Business Law 10 multiple questions
1. Several years ago in Arizona, a civil lawsuit was filed by a plaintiff who had been injured by a drunk driver. The plaintiff sued the driver, and also the fraternity that had furnished the drunk driver with alcohol the night of the automobile collision in which the plaintiff was injured. Addressing the question of whether the franternity, and not just the drunk driver, could be found liable (required to pay a sum of money as compensation) for the plaintiff’s injuries, the Arizona Supreme Court held that the fraternity could also be held liable. In so doing, the court created a rule that social hosts can be liable for the foreseeable acts of its guests who are furnished alcohol by the social organization. There had previously been no existing law in Arizona addressing that issue, and the court was addressing the issue for the first time. The rule the Court created in its decision might be considered an example of:
a) Two (but not more) of the other answer choices are correct
b) a common law precedent
c) private law
d) an administrative regulation
e) criminal law
a) administrative agencies
b) state legislatures
c) federal legislatures
d) Three of the other three answer choices are correct.
e) Two (but not more) of the other answer choices are correct
a) Congress exceeding its Constitutional authority.
b) A statute, but not an example of regulatory action.
c) A type of regulation under Congress’s spending power.
d) An illegal attempt by Congress to exercise control over the states.
a) federal and state laws
b) administrative rules (regulations)
c) Two (but not more) of the other answer choices are correct.
d) suggested industry guidelines, but not requirements
e) advisory opinions, but not laws because they were not enacted by Congress
a) the president
b) The other three answer choices are all correct.
c) The judiciary (Courts)
a) a combination state and federal administrative agency, because of its local field offices
b) a law enforcement agency, but not an “administrative agency”
c) a federal administrative agency
d) one part of the judicial branch of government
a) The plain meaning of the statute
b) Prior interpretations of the statute by other courts and administrative agencies.
c) The general public purpose of preventing harm attendant to unregulated hair cutting and styling services.
d) The other four answer choices are all correct.
e) Legislative history of the statute and records reflecting the intent of legislators who enacted it.
a) Must be interpreted narrowly to protect the rights of individuals and the various states; accordingly, the statute being reviewed was declared unconstitutional and was invalidated.
b) Two of the other answer choices are correct.
c) Is interpreted very broadly, such that Congress can restrict activities within a particular state that do not themselves cross state lines, so long as such activities, if repeated by others, might collectively effect interstate commerce; accordingly, the statute being reviewed was upheld.
d) Cannot be used by Congress as a means to interfere with state legislative action; accordingly, the statute being reviewed was invalidated.
a) States are only permitted to make law with regard to those matters that do not affect interstate commerce.
b) State legislatures never decide important issues relating to business; important issues like that are reserved for federal legislation passed by Congress.
c) States may legislate in many ways that significantly affect businesses, but federal laws take precedence over inconsistent state laws.
d) The U.S. Constitution puts no limits on federal lawmaking powers.
e) States may legislate in many ways that significantly affect businesses, and state laws take precedence over inconsistent federal laws.
a) May enact a new statute to achieve the originally intended purpose.
b) Two (but not three) of the other answer choices are correct.
c) Cannot repeal or amend the statute; from that point forward Congress is stuck with the Court’s interpretation.
d) May amend the statute to more clearly give it the meaning that Congress deems appropriate.