FALSE
B.   TRUE
Question #6
Only the United States Supreme Court exercises the power of judicial review.
A.   FALSE
B.   TRUE
Question #7
The effect of the minimum-contacts standard is that a business firm has to comply with the laws of any jurisdiction in which it targets customers.
A.   TRUE
B.   FALSE
Question #8
In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online.
A.   FALSE
B.   TRUE
Question #9
For purposes of diversity jurisdiction, a corporation is not considered a citizen of any particular state.
A.   FALSE
B.   TRUE
Question #10
A federal court will apply federal law in a case involving a federal question.
A.   TRUE
B.   FALSE
Question #11
Jurisdiction refers to the right of a citizen to bring a case before a court.
A.   FALSE
B.   TRUE
Question #12
In a case based on diversity of citizenship, a court will apply
A.   the relevant state law.
B.   any law that the parties to the case agree to apply to their dispute.
C.   federal common law.
D.   the law that produces the most equitable result.
Question #13
A challenge to the constitutionality of an executive order that limits certain state actions is
A.   solely for the executive to decide.
B.   beyond the jurisdiction of the courts.
C.   subject to the exclusive authority of Congress.
D.   within the power of judicial review.
Question #14
State trial courts that are called county, district, superior, or circuit courts are most likely to have
A.   limited jurisdiction.
B.   general jurisdiction.
C.   no jurisdiction.
D.   appellate jurisdiction.
Question #15
Tabulated Data Inc. files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees’ student loans. The process by which the court decides this issue is
A.   judicial review.
B.   the rule of four.
C.   unconstitutional.
D.   voir dire.
Question #16
Rock Quarry Inc. and Serene Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with the quarry’s representative to discuss the matter without the vineyard’s representative being present. If this substantially prejudices the grape grower’s rights, a court will most likely
A.   set aside any award.
B.   file a complaint against the arbitrator.
C.   dismiss the dispute.
D.   review the record of the case.
Question #17
Fresh Seafood Inc. and Grocers Market LLC dispute a term in their contract. Because the parties have a long-standing business relationship that they would like to continue, they could settle their dispute through mediation because
A.   the case will be heard by a jury.
B.   the dispute will eventually go to trial.
C.   the resolution of the dispute will be decided an expert.
D.   the process is not as adversarial as litigation.
Question #18
The 1803 decision of the United States Supreme Court in the case of Marbury v. Madison established
A.   the jurisdiction of the courts.
B.   the power of judicial review.
C.   the rule of four.
D.   the writ of certiorari.
Question #19
Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant’s best ground for dismissal of the suit is that the plaintiff does not have
A.   minimum contacts.
B.   standing to sue.
C.   exclusive jurisdiction.
D.   venue.
Question #20
Ovid wants to file a suit against Petra. For a court to hear the case,
A.   the parties must own property.
B.   the parties must have diversity of citizenship.
C.   both parties must consent.
D.   the court must have jurisdiction.
Question #21
Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have
A.   no jurisdiction
B.   concurrent jurisdiction with federal courts.
C.   exclusive jurisdiction.
D.   concurrent jurisdiction with other state courts.
Question #22
The concept of venue reflects the policy that a court trying a case should
A.   have minimum contacts with the parties to the case.
B.   have exclusive jurisdiction over the subject matter.
C.   be in the geographic neighborhood of the incident or parties in dispute.
D.   be more or less informed or prejudiced for or against the defendant.
Question #23
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing
A.   under the minimum-contacts test.
B.   only if Beef Packing files the suit.
C.   on the basis of a federal question.
D.   in no circumstances.
Question #24
Lazlo, a citizen of Minnesota, wants to file a suit against Nadji, a citizen of Ohio. The diversity of citizenship may be a basis for
A.   any court to exercise jurisdiction.
B.   a federal court to exercise jurisdiction.
C.   the United States Supreme Court to refuse jurisdiction.
D.   no court to exercise jurisdiction.
Question #25
The United States Supreme Court has held that a mandatory arbitration clause in an employment contract is generally enforceable because in agreeing to the clause, the parties waived
A.   rights under statutes designed to protect the employee.
B.   their right to sue.
C.   the right to terminate the employment relationship without cause.
D.   the right to engage in other methods of alternative dispute resolution.
Question #26
Heyli is not a resident of Iowa although her website can be accessed by residents of that state. Jen files a suit against Heyli in an Iowa state court. The court is most likely to have jurisdiction over Heyli if Jen’s claim arises from
A.   minimum contacts between Heyli and any Iowa resident.
B.   substantial business between Jen and Heyli through Heyli’s website.
C.   no interactivity between Heyli and any Iowa resident through Heyli’s website.
D.   the Internet’s capacity to bypass boundaries.
Question #27
The jurisdiction of the federal courts is limited because
A.   the territory of the United States is limited.
B.   Congress sets the limits.
C.   the federal government has limited powers.
D.   the states can exercise their authority under long arm statutes.
Question #28
Hobbes, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jules, a resident of Kentucky. Jules files a suit against Hobbes in Indiana. Regarding this suit, Indiana has
A.   federal jurisdiction.
B.   in personam jurisdiction.
C.   in rem jurisdiction.
D.   no jurisdiction.
Question #29
A dispute between two cheese makers—Cheddar Creamery Company and Deli Dairy Inc.—falls under a state statute on unfair trade practices. The application of this law to these parties must be determined by
A.   a judge.
B.   a trial court.
C.   an appellate court.
D.   a jury.
Question #30
Identify the 2 key legal issues decided in the seminal case of International Show v. State of Washington.
A.   In Rem Jurisdiction and venue
B.   Federal Court jurisdiction and standing
C.   In personam jurisdiction and the commerce clause
D.   Venue and Standing 
Question #31
The statement in International Shoe v. Washington, "Whether due process is satisfied must depend rather upon the quality and nature of the activity in relation to the fair and orderly administration of the laws which it was the purpose of the due process clause to insure" requires a court to consider the ethics of business conduct.
A.   TRUE
B.   FALSE
Question #32
International Shoe was subject to personal jurisdiction in Washington State because their business
A.   was based on activities giving rise to the obligation sued and was subject to diversity jurisdiction with the State of Washington
B.   received the benefits and protection of the laws of the state and was subject to diversity jurisdiction with the State of Washington
C.   received the benefits and protection of the laws of the state, was based on activities giving rise to the obligation sued, and was systematic and continuous
Question #33
Jurisdiction takes on the requirement that courts asses the following elements in determining personal jurisdiction for cyberspace activity
A.   use of the Internet for advertising to promote its product
B.   the number of persons accessing the website 
C.   use of websites with some interactivity
D.   determination of substantial nature of activity
Question #34
The Due Process Clause of the 14th & 5th Amendments to the U.S. Constitution is the basis for interpretation of state Long Arm Statutes imposing personal jurisdiction over out-of-state defendants.
A.   FALSE
B.   TRUE

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