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Chapter 1

The Legal Environment


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1. The law esta/lishes rights duties and privileges that are consistent
with the values o" societ0.
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3. 5ow 6udges appl0 the law to speci!c disputes ma0 depend in part on
their personal philosophical views.
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7. Law includes en"orcea/le rules governing relationships /etween
individuals and their societ0.
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8. The natural law philosopher /elieves that the law should re4ect
universal moral and ethical principles that are part o" human nature.
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;. Constitutional law includes onl0 the (.+. Constitution.
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<. # "ederal law that con4icts with the (.+. Constitution will /e deemed
unconstitutional.
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=. # state law that con4icts with the (.+. Constitution will /e deemed
unconstitutional.
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>. The (.+. Constitution is the supreme law o" the (nited +tates.
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?. 1hether a law is constitutional depends on its source.
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1@. # state constitution is supreme within the stateAs /orders so long as it
does not con4ict with the (.+. Constitution or a "ederal law.
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11. (ni"orm laws appl0 in all states including those in which the laws
have not /een adopted.
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13. *ederal statutes appl0 to all states.
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17. Ever0 state has adopted the (ni"orm Commercial Code in its entiret0.
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18. *ederal administrative agencies speci"0 the powers o" Congress.
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1;. +tate agenc0 regulations ta$e precedence over con4icting "ederal
agenc0 regulations.
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1<. Common law is no longer a source o" legal authorit0.
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1=. Common law is a term "or the law that is $nown to most o" us.
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1>. # decision on a given issue /0 a court is not /inding on an in"erior
court.
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1?. Budges use precedent when deciding a case in a common law legal
s0stem.
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3@. +tare decisis is a doctrine o/ligating 6udges to "ollow precedents
esta/lished within their 6urisdictions.
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31. Courts do not depart "rom precedents.
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33. # court ma0 depart "rom a precedent i" the court decides that the
precedent should no longer /e "ollowed.
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37. Equit0 is a /ranch o" law that see$s to suppl0 remedies other than
damages.
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38. # de"endant is a person against whom a lawsuit is /rought.
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3;. # plaintiC is a person against whom a lawsuit is /rought.
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3<. :onetar0 damages is a remed0 at law.
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3=. -n most states a court can grant legal remedies or equita/le
remedies /ut not /oth in the same case.
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3>. # courtAs order to a part0 to do or to re"rain "rom doing a particular
act is a rescission.
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3?. Equita/le remedies include in6unctions and decrees o" speci!c
per"ormance.
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7@. # su/stantive law creates or de!nes legal rights and o/ligations.
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71. Criminal law "ocuses on duties that eDist /etween persons.
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73. -nternational law is the law o" a "oreign nation and varies "rom
countr0 to countr0.
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77. # re"erence to E3> (.+.C. +ection 1773F means that a "ederal courtAs
decision can /e "ound on Page 3> o" +ection 1773 o" the (nited
+tates Cases.
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78. 'ules and regulations adopted /0 "ederal administrative agencies are
compiled in the Code o" *ederal 'egulations.
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7;. :ost state trial court decisions are not pu/lished.
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:(LT-PLEGC5.-CE ,(E+T-.N+
1. To Pete the written law o" a particular societ0 at a particular time is
most signi!cant. Pete is
a. a legal positivist.
/. a legal rationalist.
c. a legal realist.
d. a person who adheres to the natural law tradition.
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3. To .pal the law is a tool "or promoting 6ustice. This is a view o" what
is sometimes called
a. promotional 6urisprudence.
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/. the 6ust societ0.
c. the sociological school.
d. utilitarianism.
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7. 9oters in North Carolina approve a new state constitution a"ter which
the .cean Cit0 Council passes new ordinances the North Carolina
Hepartment o" Par$s and 'ecreation issues new rules and the .cean
Cit0 Cham/er o" Commerce sends out new instructions. +ources o"
law do not include
a. instructions issued /0 the .cean Cit0 Cham/er o" Commerce.
/. ordinances passed /0 the .cean Cit0 Council.
c. rules issued /0 the North Carolina Hepartment o" Par$s and
'ecreation.
d. state constitutions passed /0 popular vote.
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8. -n Ne/ras$a the highestGran$ing IsuperiorJ law is
a. a case decided /0 the Ne/ras$a +upreme Court.
/. a provision in the Ne/ras$a constitution.
c. a rule created /0 a Ne/ras$a state administrative agenc0.
d. a statute enacted /0 the Ne/ras$a legislature.
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;. 5awaii enacts a state law that violates the (.+. Constitution. This law
can /e en"orced /0
a. no one.
/. the "ederal government onl0.
c. the state o" 5awaii onl0.
d. the (nited +tates +upreme Court onl0.
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<. -" a provision in the *lorida state constitution con4icts with a
provision in the (.+. Constitution
a. neither provision applies.
/. the provisions are /alanced to reach a compromise.
c. the state constitution ta$es precedence.
d. the (.+. Constitution ta$es precedence.
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=. The (.+. Congress enacts a new "ederal statute that sets diCerent
standards "or the lia/ilit0 o" /usinesses selling de"ective products.
This statute applies
a. onl0 to matters not covered /0 state law.
/. onl0 to those states that adopt the statute.
c. to all o" the states.
d. to none o" the states.
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>. The 'iver Cit0 Council the +anta Clara Count0 Board the TeDas state
legislature and the (.+. Congress enact laws. These laws constitute
a. administrative law.
/. case law.
c. stare decisis.
d. statutor0 law.
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?. :ar0 is a consultant to the National Con"erence o" Commissioners on
(ni"orm +tate Laws. This organiKation
a. adopts uni"orm laws "or the states.
/. applies uni"orm laws to the states.
c. dra"ts uni"orm laws "or adoption /0 the states.
d. imposes uni"orm laws on the states.
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1@. The *ederal Trade Commission I*TCJ is a government agenc0 that
issues rules orders and decisions. The 2eorgia state legislature
enacts statutes. The Bac$son Count0 Board and the Peach Cit0
Council enacts ordinances. #dministrative law includes
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a. all law that aCects a /usinessAs operation.
/. decisions orders and rules o" the *TC.
c. ordinances enacted /0 count0 /oard and the cit0 council.
d. statutes enacted /0 the state legislature.
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11. The (ni"orm Commercial Code has /een adopted at least in part in
a. all states.
/. "ort0G!ve states.
c. twent0G!ve states.
d. no states.
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13. Ba0 is a "ederal 6udge. Ba0As 6udicial decisions are part o" case law. This
law includes interpretations o"
a. administrative regulations onl0.
/. constitutional provisions onl0.
c. statutes onl0.
d. administrative regulations constitutional provisions and
statutes.
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17. -n #lpha v. Beta a state supreme court held that a minor could cancel
a contract "or the sale o" a car. Now a trial court in the same state is
deciding Helta v. 2amma a case with similar "acts. (nder the
doctrine o" stare decisis the trial court is li$el0 to
a. allow the minor to cancel the contract.
/. disregard the previous case.
c. order the minor to cancel the contract.
d. require the minor to "ul!ll the contract.
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18. The "ederal government and the state governments constitute the
(.+. legal s0stem. This s0stem is /ased on the legal s0stem o"
a. #ncient 2reece.
/. #ncient 'ome.
c. England.
d. *rance.
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1;. #reas o" the law not governed /0 statutor0 or administrative law are
a. governed /0 the common law.
/. open to each individualAs own interpretation.
c. regulated /0 the states under the (.+. Constitution.
d. su/6ect to local ordinances.
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1<. The Ecommon lawF is re"erred to as the common law /ecause
a. it is the law that is "amiliar to most o" us.
/. it was originall0 applied onl0 to commoners.
c. it was more or less uni"orm throughout England.
d. the law was issued /0 courts o" common pleas.
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1=. #s a 6udge Phil applies common law rules. These rules develop "rom
a. administrative regulations.
/. court decisions.
c. "ederal and state statutes.
d. proposed uni"orm laws.
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1>. Bill is an appellate court 6udge. -n this capacit0 Bill esta/lishes a rule
o" law. (nder the doctrine o" stare decisis the principle must /e
adhered to /0
a. all courts.
/. courts o" lower ran$ onl0.
c. that court and courts o" lower ran$.
d. that court onl0.
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1?. Lurt is a 6udge hearing the case o" Local Co. v. :acro Corp. #ppl0ing
the relevant rule o" law to the "acts o" the case requires Lurt to !nd
previousl0 decided cases that in relation to the case under conG
sideration are
a. as diCerent as possi/le.
/. as similar as possi/le.
c. at odds.
d. eDactl0 identical.
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3@. -n Best +ales Corp. v. Carol the court decides that a precedent is
incorrect or inapplica/le. 1ith this in mind the court
a. ma0 rule contrar0 to the precedent.
/. must appl0 the precedent.
c. must re"use to decide the particular case.
d. must Estand on the decided case.F
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31. -n 5iG+ales Co. v. -mports -nc. there is no precedent on which the
court can /ase a decision. The court can consider
a. neither pu/lic polic0 nor social customs and values.
/. pu/lic polic0 onl0.
c. pu/lic polic0 or social customs and values.
d. social customs and values onl0.
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33. # state trial court has /e"ore it Eagle :anu"acturing Co. v. *ine
Products Corp. a case with no /inding authorit0. The court can
a. not re"use to decide the Eagle case.
/. postpone deciding Eagle inde!nitel0.
c. postpone deciding Eagle until there is /inding authorit0.
d. re"use to decide Eagle.
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37. -n a suit against #dam Beth o/tains a remed0 which is the means
given to a part0
a. onl0 to en"orce a right.
/. onl0 to redress a wrong.
c. to en"orce a right or to redress a wrong.
d. none o" the choices.
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38. Net Corporation !les a suit against .mega -nc. alleging that .mega
/reached a contract to sell Net a computer s0stem "or M1@@@@@. Net
is
a. the appellant.
/. the appellee.
c. the de"endant.
d. the plaintiC.
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3;. +tandard Business Compan0 appeals a decision against it in "avor o"
Top *light Corporation "rom a lower court to a higher court. +tandard
is
a. the appellant.
/. the appellee.
c. the de"endant.
d. the plaintiC.
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3<. 5oll0 is a state court 6udge. -lsa appears in a case in 5oll0As court
claiming that Bim /reached a contract. #s in most state courts 5oll0
ma0
a. award damages cancel a contract or direct a part0 to do or
not to do an act.
/. award damages onl0.
c. cancel a contract onl0.
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d. direct a part0 to do or not to do a particular act onl0.
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3=. -n a suit against Charles Hiana o/tains the cancellation o" a contract
which is
a. a decree o" speci!c per"ormance.
/. an award o" damages.
c. an in6unction.
d. rescission.
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3>. -n a suit against Lath0 Lon o/tains speci!c per"ormance. This is
a. an equita/le remed0 and a remed0 at law.
/. an equita/le remed0 onl0.
c. a remed0 at law onl0.
d. not a remed0.
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3?. Beth is a victim o" CarlAs violation o" a criminal law. Criminal law is
concerned with
a. the prosecution o" private individuals /0 other private
individuals.
/. the prosecution o" pu/lic oNcials /0 private individuals.
c. the relie" availa/le when a personAs rights are violated.
d. wrongs committed against the pu/lic as a whole.
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7@. 2reat -nternet -nc. I2--J is an -nternet service provider. 2--As tech
support emplo0ees are on stri$e. +iD o" the wor$ers are /loc$ing 2--As
door. To get them awa0 "rom the door 2-- should o/tain
a. a decree o" speci!c per"ormance.
/. an award o" damages.
c. an in6unction.
d. a rescission.
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71. Lev is a 6udge. -n his court Lev ma0 /ar a suit i" it is not !led within a
proper time according to
a. a statute o" limitations.
/. the doctrine o" stare decisis.
c. the chancellorAs discretion.
d. the $ingAs conscience.
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73. 1hen .verseas EDports -nc. /ased in New Yor$ does /usiness
internationall0 the !rm ma0 /e su/6ect to international law. The
sources o" this law include
a. the laws o" individual nations onl0.
/. treaties and international organiKations onl0.
c. the laws o" individual nations and treaties and international
organiKations.
d. none o" the choices.
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77. -" the title o" a case appears as E,ualit0 +ales Corp. v. 'egional
Histri/ution Co.F the part0 in whose "avor the court decided is
a. ,ualit0 +ales.
/. 'egional Histri/ution.
c. either part0.
d. neither part0.
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78. The :ontana +upreme Court decides the case o" National Co. v.
.verseas Corp. ." nine 6ustices eight /elieve the 6udgment should /e
in NationalAs "avor. Bustice Pine disagrees and writes a separate
opinion. This opinion is
a. a concurring opinion.
/. a dissenting opinion.
c. a minorit0 opinion.
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d. a unanimous opinion.
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7;. :etro Cit0 Center is an area o" tourist attractions in :etro Cit0. The
CenterAs director under the cit0As authorit0 issues a rule to require
street per"ormers to o/tain permits. The Center cites No//0 a
magician "or per"orming without a permit. (nder the principles
discussed in E# +ample Court CaseF Berger v. Cit0 o" +eattle the
Center most li$el0 acted
a. in violation o" No//0As rights under the *irst #mendment.
/. reasona/l0 in issuing the rule /ut not in citing No//0.
c. reasona/l0 in citing No//0 /ut not in issuing the rule.
d. reasona/l0 in the circumstances and under the law.
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1. -n a lawsuit /etween Higital +ales Corporation and Engineering
#ssociates -nc. the court applies the doctrine o" stare decisis. 1hat
is this doctrineO 1hat does this doctrine have to do with the
#merican legal s0stemO
#N+1E': -n a common law legal s0stem past 6udicial decisions are
/inding in current disputes with similar "acts. This "eature o" the comG
mon law which is the /asis o" the #merican legal s0stem is unique
/ecause unli$e the law in other legal s0stems it is 6udgeGmade law.
1ithin the common law s0stem when possi/le 6udges attempt to /e
consistent and to /ase their decisions on the principles suggested /0
earlier cases. The /od0 o" principles and doctrines that "orm the
common law emerged over time as 6udges applied the principles
announced in earlier cases to su/sequent legal controversies. The
practice o" deciding cases with re"erence to "ormer decisions or
precedentsPthe cornerstone o" the #merican legal s0stemPis called
the doctrine o" stare decisis. (nder this doctrine 6udges are o/ligated
to "ollow the precedents esta/lished within their 6urisdictions. This
helps courts to /e more eNcient and ma$es the law more sta/le and
predicta/le.
38 (N-T .NE: T5E LE2#L EN9-'.N:ENT .* B(+-NE++
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3. #lpha Corporation !les a suit against Beta -nc. alleging that Beta
/reached a contract to sell #lpha a computer s0stem "or M1@@@@@.
The court rules in #lphaAs "avor and Beta appeals to a higher court.
-n the initial suit who was the plaintiC and who was the de"endant
and on appeal which part0 was the appellant and which the
appelleeO The higher courtAs opinion in the case is at Beta -nc. v.
#lpha Corp. 7@= *.7d 1@>; I?th Cir. 3@@=J. +peci!call0 where can this
opinion /e "oundO
#N+1E': -n the original suit #lpha was the plaintiC and Beta was
the de"endant. -n the appeal Beta was the appellant Ior the
petitionerJ and #lpha was the appellee Ior the respondentJ. This case
P Beta -nc. v. #lpha Corp. 7@= *.7d 1@>; I?th Cir. 3@@=JPcan /e
"ound in its entiret0 in volume 7@= o" the *ederal 'eporter Third
+eries on page 1@>;. The (.+. Court o" #ppeals "or the Ninth Circuit
decided this case in 3@@=.
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