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105 Cards in this Set
- Front
- Back
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An agent who fails to use reasonable diligence and skill in acting on behalf of his or her principle may be liable for breaching a duty of performance
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T
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A battery occurs only if the victim suffers physical harm
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F
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A manufacturing or processing-plant type of franchise arrangement occurs when a franchisor transmits to a franchisee the essential ingredients or formula to make a particular product
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T
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Corporate directors and officers are insurers of business success
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F
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Most states limit the duration of a corporation's existence to ninety-nince years
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F
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In a limited liability company, members cannot participate in its management
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F
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A partner has a right to complete information about the conduct of partnership business
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T
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Oral defamatory statements must be communicated to a public figure to be actionable
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F
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An agent may take advantage of an agency relationship to make a "secret" profit
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F
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A sole proprietorship is treated as a separate legal entity for tax purposes
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F
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Shareholders' meetings must occur at least twice a year
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F
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A board of directors generally make major corporate policy decisions
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T
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A limited liability company is a citizen of every state of which its members are citizens
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T
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Unless the partnership agreement states otherwise, general partners share losses in the same ratio as PROFITS
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T
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If a party to a franchise contract fails to perform, he or she may be subject to a suit for breach of contract
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T
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A limited liability company is operated in compliance with state law
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T
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Corporations have some of the same constitutional rights as natural persons
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T
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Shareholders may NOT vote by proxy at a shareholders' meeting
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B
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A store manager may delay a suspected shoplifter if the manager has probable cause to justify delaying the suspect
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T
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A principal owes his or her agent a duty to act in good faith
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T
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Typically, a franchisor determines the territory a franchise will serve
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T
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Persons whose names appear on a corporation's shareholder voting lists are ordinarily entitled to vote
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T
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A corporation is liable for the torts of its agents and officers committed while acting on behalf of their employer
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T
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Slander involves the written communication of defamatory statements
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F
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To commit an intentional tort, a person need not act with a harmful motive
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T
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Privity of contract refers to the fact that only the actual parties to a contract should have rights and liabilities under the contract.
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T
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Assignments of negotiable instruments are NOT generally permitted
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F
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A minors failure to perform an executor contract within a reasonable time after reaching the age of majority implies disaffirmance
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T
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Evidence of PRIOR AGREEMENTS that differ from the written terms of a contract can be introduced in court to alter the contract.
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F
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Performance under a contract may NOT be conditioned on the NONOCCURRENCE of an event.
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F
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The four broad types of damages in contract law are compensatory, consequential, punitive and actual damages.
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T
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Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable.
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T
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A person who enters into contract when he or she is intoxicated can void the contract ONLY if the intoxication was involuntary.
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F
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Banks may assign their loan contracts to other firms.
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F
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The amount of compensatory damages on a breach of contract is the difference between the value of the performance promised and the value of the promise received
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T
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To satisfy the statute of frauds, a contract must be written in a particular form.
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F
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A legal guardian cannot enter into legally binding contracts on behalf of mentally incompetent person.
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F
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If a price quotation contains a mistake in the adding of a number of figure, the contract may not be enforceable.
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T
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To serve as a basis for an action for fraudulent misrepresentation, a misleading statement must be consciously false.
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T
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A partys oral agreement to pay anothers debt is enforceable if the partys main purpose is to derive a benefit for him or herself.
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T
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An act of concealment, WITHOUT an affirmative misrepresentation, will not be sufficient to give rise to an action for fraud.
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F
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There are no exceptions to the statute of frauds.
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F
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To fulfill a personal service contract, performance must personally satisfy the party to which the performance is owed.
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T
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An innocent party is discharged when the other party alters a written contract without consent.
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T
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Expenses caused directly by a breach of contract such as those incurred to obtain performance from another source are nominal damages.
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F
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An unconditional assignment of rights in a contract will extinguish the rights of the assignor.
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T
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Generally, any duty may be delegated.
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T
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A lender who makes a loan at a rate above the lawful maximum commits usury.
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T
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A person who enters into a contract when he or she is intoxicated can void the contract if the terms are obviously favorable to the other party.
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T
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A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.
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T
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Ed and Fred sign a contract by which Ed agrees to deliver a freezer on May 1 in exchance for Fred’s promise to pay the $500 purchase price on May 1. The delivery of the freezer and the payment of the $500 are examples of.
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concurrent conditions
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A contract between Lee and Mary may NOT be assigned if it.
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involves personal services
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Earl holds 1000 pounds of perishable fruit in storage for Fresh Food Corp. Fresh food does not pay for the storage. Earl sells the fruit to Green grocery Stores Inc. This sale represents.
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a mitigation of damages
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Regional Delivery Inc. and Safe storage company enter into a long term lease for a warehouse. To be enforceable, the lease must be writing if the warehouse is valued at.
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any price
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Owen, a famous chef, sells to pat a restaurant that owen closed years ago. Pat discovers in the restaurant a collection of owens recipes, which are considerably valuable. In a suit to obtain the recipes, owen will likely.
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prevail because there was no mutual assent
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Ed and First Star Company enter into an oral contract under which Ed agrees to provide delivery service for First Star for nine months. This contract is enforceable by.
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either party
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Ace Builders Inc substantially performs into contract with Best Office Company to refurbish an old building, but is unable to finish the job. Ace must.
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pay the difference between substantial and complete performance
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Recreational Pools Inc. agrees to build a swimming pool for Sandy, but fails to build it according to the contract specifications. Sandy hires Total Fix It Company to finish the project. Sandy may recover from Recreational Pools.
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the cost needed to complete the job
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Jack contracts to provide lawn mowing services to Lee. Jack cannot delegate his duty.
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without continuing to be liable
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Fred and Gail enter into a contract by which Fred promises to deliver fertilizer to Gail. Fred subsequently delegates this duty to Holly. Fred is
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the delegator and obligor
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Nice represents himself as a contractor in Ohio, but he is not in compliance with that State’s regulatory licensing statute. A contract between Pat and Nice by which Nick agrees to build a warehouse for Pat in Ohio is
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not enforceable
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Local investment company and Midstate Properties Inc. contract for the sale of a retail mall. A mutual mistake of fact will make it possible for either party to rescind the contract
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if the mistake of fact is material
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Chloe files a suit against Digital Assoc. Inc. to enforce a contract. The only written evidence of the contract is a memo on DAI’s letterhead as signed by a DAI officer in its files. The contract can be enforced if the memo includes
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all essential terms
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Lou signs a lease that provides for its automatic termination if there is any change in the relevant Metro County zoning law. The Metro Zoning Board changes the law before the lease expires. This
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satisfies the condition subsequent
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National Steel Inc. and Overland Transport Company enter into a contract. Superior Oil Corp., which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of
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privity
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A contract between Owen and Paula may be assigned if the assignment involves
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a right to receive money, a negotiable instrument, or rights in real estate
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As part of a sale of her marketing firm, Peggy signs a covenant not to compete that is unreasonable in its essential terms. To prevent undue hardship, a court will most likely
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convert the unreasonable terms into reasonable ones
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Dina contracts to repair a computer for Earl for $100. If Dina does not perform, Earl must pay
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nothing
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Dina files a suit against Engineering Assoc. to enforce a written contract between the parties. Parole evidence will be admitted to prove
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an orally agreed upon condition
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Mary induces Nick to sign a contract by placing a gun to Nick’s head. The contract is void
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under any circumstance
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Fred enters into an illegal bargain with Gail. Fred can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of
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fraud, duress, or undue influence
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Roy buys a farm from Steve, who claims it would be a prime site for a housing subdivision. Roy later learns the law does not permit the land to be used for housing. Roy may
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not rescind the contract
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Ilsa and Jiffy company enter into an oral contract under which Ilsa agrees to pay kyles debt if he does not. Ilsa does not get any personal benefit for the agreement. This contract is enforceable by
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none of the parties
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Commercial Builders Inc. contracts to build an office building for Downtown Corp. CBI substantially performs. Downtown is entitled to
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damages
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A contract between National Supplies Company and Omega manufacturing corp. includes a provision excluding liability as a result of fraud. This provision is
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not enforceable
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International law is the law of a particular nation and varies from nation to nation
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F
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Our Federal form of govt is one in which sovereign power is shared between the fed govt and the several states
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The US Supreme court may not declare an order of the executive unconstitutional
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F
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If the defendent fails to challenge the plaintiff's standing to sue, lack of standing is waived and cannot be raised in a later proceeding
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F
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Any and all federal courts may review the decisions of any and all state courts on matters of state statutory and/or constitutional law
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F
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the federal trilal court is the us district court
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T
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The us constitution provides for three co equal branches of government
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T
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business entities enjoy all the same rights of free speech, as do private individuals
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the jurisdiction of state courts of appeal is limited to hearing appeals from state trial courts
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T
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in a jury trial, the function of the jury is to rule on matters of law
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F
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To have standing to sue, a party must have suffered an actual injury or be threatened with an imminent injury caused by the action about which the party complains
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T
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state trial courts may use diversity of citizenship to exercise in personam jursidiction over an out of state defendent
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F
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a legal realist believes the only rights citizens have come from the government
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after a verdict has been rendered in a case, neither party may file an appeal
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theoretically, an activity having a substantial effect on interstate commerce in the aggregate may be regulated by Commerce under the taxing and spending clause
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F
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Under the Commerce Clause, congress does not have the authority to regulate commerce between the US and France
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F
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A follower of the Natural Law school of jurisprudence believes the law must evolve to reflect changes in society.
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F
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an out-of-state business concern which advertises in a national magazine known to reach Ohio, but which conducts no business in ohio, may be required to defend a lawsuit filed in ohio as a result of an alleged injury caused by its product legally brought to ohio by an ohio purchaser
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T
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where a question of federal law is involved, a lawsuit may be filed only in federal court
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F
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in an action in federal court on diversity of citizenship, the district court will use the substantive law of one of the states to decide the matter
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T
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the answer is the document filed by the defendant in order to respond the plaintiff's legal claim for relief
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T
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a writ of certiorari is required to request the us supreme court to hear a civil appeal
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T
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the constitutional doctrine of separation of powers concerns how the branches of the federal government share power among themselves
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F
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an act of state, which creates a classification among citizens based upon national origin is subject to intermediate scrutiny when challenged in court
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F
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a later-enacted state statute supersedes or displaces any and all existing conflicting federal statutes
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F
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the answer is the document filed by the defendant in order to respond the plaintiff's legal claim for relief
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T
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a writ of certiorari is required to request the us supreme court to hear a civil appeal
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T
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the constitutional doctrine of separation of powers concerns how the branches of the federal government share power among themselves
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F
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an act of state, which creates a classification among citizens based upon national origin is subject to intermediate scrutiny when challenged in court
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F
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a later-enacted state statute supersedes or displaces any and all existing conflicting federal statutes
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F
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