Dynamic Business Law 3rd Edition By Nancy K. Kubasek and M. Neil Browne – Test Bank

 

 

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Sample Test

Chapter 03

The U.S. Legal System

 

True / False Questions

1.	Juries decide questions of law. True    False

 

2.	Usually the issue of ripeness arises when one party claims that a case is moot. True    False

 

3.	The word “jurisdiction” comes from the Latin terms juris, meaning “law,” and diction, meaning “to speak.” True    False

 

4.	In rem jurisdiction references jurisdiction over a person. True    False

 

5.	Under federal statutory law, Internet transactions cannot be the basis for a finding of in personam jurisdiction. True    False

 

6.	Subject-matter jurisdiction is a court’s power to hear certain kinds of cases. True    False

 

7.	State courts have the power to hear all cases not within the exclusive jurisdiction of the federal court system. True    False

 

8.	Concurrent federal jurisdiction means that both state and federal courts have jurisdiction over a case. True    False

 

9.	Once a case is in the proper court system, venue determines which trial court in the system will hear the case. True    False

 

10.	In some cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction. True    False

 

11.	A person who has the legal right to bring an action in court has standing. True    False

 

12.	Intermediate courts of appeal in the state court system exist in all states. True    False

 

13.	Under our system of justice, courts may issue advisory opinions. True    False

 

14.	The defendant responds to a complaint with an answer. True    False

 

15.	Because of its complicated nature, any complaint should be at least three pages long. True    False

 

16.	A defendant who believes that he or she has a claim against the plaintiff would include a counterclaim with the answer. True    False

 

17.	A reply is an answer to a counterclaim. True    False

 

18.	A party only has a limited number of challenges for cause in jury selection. True    False

 

19.	Peremptory challenges in jury selection may not be racially based. True    False

 

20.	In most civil cases, a plaintiff must prove her case beyond a reasonable doubt. True    False

 

21.	Only one party may appeal from a final judgment. True    False

 

22.	If an appellate judge agrees with the majority’s decision, but for different reasons, the judge may write a “concurring” opinion. True    False

 

23.	On average, the U.S. Supreme Court hears 300 cases a year. True    False

 

 

Multiple Choice Questions

24.

Mike, a resident of Georgia, sues Company A in state court in Georgia for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of Company A strikes his pick-up truck in the rear. Company A is incorporated in Delaware, has its headquarters in New York, but does a substantial amount of business in Georgia. Company A seeks removal to federal district court, but Mike opposes the motion. Which of the following is true regarding whether the case may be properly removed to federal district court? A. The amount in controversy satisfies diversity requirements; and if Company A’s nerve center is in a state other than Georgia, then the case may be properly removed to federal court.   B. The amount in controversy satisfies diversity requirements; and because Company A is incorporated and has its headquarters in a state other than Georgia, the case may be properly removed to federal court.   C. Because the amount in controversy satisfies diversity requirements and Company A is incorporated in a state other than Georgia, the case may be properly removed to federal court regardless of where Company A’s headquarters, nerve center, or principal place of business is located.   D. Because the amount in controversy satisfies diversity requirements and Company A is headquartered in a state other than Georgia, the case may be properly removed to federal court regardless of where Company A is incorporated and regardless of the location of its nerve center.   E. Because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of Company A, the case may not be removed to federal court.

 

25.

In what state is XYZ Bank, a federally chartered bank, considered a citizen? A. The bank is considered a citizen of any state in which it is located, meaning any state in which the bank has branches.   B. The bank is considered a citizen of the state in which it is located, meaning the state in which its main office as specified in its articles of incorporation is located.   C. The bank is considered a citizen only of Washington D.C.   D. The bank is considered a citizen only of the state in which it does its largest volume of business.   E. The bank is considered a citizen of Washington D.C. and also of the state in which it does its largest volume of business.

 

26.

Which of the following is true regarding the use of peremptory challenges based on gender? A. Peremptory challenges may not be based on gender unless a sexually based crime, such as rape, is involved.   B. Only one peremptory challenge per party may be based on gender.   C. Peremptory challenges may be based on gender only so long as lawyers for all parties agree.   D. Peremptory challenges may be based on gender.   E. Peremptory challenges may not be based on gender.

 

27.

Ann, a Massachusetts resident, breached a contract entered into in Florida with Bruce. Bruce successfully obtains a judgment against Ann for $150,000 in a Florida state court. Ann lives in a nice apartment in Massachusetts, and her only substantial asset is a vacation beach house in North Carolina. Which of the following is true regarding Bruce’s ability to obtain funds from a sale of the beach house? A. Bruce is only entitled to obtain funds from property located in Florida, the location of the lawsuit, and cannot benefit from the property in North Carolina.   B. Bruce is only entitled to obtain funds from property located in Florida, the location of the lawsuit, or from Massachusetts, Ann’s domicile, and cannot benefit from the property in North Carolina.   C. Bruce will be able to sell the beach house in North Carolina through attachment jurisdiction, and he is entitled to keep any funds obtained in excess of amounts owed.   D. Bruce will be able to sell the beach house in North Carolina through attachment jurisdiction, but he must return to Ann any funds obtained in excess of amounts owed.   E. Under federal law, Bruce will only be able to sell the beach house through attachment jurisdiction if after two years Ann has failed to satisfy the judgment, and any sums received in excess of amounts owed to Bruce go the Federal Housing Administration.

 

28.

Doctor Sally was sued for malpractice based on allegedly removing the wrong body part. Following discovery, it becomes clear that the plaintiff has no credible evidence against Doctor Sally and that no reasonable jury could rule in the plaintiff’s favor. How should Sally’s lawyer proceed? A. The lawyer should make a motion for summary judgment.   B. The lawyer should make a motion for additional discovery.   C. The lawyer should make a motion to amend the answer in order to make a motion to dismiss.   D. The lawyer should file a motion for judgment on the pleadings.   E. The lawyer should proceed to trial.

 

29.	Which of the following do appellate courts primarily handle? A. Questions of law   B. Questions of fact   C. Questions of law and fact   D. Cases when they initially enter the legal system   E. Questions of law and fact, and also cases when they initially enter the legal system

 

30.	Which of the following is a question of fact? A. Did the vehicle run the traffic light?   B. Is premeditation necessary for a first degree murder conviction?   C. Is speech protected by the First Amendment?   D. What is necessary for service of process?   E. What elements should an answer contain?

 

31.

Laws which enable the court to serve a defendant outside the state as long as the defendant has sufficient minimum contacts within the state and it seems fair to assert jurisdiction are called ______. A. Minimum contact statutes   B. Significant contact statutes   C. Long-arm statutes   D. In rem statutes   E. Quasi in rem statutes

 

32.	Which of the following is the same as attachment jurisdiction? A. In rem jurisdiction   B. Personal jurisdiction   C. Subject-matter jurisdiction   D. Equitable jurisdiction   E. Quasi in rem jurisdiction

 

33.

Paul lives in Florida but owns property in Tennessee for which he has not paid property tax in several years. Assuming the state meets procedural requirements, which of the following is true? A. The court can exert in personam jurisdiction over the property itself and sell it to satisfy the tax debt.   B. The court can exert in rem jurisdiction over the property and sell it to satisfy the tax debt.   C. The court can exert both in personam jurisdiction and in rem jurisdiction over Paul but must wait until his return to the state in order to sell the property to satisfy the tax debt.   D. The court can exert both in personam jurisdiction and in rem jurisdiction over the property itself and may take control of the property, but the court must wait until Paul’s return to the state in order to sell the property to satisfy the tax debt.   E. The court has no right to sell the property to satisfy the tax debt because no jurisdiction is present.

 

34.

Will a plaintiff be allowed to assert jurisdiction over a defendant in the plaintiff’s state for a cause of action arising out of the defendant’s website? A. It depends on the nature and quality of commercial activity that an entity conducts over the Internet.   B. Yes, for any type of action.   C. Yes, but only if the defendant consented to jurisdiction in the plaintiff’s home state.   D. Yes, but only if the defendant has actually physically been in the plaintiff’s home state within the 180 days prior to the filing of the complaint.   E. No, not under any circumstances.

 

35.

Which of the following is true regarding state and federal court jurisdiction? A. State courts begin with exclusive jurisdiction until a federal court intervenes.   B. In all cases, state courts have concurrent jurisdiction with the federal courts.   C. Federal courts begin with exclusive jurisdiction until a state court intervenes.   D. In all cases, state courts have exclusive jurisdiction unless the state’s Supreme Court grants jurisdiction to a federal court in the state.   E. In some cases, state courts have exclusive jurisdiction; in some cases, state courts have concurrent jurisdiction with the federal courts; and state courts also have the power to hear all cases not within the exclusive jurisdiction of the federal court system.

 

36.

Which of the following is true regarding federal jurisdiction? A. There is no exclusive federal jurisdiction in civil matters.   B. If a case falls within the federal jurisdiction, it may not fall within state jurisdiction.   C. Some cases fall within both federal jurisdiction and state jurisdiction, but there is no exclusive federal court jurisdiction.   D. Some cases fall within both federal jurisdiction and state jurisdiction, but that only occurs in criminal matters.   E. Some cases fall within both federal jurisdiction and state jurisdiction, but the federal court system has exclusive jurisdiction over some cases.

 

37.	Over which of the following does the federal court system have exclusive jurisdiction? A. Admiralty cases only   B. Bankruptcy cases only   C. Federal copyright cases only   D. Admiralty, bankruptcy, and federal copyright cases   E. The federal court system has no exclusive jurisdiction

 

38.	Which of the following is a court’s power to hear certain kinds of cases? A. Subject-matter jurisdiction   B. In kind jurisdiction   C. In personam jurisdiction   D. In loco jurisdiction   E. In area jurisdiction

 

39.

Which of the following is needed for diversity-of-citizenship? A. Only that the plaintiff not reside in the same state as the defendant.   B. Only that the plaintiff reside in the same state as the defendant.   C. Only that the controversy concern an amount in excess of $75,000.   D. Only that the controversy concern an amount in excess of $100,000.   E. That the plaintiff and the defendant reside in different states and that the controversy concerns an amount in excess of $75,000.

 

40.

For purposes of diversity-of-citizenship, where does a corporation reside? A. The state of incorporation only.   B. Only the state in which the corporation has its principal place of business.   C. The state in which the corporation has its principal place of business and the state of incorporation.   D. Any state in which the corporation does business.   E. Any state in which the corporation has done business within the last five years.

 

41.

Assume a plaintiff files a case in state court that could also have been filed in federal court. Does the defendant have any choice in the matter? A. The defendant has a right to move the case to federal court.   B. The defendant can have the case moved to federal court only if federal jurisdiction question is involved.   C. The defendant can have the case moved to federal court only if the state trial court judge grants permission in his or her discretion.   D. The defendant can have the case moved to federal court only if the plaintiff’s filing expenses in state court are paid by the defendant.   E. The defendant has no choice, and the case will stay in state court.

 

42.

Which of the following is typically an appropriate venue in a lawsuit? A. Only the trial court where the defendant resides.   B. Only the trial court where the plaintiff resides.   C. Only the location where the dispute occurred if the lawsuit focuses on a particular incident.   D. Both the trial court where the defendant resides and the trial court where the plaintiff resides.   E. The trial court where the defendant resides and also the location where the dispute occurred if the lawsuit focuses on a particular incident.

 

43.

Billy knows that he can bring his case against Bob in a state court in Tennessee. He is unsure, however, of which county in which to proceed. Which of the following address the proper county? A. In personam jurisdiction   B. Venue   C. Subject-matter jurisdiction   D. Diversity jurisdiction   E. Long-arm jurisdiction

 

44.	What are the trial courts in the federal court system called? A. U.S. district courts   B. U.S. circuit courts   C. Federal circuit courts   D. Federal jurisdictional courts   E. Preemptory courts

 

45.	How many circuits does the U.S. Court of Appeals have? A. 6   B. 50   C. 12   D. 10   E. 13

 

46.	Assuming there are no vacancies, how many U.S. Supreme Court justices are there? A. 9   B. 5   C. 15   D. 8   E. 7

 

47.

Which of the following is true regarding the court system in the Republic of China (Taiwan)? A. It is identical to the court system in the U.S.   B. For civil and criminal cases, and for cases interpreting the country’s constitution, the Supreme Court is the court of last resort.   C. All cases go directly from the trial court to the Supreme Court, and there is no intermediate appellate court system.   D. While constitutional issues are heard by the country’s Supreme Court, regular civil and criminal cases are heard by the Court of the Judicial Yuan.   E. Responsibility for interpreting the country’s constitution falls to the Constitutional Court of the Judicial Yuan.

 

48.

Which of the following is true regarding trials in Japan? A. The Japanese trial system has juries that function similar to juries in America.   B. The discovery process in the Japanese court system is much simpler than that in America.   C. Trial involves a series of discrete meetings between the parties and the judge.   D. Known evidence must be automatically exchanged without request or order of the court.   E. Only civil penalties may be imposed in civil cases for parties violating judicial orders.

 

“Appellate Court.” Jim, who is a bit eccentric, says that he is fed up with the way a certain employer in his town treats employees and that he is going to sue on behalf of all those employees. Jim also says that he is going to start his case at the appellate court level, skipping over all those “lesser” judges. Jim says that those justices will surely hear him out and that he will also seek a jury.