The Legal Environment of Business Text and Cases Ethical Regulatory Global, and Corporate Issues 8th Edition by Frank B. Cross - Test Bank

The Legal Environment of Business Text and Cases Ethical Regulatory Global, and Corporate Issues 8th Edition by Frank B. Cross – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

 

 

Constitutional Law

 

 

 

	N.B.:  TYPE indicates that a question is new, modified, or unchanged, as follows.   N       A question new to this edition of the Test Bank. +       A question modified from the previous edition of the Test Bank. =       A question included in the previous edition of the Test Bank.

 

 

TRUE/FALSE QUESTIONS

 

A1.       The state governments retain all powers not specifically delegated to the federal government.

 

answer:         T                               PAGE:        98                             type:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A2.       Under their police powers, states can regulate only public activities, such as political demonstrations.

 

answer:         F                               PAGE:        98                             TYPE:         =

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

A3.       National legislation governs nearly every major business activity, in­cluding conduct that has nothing to do with commerce.

 

ANSWER:         F                               PAGE:        99                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

A4.       The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

 

answer:         t                               PAGE:        99                             TYPE:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A5.       Congress can regulate all commerce in the United States.

 

answer:         T                               PAGE:        100                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

A6.       The Constitution expressly excludes state regulation of commerce.

 

answer:         F                               PAGE:        100                           type:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A7.       When there is a direct conflict between a federal and a state law, the state law is rendered invalid.

 

ANSWER:         T                               PAGE:        102                           type:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A8.       Whether the federal government has preempted a certain area is always clear.

 

answer:         F                               PAGE:        102                           type:         =

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

A9.       The taxing and spending clause of the U.S. Constitution has had a greater impact on business than any other clause in the Constitution.

 

answer:         F                               PAGE:        103                           TYPE:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A10.     Some constitutional protections apply to business entities.

 

answer:         T                               PAGE:        103                           type:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A11.     The First Amendment does not protect corporate political speech.

 

ANSWER:         F                               PAGE:        104                           TYPE:         +

NAT: AACSB Reflective                                AICPA Critical Thinking

A12.     The First Amendment does not protect commercial speech as extensively as noncommercial speech.

 

answer:         T                               PAGE:        105                           type:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A13.     The establishment clause of the U.S. Constitution prohibits the federal government from promoting a religion.

 

answer:         T                               PAGE:        108                           TYPE:         +

NAT: AACSB Analytic                                    AICPA Legal

 

A14.     A law that has any impact on religion is unconstitutional.

 

ANSWER:         F                               PAGE:        108                           TYPE:         N

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A15.     The right to due process of law applies to corporations.

 

ANSWER:         T                               PAGE:        111                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

A16.     A law that regulates economic matters violates the equal protection clause.

 

ANSWER:         F                               PAGE:        111                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

A17.     Procedural due process requires that any government decision to take a person’s property must be made fairly.

 

ANSWER:         T                               PAGE:        111                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

A18.     A law that discriminates based on gender must substantially relate to an important government objective to be valid.

 

answer:         T                               PAGE:        112                           type:         N

NAT: AACSB Analytic                                    AICPA Legal

 

A19.     There is a specific guarantee of a right to privacy in the Constitution.

 

answer:         F                               PAGE:        112                           type:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

A20.     Law enforcement officials can track the e-mail communications of one party to find out the identities of other parties.

 

ANSWER:         T                               PAGE:        113                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

 

MULTIPLE CHOICE QUESTIONS

 

A1.       Enterprising Markets Coalition (EMC), a political lobbying group, wants a certain policy enacted into law. If EMC’s policy conflicts with the U.S. Constitution, a law embodying it can be imposed by

 

1. Congress.
2. a federal court.
3. a state legislature.
4. none of the choices.

 

ANSWER:         D                               PAGE:        98                             TYPE:         +

NAT: AACSB Reflective                                AICPA Legal

 

A2.       The state of New York regulates private activities to protect or promote the public or­der, health, safety, and general welfare under its

 

1. police powers.
2. taxing powers.
3. spending powers.
4. supremacy powers.

 

answer:         a                               PAGE:        98                             type:         =

NAT: AACSB Reflective                                AICPA Legal

 

A3.       The Financial Institutions Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its mem­bers, which include banks. Under the Constitution, Congress

 

1. administers the laws.
2. enforces the laws.
3. interprets the laws.
4. makes the laws.

 

ANSWER:         D                               PAGE:        99                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

A4.       Ulrich, a citizen of Virginia, wants to enforce in the state of Washington certain rights that he has under a contract with Xtreme SnoBoards Inc. A Washington state court is most likely to enforce such rights under

 

1. no provision in the U.S. Constitution.
2. the commerce clause.
3. the full faith and credit clause.
4. the privileges and immunities clause.

 

answer:         C                               PAGE:        99                             TYPE:         =

NAT: AACSB Reflective                                AICPA Legal

 

A5.       The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that

 

1. Congress writes checks and the other branches balance the budget.
2. each branch has some power to limit the actions of the others.
3. the courts balance their authority to the other branches’ checklists.
4. the president “checks” the courts, which “balance” the laws.

 

answer:         B                               PAGE:        99                             type:         +

NAT: AACSB Analytic                                    AICPA Legal

 

A6.       Tami’s Tasty Tacos, a mobile vendor, files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on

 

1. a local government.
2. interstate commerce.
3. noneconomic activity.
4. the state.

 

answer:         B                               PAGE:        100                           type:         N

NAT: AACSB Reflective                                AICPA Legal

 

A7.       Len, a citizen of Maryland, obtains a federal license to operate a commer­cial fishing boat in Chesapeake Bay. The Maryland state legislature en­acts a law that bans all commercial fishing in the bay. The state law most likely violates

 

1. no provision in the U.S. Constitution.
2. the commerce clause.
3. the due process clause.
4. the supremacy clause.

 

answer:         D                               PAGE:        102                           TYPE:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A8.       Congress enacts a law that sets out a medical-device approval process for the Food and Drug Administration to follow. The law includes a preemp­tion provision. A device that goes through the process injures Joe, who files a claim under state law to recover. The court will most likely rule that

 

1. Joe’s state law claim preempts the federal law.
2. the federal law and state law claim are concurrent.
3. the federal and state law claim cancel each other out.
4. the federal law preempts Joe’s state law claim.

 

ANSWER:         D                               PAGE:        102                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

A9.       Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion’s principles. The First Amendment guarantees Mike’s freedom of

 

1. religion only.
2. speech only.
3. the press only.
4. the press, speech, and religion.

 

ANSWER:         D                               PAGE:        103                           TYPE:         =

NAT: AACSB Reflective                                AICPA Legal

 

A10.     The Motor Vehicle Insurance Association wants the federal government to spend money to build a new highway. Congress can spend revenues

 

1. only to carry out Congress’s enumerated powers.
2. to promote any objective that Congress deems worthwhile.
3. without regard to whether the expense violates the Bill of Rights.
4. without regard to whether the expense violates the Constitution.

 

answer:         B                               PAGE:        103                           type:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A11.     Beachside City enacts an ordinance that bans the distribu­tion of all printed materials on city streets. Carl opposes the city’s latest “revenue-enhancing” measure and wants to protest by distributing handbills. In his suit against the city, a court would likely hold the printed-materials ban to be

 

1. constitutional under the First Amendment.
2. not subject to the U.S. Constitution.
3. unconstitutional under the commerce clause.
4. unconstitutional under the First Amendment.

 

answer:         D                               PAGE:        104                           TYPE:         =

NAT: AACSB Reflective                                AICPA Critical Thinking

 

A12.     Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is

 

1. discouraged.
2. forbidden.
3. protected.
4. required.

 

ANSWER:         C                               PAGE:        104                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

A13.     Minnesota enacts a statute to ban advertising in “bad taste.” This stat­ute would likely be held by a court to be

 

1. an unconstitutional restriction of speech.
2. constitutional under the First Amendment.
3. justified by the need to protect individual rights.
4. necessary to protect state interests.

 

answer:         A                               PAGE:        105                           type:         =

NAT: AACSB Reflective                                AICPA Decision Modeling

 

A14.     Xtreme Publications, Inc., disseminates obscene materials. This is

 

1. a crime under nu­merous state and federal statutes.
2. a privilege under Article IV, Section 2.

c          a right under the commerce clause.

1. a right under the First Amendment.

 

answer:         A                               PAGE:        106                           type:         =

NAT: AACSB Analytic                                    AICPA Legal

 

A15.     The police obtain a search warrant and search Errol’s apartment. After yelling obscenities at the officers, Errol confesses to a crime and impli­cates his friends. The Constitution protects against

 

1. obscene speech.
2. implication of others.
3. unreasonable searches.
4. none of the choices.

 

answer:         C                               PAGE:        109                           type:         +

NAT: AACSB Reflective                                AICPA Legal

 

A16.     Wyoming enacts a statute that limits the liberty of all persons, including corporations, to broadcast “annoying” radio commercials. This may violate

 

1. equal protection.
2. procedural due process.
3. substantive due process.
4. the right to privacy.

 

answer:         C                               PAGE:        111                           type:         =

NAT: AACSB Reflective                                AICPA Legal

A17.     Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona that features horseback riding and bunkhouse accommodations. The Constitution provides that no person shall be deprived of “life, liberty, or property without due process of law.” Included as “legal persons” under this clause are

 

1. the bunkhouses and other “manmade creations.”
2. the corporation and Parker.
3. horses and other “beings in nature.”
4. none of the choices.

 

ANSWER:         B                               PAGE:        111                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

A18.     Myra claims that a Nebraska state statute infringes on her “procedural due process” rights. This claim focuses on

 

1. procedures used in making decisions to take life, liberty, or property.
2. the content of the statute.
3. the similarity of the treatment of similarly situated individuals.
4. the steps to be taken to protect Mary’s privacy.

 

ANSWER:         A                               PAGE:        111                           TYPE:         =

NAT: AACSB Reflective                                AICPA Legal

 

A19.     A Massachusetts state statute imposes a prison term, without a trial, on all street entertainers who operate in certain areas. A court would likely review this statute under the principles of

 

1. equal protection.
2. free exercise.
3. procedural due process.
4. substantive due process.

 

ANSWER:         C                               PAGE:        111                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

A20.     Jon, a law enforcement official, monitors Kelsey’s Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey’s right to

 

1. equal protection of the law.
2. privacy.
3. procedural due process.
4. substantive due process.

 

answer:         B                               PAGE:        113                           type:         N

NAT: AACSB Reflective                                AICPA Risk Analysis

 

 

Essay Questions

 

A1.       Jen operates Jen’s Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jen’s activities? What is Jen’s best argument against federal regulation of her farm and business?

 

ANSWER:         Under the commerce clause, according to earlier decisions by the United States Supreme Court, Congress has the power to regulate any activity—interstate or intrastate—that affects interstate commerce. Thus, under that clause, it could be argued that a farmer’s growing and selling of produce is subject to federal regulation because these activities affect interstate commerce. The farmer-vendor’s best argument against federal regulation of her farm and business is that in her case, these ac­tivities and their effects are purely local. Because of the economic char­ac­ter of these activities, and hence an effect on interstate commerce, de­spite their local character, it is unlikely that a court would accept this ar­gu­ment, however.

 

PAGES: 99–102                                                                                    type:         =

NAT: AACSB Reflective                                AICPA Decision Modeling

 

A2.       Old Oak Brewery, Inc., makes and sells alcoholic beverages with labels that display a drawing of a squirrel making the gesture generally known as “giving the finger.” Old Oak applies to the Ohio State Liquor Authority (OSLA) for brand-label approval to sell the beer in Ohio. Without consid­er­ing alternatives, OSLA denies approval because “the label could ap­pear in grocery stores, with obvious exposure on the shelf to children of tender age.” Why would a court hold that the denial of Old Oak’s applica­tion vio­lates the First Amendment?

 

ANSWER:         A court would most likely reason that OSLA’s ban on the use of the labels lacks a “reasonable fit” with the state’s interest in shielding minors from vulgarity, and OSLA did not adequately consider alterna­tives to the ban. The interest of OSLA, as a state agency, in pro­tecting children from vulgar advertising is “substantial.” The question is whether banning Old Oak’s labels “directly advances” that interest. A court might reason that barring the label at issue in this problem can­not realis­tically be expected to reduce children’s exposure to such dis­plays to any significant degree, considering such displays’ wide cur­rency in society.  Also, as to whether the ban on the labels is more exten­sive than necessary to serve such an interest, a court would likely point out that there may be many, less intrusive alternatives.  For example, OSLA might restrict the locations where Old Oak’s products may be dis­played in stores.

 

PAGES: 105–106                                                                                  type:         =

NAT: AACSB Reflective                                AICPA Decision Modeling