1. Arbitration and mediation are preferred dispute resolution methods because they always result in a satisfactory outcome for both sides of the dispute.
True
False
2. Criminal law is designed to compensate parties for money lost as a result of another’s unlawful conduct.
True
False
3. Legal positivists believe that agreed-upon laws should be uniformly and strictly enforced and may be changed only by the government.
True
False
4. The power of courts to establish law in matters not specifically addressed by statutes is very limited in common law countries.
True
False
5. Restatements of the Laware written and revised by Congress and state legislatures as needed.
True
False
6. With regard to establishing minimal contacts to establish jurisdiction regarding out-of-state companies that advertise and sell products over the Internet, which of the following is not a true statement?
The U.S. Supreme Court has not yet directly ruled on the issue.
The Zippo standard, established in Zippo Manufacturing Company v. Zippo Dot Com Inc., is not legally binding precedent.
At least six federal circuit courts have adopted the Zippo standard as the legal framework to assess minimum contacts.
The Zippo standard sets a rigid test to establish minimum contacts, requiring that at least 5 percent of the state’s population visit the company’s website.
7. Which of the following situations will create diversity jurisdiction?
New York sues Virginia to stop the sale of firearms to New York residents.
April, a Delaware resident, is a student at the state university in Delaware and sues for $1 million after she was molested on campus due to lack of appropriate security.
April, a Delaware resident, is a student at an out-of-state university and sues the school for a $50,000 tuition refund when she must leave for a semester for a personal family emergency and the school refuses a refund or credit.
April, a Delaware resident, sues Mike, a New York resident driving in Delaware, for $80,000 when he rear-ends her while she’s riding her bicycle and severely injures her.
8. With regard to federal question jurisdiction:
the case may be filed in either state or federal court.
the case may be filed only in state court if the controversy is $75,000 or more.
the case may be filed only in federal court if the controversy is $75,000 or more.
the case may be filed only in federal court and the amount in controversy is irrelevant.
9. Diversity jurisdiction must be shown to bring an appeal in a state’s highest court.
True
False
10. According to the Zippo standard, any website that is in any way interactive with customers will be sufficient to create personal jurisdiction over a nonresident company.
True
False
11. Transcripts of ADR proceedings are required to be available to the public.
True
False
12. Which of the following is categorized as informal ADR?
negotiation
mediation
arbitration
med-arb
13. The filing of the complaint begins which stage of litigation?
the pleadings
discovery
voir dire
the trial
14. The Federal Arbitration Act enumerates specific procedures for conducting arbitration hearings.
True
False
15. Online negotiation is available for minor disputes, but disputes arising from complex transactions may be resolved only with traditional face-to-face meetings.
True
False
16. That corporations have a social responsibility and that profitability should be secondary reflects:
the narrow view, or invisible hand theory.
the moderate view, or government’s hand theory.
the hybrid view, or citizen’s hand theory.
the broad view, or management’s hand theory.
17. As a result of the AIG bailout, the U.S. government received a(an) ________ stake in the company.
50 percent
60 percent
70 percent
80 percent
18. Social responsibility is at its highest when the moderate view, or government’s hand theory, of corporate social responsibility is utilized.
True
False
19. The final result of the AIG bonus gate scandal was that no new laws or taxes were enacted, nor were there any additional official actions taken by Congress or the president.
True
False
20. Honoring ethical values and respecting communities and the environment while recognizing the interests of shareholders are elements of corporate citizenship.
True
False
22. The power to carry out foreign policy is an enumerated power granted to:
the executive branch.
the legislative branch.
the judicial branch.
all three branches.
23. The primary authorization of constitutional powers is given to Congress under:
the Preamble to the Constitution.
Article I of the Constitution.
Article VI of the Constitution.
the Bill of Rights.
24. Professor Jones accuses Kim, one of his students, of cheating on an exam. Professor Jones arranges a hearing to be held in front of the university’s Academic Honesty Board, and Kim is informed that she must prove her innocence before Professor Jones must prove her guilt. Kim is being denied her substantive due process rights.
True
False
25. Enumerated powers are those rights and powers granted in the Constitution to the individual states.
True
False
26. A valid contract is one that has all the necessary elements and, thus, can be enforced.
True
False
27. The terms agreement and contract have the same meaning.
True
False
28. An agreement to buy cocaine from a dealer is:
a valid contract.
a void contract.
a voidable contract.
an unenforceable contract.
29. Unjust enrichment is a theory used to impose an obligation in the absence of an actual agreement.
True
False
30. Real estate deeds and mortgages that require a seal to be enforceable are considered:
quasi-contracts.
implied contracts.
informal contracts.
formal contracts.
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