Cengage Advantage Books Business Law Principles and Practices 9th Edition by Arnold J. Goldman - Test Bank

Cengage Advantage Books Business Law Principles and Practices 9th Edition by Arnold J. Goldman – Test Bank

 

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Sample Questions Are Posted Below

 

Chapter 5—Litigation and Alternatives for Settling Civil Disputes

 

TRUE/FALSE

 

1. A major reason for finding alternatives to a lawsuit is that the person you are thinking of suing may be judgment proof.

 

ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 105             OBJ:   LO: 5-1          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

2. Once a party to a lawsuit “wins” the case, the “winning” party will have very little difficulty in collecting the amount of damages awarded by the jury.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 105             OBJ:   LO: 5-1          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

3. Most civil cases are settled before they go to trial.

 

ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 105             OBJ:   LO: 5-1          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

4. The plaintiff in a civil action is the state or federal government acting for the person bringing the lawsuit.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

5. In a civil lawsuit during a pretrial proceeding, if the defendant’s attorney claims that the evidence is not sufficient to continue the case, she may make a motion for immediate judgment on the case.

 

ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 111             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

6. One form of discovery technique is a default judgment.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 112             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

7. After a pretrial conference is held and the plaintiff and defendant do not settle, the case is dismissed by the judge.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 113-114      OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

8. Jurors selected to serve on a civil trial jury are called grand jurors.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 114             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

9. The qualifications of potential jurors are determined through a process called voir dire.

 

ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

10. A civil jury in most states is now composed of at least twelve people.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

11. Removal for cause is a device used to prevent a prospective juror who is biased from serving on a case.

 

ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

12. All cases must be tried before a jury.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 114             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

13. The statement made by the judge to the jury before jury members retire to the jury room to discuss the case is called the judgment.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115-116      OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

14. To bring a witness into court, he or she must be served with a summons.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

15. The appeals procedure in a civil case is simple and inexpensive.

 

ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 116             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

MULTIPLE CHOICE

 

1. If a person feels that he or she has been injured by the actions of someone else, he or she may start a court action against that person to obtain relief by filing a

a.	complaint.
b.	judgment.
c.	subpoena.
d.	summons.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

2. Interrogatories are:

a.	sworn statements of witnesses
b.	written questions directed to the adversary in a civil trial.
c.	the same as a subpoena
d.	statements used by the defendant’s attorney to show that the plaintiff is being

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 112             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

3. The first papers served in a civil action are

a.	the complaint and summons.
b.	a summons and answer.
c.	a complaint and answer.
d.	a deposition and subpoena.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

4. The order in which the events of a civil trial occur is

a.	verdict, charge to jury, testimony.
b.	summons, jury selection, verdict.
c.	pretrial procedures, summons, judgment.
d.	complaint, verdict, pretrial procedures.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109-116      OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

5. The plaintiff in a civil lawsuit is the

a.	state.
b.	attorney for the person injured.
c.	person injured.
d.	person being sued.

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

6. A legal written notice addressed to the defendant in a civil action indicating that a lawsuit has been filed and ordering him or her to appear in court to answer charges is called a

a.	summons.
b.	motion.
c.	complaint.
d.	deposition.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

7. In a civil action, the paper containing the defendant’s statement of his or her defense is the

a.	summons.
b.	motion.
c.	deposition.
d.	answer.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 109             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

8. A pretrial device used to prevent surprises during the actual trial of a civil case is called

a.	a notice of appearance.
b.	a complaint.
c.	a voir dire.
d.	discovery.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 112             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

9. Impaneling a jury means

a.	dismissing a jury at the conclusion of the trial.
b.	exempting jurors from jury duty.
c.	selecting people to serve as jurors for a case set for trial.
d.	notifying jurors at their homes that they have been called to serve as jurors.

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 114             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

10. A prospective juror may be dismissed arbitrarily without any reason being given if an attorney for one of the parties in a lawsuit exercises a

a.	challenge for cause.
b.	move for a mistrial.
c.	default judgment.
d.	peremptory challenge.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

11. In a civil case, the plaintiff must establish the truth of his or her claim by

a.	proving his or her facts beyond a reasonable doubt.
b.	a preponderance of the evidence.
c.	direct examination.
d.	asking for a motion to dismiss.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

12. A subpoena is an order by the court served on

a.	the attorney to produce the defendant in court.
b.	a person to appear and testify as a witness in a legal action.
c.	the warden of a jail to produce the prisoner in court.
d.	a person to be examined for possible jury duty.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

13. The questioning of a witness for the plaintiff by the attorney for the defendant is called

a.	direct examination.
b.	cross-examination.
c.	indirect examination.
d.	redirect examination.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

14. The initial questioning of a witness by the lawyer who called that witness is called

a.	discovery.
b.	direct examination.
c.	mediation.
d.	cross-examination.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

15. The result of the jury’s agreement in a civil case is known as the

a.	judgment.
b.	plea.
c.	evidence.
d.	verdict.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 116             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

16. The official decision of the jury entered into the court record is called the

a.	verdict.
b.	judgment.
c.	deposition.
d.	appeal.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 116             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

17. The term “adjudicated” means to

a.	accuse.
b.	decide a case judicially.
c.	announce a jury’s decision.
d.	seize by power of the court.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 116             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

18. The parties who select arbitration as a way to settle their dispute agree to

a.	be bound by the decision of the arbitrator and not to challenge the award in court.
b.	mediation if either one of the parties is not successful at arbitration.
c.	challenge the arbitrator’s award.
d.	discovery procedures if the arbitrator cannot reach a decision.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 117             OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Comprehension

 

19. The determination of a controversy in an arbitration proceeding is called a(n)

a.	decree.
b.	judgment.
c.	award.
d.	decision.

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 117             OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

20. The principal purpose of cross-examination in a civil trial is to:

a.	reveal defects in the testimony of a witness.
b.	show that the witness is committing perjury.
c.	compel the witness to admit his/her biases.
d.	prove that the witness is incompetent to testify.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

REF:   p. 115             OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking

STA:   AICPA: BB-Legal                           KEY:  Bloom’s: Knowledge

 

COMPLETION

 

1. An examination of jurors to determine their qualifications and suitability to serve is called the ____________________ examination.

 

ANS:  voir dire

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 115

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

2. In personal injury lawsuits, attorneys are often paid a(n) ____________________ fee.

 

ANS:  contingency

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 109

OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

3. A person who wishes to raise a defense against the party bringing a lawsuit against him or her may file a(n) ____________________ with the court.

 

ANS:  answer

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 109

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

4. A failure of the defendant to acknowledge that he or she has received papers indicating that a legal action has been commenced against him or her gives the party initiating the legal action the right to a(n) ____________________ by default.

 

ANS:  judgment

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 109

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

5. A pretrial step that allows a party involved in a lawsuit to obtain detailed information about the other party’s claim or defense is called ____________________.

 

ANS:  discovery

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 112

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

6. A(n) ____________________ is a written record of a witness’s sworn testimony outside of court.

 

ANS:  deposition

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 112

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

7. A person who uses ____________________ to resolve a dispute will meet with an impartial third person who assists in reaching a compromise.

 

ANS:  Mediation

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 118

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

8. Many cases are settled after a(n) ____________________ conference is held.

 

ANS:  pretrial

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 113

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

9. Legal proof presented during a trial to support a person’s claim is called ____________________.

 

ANS:  evidence

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 115

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

10. Once judgment is obtained, the “winning” party would be entitled to ____________________ damages.

 

ANS:  monetary

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 116

OBJ:   LO: 5-3          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Comprehension

 

SHORT ANSWER

 

1. What should an attorney do before taking a case after his or her client describes in detail all the facts relating to the case?

 

ANS:

Conduct a preliminary investigation to determine the accuracy of the client’s story. The investigation may lead the attorney to discover that there is no basis for a lawsuit. Or, if there is a basis for a lawsuit, an investigation could lead to an informal, out-of-court settlement that could save his or her client the expense and emotional strain of a trial.

 

PTS:   1                    DIF:    Difficulty: Moderate                        REF:   p. 108

OBJ:   LO: 5-1          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Comprehension

 

2. Friday failed to take seriously a lawsuit filed against him by Ranger. He completely ignored the papers describing the case and the request made by Ranger’s attorney directing him to appear in court and answer the allegations made by Ranger. Because of Friday’s course of action, Ranger’s attorney entered the proper papers in court allowing the case to proceed on evidence presented by Ranger alone. Friday claims that this procedure by Ranger’s attorney was improper, since he (Friday) was not given the opportunity to defend himself in court. Is Friday correct?

 

ANS:

No. A person who fails to acknowledge a summons and complaint issued by the plaintiff gives the plaintiff the right to a judgment by default, which means that Ranger could then proceed to prove his case in court and could, if successful, receive monetary damages. The judge would make a decision based solely on the evidence presented by Ranger’s attorney. Friday would not be able to present evidence on his behalf.

 

PTS:   1                    DIF:    Difficulty: Moderate                        REF:   p. 109-110

OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Application

 

3. A witness is willing to give evidence in court that would be helpful to one of the parties to a lawsuit. However, she lives in another state and is unable to attend the trial. How can her testimony be secured for evidence in the trial?

 

ANS:

She can give a deposition.

 

PTS:   1                    DIF:    Difficulty: Moderate                        REF:   p. 112

OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Comprehension

 

4. In a civil case a person bringing a lawsuit must prove his case (in order to win) by a preponderance of evidence. What does preponderance of evidence mean?

 

ANS:

The case has been proven by evidence that is more convincing than that presented by the opposing side (even by just a slight margin).

 

PTS:   1                    DIF:    Difficulty: Easy                               REF:   p. 116

OBJ:   LO: 5-2          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Knowledge

 

5. How has online dispute resolution changed the way dispute resolution is conducted?

 

ANS:

The process of arbitration, mediation and negotiation become more flexible, efficient, and economical in many cases.

 

PTS:   1                    DIF:    Difficulty: Moderate                        REF:   p. 120

OBJ:   LO: 5-4          NAT:  BUSPROG: Reflective Thinking      STA:   AICPA: BB-Legal

KEY:  Bloom’s: Comprehension