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Business law : 20 questions ( part 1) :



PART (1) : 


1.   Doug’s complaint asks for an injunction. Which of the following is true? 


A. Doug has suffered great harm.

B. Doug seeks an equitable remedy.

C. Doug seeks money damages.

D. Money would be an adequate remedy.


2.   Phillip and Lori have a two-car accident in Tennessee. Both of them reside in Tennessee. Phillip will be able to sue Lori in Tennessee federal court 


A. if his damages exceed $75,000.

B. if the case involves application of federal law.

C. if his damages are extraordinary.

D. under no circumstances.



3.   Rachel’s lawyer tells her that to resolve her case, the court will have to engage in judicial review. This means that the case involves 


A. an appellate court.

B. constitutionality of a statute, administrative regulation, or executive action.

C. common law.

D. judicial interpretation of a statute with ambiguous and unclear language.


4.   Will, an Idaho resident, was driving in Tennessee and struck Vicki, a Tennessee resident. Which of the following is true? 


A. Vicki may sue Will in Tennessee federal court only if the case involves violation of a federal law.

B. Vicki can’t sue Will in Tennessee federal court because Will isn’t a resident.

C. Vicki may sue Will in Tennessee federal court, no matter the amount of her damages.

D. Vicki may sue Will in Tennessee federal court if her damages are greater than $75,000.


5.   If a writ of certiorari is issued by the U.S. Supreme Court, which of the following is true? 


A. The case will be reversed.

B. The case involves the U.S. Constitution.

C. The lower courts haven’t been able to agree on issues involved in the case.

D. The U.S. Supreme Court has agreed to hear the case.


6.   Which type of ADR involves time limits on presentations? 


A. Summary jury trials

B. Med-arb

C. Mediation

D. Early neutral evaluation


7.   An advantage of ADR is that it 


A. saves time and money.

B. improves the discovery process.

C. effectively handles constitutional law.

D. promotes the development of the law.



8.   Miguel, an Idaho resident, sues Kurt, an Alabama resident, in Idaho state court. Miguel’s lawyer warns Miguel that the Idaho court may be unable to exercise authority over Kurt. This suggests that there may be a problem obtaining __________ jurisdiction. 


A. original

B. general

C. subject matter

D. personal


9.   Vera runs a cosmetics company. A federal agency is considering adopting a rule that would adversely affect Vera’s business. Vera may have input on the agency’s decision if the agency uses the ADR technique called 


A. negotiated rule making.

B. science court.

C. arbitration.

D. med-arb.



10.   George and Tanya are in a legal dispute. However, they’re friends, and they would like to control the outcome of the case rather than letting a judge or other third-party decide it. What is their best ADR option? 


A. Mediation

B. ADR contract clause

C. Private civil trial

D. Binding arbitration


11.   Gary sues Dennis, relying on a state law. Dennis defends himself based on a federal law involving the same subject. If Dennis wins, it will be because of 


A. preemption.

B. devolution.

C. judicial review.

D. the federal register.



12.   Carl was arrested under a New Jersey statute that made it a crime to be persistently unemployed. Carl argues that a similar statute was declared unconstitutional by the California state court, so the New Jersey state court is required to declare New Jersey’s statute unconstitutional. Carl is wrong because 


A. more than one court has to rule a certain way before precedent is established.

B. state courts aren’t bound by precedent.

C. only federal courts can create binding precedent.

D. out-of-state cases aren’t binding precedent in state courts.


13.   Donovan, like thousands of other people, was injured by an over-the-counter cold medicine that caused his hair to fall out. Even though his hair has grown back, he wants to sue. His lawyer advises that doing so would be expensive and not cost-effective, given the small amount of damage that temporary hair loss caused Donovan and other people like him. Donovan and others in his situation can make a lawsuit cost-effective by filing 


A. a small-claims lawsuit.

B. in state court.

C. in federal court.

D. a class action lawsuit.


14.   John sues Sally under a statute that has ambiguous language. Which of the following is true? 


A. John will have to find a different legal basis for his claim.

B. A legislative body will have to clarify the statute before the court can apply it to John’s case.

C. The statute is invalid because of the ambiguous language.

D. The court will interpret the statute to resolve the ambiguity.



15.   Big Factory, Inc., and Save the Environment, an environmental group, have a dispute over whether making Big Factory, Inc., use certain expensive antipollution devices would contribute significantly to improving air quality. A type of ADR especially suited to this dispute is 


A. partnering.

B. summary jury trial.

C. private civil trial.

D. science court.


16.   The National Conference of Commissioners on Uniform State Laws developed a revised version of the UCC. Joe learned of this and, relying on one of the changes, acted in a way that was prohibited under the former version but permitted under the revised version. As a result, Joe was sued for his action. Both parties live in Joe’s state, which is also where the transaction took place. Whether Joe wins or loses depends on 


A. which version of the UCC has been adopted by the legislature in Joe’s state.

B. whether members of the commission that drafted the revision were from Joe’s state.

C. which party stands to gain the most from the lawsuit.

D. which version of the UCC the judge thinks is most equitable.


17.   Antonio’s attorney proves that there’s no issue of any material fact, and the attorney would like to ask the court for an immediate judgment favorable to Antonio. Antonio’s attorney should file a/an 


A. summary judgment motion.

B. injunction.

C. writ of execution.

D. answer.


18.   What does a process server do? 


A. Gives the complaint and summons to the defendant

B. Causes a summons to be issued to the defendant

C. Files the complaint with the court

D. Commences an action involving a criminal matter



19.   April’s attorney informs her that they’ve been served with interrogatories. Which of the following is true? 


A. April will be required to submit to a physical examination.

B. April will have to answer questions under oath about the case.

C. April will be required to make oral statements in front of a court stenographer.

D. April’s attorney will have to answer questions under oath about the case.



20.   Ben sues Fiona. The court that initially tries the case necessarily will not have __________ jurisdiction. 


A. personal

B. appellate

C. subject matter

D. original


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