Legal and Regulatory Environment of Business 16th Edition Reed Test Bank 1

Test Bank for Legal and Regulatory Environment of
Business 16th Edition Pagnattaro Reed Shedd Morehead

0077437330 9780077437336
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06
Student:
1. The separation of powers between levels of government is known as federalism.

True False
2. The concept of federalism recognizes that all levels of government have interrelated roles to play.
True False
3. The federal government recognizes that states have no sovereignty.
True False
4. A conflict exists between a state law and a federal law if the state statute would prevent or interfere with
the accomplishment and execution of the objectives of Congress.
True False
5. The Constitution emphasizes that federal law is supreme over a state law or local ordinance.
True False
6. If a federal law preemptsa subject then any state law that attempts to regulate the same activity is
constitutional under the supremacy clause.
True False
7. The concept of preemption applies only to federal statutes, not to the rules and regulations of federal
administrative agencies.
True False
8. The contract clause applies to the federal government in many ways.
True False
9. Under the contract clause, states cannot enact laws that impact rights and duties under existing
contracts.
True False
10. The contract clause restricts the federal government's power to impact contractual relationships.
True False
11. The first ten amendments are known as the Bill of Rights.
True False
12. The extent of any limitation on a basic constitutional guarantee depends upon the nature of the competing
public policy.
True False
13. Constitutional guarantees exist in order to remove certain issues from the political process and the ballot
box.
True False
14. Constitutional rights remain constant and do not vary from time to time.
True False
15. The establishment clause deals with freedom of speech.
True False
16. The establishment clause and the free exercise clause guarantee freedom of religion through the
separation of church and state.
True False
17. Freedom of speech relates to private action that restricts our ability to express ourselves.
True False
18. Freedom of speech is an absolute constitutional guarantee.
True False
19. Freedom of speech provides the freedom to express ideas antagonistic to those of the majority.
True False
20. Freedom of speech protects corporations as well as individuals.
True False
21. The public interests served by freedom of expression protect the listener but not the speaker.
True False
22. If the press publishes that which is illegal or libelous, it has liability for doing so.
True False
23. A libel is used to recover damages as a result of transitory statements.
True False
24. Libel cases compensate individuals for harm inflicted by defamatory printed falsehoods.
True False
25. If a person involved in defamation is a public official or figure, a plaintiff seeking damages for emotional
distress caused by offensive publications must prove actual malice in order to recover.
True False
26. Due process means that government may not act in a manner that is arbitrary, capricious, or
unreasonable.
True False
27. The due process clause prevents public utilities from acting in an unreasonable manner.
True False
28. Under the minimum rationality approach, a classification must have a wholly arbitrary basis.
True False
29. Under the strict scrutiny test, a classification will be a denial of equal protection unless the classification
is necessary to achieve a compelling state purpose.
True False
30. Quasi-strict scrutiny has resulted in holdings that find laws to be valid as well as unconstitutional.
True False
31. The creates the Congress, the presidency and vice presidency, and the Supreme Court of the
United States.
A. Perpetual Union
B. Articles of Association
C. United States Charter
D. United States Constitution
E. Article of Confederation
32. The separation of powers between levels of government is known as .
A. feudalism
B. federalism
C. imperialism
D. statocracy
E. fascism
33. The three significant concepts of the Constitution that create a strong centralized, federal government are
the concept of separation of powers, the supremacy clause, and the .
A. concept of federalism
B. concept of imperialism
C. overbreadth doctrine
D. contract clause
E. doctrine of preemption
34. The concept of recognizes that each level of government has a separate and distinct role to
play.
A. feudalism
B. imperialism
C. federalism
D. statocracy
E. fascism
35. Which of the following is true about federalism?
A. State government may limit the federal government's exercise of powers.
B. Federalism refers to the common powers of the federal government and governments at the state and
local levels.
C. Federalism recognizes that all levels of government have interrelated roles.
D. Federalism emphasizes that states do not have sovereignty.
E. The federal government recognizes that it was created by the states.
36. When various laws are not consistent, which of the following is given first priority?
A. United States Constitution
B. State laws
C. Local laws
D. United States laws
E. Uniform State laws
37. Under the , courts may be called upon to decide if a state law is invalid because it conflicts with a
federal law.
A. minimum rationality approach
B. exclusion clause
C. strict scrutiny approach
D. supremacy clause
E. contract clause
38. The Supreme Court reviewed a tax issued by the state of Alabama on a federally incorporated insurance
organization. The Court found that if a state had the power to levy a tax on a federally incorporated
institution, then the state had the power to destroy the federal institution. This would make the
states superior to the federal government. Hence, the Court held that Alabama's tax on the insurance
organization was unconstitutional. Which of the following supports the act of the Court?
A. Supremacy clause
B. Exclusion clause
C. Strict scrutiny approach
D. Minimum rationality approach
E. Contract clause
39. The concept of preemption applies to and rules and regulations of federal administrative
agencies.
A. the exclusion clause
B. the state clause
C. local government
D. state laws
E. federal statutes
40. Which of the following is true about preemption?
A. When the federal government enacts laws in an area, state laws that conflict are retained.
B. If a federal law preempts a subject; state law that attempts to regulate it is unconstitutional.
C. Preemption does not apply to federal statutes.
D. The concept of preemption arises from the contract clause.
E. If a federal law preempts a subject; state law that attempts to regulate it is constitutional.
41. Which of the following is true about the supremacy clause?
A. State laws that conflict are incorporated when the federal government enacts laws in an area.
B. If a federal law preempts a subject, a state law that attempts to regulate it is constitutional.
C. It states that courts must interpret state and federal laws to see if they are in conflict.
D. It is applied when the federal government is not acting in pursuit of its constitutionally authorized
powers.
E. It does not apply to the federal government.
42. The contract clause:
A. applies to the federal government.
B. allows a state to impose new prices on existing contracts.
C. prohibits the federal government from contracting with a state government.
D. limits a state's ability to impair the obligation of a contract.
E. allows a state to enact laws that impact rights under existing contracts.
43. Snow Crystals Inc., a leading skate park construction company, had constructed a skate park with a
charter in the state of Alaska. A few years later, when the state authority sanctioned the Nightingale
Bridge Company to build a bridge that would use the land where the skate park was already constructed,
the proprietors of Snow Crystals claimed that the state authority had broken its agreement with Snow
Crystals, and thus the contract had been violated. The owners claimed that the charter had implied
exclusive rights to Snow Crystals Inc. Which of the following should be applied to enable Snow Crystals
Inc. avail justice?
A. Preemption doctrine
B. State clause
C. Contract clause
D. Overbreadth doctrine
E. Supremacy clause
44. Which of the following is true about amendments and basic protections?
A. Basic constitutional rights are absolute.
B. Constitutional rights do not vary from time to time.
C. Constitutional rights are not interpreted during emergencies such as war or civil strife.
D. During peace time, constitutional principles are not reapplied.
E. Constitutional guarantees exist to protect the minority from the majority.
45. Which of the following is true about freedom of speech?
A. It covers both verbal and written communications.
B. It exists to protect the majority from the minority.
C. Its protection relates to private action that restricts our ability to express ourselves.
D. It covers written communications but not conduct or actions.
E. It is an absolute constitutional guarantee.
46. A school in the state of Connecticut does not allow students to pray or maintain even a moment of silence
in the school premises. Which of the following first amendment protections is this school providing?
A. Freedom of speech
B. Freedom of religion
C. Freedom of the press
D. Freedom of expression
E. Freedom of symbolic speech
47. Luke, Rocky, Nelly, and Mario are graffiti artists who belong to a minority community. They spray paints
on a public wall in their city. They create designs and paintings on the wall depicting political and social
issues that affect their community. This way, they protest against unfair practices. Which form of first
amendment protection are these artists engaging themselves in?
A. Freedom of the press
C. Freedom of speech
D. Establishment clause
E. Free exercise clause
48. When a legislature passes a law that unnecessarily or too generally restricts freedom of speech, the court
may declare the law unconstitutional based on the .
A. overreaching doctrine
B. overstretching doctrine
C. overextension doctrine
D. overbreadth doctrine
E. doctrine of nullification
49. A city makes it a crime to write anything on any public or private property. Harry was a resident of the
city. He wanted to write something on a private sign that he owned. As he was worried about violating
the law, he approached the court for support. The court declared this law unconstitutional based on the
.
D. doctrine of nullification
E. overbreadth doctrine
50. Which of the following is true about commercial speech?
A. It is not protected by the First Amendment.
B. Corporations have First Amendment rights in the political speech arena.
C. The public interests served by freedom of expression protect the listener but not the speaker.
D. Freedom of speech for corporations is as extensive as the right of an individual.
E. Corporations are not protected and do not have the right to free speech.
51. Hungry Hogs Corporation, an international hotdog eatery produced a misleading television
advertisement. One of the ads compared the nutritional value of their hotdogs to the burgers sold by
Gobble Up Inc. The ad stated that two hotdogs of Hungry Hogs contained 30 grams of fat, whereas, one
burger of Gobble Up Inc. contained 52 grams. This ad led to a good consumer response. However, an
anti-restaurant political group filed a complaint with a federal institution. The federal institution issued an
order prohibiting Hungry Hogs from making health-compatibility statements about its products without
scientific evidence. This instance of regulation on advertising of health-compatibility statements about
food products is an example of a limitation on .
A. symbolic speech
B. individual speech
D. commercial speech
E. freedom of thought
52. Which of the following is true about freedom of the press?
A. It is an absolute constitutional guarantee.
B. It refers to the right of the press to print anything it wants with liability.
C. Its preservation cannot be sought through constitutional protections.
D. It excludes communication and expression through electronic media.
E. It is usually construed to prohibit prior restraints on publications.
53. A is used to recover damages as a result of printed defamation of character.
A. slander
B. calumny
C. libel
D. vilification
E. traducement
54. Gerard was hired to publish a weekly journal in the state of California. When he printed another person's
article that criticized the governor of a state at the time, Gerard was accused of a certain tort theory.
Which of the following tort theories would he most likely be accused of?
A. Libel
B. Calumny
C. Slander
D. Vilification
E. Traducement
55. If a person involved in a case involving freedom of the press is a public official or figure, a plaintiff
seeking damages for emotional distress caused by offensive publications must prove in order to
recover.
A. slander
B. actual malice
C. common law malice
D. vilification
E. traducement
56. The Second Amendment consists of the:
A. right to free speech.
B. right to respect any establishment of religion.
C. right to possess guns.
D. right to freely exercise any religious practice.
E. right to free commercial speech.
57. Which of the following states that that government may not act in a manner that is arbitrary, capricious,
or unreasonable?
A. Procedural clause
B. Contract clause
C. Exclusion clause
D. Limitation clause
E. Due process clause
58. Which of the following statements is true about the due process clause?
A. It prevents individuals from acting in an arbitrary manner.
B. It applies to the actions of governmental bodies and individuals.
C. It prevents public utilities from acting in an unreasonable manner.
D.It does not prevent private individuals or corporations, including public utilities, from acting in an
unreasonable manner.
E. It applies only to the actions of individuals and businesses'.
59. cases involve whether proper notice has been given and a proper hearing has been conducted.
A. Equal protection clause
B. Contract clause
C. Exclusion clause
60. The concept of incorporation through the clause has made the protection of the Bill of Rights
applicable to individuals subject to state and local regulations.
A. supremacy
B. contract
C. due process
D. limitation
E. exclusion
61. Which of the following is true under the minimum rationality approach?
A. A permissible state end is one which is prohibited by at least one provision of the Constitution.
B. A permissible state end is one which is not prohibited by another provision of the Constitution.
C. A permissible state end does not qualify as a legitimate goal of government.
D. A law creating different classifications will survive if it has an irrational connection to a permissible
state end.
E. A law creating different classifications will survive if it has a rational connection to a prohibited state
end.
62. Under the minimum rationality approach, a qualifies as a legitimate goal of government.
A. rational connection
B. prohibited state end
C. irrational state end
D. permissible state end
E. wholly arbitrary case
63. The test is used if the classification involves either a suspect class or a fundamental constitutional
right.
A. minimum rationality
B. quasi-scrutiny
C. rational basis
D. intermediate scrutiny
E. strict scrutiny
64. Classifications directed at race, national origin, and legitimacy of birth are classes.
A. suspect
B. quasi-suspect
C. rational basis
D. intermediate
E. non-fundamental
65. Polly secured a good grade with a 4 GPA in her admission test. However, she was denied admission by
a management school. Hence, she filed a suit that the school had discriminated against her on the basis
of race; that she was rejected because the school used race as an important factor, giving applicants
belonging to minority groups a greater chance of admission than students with similar credentials from
disfavoured racial groups. Which of the following approaches should be applied to solve Polly's case?
A. Minimum rationality approach

B. Strict scrutiny approach
C. Rational basis approach
D. Intermediate scrutiny approach
E. Quasi-scrutiny approach
66. Which of the following is true about the strict scrutiny approach?
A. Under this approach, a classification will be an acceptance of equal protection.
B. Under this approach, a law creating different classifications will survive an equal protection challenge.
C. Classifications that are subject to this approach are presumed to be unconstitutional.
D. This approach is used when classifications are partially suspect or the rights involved are not
fundamental.
E. This approach is used when classifications are rationally connected to a permissible government
objective.
A. It is used if the classification is partially suspect.
B. It falls between the minimum and quasi-strict scrutiny approaches.
C. It is used when the rights involved are not quite fundamental.
D. Classifications that are subject to this approach are presumed to be constitutional.
E. It is applied to cases involving classifications directed at fundamental rights.
68. The strict scrutiny approach is applied to cases involving rights such as the:
A. right to possess guns.
B. right to travel.
C. right to follow any establishment of religion.
D. right to exercise any religious practices.
E. right to free speech.
69. Which of the following is true about quasi-strict scrutiny tests?
A. Cases that fall under the minimum rationality approach use quasi-strict scrutiny tests.
B. If a classification has a reasonable basis and not wholly arbitrary one, these tests are used.
C. They are used for cases involving fundamental rights.
D. Cases that fall between the minimum rationality and strict scrutiny approaches use them.
E. If a classification is perfectly suspect, quasi-strict scrutiny tests are used.
70. Quasi-scrutiny tests are made on cases involving classifications based on .
A. gender
B. age
C. race
D. national origin
E. height
71. A military institute in California launched a separate program for women. However, the senior members
of the program held that women would not be provided with the same type of rigorous military training,
facilities, courses, faculty, financial opportunities, and alumni connections that were provided to male
cadets. The women cadets of the program filed a suit in order to get justice. Which of the following
approaches should be applied to enable the women avail justice?
C. Quasi-scrutiny approach
E. Rational basis approach
72. The meaning and application of the equal protection clause have been central issues in cases involving
the:
B. freedom of the press.
C. freedom of expression.
D. prohibition of respecting any establishment of religion.
E. makeup of juries.
73. The equal protection clause has been applied in cases involving:
A. welfare residency requirements.
B. commercial speech.
C. right to use guns in public areas.
D. freedom of the press.
E. marriage.
74. Minimum rationality tests are applied to cases involving classifications based on .
A. race
B. national origin
C. legitimacy
D. marriage
E. gender
75. Quasi-strict scrutiny tests are applied to cases involving classifications based on .
A. height
B. legitimacy
C. marriage
D. age
E. weight
76. Mention the main purpose of the Fourteenth Amendment. List the three important clauses of the
Fourteenth Amendment.
77. List the basic concepts of the United States Constitution.
78. What is federalism?
79. Briefly explain the supremacy clause.

80. Briefly explain the concept of preemption.
81. Explain the aspects of the contract clause.
82. Explain the four important aspects of amendments and basic protections.
83. Describe the two clauses included in the concept of freedom of religion.
84. Explain the features of freedom of speech.
85. When may a state law limit picketing?

86. What is the overbreadth doctrine? Explain.
87. Explain the features of commercial speech.
88. Explain the aspects of the freedom of the press.
89. What is a libel?
90. Explain the concept of actual malice.
91. Explain the due process clause.

92. Explain procedural due process cases.
93. Explain the concept of the incorporation doctrine.
94. List the approaches applied by courts while using the equal protection clause.
95. Explain the minimum rationality approach.
96. Explain the strict scrutiny approach.
97. Which approach should be used to cases involving classifications directed at fundamental rights?
98. Explain the quasi-strict scrutiny approach.
99. Explain why gender has not been moved to the strict scrutiny analysis.
100.List some of the cases that have applied the equal protection clause.
06 Key
1. The separation of powers between levels of government is known as federalism.
TRUE
The separation of powers between levels of government is known as federalism.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 To appreciate how the structure of the U.S. Constitution provides the framework for our federal government.
Reed - Chapter 06 #1
Topic: Basic Concepts
2. The concept of federalism recognizes that all levels of government have interrelated roles to play.
FALSE
The concept of federalism recognizes that each level of government has a separate and distinct role to
play.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. The federal government recognizes that states have no sovereignty.
FALSE
The federal government recognizes that it was created by the states and that states have some
sovereignty.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
4. A conflict exists between a state law and a federal law if the state statute would prevent or interfere
with the accomplishment and execution of the objectives of Congress.
TRUE
A conflict exists between a state law and a federal law if the state statute would prevent or interfere
with the accomplishment and execution of the objectives of Congress.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the importance of the supremacy clause and the contracts clause for business.
5. The Constitution emphasizes that federal law is supreme over a state law or local ordinance.
TRUE
The Constitution emphasizes that federal law is supreme over a state law or local ordinance.
AACSB: Analytic
Blooms: Remember
6. If a federal law preemptsa subject then any state law that attempts to regulate the same activity is
constitutional under the supremacy clause.
FALSE
If a federal law preempts a subject, then any state law that attempts to regulate the same activity is
unconstitutional under the supremacy clause.
AACSB: Analytic
Blooms: Remember
7. The concept of preemption applies only to federal statutes, not to the rules and regulations of federal
FALSE
The concept of preemption applies not only to federal statutes but also to the rules and regulations of
federal administrative agencies.
AACSB: Analytic
Blooms: Remember
8. The contract clause applies to the federal government in many ways.
FALSE
The contract clause does not apply to the federal government, which does in fact frequently enact laws
and adopt regulations that affect existing contracts.
AACSB: Analytic
Blooms: Remember
9. Under the contract clause, states cannot enact laws that impact rights and duties under existing
contracts.
TRUE
Under the contract clause, states cannot enact laws that impact rights and duties under existing
contracts.
AACSB: Analytic
Blooms: Remember
10. The contract clause restricts the federal government's power to impact contractual relationships.
FALSE
The contract clause regulates state and local government; it does not restrict the federal government's
power to impact contractual relationships.
AACSB: Analytic
Blooms: Remember
11. The first ten amendments are known as the Bill of Rights.
TRUE
The first ten amendments are known as the Bill of Rights.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-03 To recognize the major amendments to the U.S. Constitution.
Topic: Amendments and Basic Protections
12. The extent of any limitation on a basic constitutional guarantee depends upon the nature of the
competing public policy.
TRUE
The extent of any limitation on a basic constitutional guarantee depends upon the nature of the
competing public policy. Cases involving the Bill of Rights almost always require courts to strike a
balance either between some goal or policy of society and the constitutional protection involved or
between competing constitutional guarantees.
AACSB: Analytic
Blooms: Remember
13. Constitutional guarantees exist in order to remove certain issues from the political process and the
ballot box.
TRUE
Constitutional guarantees exist in order to remove certain issues from the political process and the
ballot box. They exist to protect the minority from the majority.
AACSB: Analytic
Blooms: Remember
14. Constitutional rights remain constant and do not vary from time to time.
FALSE
Constitutional rights vary from time to time and may be narrowly interpreted during emergencies such
as war or civil strife.
AACSB: Analytic
Blooms: Remember
15. The establishment clause deals with freedom of speech.
FALSE
The establishment clause deals with freedom of religion. It enables people to respect any
establishment of religion.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-04 To analyze the basic protections created by the First; Second; and Fourteenth Amendments.
16. The establishment clause and the free exercise clause guarantee freedom of religion through the
separation of church and state.
TRUE
The First Amendment states that Congress shall make no law "respecting an establishment of religion"
(the establishment clause) "or prohibiting the free exercise thereof" (the free exercise clause). These
clauses guarantee freedom of religion through the separation of church and state.
AACSB: Analytic
Blooms: Remember
17. Freedom of speech relates to private action that restricts our ability to express ourselves.
FALSE
Freedom of speech relates to governmental action that restricts our ability to express ourselves. This
amendment does not apply to private action.
AACSB: Analytic
Blooms: Remember
18. Freedom of speech is an absolute constitutional guarantee.
FALSE
Although freedom of speech is not absolute, it is as close to being absolute as any constitutional
guarantee.
AACSB: Analytic
Blooms: Remember
19. Freedom of speech provides the freedom to express ideas antagonistic to those of the majority.
TRUE
Freedom of speech exists to protect the minority from the majority. It means freedom to express ideas
antagonistic to those of the majority. Freedom of speech exists for thoughts many of us hate and for
ideas that may be foreign to us.
AACSB: Analytic
Blooms: Remember
20. Freedom of speech protects corporations as well as individuals.
TRUE
Freedom of speech protects corporations as well as individuals.
AACSB: Analytic
Blooms: Remember
21. The public interests served by freedom of expression protect the listener but not the speaker.
FALSE
The public interests served by freedom of expression protect the listener as well as the speaker.
Freedom of expression includes freedom of information or the rights of the public to be informed.
AACSB: Analytic
Blooms: Remember
22. If the press publishes that which is illegal or libelous, it has liability for doing so.
TRUE
Freedom of the press is usually construed to prohibit prior restraints on publications. If the press
publishes that which is illegal or libelous, it has liability for doing so.
AACSB: Analytic
Blooms: Remember
23. A libel is used to recover damages as a result of transitory statements.
FALSE
A libel is used to recover damages as a result of printed defamation of character.
AACSB: Analytic
Blooms: Remember
24. Libel cases compensate individuals for harm inflicted by defamatory printed falsehoods.
TRUE
A libel is used to recover damages as a result of printed defamation of character. Libel cases
compensate individuals for harm inflicted by defamatory printed falsehoods.
AACSB: Analytic
Blooms: Remember
25. If a person involved in defamation is a public official or figure, a plaintiff seeking damages for
emotional distress caused by offensive publications must prove actual malice in order to recover.
TRUE
If the person involved in defamation is a public official or figure, a plaintiff seeking damages for
emotional distress caused by offensive publications must prove actual malice in order to recover.
AACSB: Analytic
Blooms: Remember
26. Due process means that government may not act in a manner that is arbitrary, capricious, or
unreasonable.
TRUE
Due process means "fundamental fairness and decency." It means that government may not act in a
manner that is arbitrary, capricious, or unreasonable.
AACSB: Analytic
Blooms: Remember
27. The due process clause prevents public utilities from acting in an unreasonable manner.
FALSE
The due process clause does not prevent private individuals or corporations, including public utilities,
from acting in an arbitrary or unreasonable manner.
AACSB: Analytic
Blooms: Remember
28. Under the minimum rationality approach, a classification must have a wholly arbitrary basis.
FALSE
Under the minimum rationality approach, a classification must have a reasonable basis and the courts
will assume any statement of facts that can be used to justify the classification.
AACSB: Analytic
Blooms: Remember
29. Under the strict scrutiny test, a classification will be a denial of equal protection unless the
classification is necessary to achieve a compelling state purpose.
TRUE
Under the strict scrutiny test, a classification will be a denial of equal protection unless the
classification is necessary to achieve a compelling state purpose.
AACSB: Analytic
Blooms: Remember
30. Quasi-strict scrutiny has resulted in holdings that find laws to be valid as well as unconstitutional.
TRUE
Classifications under quasi-strict scrutiny tests are unconstitutional unless they are substantially
related to an important government objective. This modified version of strict scrutiny has resulted in
holdings that find laws to be valid as well as unconstitutional.
AACSB: Analytic
Blooms: Remember
31. The creates the Congress, the presidency and vice presidency, and the Supreme Court of the
United States.
A. Perpetual Union
B. Articles of Association
C. United States Charter
D. United States Constitution
E. Article of Confederation
The United States Constitution creates the Congress, the presidency and vice presidency, and the
Supreme Court of the United States.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Introduction
32. The separation of powers between levels of government is known as .
A. feudalism
B. federalism
C. imperialism
D. statocracy
E. fascism
The separation of powers between levels of government is known as federalism. This concept
recognizes that each level of government has a separate and distinct role to play. The federal
government recognizes that it was created by the states and that states have some sovereignty.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
33. The three significant concepts of the Constitution that create a strong centralized, federal government
are the concept of separation of powers, the supremacy clause, and the .
A. concept of federalism
B. concept of imperialism
D. contract clause
E. doctrine of preemption
The Constitution contains many concepts that frame how the federal government operates and
interacts with state and local governments. The three significant concepts of the Constitution that
create a strong centralized, federal government are the concept of separation of powers, the supremacy
clause, and the contract clause.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
34. The concept of recognizes that each level of government has a separate and distinct role to
play.
A. feudalism
B. imperialism
C. federalism
D. statocracy
E. fascism
The concept of federalism recognizes that each level of government has a separate and distinct role
to play. The federal government recognizes that it was created by the states and that states have some
sovereignty.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
35. Which of the following is true about federalism?
A. State government may limit the federal government's exercise of powers.
B. Federalism refers to the common powers of the federal government and governments at the state
and local levels.
C. Federalism recognizes that all levels of government have interrelated roles.
D. Federalism emphasizes that states do not have sovereignty.
E. The federal government recognizes that it was created by the states.
The federal government recognizes that it was created by the states and that states have some
sovereignty.
AACSB: Analytic
Blooms: Remember
36. When various laws are not consistent, which of the following is given first priority?
A. United States Constitution
B. State laws
C. Local laws
D. United States laws
E. Uniform State laws
When various laws are not consistent, the order of priority is (1) U.S. Constitution, (2) U.S. laws, (3)
state and local laws.
AACSB: Analytic
Blooms: Remember
37. Under the , courts may be called upon to decide if a state law is invalid because it conflicts with
a federal law.
A. minimum rationality approach
B. exclusion clause
C. strict scrutiny approach
D. supremacy clause
E. contract clause
Under the supremacy clause, courts may be called upon to decide if a state law is invalid because it
conflicts with a federal law. They must construe or interpret the two laws to see if they are in conflict.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
38. The Supreme Court reviewed a tax issued by the state of Alabama on a federally incorporated
insurance organization. The Court found that if a state had the power to levy a tax on a federally
incorporated institution, then the state had the power to destroy the federal institution. This would
make the states superior to the federal government. Hence, the Court held that Alabama's tax on the
insurance organization was unconstitutional. Which of the following supports the act of the Court?
A. Supremacy clause
B. Exclusion clause
C. Strict scrutiny approach
D. Minimum rationality approach
E. Contract clause
conflicts with a federal law. In this case, when the Court found that if a state had the power to levy a
tax on a federally incorporated institution; it realized that the state would have the power to destroy
the federal institution. The Court realized that this would make the states superior to the federal
government. The Court found that this would be inconsistent with the Supremacy Clause, which
makes federal law superior to state law. Hence, the Court held that Alabama's tax on the insurance
organization was unconstitutional.
AACSB: Reflective thinking

Blooms: Apply
Difficulty: 3 Hard
39. The concept of preemption applies to and rules and regulations of federal administrative
agencies.
A. the exclusion clause
B. the state clause
C. local government
D. state laws
E. federal statutes
A federal law is said to preempt an area of law. If a federal law preempts a subject, then any state law
that attempts to regulate the same activity is unconstitutional under the supremacy clause. The concept
of preemption applies to federal statutes and rules and regulations of federal administrative agencies.
AACSB: Analytic
Blooms: Remember
40. Which of the following is true about preemption?
A. When the federal government enacts laws in an area, state laws that conflict are retained.
B. If a federal law preempts a subject; state law that attempts to regulate it is unconstitutional.
C. Preemption does not apply to federal statutes.
D. The concept of preemption arises from the contract clause.
E. If a federal law preempts a subject; state law that attempts to regulate it is constitutional.
If a federal law preempts a subject, then any state law that attempts to regulate the same activity is
unconstitutional under the supremacy clause. The concept of preemption applies to federal statutes
and rules and regulations of federal administrative agencies.
AACSB: Analytic
Blooms: Remember
41. Which of the following is true about the supremacy clause?
A. State laws that conflict are incorporated when the federal government enacts laws in an area.
B. If a federal law preempts a subject, a state law that attempts to regulate it is constitutional.
C. It states that courts must interpret state and federal laws to see if they are in conflict.
D. It is applied when the federal government is not acting in pursuit of its constitutionally authorized
powers.
E. It does not apply to the federal government.
AACSB: Analytic
Blooms: Remember
42. The contract clause:
A. applies to the federal government.
B. allows a state to impose new prices on existing contracts.
C. prohibits the federal government from contracting with a state government.
D. limits a state's ability to impair the obligation of a contract.
E. allows a state to enact laws that impact rights under existing contracts.
contracts. The limitation on state action impairing contracts has not been given a literal application.
AACSB: Analytic
Blooms: Remember
43. Snow Crystals Inc., a leading skate park construction company, had constructed a skate park with a
charter in the state of Alaska. A few years later, when the state authority sanctioned the Nightingale
Bridge Company to build a bridge that would use the land where the skate park was already
constructed, the proprietors of Snow Crystals claimed that the state authority had broken its agreement
with Snow Crystals, and thus the contract had been violated. The owners claimed that the charter had
implied exclusive rights to Snow Crystals Inc. Which of the following should be applied to enable
Snow Crystals Inc. avail justice?
A. Preemption doctrine
B. State clause
C. Contract clause
D. Overbreadth doctrine
E. Supremacy clause
contracts. The limitation on state action impairing contracts has not been given a literal application.
Here, the state authority had impaired an existing contract with Snow Crystals Inc. by entering into a
new contract with the Nightingale Bridge Company.

Blooms: Apply
Difficulty: 3 Hard
44. Which of the following is true about amendments and basic protections?
A. Basic constitutional rights are absolute.
B. Constitutional rights do not vary from time to time.
C. Constitutional rights are not interpreted during emergencies such as war or civil strife.
D. During peace time, constitutional principles are not reapplied.
E. Constitutional guarantees exist to protect the minority from the majority.
Constitutional guarantees exist to protect the minority from the majority. Freedom of expression
(press and speech) protects the unpopular idea or viewpoint. Freedom of assembly allows groups with
ideologies foreign to most of us to meet and express their philosophy.
AACSB: Analytic
Blooms: Remember
45. Which of the following is true about freedom of speech?
A. It covers both verbal and written communications.
B. It exists to protect the majority from the minority.
C. Its protection relates to private action that restricts our ability to express ourselves.
D. It covers written communications but not conduct or actions.
E. It is an absolute constitutional guarantee.
Freedom of speech covers both verbal and written communications. It also covers conduct or actions.
AACSB: Analytic
Blooms: Remember
46. A school in the state of Connecticut does not allow students to pray or maintain even a moment of
silence in the school premises. Which of the following first amendment protections is this school
providing?
A. Freedom of speech
C. Freedom of the press
D. Freedom of expression
E. Freedom of symbolic speech
The First Amendment states that Congress shall make no law "respecting an establishment of religion"
(the establishment clause) "or prohibiting the free exercise thereof" (the free exercise clause). The
Supreme Court has held that prayers or even a moment of silence would violate the principles of the
First Amendment. A school consists of students who are allowed to accept any set of religious beliefs.
A prayer can interfere with another student's rights "not" to pray. Hence, the school does not allow
students to conduct prayers in the premises.

Blooms: Apply
47. Luke, Rocky, Nelly, and Mario are graffiti artists who belong to a minority community. They spray
paints on a public wall in their city. They create designs and paintings on the wall depicting political
and social issues that affect their community. This way, they protest against unfair practices. Which
form of first amendment protection are these artists engaging themselves in?
A. Freedom of the press
C. Freedom of speech
D. Establishment clause
E. Free exercise clause
Freedom of speech, sometimes referred to as freedom of expression, covers both verbal and written
communications. This protection relates to governmental action that restricts our ability to express
ourselves. It exists to protect the minority from the majority. It means freedom to express ideas
antagonistic to those of the majority.

Blooms: Apply
Difficulty: 3 Hard
48. When a legislature passes a law that unnecessarily or too generally restricts freedom of speech, the
court may declare the law unconstitutional based on the .
D. overbreadth doctrine
E. doctrine of nullification
When a legislature passes a law that unnecessarily or too generally restricts freedom of speech,
the court may declare the law unconstitutional based on the overbreadth doctrine. It means that the
legislators have gone too far in seeking to achieve a goal.
AACSB: Analytic
Blooms: Remember
49. A city makes it a crime to write anything on any public or private property. Harry was a resident of the
city. He wanted to write something on a private sign that he owned. As he was worried about violating
the law, he approached the court for support. The court declared this law unconstitutional based on the
.
D. doctrine of nullification
E. overbreadth doctrine
When a legislature passes a law that unnecessarily or too generally restricts freedom of speech,
the court may declare the law unconstitutional based on the overbreadth doctrine. It means that the
legislators have gone too far in seeking to achieve a goal.

Blooms: Apply
Difficulty: 3 Hard
50. Which of the following is true about commercial speech?
A. It is not protected by the First Amendment.
B. Corporations have First Amendment rights in the political speech arena.
C. The public interests served by freedom of expression protect the listener but not the speaker.
D. Freedom of speech for corporations is as extensive as the right of an individual.
E. Corporations are not protected and do not have the right to free speech.
Corporations have First Amendment rights in the political speech arena. Freedom of speech protects
corporations as well as individuals. The public interests served by freedom of expression protect the
listener as well as the speaker.
AACSB: Analytic
Blooms: Remember
51. Hungry Hogs Corporation, an international hotdog eatery produced a misleading television
advertisement. One of the ads compared the nutritional value of their hotdogs to the burgers sold by
Gobble Up Inc. The ad stated that two hotdogs of Hungry Hogs contained 30 grams of fat, whereas,
one burger of Gobble Up Inc. contained 52 grams. This ad led to a good consumer response. However,
an anti-restaurant political group filed a complaint with a federal institution. The federal institution
issued an order prohibiting Hungry Hogs from making health-compatibility statements about its
products without scientific evidence. This instance of regulation on advertising of health-compatibility
statements about food products is an example of a limitation on .
A. symbolic speech
B. individual speech
D. commercial speech
E. freedom of thought
Freedom of speech protects corporations as well as individuals. The public interests served by
freedom of expression protect the listener as well as the speaker. Since corporations may add to the
public's knowledge and information, they also have the right to free speech. A government can limit
commercial speech with a compelling state interest expressed to justify the restriction. In this case,
the federal institution issued an order prohibiting Hungry Hogs from making health-compatibility
statements about its products as they did not have valid, scientific evidence.

Blooms: Apply
Difficulty: 3 Hard
52. Which of the following is true about freedom of the press?
A. It is an absolute constitutional guarantee.
B. It refers to the right of the press to print anything it wants with liability.
C. Its preservation cannot be sought through constitutional protections.
D. It excludes communication and expression through electronic media.
E. It is usually construed to prohibit prior restraints on publications.
Freedom of the press is not absolute. The press is not free to print anything it wants without liability.
Rather, freedom of the press is usually construed to prohibit prior restraints on publications. If the
press publishes that which is illegal or libelous, it has liability for doing so.
AACSB: Analytic
Blooms: Remember
53. A is used to recover damages as a result of printed defamation of character.
A. slander
B. calumny
C. libel
D. vilification
E. traducement
AACSB: Analytic
Blooms: Remember
54. Gerard was hired to publish a weekly journal in the state of California. When he printed another
person's article that criticized the governor of a state at the time, Gerard was accused of a certain tort
theory. Which of the following tort theories would he most likely be accused of?
A. Libel
B. Calumny
C. Slander
D. Vilification
E. Traducement
compensate individuals for harm inflicted by defamatory printed falsehoods. As Gerard printed
another person's article that criticized a governor, he was accused of libel.

Blooms: Apply
Difficulty: 3 Hard
55. If a person involved in a case involving freedom of the press is a public official or figure, a plaintiff
seeking damages for emotional distress caused by offensive publications must prove in order to
recover.
A. slander
B. actual malice
C. common law malice
D. vilification
E. traducement
If the person involved is a public official or figure, a plaintiff seeking damages for emotional distress
caused by offensive publications must prove actual malice in order to recover.
AACSB: Analytic
Blooms: Remember
56. The Second Amendment consists of the:
A. right to free speech.
B. right to respect any establishment of religion.
C. right to possess guns.
D. right to freely exercise any religious practice.
E. right to free commercial speech.
There have been very few Supreme Court opinions involving the Second Amendment. The language
of this amendment is as follows: "A well regulated Militia, being necessary to the security for a free
State, the right of the people to keep and bear Arms, shall not be infringed."
AACSB: Analytic
Blooms: Remember
57. Which of the following states that that government may not act in a manner that is arbitrary,
capricious, or unreasonable?
A. Procedural clause
B. Contract clause
C. Exclusion clause
manner that is arbitrary, capricious, or unreasonable.
AACSB: Analytic
Blooms: Remember
58. Which of the following statements is true about the due process clause?
A. It prevents individuals from acting in an arbitrary manner.
B. It applies to the actions of governmental bodies and individuals.
C. It prevents public utilities from acting in an unreasonable manner.
D. It does not prevent private individuals or corporations, including public utilities, from acting in an
unreasonable manner.
E. It applies only to the actions of individuals and businesses'.
The due process clause does not prevent private individuals or corporations, including public utilities,
from acting in an arbitrary or unreasonable manner. It applies only to governmental bodies; it does not
apply to the actions of individuals or businesses.
AACSB: Analytic
Blooms: Remember
59. cases involve whether proper notice has been given and a proper hearing has been
conducted.
A. Equal protection clause
B. Contract clause
C. Exclusion clause
Procedural due process cases involve whether proper notice has been given and a proper hearing has
been conducted. Such cases frequently involve procedures established by statute.
AACSB: Analytic
Blooms: Remember
60. The concept of incorporation through the clause has made the protection of the Bill of Rights
applicable to individuals subject to state and local regulations.
A. supremacy
B. contract
C. due process
D. limitation
E. exclusion
The concept of incorporation through the due process clause has made the protections of the Bill of
Rights applicable to individuals subject to state and local regulations.
AACSB: Analytic
Blooms: Remember
61. Which of the following is true under the minimum rationality approach?
A. A permissible state end is one which is prohibited by at least one provision of the Constitution.
B. A permissible state end is one which is not prohibited by another provision of the Constitution.
C. A permissible state end does not qualify as a legitimate goal of government.
D. A law creating different classifications will survive if it has an irrational connection to a
permissible state end.
E. A law creating different classifications will survive if it has a rational connection to a prohibited
state end.
Under the minimum rationality approach, a law creating different classifications will survive an equal
protection challenge if it has a rational connection to a permissible state end. A permissible state end
is one which is not prohibited by another provision of the Constitution. It qualifies as a legitimate goal
of government.
AACSB: Analytic
Blooms: Remember
62. Under the minimum rationality approach, a qualifies as a legitimate goal of government.
A. rational connection
B. prohibited state end
C. irrational state end
D. permissible state end
E. wholly arbitrary case
A permissible state end is one not prohibited by another provision of the Constitution. It qualifies as a
legitimate goal of government.
AACSB: Analytic
Blooms: Remember
63. The test is used if the classification involves either a suspect class or a fundamental
constitutional right.
A. minimum rationality
B. quasi-scrutiny
C. rational basis
D. intermediate scrutiny
E. strict scrutiny
The strict scrutiny test is used if the classification involves either a suspect class or a fundamental
constitutional right.
AACSB: Analytic
Blooms: Remember
64. Classifications directed at race, national origin, and legitimacy of birth are classes.
A. suspect
B. quasi-suspect
C. rational basis
D. intermediate
E. non-fundamental
A suspect class is one that has such disabilities, has been subjected to such a history of purposeful
unequal treatment, or has been placed in such a position of political powerlessness that it commands
extraordinary protection from the political process of the majority. For example, classifications
directed at race, national origin, and legitimacy of birth are clearly suspect.
AACSB: Analytic
Blooms: Remember
65. Polly secured a good grade with a 4 GPA in her admission test. However, she was denied admission
by a management school. Hence, she filed a suit that the school had discriminated against her on
the basis of race; that she was rejected because the school used race as an important factor, giving
applicants belonging to minority groups a greater chance of admission than students with similar
credentials from disfavoured racial groups. Which of the following approaches should be applied to
solve Polly's case?
C. Rational basis approach
E. Quasi-scrutiny approach
The strict scrutiny test is used if the classification involves either a suspect class or a fundamental
constitutional right. A suspect class is one that has such disabilities, has been subjected to such
a history of purposeful unequal treatment, or has been placed in such a position of political
powerlessness that it commands extraordinary protection from the political process of the majority.
For example, classifications directed at race, national origin, and legitimacy of birth are clearly
suspect.

Blooms: Apply
Difficulty: 3 Hard
A. Under this approach, a classification will be an acceptance of equal protection.
B. Under this approach, a law creating different classifications will survive an equal protection
challenge.
C. Classifications that are subject to this approach are presumed to be unconstitutional.
D. This approach is used when classifications are partially suspect or the rights involved are not
fundamental.
E. This approach is used when classifications are rationally connected to a permissible government
objective.
Classifications that are subject to strict judicial scrutiny are presumed to be unconstitutional. The state
must convince the court that the classification is fair, reasonable, and necessary to accomplish the
objective of legislation that is compelling to a state interest.
AACSB: Analytic
Blooms: Remember
A. It is used if the classification is partially suspect.
B. It falls between the minimum and quasi-strict scrutiny approaches.
C. It is used when the rights involved are not quite fundamental.
D. Classifications that are subject to this approach are presumed to be constitutional.
E. It is applied to cases involving classifications directed at fundamental rights.
Strict judicial scrutiny is applied to cases involving classifications directed at fundamental rights.
AACSB: Analytic
Blooms: Remember
68. The strict scrutiny approach is applied to cases involving rights such as the:
B. right to travel.
C. right to follow any establishment of religion.
D. right to exercise any religious practices.
E. right to free speech.
Strict judicial scrutiny is applied to cases involving classifications directed at fundamental rights. If
a classification unduly burdens or penalizes the exercise of a constitutional right, it will be stricken
unless it is found to be necessary to support a compelling state interest. Among such rights are the
right to vote, the right to travel, and the right to appeal.
AACSB: Analytic
Blooms: Remember
69. Which of the following is true about quasi-strict scrutiny tests?
A. Cases that fall under the minimum rationality approach use quasi-strict scrutiny tests.
B. If a classification has a reasonable basis and not wholly arbitrary one, these tests are used.
C. They are used for cases involving fundamental rights.
D. Cases that fall between the minimum rationality and strict scrutiny approaches use them.
E. If a classification is perfectly suspect, quasi-strict scrutiny tests are used.
Cases that fall between the minimum rationality and strict scrutiny approaches use quasi-scrutiny
tests.
AACSB: Analytic
Blooms: Remember
70. Quasi-scrutiny tests are made on cases involving classifications based on .
A. gender
B. age
C. race
D. national origin
E. height
Cases that fall between the minimum rationality and strict scrutiny approaches use quasi-strict scrutiny
tests. These cases use quasi-strict scrutiny tests because the classifications are only partially suspect or
the rights involved are not quite fundamental. Classifications directed at gender are partially suspect.
AACSB: Analytic
Blooms: Remember
71. A military institute in California launched a separate program for women. However, the senior
members of the program held that women would not be provided with the same type of rigorous
military training, facilities, courses, faculty, financial opportunities, and alumni connections that were
provided to male cadets. The women cadets of the program filed a suit in order to get justice. Which
of the following approaches should be applied to enable the women avail justice?
C. Quasi-scrutiny approach
E. Rational basis approach
A few cases use quasi-strict scrutiny tests because the classifications are only partially suspect or the
rights involved are not quite fundamental. Classifications directed at gender are partially suspect.

Blooms: Apply
Difficulty: 3 Hard
72. The meaning and application of the equal protection clause have been central issues in cases involving
the:
B. freedom of the press.
C. freedom of expression.
D. prohibition of respecting any establishment of religion.
E. makeup of juries.
The meaning and application of the equal protection clause have been central issues in cases involving
the makeup of juries.
AACSB: Analytic
Blooms: Remember
73. The equal protection clause has been applied in cases involving:
A. welfare residency requirements.
B. commercial speech.
C. right to use guns in public areas.
D. freedom of the press.
E. marriage.
The equal protection clause has been applied in cases involving welfare residency requirements.
AACSB: Analytic
Blooms: Remember
74. Minimum rationality tests are applied to cases involving classifications based on .
A. race
B. national origin
C. legitimacy
D. marriage
E. gender
Minimum rationality tests are applied to cases involving classifications based on marriage, height,
weight, age, etc.
AACSB: Analytic
Blooms: Remember
75. Quasi-strict scrutiny tests are applied to cases involving classifications based on .
A. height
B. legitimacy
C. marriage
D. age
E. weight
Quasi-strict scrutiny tests are applied to cases involving classifications based on legitimacy, race,
national origin, fundamental rights, etc.
AACSB: Analytic
Blooms: Remember
76. Mention the main purpose of the Fourteenth Amendment. List the three important clauses of the
Fourteenth Amendment.
The Fourteenth Amendment provides protection to citizens against the actions of the states. This
amendment contains three important clauses—privileges and immunities, due process, and equal
protection.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Introduction
77. List the basic concepts of the United States Constitution.
The Constitution contains many concepts that frame how the federal government operates and
interacts with state and local governments. Three of these are of great significance to the creation of
a strong centralized, federal government. They are the separation of powers concept, the supremacy
clause, and the contract clause.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
78. What is federalism?
The separation of powers between levels of government is known as federalism. This concept
recognizes that each level of government has a separate and distinct role to play. The federal
government recognizes that it was created by the states and that states have some sovereignty.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
79. Briefly explain the supremacy clause.
A conflict exists if the state statute would prevent or interfere with the accomplishment and execution
of the full purposes and objectives of Congress.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
80. Briefly explain the concept of preemption.
A federal law is said to preempt an area of law. If a federal law preempts a subject, then any state law
that attempts to regulate the same activity is unconstitutional under the supremacy clause. The concept
of preemption applies not only to federal statutes but also to the rules and regulations of federal
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
81. Explain the aspects of the contract clause.
The contract clause does not apply to the federal government, which does in fact frequently enact
laws and adopt regulations that affect existing contracts. Under the contract clause, states cannot enact
laws that impact rights and duties under existing contracts. The limitation on state action impairing
contracts has not been given a literal application. As a result of judicial interpretation, some state laws
that affect existing contracts have been approved, especially when the law is passed to deal with a
specific emergency situation.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
82. Explain the four important aspects of amendments and basic protections.
(1) Basic constitutional rights are not absolute.

(2) The extent of any limitation on a basic constitutional guarantee depends upon the nature of the
competing public policy. Cases involving the Bill of Rights almost always require courts to strike a
balance either between some goal or policy of society and the constitutional protection involved or
between competing constitutional guarantees.
(3) Constitutional guarantees exist in order to remove certain issues from the political process and the
ballot box. They exist to protect the minority from the majority. Freedom of expression (press and
speech) protects the unpopular idea or viewpoint.
(4) Constitutional rights vary from time to time and may be narrowly interpreted during emergencies
such as war or civil strife.
AACSB: Analytic
Blooms: Remember
83. Describe the two clauses included in the concept of freedom of religion.
The establishment clause of the First Amendment states that Congress shall make no law respecting
an establishment of religion. The free exercise clause of the First Amendment states that Congress
shall make no law prohibiting the free exercise thereof. These clauses guarantee freedom of religion
through the separation of church and state.
AACSB: Analytic
Blooms: Remember
84. Explain the features of freedom of speech.
Freedom of speech, sometimes referred to as freedom of expression, covers both verbal and written
communications. This protection relates to governmental action that restricts our ability to express
ourselves. The Amendment protection does not apply to private action. Free speech also covers
conduct or actions considered symbolic speech. Although freedom of speech is not absolute, it is
as close to being absolute as any constitutional guarantee. It exists to protect the minority from the
majority. It means freedom to express ideas antagonistic to those of the majority.
AACSB: Analytic
Blooms: Remember
85. When may a state law limit picketing?
A state may constitutionally limit picketing (or other First Amendment freedoms) if: the regulation is
within the government's constitutional power; it furthers a substantial governmental interest; it is
unrelated to suppression of free expression; and the incidental restriction is no greater than is essential
to further the government's interest.
AACSB: Analytic
Blooms: Remember
86. What is the overbreadth doctrine? Explain.
In some free-speech cases, an individual whose own speech or conduct may not be prohibited is
nevertheless permitted to challenge a statute limiting speech because it also threatens other people
not before the court. The person is allowed to challenge the statute because others who may desire
to engage in legally protected expression may refrain from doing so. They may fear the risk of
prosecution, or they may not want to risk having a law declared to be only partially invalid. This
is known as the overbreadth doctrine. It means that the legislators have gone too far in seeking to
achieve a goal.
AACSB: Analytic
Blooms: Remember
87. Explain the features of commercial speech.
Freedom of speech protects corporations as well as individuals. The public interests served by
freedom of expression protect the listener as well as the speaker. Freedom of expression includes
freedom of information or the rights of the public to be informed. Since corporations may add to
the public's knowledge and information, they also have the right to free speech. Corporations have
First Amendment rights in the political speech arena. Freedom of speech for corporations may not be
as extensive as the right of an individual. However, a government cannot limit commercial speech
without a compelling state interest expressed to justify the restriction. State regulatory commissions
often seek to limit the activities of public utilities.
AACSB: Analytic
Blooms: Remember
88. Explain the aspects of the freedom of the press.
The publishing business is the only organized private business given explicit constitutional protection.
The First Amendment states that "Congress shall make no law . . . abridging the freedom of . . .
the press." This guarantee essentially authorizes a private business to provide organized scrutiny of
government. Freedom of the press is not absolute. The press is not free to print anything it wants
without liability. Rather, freedom of the press is usually construed to prohibit prior restraints on
publications. If the press publishes that which is illegal or libelous, it has liability for doing so. This
liability may be either criminal or civil for damages.
AACSB: Analytic
Blooms: Remember
89. What is a libel?
A major area of litigation involving freedom of the press involves defamation. The tort theory
known as libel is used to recover damages as a result of printed defamation of character. Libel cases
AACSB: Analytic
Blooms: Remember
90. Explain the concept of actual malice.
The threat of a libel suit could have a chilling effect on freedom of the press and on the public's rights
to information. Hence, the law has a different standard for imposing liability when the printed matter
concerns an issue of public interest and concern. If the person involved is a public official or figure,
a plaintiff seeking damages for emotional distress caused by offensive publications must prove actual
malice in order to recover. Actual malice includes knowledge that the printed statements are false or
circumstances showing a reckless disregard for whether they are true or not. If the plaintiff is not a
public figure or public official, there is liability for libelous statements without proof of malice.
AACSB: Analytic
Blooms: Remember
91. Explain the due process clause.
manner that is arbitrary, capricious, or unreasonable. The clause does not prevent private individuals
or corporations, including public utilities, from acting in an arbitrary or unreasonable manner. The due
process clause applies only to governmental bodies; it does not apply to the actions of individuals or
businesses.
AACSB: Analytic
Blooms: Remember
92. Explain procedural due process cases.
Procedural due process cases involve whether proper notice has been given and a proper hearing has
been conducted. Such cases frequently involve procedures established by statute. However, many
cases involve procedures that are not created by statute.
AACSB: Analytic
Blooms: Remember
93. Explain the concept of the incorporation doctrine.
The concept of incorporation through the due process clause has made the protections of the Bill of
Rights applicable to individuals subject to state and local regulations. The role of the due process
doctrine goes well beyond incorporation. The Fourteenth Amendment contains a due process clause
applicable to state and local governments. Due process essentially means the same thing under both
amendments. Through the due process clause, all of the constitutionally guaranteed freedoms have
been incorporated into the Fourteenth Amendment and are applicable to the state government's
regulation of our personal and professional lives.
AACSB: Analytic
Blooms: Remember
94. List the approaches applied by courts while using the equal protection clause.
The courts apply three distinct approaches while using the equal protection clause. One is the
traditional or minimum rationality, approach, and a second is called the strict scrutiny approach. Some
cases are analyzed as falling in between these approaches. Courts in these cases use the quasi-strict
scrutiny approach.
AACSB: Analytic
Blooms: Remember
95. Explain the minimum rationality approach.
Under the minimum rationality approach, a law creating different classifications will survive an equal
protection challenge if it has a rational connection to a permissible state end. A permissible state
end is one not prohibited by another provision of the Constitution. It qualifies as a legitimate goal of
government. The classification must have a reasonable basis (not wholly arbitrary), and the courts will
assume any statement of facts that can be used to justify the classification. These laws often involve
economic issues or social legislation such as welfare laws.
AACSB: Analytic
Blooms: Remember
96. Explain the strict scrutiny approach.
Under the strict scrutiny test, a classification will be a denial of equal protection unless the
classification is necessary to achieve a compelling state purpose. It is not enough that a classification
be permissible to achieve any state interest; it must be a compelling state objective. The strict scrutiny
test is used if the classification involves either a suspect class or a fundamental constitutional right.
A suspect class is one that has such disabilities, has been subjected to such a history of purposeful
unequal treatment, or has been placed in such a position of political powerlessness that it commands
extraordinary protection from the political process of the majority. For example, classifications
directed at race, national origin, and legitimacy of birth are clearly suspect. Classifications that are
subject to strict judicial scrutiny are presumed to be unconstitutional. The state must convince the
court that the classification is fair, reasonable, and necessary to accomplish the objective of legislation
that is compelling to a state interest.
AACSB: Analytic
Blooms: Remember
97. Which approach should be used to cases involving classifications directed at fundamental rights?
Strict judicial scrutiny is applied to a group of cases involving classifications directed at fundamental
rights. If a classification unduly burdens or penalizes the exercise of a constitutional right, it will be
stricken unless it is found to be necessary to support a compelling state interest. Among such rights
are the right to vote, the right to travel, and the right to appeal.
AACSB: Analytic
Blooms: Remember
98. Explain the quasi-strict scrutiny approach.
Some cases fall between the minimum rationality and strict scrutiny approaches. These cases use what
is sometimes called quasi-strict scrutiny tests because the classifications are only partially suspect or
the rights involved are not quite fundamental. Such classifications are unconstitutional unless they are
substantially related to an important government objective. This modified version of strict scrutiny has
resulted in holdings that find laws to be valid as well as unconstitutional.
AACSB: Analytic
Blooms: Remember
99. Explain why gender has not been moved to the strict scrutiny analysis.
A reason gender has not been moved to the strict scrutiny analysis is cases involving gender
discrimination are so infrequent; states understand that unequal protection on the basis of gender is
unacceptable.
AACSB: Analytic
Blooms: Remember
100. List some of the cases that have applied the equal protection clause.
The meaning and application of the equal protection clause have been central issues in cases
involving:
• Apportionment of legislative bodies.

• Racial segregation in the sale and rental of real estate.
• Laws distinguishing between the rights of legitimates and illegitimates.
• The makeup of juries.
• Voting requirements.
• Welfare residency requirements.
• Rights of aliens.
AACSB: Analytic
Blooms: Remember
06 Summary
Category # of Questions
AACSB: Analytic 91
AACSB: Reflective thinking 9
Blooms: Apply 9
Blooms: Remember 91
Difficulty: 1 Easy 14
Difficulty: 2 Medium 78
Difficulty: 3 Hard 8
Learning Objective: 06- 12
01 To appreciate how the structure of the U.S. Constitution provides the framework for our federal government.
Learning Objective: 06-02 To understand the importance of the supremacy clause and the contracts clause for business. 17
Learning Objective: 06-03 To recognize the major amendments to the U.S. Constitution. 7
Learning Objective: 06-04 To analyze the basic protections created by the First; Second; and Fourteenth Amendments. 64
Reed - Chapter 06 100
Topic: Amendments and Basic Protections 71
Topic: Basic Concepts 27
Topic: Introduction 2

Legal and Regulatory Environment of Business 16th Edition Reed Test Bank 1

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Legal and Regulatory Environment of Business 16th Edition Reed Test Bank 1

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Test Bank for Legal and Regulatory Environment of

Business 16th Edition Pagnattaro Reed Shedd Morehead

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1. The separation of powers between levels of government is known as federalism.

A. Minimum rationality approach

77. List the basic concepts of the United States Constitution.

78. What is federalism?

79. Briefly explain the supremacy clause.

81. Explain the aspects of the contract clause.

84. Explain the features of freedom of speech.

85. When may a state law limit picketing?

87. Explain the features of commercial speech.

88. Explain the aspects of the freedom of the press.

89. What is a libel?

90. Explain the concept of actual malice.

91. Explain the due process clause.

93. Explain the concept of the incorporation doctrine.

95. Explain the minimum rationality approach.

96. Explain the strict scrutiny approach.

The separation of powers between levels of government is known as federalism.

The first ten amendments are known as the Bill of Rights.

Freedom of speech protects corporations as well as individuals.

A libel is used to recover damages as a result of printed defamation of character.

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

AACSB: Reflective thinking

(1) Basic constitutional rights are not absolute.

89. What is a libel?

• Apportionment of legislative bodies.

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