Essentials Of Business Law And The Legal Environment 11Th. Ch.4 Exercises

Front 1

____ 1. Judicial review is the process by which courts review the constitutionality of government actions.

Back 1

T

Front 2

T/F
____ 2. The doctrine of federal preemption requires a conflicting state law give way to the federal legislation.

Back 2

T

Front 3

T/F
____ 3. The Contract Clause invalidates state laws that burden interstate commerce.

Back 3

F

Front 4

T/F
____ 4. Federal supremacy means that federal law takes precedence over conflicting state laws.

Back 4

T

Front 5

T/F
____ 5. The right of eminent domain permits the taking of private property for any purpose by government with fair compensation.

Back 5

F

Front 6

T/F
____ 6. Under the process of judicial review, the U.S. Supreme Court is the final authority as to the constitutionality of federal and state laws.

Back 6

T

Front 7

T/F
____ 7. Substantive due process refers to the decision-making process that results in depriving a person of life, liberty, or property.

Back 7

F

Front 8

T/F
____ 8. Under the First Amendment, a governmental ban is appropriate and lawful on forms of communication more likely to deceive the public than to inform it.

Back 8

T

Front 9

T/F
____ 9. The contract clause of the U.S. Constitution applies only to the actions of state governments.

Back 9

T

Front 10

T/F
____ 10. Commercial speech receives the highest degree of protection under the First Amendment.

Back 10

F

Front 11

T/F
____ 11. While goods are in the stream of interstate commerce, they may be taxed by individual states.

Back 11

F

Front 12

T/F
____ 12. An activity conducted solely in one state is not subject to regulation by federal government.

Back 12

F

Front 13

T/F
____ 13. The strict scrutiny test requires that the legislature’s classification be necessary to promote a compelling or overriding governmental interest.

Back 13

T

Front 14

T/F
____ 14. The Fourteenth Amendment provides that states shall not deny equal protection to persons.

Back 14

T

Front 15

T/F
____ 15. The Supreme Court recently held that governmental restrictions of commercial speech must be absolutely the least severe necessary to achieve the governmental objective.

Back 15

F

Front 16

____ 1. Which of the following are considered to be fundamental principles, which apply to both the powers of and the limitations on government?
a. Federal supremacy
b. Judicial review
c. Separation of powers
d. All of the above

Back 16

d

Front 17

____ 2. Exclusive federal powers include which of the following?
a. To establish post offices
b. To coin currency
c. To grant patents
d. All of the above are exclusive federal powers.

Back 17

d

Front 18

____ 3. The equal protection clause is contained in the:
a. Fifth Amendment.
b. Fourteenth Amendment.
c. First Amendment.
d. Fourth Amendment.

Back 18

b

Front 19

____ 4. Substantive due process rights would include all of the following except:
a. right of privacy.
b. right to interstate travel.
c. right to have certain evidence excluded from a trial.
d. right to vote.

Back 19

c

Front 20

____ 5. For the purposes of procedural due process, the term “property” includes:
a. real property and personal property only.
b. real property and entitlements only.
c. personal property and entitlements only.
d. real property, personal property, and entitlements.

Back 20

d

Front 21

____ 6. In equal protection cases involving fundamental rights or suspect classifications, which test would be used for review by the Supreme Court?
a. Rational relationship test
b. Procedural due process test
c. Strict scrutiny test
d. Substantive relationship test

Back 21

c

Front 22

____ 7. Which of the following would require application of the intermediate equal protection test?
a. Legitimacy
b. Nonprotected speech
c. Protected noncommercial speech
d. None of the above

Back 22

a

Front 23

____ 8. The main purpose of the Bill of Rights is to:
a. provide restrictions on the powers of the states.
b. provide the authority for federal government to regulate business.
c. provide restrictions on the powers of the federal government.
d. None of the above.

Back 23

c

Front 24

____ 9. The Contract Clause restricts:
a. the federal government from retroactively modifying contracts.
b. the states from retroactively modifying contracts.
c. the states from exercising the power of eminent domain.
d. None of the above.

Back 24

b

Front 25

____ 10. Which of the following federal "powers" stem from the Commerce Clause?
a. The power to coin money
b. The power to tax
c. The power of eminent domain
d. Environmental protection

Back 25

d

Front 26

____ 11. The protection of the ____________ Amendment applies to cases involving the tort of defamation.
a. First
b. Fourth
c. Fifth
d. Ninth

Back 26

a

Front 27

____ 12. Which of the following would be considered property for purposes of procedural due process?
a. Social Security payments
b. Food stamps
c. Both Social Security and food stamps
d. Neither Social Security nor food stamps

Back 27

c

Front 28

____ 13. The ____________ operates as a restriction on state regulations that obstruct or unduly burden interstate commerce.
a. First Amendment
b. Commerce Clause
c. Contract Clause
d. Due Process Clause

Back 28

b

Front 29

____ 14. Which of the following is a true statement with regard to the Commerce Clause of the U.S. Constitution?
a. It expressly excludes state regulation of interstate commerce.
b. It expressly permits federal regulation of interstate commerce.
c. It expressly excludes state regulation and expressly permits federal regulation.
d. The U.S. Constitution makes no statement regarding regulation of commerce.

Back 29

b

Front 30

____ 15. Which of the following constitutional limitations of power, most applicable to business, applies only to actions of state governments?
a. The Contract Clause
b. The First Amendment
c. Due Process
d. Equal protection

Back 30

a

Front 31

1. Briefly explain the difference between procedural and substantive due process.

Back 31

Procedural due process requires that governmental decision-making be fair and impartial in those situations where an individual may be deprived of life, liberty, or property, whereas substantive due process requires a determination of whether a particular governmental action is compatible with individual liberties.

Front 32

2. In equal protection cases, how does the rational relationship test compare with the strict scrutiny test?

Back 32

he rational relationship test is applied to economic regulation. It must be conceivable that the classification used bear a rational relationship to a bona fide governmental interest the classification seeks to further. The strict scrutiny test is more stringent. It is applied to legislation affecting fundamental rights. The classification must be necessary to promote a compelling governmental interest.

Front 33

3. Describe the factors used by the Supreme Court when deciding the extent to which state regulation may affect interstate commerce.

Back 33

The court would be concerned with (1) the necessity and importance of the state regulation, (2) the burden it imposes on interstate commerce, and (3) the extent to which it discriminates against interstate commerce in favor of local concerns.

Front 34

4. How does the Commerce Clause restrict the ability of states to regulate interstate commerce?

Back 34

A state may not regulate activities if it would produce an undue burden on interstate commerce. The Supreme Court considers whether the regulation is necessary as well as the burden it would impose on interstate commerce. Note that states may not tax goods that continue to remain in the stream of commerce. Taxes may only be imposed after the movement of the goods has ceased.

Front 35

5. Explain the First Amendment’s protection of free speech with respect to corporate political speech, commercial speech, and defamation.

Back 35

The First Amendment’s guarantee of free speech applies to corporations. Accordingly, corporations may not be prohibited from speaking out on political issues. Commercial speech is also protected under the First Amendment but to a lesser degree than private speech. Government regulation of false and misleading advertising is permissible under the First Amendment. Because defamation involves a communication, the protection extended to speech by the First Amendment applies. However, the Supreme Court has ruled that a public official who is defamed may not recover in an action of defamation unless the statement was made with actual malice.