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Sunday, January 1, 2017

Business Law - Chapter 05 Constitutional Principles

The U.S. Constitution establishes a system of government based on the principle of federalism. 
TRUE
Congress has the power to enact legislation, but the president can veto a law that Congress passes. 
TRUE
The U.S. Constitution explicitly allows courts to review legislative and executive actions to determine whether they are constitutional. 
FALSE
Judicial review allows courts to review the constitutionality of lower courts' decisions. 
TRUE
The primary source of authority for federal regulation of business is the First Amendment to the U.S. Constitution. 
FALSE
Federal laws include laws passed by federal administrative agencies. 
TRUE
Congress can use its spending power to achieve social welfare objectives. 
TRUE
The fourteenth amendment is part of the Bill of Rights. 
FALSE
No First Amendment protections apply to corporations. 
FALSE
Not all corporate speech is political speech. 
TRUE
According to the principle of federalism established by the U.S. Constitution, how is the authority to govern allocated? 
A. It is allocated to the federal government.
B. It is allocated to the states.
C. It is allocated to local jurisdictions.
D. It is allocated to the U.S. Senate.
E. It is divided between federal and state governments.
According to the ______ Amendment to the Constitution, all powers that the Constitution neither gives exclusively to the federal government nor takes from the states are reserved for the states. 
A. First
B. Second
C. Fifth
D. Sixth
E. Tenth
Why must federal legislation that affects business be based on an expressed constitutional grant of authority? 
A. Because the U.S. Congress passed a law to that effect.
B. Because the federal government has only those powers granted to it by the Constitution.
C. Because President Lincoln issued an executive order to that effect.
D. Because President Washington issued an executive order to that effect.
E. Because it is a custom.
The U.S. Constitution allocates the power of the federal government among _____ branches of the government. 
A. Two
B. Three
C. Four
D. Five
E. Six
What are the three independent branches of the federal government? 
A. Legislative, executive, and judicial.
B. Legislative, commerce, and safety.
C. Commerce, safety, and law enforcement.
D. Executive, safety, and law enforcement.
E. Law enforcement, judicial, and statutory.
How was the process of judicial review established, under which courts review legislative and executive actions to determine whether they are constitutional? 
A. By vote of the U.S. Senate
B. By vote of the U.S. House of Representatives
C. By vote of both the U.S. Senate and the U.S. House of Representatives
D. By common law
E. By executive proclamation
Which clause provides that the Constitution, laws, and treaties of the United States constitute the supreme law of the land? 
A. The First Amendment, clause three
B. The supremacy clause
C. The commerce clause
D. The Eighth Amendment, clause one
E. The federalism clause
Which of the following is true regarding laws passed by the U.S. Congress under the authority of the commerce clause? 
A. As long as the law affects commerce among the states, or interstate commerce, in some way, the regulation is generally constitutional.
B. As long as the law affects taxation in some way, it is constitutional.
C. As long as the law involves in some way a right guaranteed by the Bill of Rights, it is constitutional.
D. As long as the law is approved by any state affected, it is constitutional.
E. As long as the law is not objected to by any state affected within six months of its passage, it is constitutional.
Which of the following is true regarding the decision by the U.S. Supreme Court in the case Granholm v. Heald involving the sale of wine by out-of-state wineries? 
A. The law treating out-of-state residents differently from in-state residents was justified based on the interest of each state in protecting the business opportunities of its citizens.
B. The law treating out-of-state residents differently from in-state residents was unconstitutional.
C. The court upheld restrictions placed on out-of-state sellers on the basis that the restrictions were a valid exercise of the state's police power and that whether it unfairly burdened interstate commerce was not an issue.
D. The court refused to decide the issue one way or the other and requested additional evidence.
E. The court ruled that the plaintiffs lacked standing.
Which of the following is true regarding federal taxation? 
A. The U.S. Constitution grants Congress the power to tax.
B. The taxes laid by Congress must be uniform across the states.
C. Congress can legitimately use taxes to encourage the development of certain industries and discourage the development of others.
D. All the above.
E. None of the above.
Which of the following is true regarding the privileges and immunities clause of the U.S. Constitution? 
A. Under the clause, a state cannot prohibit nonresidents from opening restaurants in the state.
B. Under the clause, a state can allow state universities to charge higher tuition to out-of-state students because residents pay taxes that fund state universities, while out-of-state students do not.
C. Under the clause, states may not discriminate against citizens of other states in the buying and selling of property.
D. All the above.
E. None of the above. There is no privileges and immunities clause in the U.S. Constitution. The privileges and immunities clause is contained in a statute passed by Congress.
Which clause of the U.S. Constitution provides that, "Full Faith and Credit shall be given in each state to the public Acts, Records and judicial Proceedings of every other state"? 
A. The full faith and credit clause
B. The privileges and immunities clause
C. The commerce clause
D. The contract clause
E. The Bill of Rights clause
The first _____ amendments to the U.S. Constitution are known as the Bill of Rights. 
A. Five
B. Six
C. Eight
D. Nine
E. Ten
Which amendment extends most of the provisions of the Bill of Rights to the states? 
A. Thirteenth
B. Fourteenth
C. Twenty-first
D. Twenty-second
E. Fortieth
Which amendment provides that the government cannot infringe on citizens' right to bear arms? 
A. First
B. Second
C. Fifth
D. Sixth
E. None
Which amendment prohibits cruel and unusual punishment? 
A. Second
B. Fourth
C. Fifth
D. Eighth
E. Tenth
When the First Amendment is concerned, what does the term "political speech" reference? 
A. Speech that occurs when corporations support political candidates.
B. Speech by any citizen in connection with an election campaign.
C. Speech by elected officials regarding other elected officials.
D. All the above.
E. None of the above. The First Amendment is not referenced in relation to "political speech."
Which of the following is true regarding the Central Hudson test for commercial speech? 
A. Speech that is misleading is not protected by the First Amendment.
B. The government must show that a substantial governmental interest is served by a restriction on commercial speech in order to validly restrict the speech.
C. A restriction on commercial speech must not be more extensive than necessary for speech to be protected.
D. All the above.
E. None of the above.
Which of the following is true regarding First Amendment protections? 
A. The first amendment protects defamatory statements.
B. The first amendment protects obscenity.
C. The first amendment protects defamatory statements and also commercial speech.
D. Neither defamation, obscenity, nor commercial speech is protected by the First Amendment.
E. Neither defamation nor obscenity is protected by the First Amendment, but some commercial speech is protected.
Which of the following is true regarding the protection of "fighting words" under the First Amendment? 
A. Fighting words are unprotected speech under the First Amendment.
B. Fighting words are protected speech under the First Amendment only if they are uttered by an individual citizen, not by a corporate representative.
C. Fighting words are protected speech under the First Amendment only if they involve political activity.
D. Fighting words are protected speech under the First Amendment only if they are made in connection with a protest march.
E. Fighting words are protected speech under the First Amendment only if they are made in conjunction with self defense.
Which amendment protects freedom of religion? 
A. First
B. Second
C. Fourth
D. Sixth
E. Eighth
As expressed in the text, which of the following expresses the United Nations declaration on hate speech? 
A. The United Nations' declaration protects hate speech to a lesser degree than does the U.S.
B. The United Nations' declaration protects hate speech in essence to the same degree as the U.S.
C. The United Nations' declaration states that hate speech is not a protected form of expression.
D. The United Nations' declaration states that speech is only recognized as "hate speech" if it is gender based.
E. There is no United Nations declaration on hate speech.
What does the establishment clause of the First Amendment provide? 
A. Government cannot make a law prohibiting the free exercise of religion.
B. Government cannot make a law establishing a religion.
C. Government cannot make a law referencing religion in any manner.
D. All the above.
E. None of the above.
What does the free-exercise clause of the First Amendment provide? 
A. Government cannot make a law prohibiting the free exercise of religion.
B. Government cannot make a law establishing a religion.
C. Government cannot make a law referencing religion in any manner.
D. All the above.
E. None of the above.
A ______ is a court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant. 
A. Search warrant
B. Subpoena warrant
C. Search authorization form
D. Seek warrant
E. Review authorization
When can government agents obtain a search warrant? 
A. When they can establish reasonable cause.
B. When they can establish probable cause.
C. When they can establish cause to a substantial certainty.
D. Anytime they have an informant.
E. Anytime the judge is in his office and they show identification as government agents.
Which amendment protects citizens from unreasonable searches and seizures? 
A. First
B. Third
C. Fourth
D. Sixth
E. Tenth
When may government agents search without a search warrant? 
A. When law enforcement officials believe it likely that the items sought will be removed before they can obtain a warrant.
B. Outside of normal working hours for a judge.
C. When they can show that the suspect who lives in the residence at issue has been in jail previously.
D. When they can show that a felony is involved.
E. All the above.
Which of the following is an exception to the rule that administrative searches usually require search warrants? 
A. The administrative exception
B. The reasonable-search exception
C. The pervasive-regulation exception
D. The compelling-need exception
E. The controlling-principle exception
Which of the following is true regarding the right of the federal government to obtain business books and records? 
A. The government has an absolute right to business books and records so long as a subpoena is issued by a grand jury.
B. The government has no rights to such records without a search warrant.
C. Obtaining books and records from a sole shareholder of a corporation and also from a sole proprietor based only upon a subpoena issued by a grand jury violates the right against self-incrimination.
D. Obtaining books and records from a sole proprietor based only on a subpoena from a grand jury violates the owner's rights against self-incrimination, but seizing records from a sole shareholder of a corporation in that manner does not violate rights against self incrimination.
E. Obtaining books and records from a sole shareholder of a corporation based only on a subpoena from a grand jury violates the shareholder's rights against self-incrimination, but seizing records from a sole proprietor in that manner does not violate rights against self incrimination.
What does the Fifth Amendment's protection against self-incrimination mean? 
A. A person only has to be a witness against himself or herself if a felony is involved.
B. A person does not have to be a witness against himself or herself if a first offense is involved.
C. A person does not have to be a witness against himself or herself if prison time is involved as opposed to a mere fine.
D. A person does not have to be a witness against himself or herself, period.
E. A person has to be a witness against himself or herself.
Which of the following is true regarding the Fifth Amendment's protection against self-incrimination?
A person does not have to be a witness against himself or herself in a criminal case.

What does protection against "double jeopardy" mean? 
The government cannot try a person more than once for the same crime.
 
Which amendment gives citizens the right not to testify against themselves? 
Fifth
Which of the following are types of due process? 
Procedural and substantive
Which of the following refers to the basic fairness of laws that may deprive an individual of her life, liberty, or property? 
Substantive due process
 
Which of the following was the result at the U.S. Supreme Court level in Christy Brzonkala v. Antonio Morrison, the case in the text involving the constitutionality of the section of the Violence Against Women Act providing for a civil remedy?
That Congress lacked authority under the Commerce Clause to pass the section at issue.

The landmark early U.S. Supreme Court case of Marbury v. Madison recognized the right of courts to exercise judicial review in order to determine the constitutionality of laws.
True

If the law's classification scheme is based on gender, the law will be subject to ___. 
Intermediate scrutiny
Which of the following is true regarding rights of the citizens of Belarus? 
Citizens accused of crimes are presumed innocent until proven guilty.
What does the Fifth Amendment's takings clause reference? 
The requirement that the government pay the owner just compensation if the government wants to take private property for public use.
Which of the following is true regarding privacy rights? 
The U.S. Supreme Court has found that U.S. citizens have a right to privacy based upon
If a law prevents individuals from exercising a fundamental right, the law will be subject to ___. 
Strict scrutiny
Which amendment protects against double jeopardy? 
The Fifth Amendment
Which of the following prohibits states from discriminating against citizens of other states when those nonresidents engage in ordinary and essential activities such as seeking employment? The privileges and immunities clause

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