The Legal Environment of Business: Practice Quiz 1 (2014 Fall D Term 6)

The Legal Environment of Business: A Managerial Approach: Theory to PracticeMelvin, 2nd ed.Practice Quiz 1 (2014 Fall D Term 6)1.A bill is a federal statute passed by Congress and signed into law by the president.True False 2.Which equitable maxim favors those who exercise caution in pursuing their claims and disfavors those who rest on their legal rights by failing to act to protect their rights in a reasonable period of time?Clean hands doctrineDoctrine of stare decisis Equity aids the vigilantSubstance over form3.In rem jurisdiction occurs when a court uses its quasi in rem jurisdiction to compel a litigant to appear in court by attaching property that belongs to the litigant.True False4.Which of the following is true of subject matter jurisdiction on the basis of diversity of citizenship?A diversity-of-citizenship situation involves issues governed by federal statutes or federal common law.In a diversity-of-citizenship case, the amount in controversy must not exceed $75,000.A diversity-of-citizenship situation involves only those issues pertaining to countries which recognize dual citizenship. In a diversity-of-citizenship case, a federal court will apply state law.5.In a business context, legal counsel is not only a primary and important source of information and advice but is also solely responsible for making decisions about how to resolve a dispute.True False6.Ted is on trial for murder. The prosecution must provide _____ evidence in order to secure Ted’s conviction.summary inculpatoryuncorroboratedexculpatory7.Business ethics is a matter of dealing with dilemmas that always have a clear indication of what is right or wrong.True False8.Understanding which primary and secondary stakeholders will be affected is part of the _____ stage of the ethical decision-making process.developing choicesapplying standardsimplementation and evaluation identifying impact9.Which of the following is true of a property sublease?In a sublease, a tenant transfers her interests to a subleasee for the entire remaining length of the term of the original lease.In a sublease, a tenant transfers her interests to a subleasee for a term that is less than the remaining term of the original lease.In a sublease, a subleasee does not receive the full legal benefits of a tenancy.In a sublease, a tenant is not bound to the original lease agreement even if the landlord does not release the tenant from thatparticular obligation.10.According to the landlord-tenant agreement, Ray’s monthly rent includes his electricity and water bills. Daniel, the landlord, has failed to paythe bills for almost four months as a result of which the supply of water and electricity has been stopped in Ray’s apartment. Ray has reminded his landlord to pay the bills several times. In this case, which of the following is true?Ray’s right to habitability has been violated.Ray’s right to possession has been violated.As a tenant, Ray can sue Daniel but cannot terminate the lease before it ends.As a tenant, Ray can terminate the lease but will have a legal liability to Daniel.