Business Law Jane Mallor 16th Edition – Test Bank
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Sample Test
Chapter 03
Business and the Constitution
True / False Questions
|
1. |
Article V of the Constitution makes the
Constitution, laws, and treaties of the United States Supreme over state law. True False |
|
2. |
The exercise of the power of judicial
review depends on the court’s reading of the Constitution. True False |
|
3. |
Congress cannot invalidate state laws
that are passed pursuant to the state’s police power. True False |
|
4. |
The Fourteenth Amendment’s equal
protection guarantee has been made applicable to federal government action
through incorporation of it within the Fifth Amendment’s Due Process Clause. True False |
|
5. |
The “ends” component of a means-ends
test specifies how significant a social purpose must be in order to justify
the restriction of a right. True False |
|
6. |
Corporations engaging in political
expression are entitled to the same First Amendment protection as an
individual engaged in such speech. True False |
|
7. |
The First Amendment prohibits state
regulation of deceptive commercial advertising. True False |
|
8. |
Federal restrictions that forbid beer
producers from listing the alcohol content of their beer on product labels
are unconstitutional. True False |
|
9. |
Today, social and economic regulations
generally receive rational basis review when they are challenged on the
grounds of equal protection. True False |
|
10. |
Today, discrimination on the basis of
gender receives more strict scrutiny than discrimination on the basis of
race. True False |
|
11. |
Government action that discriminates on
the basis of illegitimacy receives full strict scrutiny. True False |
|
12. |
The Contract Clause applies only to
state laws that impair past contracts—contracts made before passage of the
state law in question. True False |
|
13. |
A state law unconstitutionally burdens
interstate commerce only when it violates a federal statute that was enacted
under the Commerce Clause. True False |
|
14. |
If a state law discriminates against
interstate commerce, then the strictest scrutiny will be applied in the
determination of its constitutionality. True False |
|
15. |
The Takings Clause comes from the Fifth
Amendment of the Constitution. True False |
|
16. |
The constitutional right of privacy
includes various rights that the Supreme Court has recognized as fundamental
for citizens and families. True False |
Multiple Choice Questions
|
17. |
The U.S. Constitution provides distinct
powers to the Congress, the president, and the federal courts. This is the
principle of:
|
|
18. |
_____ enumerates the principle of
federal supremacy.
|
|
19. |
Which of the following gives the
president executive power?
|
|
20. |
Which of the following doctrines empowers
courts to declare the actions of other government bodies unconstitutional?
|
|
21. |
Enumerated powers are those powers that
the _____ can exercise.
|
|
22. |
Congress has the power to regulate
commerce among the states. In pursuance of this power, it passed a
legislation forbidding women from crossing state lines to buy or sell goods.
Will the statute be held constitutional?
|
|
23. |
Both Congress and state legislatures
can make laws within areas covered under the concurrent powers, unless
Congress preempts state regulation under the:
|
|
24. |
Which of the following is an important
state legislative power that works concurrently with many congressional
powers?
|
|
25. |
What was the original reason for
granting Congress the power to regulate interstate commerce after the
Revolution?
|
|
26. |
The Commerce Clause has become a
federal power with an extensive regulatory reach. This is largely due to
judicial decisions regulating:
|
|
27. |
Which of the following is true of the
Commerce Clause in present times?
|
|
28. |
What is the main purpose of the taxing
power?
|
|
29. |
Which of the following augments the
powers of Congress by permitting it to enact laws that are useful or
conducive to the exercise of those enumerated powers?
|
|
30. |
Which of the following prevents the
federal government from depriving “any person of life, liberty, or property,
without due process of law”?
|
|
31. |
The _____ Amendment says that no state
shall “deny to any person … the equal protection of the laws.”
|
|
32. |
According to _____, most of the
Constitution’s individual rights provisions block only the actions of
government bodies, and not private bodies, in cases of violation of rights.
|
|
33. |
There is a provision of the means-ends
tests by the Supreme Court because:
|
|
34. |
The _____ is a very relaxed means-ends
test of constitutionality which challenged laws usually pass with ease.
|
|
35. |
The sex discrimination test is an
example of the:
|
|
36. |
“The challenged law must be necessary
to the fulfillment of a compelling government purpose.” This is laid down for
the:
|
|
37. |
Which of the following would receive
stricter scrutiny than the rational basis test?
|
|
38. |
The First Amendment provides that
“Congress shall make no law … abridging the freedom of speech.” What is often
described as being at the “core” of the First Amendment?
|
|
39. |
When is a corporation entitled to full
First Amendment protection?
|
|
40. |
Which of the following is true of
noncommercial speech?
|
|
41. |
Which of the following statements
regarding commercial speech is true?
|
|
42. |
In the context of commercial speech,
the Supreme Court developed the _____ test which amounts to intermediate
scrutiny.
|
|
43. |
Which of the following characterizes
procedural due process?
|
|
44. |
The rights to notice of the charges
brought against you and to some kind of fair trial or hearing to prove those
charges are central requirements of:
|
|
45. |
Which of the following is applied to
the equal protection standard?
|
|
46. |
Which of the following is generally
subject to a rational basis review?
|
|
47. |
The equal protection standard is
generally judged in a lenient manner. However, laws that discriminate
regarding _____ are made to undergo a much more rigorous test.
|
|
48. |
Which of the following has NOT been
categorized as a suspect class?
|
|
49. |
Which of the following is true of the
Contract Clause?
|
|
50. |
Which of the following is also known as
the “dormant” Commerce Clause?
|
|
51. |
In general, which of the following is
least likely to unconstitutionally burden interstate commerce?
|
|
52. |
Which of the following independent
checks blocks only state laws and not federal laws?
|
|
53. |
Federal regulation is considered to be officially
“pervasive” when:
|
|
54. |
The central question in most federal
preemption cases is:
|
|
55. |
Under the Takings Clause, a “taking”:
|
|
56. |
Which of the following is a characteristic
of the “Takings Clause”?
|
Essay Questions
|
57. |
In Kasky v. Nike, Inc., the California
Supreme Court drew a distinction between a noncommercial speaker’s statements
criticizing a product are generally noncommercial speech and a commercial
speaker’s statements in praise or support of the same product. What was this
distinction, and why did the California Supreme Court make it? |
|
58. |
Mark, an untenured Assistant Professor
of Business Law at a public university, is fired from his job for supposedly
misbehaving with students in class. Since the firing took place without any
kind of hearing, Mark wants to challenge it on procedural due process
grounds. Will Mark’s claim succeed? Assume that the university did not
publicize the reasons for Mark’s discharge, and will not tell anyone why he
was discharged. |
|
59. |
A state passes a minimum wage law. Fred
Whitby, President of Unisys Corporation, is certain that it is unconstitutional.
For example, Fred argues that the Constitution’s Contract Clause plainly
renders the law unconstitutional. Is Fred right? Why or why not? |
|
60. |
State a situation where state law is
preempted by federal regulation. |
|
61. |
Under what two conditions is a
governmental taking of property unconstitutional? Should both of these
conditions be satisfied in order for a taking to offend the constitution, or
is only one condition necessary enough? |
Chapter 03 Business and the Constitution Answer Key
True / False Questions
|
1. |
Article V of the Constitution makes the
Constitution, laws, and treaties of the United States Supreme over state law. FALSE Article VI of the Constitution makes the Constitution, laws,
and treaties of the United States supreme over state law. Article V of the
Constitution sets forth the procedures for amending the Constitution. |
|
AACSB: Ethics |
|
2. |
The exercise of the power of judicial
review depends on the court’s reading of the Constitution. TRUE Under the power of judicial review, courts can declare the
actions of other government bodies unconstitutional. How courts exercise this
power depends on how they choose to read the Constitution. |
|
AACSB: Analytical Thinking |
|
3. |
Congress cannot invalidate state laws
that are passed pursuant to the state’s police power. FALSE The Congress can preempt state regulation under the supremacy
clause. |
|
AACSB: Ethics |
|
4. |
The Fourteenth Amendment’s equal
protection guarantee has been made applicable to federal government action
through incorporation of it within the Fifth Amendment’s Due Process Clause. TRUE The Fourteenth Amendment’s equal protection guarantee has been
made applicable to federal government action through incorporation of it
within the Fifth Amendment’s Due Process Clause. |
|
AACSB: Analytical Thinking |
|
5. |
The “ends” component of a means-ends
test specifies how significant a social purpose must be in order to justify
the restriction of a right. TRUE The “ends” component of a means-ends test specifies how
significant a social purpose must be in order to justify the restriction of a
right. |
|
AACSB: Ethics |
|
6. |
Corporations engaging in political
expression are entitled to the same First Amendment protection as an
individual engaged in such speech. TRUE If a corporation engages in political or other noncommercial
expression, it is entitled to full First Amendment protection, just as an
individual would be if he/she engaged in such speech. |
|
AACSB: Analytical Thinking |
|
7. |
The First Amendment prohibits state
regulation of deceptive commercial advertising. FALSE There is no First Amendment obstacle to federal or state
regulation of deceptive commercial advertising. |
|
AACSB: Ethics |
|
8. |
Federal restrictions that forbid beer
producers from listing the alcohol content of their beer on product labels
are unconstitutional. TRUE In Coors
v. Rubin (1995), the Supreme Court struck down federal
restrictions that kept beer producers from listing the alcohol content of
their beer on product labels. |
|
AACSB: Ethics |
|
9. |
Today, social and economic regulations
generally receive rational basis review when they are challenged on the
grounds of equal protection. TRUE The rational basis review/test is the standard usually applied
to social and economic regulations that are challenged as denying equal
protection. |
|
AACSB: Ethics |
|
10. |
Today, discrimination on the basis of
gender receives more strict scrutiny than discrimination on the basis of
race. FALSE Discrimination on the basis of race receives full strict
scrutiny while gender discrimination receives intermediate scrutiny. |
|
AACSB: Diversity |
|
11. |
Government action that discriminates on
the basis of illegitimacy receives full strict scrutiny. FALSE Government action that discriminates on the basis of
illegitimacy receives intermediate scrutiny. |
|
AACSB: Diversity |
|
12. |
The Contract Clause applies only to
state laws that impair past contracts—contracts made before passage of the
state law in question. TRUE The Contract Clause deals with state laws that change the
parties’ performance obligations under an existing contract after that
contract has been made. |
|
AACSB: Ethics |
|
13. |
A state law unconstitutionally burdens
interstate commerce only when it violates a federal statute that was enacted
under the Commerce Clause. FALSE The Commerce Clause limits the states’ ability to burden or
discriminate against interstate commerce. |
|
AACSB: Ethics |
|
14. |
If a state law discriminates against
interstate commerce, then the strictest scrutiny will be applied in the determination
of its constitutionality. TRUE In a 1994 case, the Supreme Court ruled that if a state law
discriminates against interstate commerce, the strictest scrutiny will be
applied. |
|
AACSB: Ethics |
|
15. |
The Takings Clause comes from the Fifth
Amendment of the Constitution. TRUE The Fifth Amendment states that “private property [shall not]
be taken for public use, without just compensation.” |
|
AACSB: Ethics |
|
16. |
The constitutional right of privacy
includes various rights that the Supreme Court has recognized as fundamental
for citizens and families. TRUE The Supreme Court has declared that the right of privacy
includes the rights to marry, have children and direct one’s children’s
education and upbringing. |
|
AACSB: Ethics |
Multiple Choice Questions
|
17. |
The U.S. Constitution provides distinct
powers to the Congress, the president, and the federal courts. This is the
principle of:
According to the principle of separation of powers, the U.S.
Constitution provides distinct powers to the Congress, the president, and the
federal courts. |
|
AACSB: Ethics |
|
18. |
_____ enumerates the principle of
federal supremacy.
Article VI makes the Constitution, laws, and treaties of the
United States supreme over state law. In other words, it enumerates the principle
of federal supremacy. |
|
AACSB: Ethics |
|
19. |
Which of the following gives the
president executive power?
Article II of the U.S. Constitution gives the president the
executive power—the power to execute or enforce the laws passed by Congress. |
|
AACSB: Analytical Thinking |
|
20. |
Which of the following doctrines
empowers courts to declare the actions of other government bodies
unconstitutional?
Under the power of judicial review, courts can declare the
actions of other government bodies unconstitutional; and how courts exercise
this power depends on how they choose to read the Constitution. |
|
AACSB: Ethics |
|
21. |
Enumerated powers are those powers that
the _____ can exercise.
The U.S. Constitution lists the powers that Congress can
exercise; these are called enumerated powers. |
|
AACSB: Ethics |
|
22. |
Congress has the power to regulate
commerce among the states. In pursuance of this power, it passed a
legislation forbidding women from crossing state lines to buy or sell goods.
Will the statute be held constitutional?
The equal protection guarantee serves as a check on the
enumerated power given to Congress to regulate commerce among the states. |
|
AACSB: Analytical Thinking |
|
23. |
Both Congress and state legislatures
can make laws within areas covered under the concurrent powers, unless
Congress preempts state regulation under the:
In many other areas, Congress and the state legislatures have
concurrent powers, i.e., both can make law within those areas. However,
Congress preempts state regulation under the supremacy clause. |
|
AACSB: Ethics |
|
24. |
Which of the following is an important
state legislative power that works concurrently with many congressional
powers?
Police power is an important state legislative power that
works concurrently with congressional powers to regulate for the public
health, safety, morals, and welfare. |
|
AACSB: Ethics |
|
25. |
What was the original reason for granting
Congress the power to regulate interstate commerce after the Revolution?
The original reason for giving Congress the power to regulate
interstate commerce was to nationalize economic matters by blocking the
protectionist state restrictions on interstate trade that were common after
the Revolution. |
|
AACSB: Ethics |
|
26. |
The Commerce Clause has become a
federal power with an extensive regulatory reach. This is largely due to
judicial decisions regulating:
The literal language of the Commerce Clause simply empowers
Congress to regulate commerce that occurs among the states. However, due to judicial
decisions regarding congressional action regulating activities that
substantially affect interstate commerce, the Commerce Clause has become a
federal power with an extensive regulatory reach. |
|
AACSB: Analytical Thinking |
|
27. |
Which of the following is true of the
Commerce Clause in present times?
The Commerce Clause gives Congress the power to regulate
activities that substantially affect interstate commerce. Due to several
judicial decisions in this area, the Clause has become a federal power with
an extensive regulatory reach. |
|
AACSB: Analytical Thinking |
|
28. |
What is the main purpose of the taxing
power?
The main purpose of the taxing power, explained in Article I,
Section 8 of the Constitution, is to provide a means of raising revenue for
the federal government. |
|
AACSB: Ethics |
|
29. |
Which of the following augments the
powers of Congress by permitting it to enact laws that are useful or
conducive to the exercise of those enumerated powers?
Article I, Section 8 concludes with a provision granting
Congress the further power to “make all laws which shall be necessary and
proper for carrying into execution the foregoing powers ….” This actually
augments the powers of Congress by permitting Congress to enact laws that are
useful or conducive to the exercise of those enumerated powers. |
|
AACSB: Analytical Thinking |
|
30. |
Which of the following prevents the
federal government from depriving “any person of life, liberty, or property,
without due process of law”?
The Fifth Amendment prevents the federal government from
depriving “any person of life, liberty, or property, without due process of
law.” |
|
AACSB: Ethics |
|
31. |
The _____ Amendment says that no state
shall “deny to any person … the equal protection of the laws.”
The Fourteenth Amendment says that no state shall “deny to any
person . . . the equal protection of the laws.” It guarantees the right of
equal protection to all citizens. |
|
AACSB: Diversity |
|
32. |
According to _____, most of the
Constitution’s individual rights provisions block only the actions of
government bodies, and not private bodies, in cases of violation of rights.
Most of the Constitution’s individual rights provisions block
only the actions of government bodies, federal, state, and local. Private
behavior that denies individual rights, while perhaps forbidden by statute,
is very seldom a constitutional matter. This government action or state
action requirement forces courts to distinguish between governmental behavior
and private behavior. |
|
AACSB: Ethics |
|
33. |
There is a provision of the means-ends
tests by the Supreme Court because:
Such tests have been developed by the Supreme Court because no
rights are absolute and courts have to strike a balance between individual
rights and the social needs that may justify their suppression. |
|
AACSB: Ethics |
|
34. |
The _____ is a very relaxed means-ends
test of constitutionality which challenged laws usually pass with ease.
This rational basis test is a very relaxed test of
constitutionality that challenged laws usually pass with ease. A typical
formulation of the rational basis test might say that government action need
only have a reasonable relation to the achievement of a legitimate government
purpose to be constitutional. |
|
AACSB: Ethics |
|
35. |
The sex discrimination test is an
example of the:
The sex discrimination test is a means-ends test developed by
the Supreme Court. These tests determine how courts strike the balance
between individual rights and the social needs that may justify their
suppression. The sex discrimination test receives intermediate scrutiny. |
|
AACSB: Analytical Thinking |
|
36. |
“The challenged law must be necessary
to the fulfillment of a compelling government purpose.” This is laid down for
the:
Governments may offer this justification for certain
activities, which then makes those activities subject to a full strict
scrutiny test. Government action that is subjected to this rigorous test of
constitutionality is usually struck down. |
|
AACSB: Ethics |
|
37. |
Which of the following would receive
stricter scrutiny than the rational basis test?
The rational basis test is a very relaxed test of
constitutionality that challenged laws usually pass with ease. However, the
sex discrimination test is an example of intermediate scrutiny. |
|
AACSB: Analytical Thinking |
|
38. |
The First Amendment provides that “Congress
shall make no law … abridging the freedom of speech.” What is often described
as being at the “core” of the First Amendment?
The First Amendment protects speech of a literary or artistic
nature, speech dealing with scientific, economic, educational, and ethical
issues, and expression on many other matters of public interest or concern.
However, it is political speech—expression that deals in some fashion with
government, government issues or policies, public officials, or political
candidates—that is often described as being at the “core” of the First
Amendment. |
|
AACSB: Ethics |
|
39. |
When is a corporation entitled to full
First Amendment protection?
If a corporation engages in political or other noncommercial
expression, it is entitled to full First Amendment protection, just as an
individual would be if he/she engaged in such speech. |
|
AACSB: Analytical Thinking |
|
40. |
Which of the following is true of
noncommercial speech?
Some corporate speech is classified as commercial speech, and
though all corporate speakers have First Amendment rights, not all speech of
a corporation is fully protected. Books, musical works, and journal articles
are normally classified as noncommercial speech—and are thus fully
protected—despite the typical existence of an underlying profit motive. |
|
AACSB: Ethics |
|
41. |
Which of the following statements
regarding commercial speech is true?
Commercial speech receives no protection if it misleads or
seeks to promote an illegal activity. As a result, there is no First
Amendment obstacle to federal or state regulation of deceptive commercial
advertising. Movies, television programs, and magazine articles are normally
classified as noncommercial speech and are thus fully protected. |
|
AACSB: Analytical Thinking |
|
42. |
In the context of commercial speech,
the Supreme Court developed the _____ test which amounts to intermediate
scrutiny.
Roughly three decades ago, the Supreme Court developed a
still-controlling test that amounts to intermediate scrutiny. Under this
test, a government restriction on protected commercial speech does not
violate the First Amendment if the government proves that a substantial
government interest underlies the restriction, that the restriction directly
advances the underlying interest, and that the restriction is no more
extensive than necessary to further the interest. |
|
AACSB: Ethics |
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