Exam 1 (Chapters 1, 2, 4 & 5)

Question 1

Treble Damages

Answer 1

A statue that says any individual or company harmed may bring a separate action to receive three times the damages actually sustained

Question 2

Federal Trade Commission Act

Answer 2

One of the statues that regulate unfair competition. It

outlaws unfair methods of competition and unfair acts/practices that affect commerce

Question 3

Price Discrimination

Answer 3

Occurs when a seller charges different prices to different buyers for “commodities of like grade and quality”, with the result being reduced competition or a tendency to create a monopoly

Also prohibits charging different prices to buyers as related to marginal costs

The Clayton Act is the federal law that makes this an illegal crime

Question 4

Ex Post Facto

Answer 4

Laws that make criminal an act that has already been committed but was not criminal when it was committed

Laws that increase the penalty for an act already committed above the penalty in force when the act was committed

The Constitution prohibits both states and the federal government from adopting these laws

Question 5

Difference in Grade

Answer 5

Quality or quantity

Question 6

Six justified permitted basis of Price Discrimination

Answer 6

1. A difference in grade (quality or quantity)
2. The cost of transportation involved with performing the contract
3. A good-faith effort to meet competition
4. Differences in methods or quantities, that is, marginal cost differences
5. Deterioration of goods
6. A close-out sale of a particular line of goods

Question 7

Constitution

Answer 7

A body of principles that establishes the structure of a government and the relationship of the government to the people who are governed; State and federal

The U.S. adopted theirs in 1789, after the 13 colonies won their independence from King George

Question 8

The Branches of Government

Answer 8

Legislative Branch (Congress)

Executive Branch (President)

Judicial Branch (Courts)

Question 9

Legislative Branch

Answer 9

The branch of government that makes the laws

U.S. Congress (Senate & The U.S. House of Representatives)

Question 10

Executive Branch

Answer 10

The branch of government that executes or enforces the laws

The President

Question 11

Judicial Branch

Answer 11

The branch of government that interprets the laws

The Court System

Question 12

Delegated Powers

Answer 12

Powers, given by the Constitution, that are exclusive to either the state governments or to the national government

i.e. The national government alone may declare war or establish a currency

Question 13

Shared Powers

Answer 13

The powers delegated to the national government that may still be exercised by the states

i.e. The grant of power to the national government to impose taxes did not destroy the state power to tax

Question 14

Police Power

Answer 14

The states possess the power to adopt laws to protect the general welfare, health, safety and morals of the people

i.e. States may require that businesses be licensed with state agencies to protect persons dealing with the business

Question 15

Prohibited Powers

Answer 15

The powers given by the Constitution that does not allow both states and the federal government from doing certain things

i.e. Neither states nor the national government may adopt ex post facto laws

Question 16

Complaint

Answer 16

The filing of this begins a lawsuit

Generally contains a description of the wrongful conduct and a request for damages, such as a monetary amount

Question 17

Bedrock View

Answer 17

The argument that the U.S. Constitution should be interpreted strictly; Originalist view suggesting that the federal government gets the least power possible

The purpose of a constitution is to state certain fundamental principles for all time

Question 18

Living Document View

Answer 18

The argument that the U.S. Constitution should be interpreted broadly, suggesting that the federal government should be given the greatest power that the words would permit

This view also states that a constitution is merely a statement of goals and objectives and is intended to grow and change with time (Supreme Court follows this view)

Question 19

Trier of Fact

Answer 19

Person, or group of persons, who determines facts in a legal proceeding, usually a trail

Question 20

Voir Dire

Answer 20

Examination process where jury selection takes place

Jurors drawn for service are questioned by the judge and lawyers to determine whether they are biased or have any preformed judgments about the parties in the case

Question 21

Due Process Amendments

Answer 21

Fifth and Fourteenth Amendments both limit the power of the government by prohibiting the national government and the state governments from depriving any person of “life, liberty or property without ___ of law”

Question 22

Due Process Clause

Answer 22

(As a result of liberal interpretation of the Constitution) This clause now provides a guarantee of protection against the loss of property or rights without the change to be heard

The amendments also guarantee that all citizens are given the same protections

[U.S. Constitution, Fourteenth Amendment as to the states; modern interpretation of the ___ ______ clause of the Fifth
Amendment as to national government. Congress adopted the Civil Rights Act to implement the concept of equal
protection]

Question 23

Equal Protection Clause

Answer 23

The Constitution prohibits the states and the national government from denying any person the ____ _____ of the law

This guarantee prohibits a government from treating one person differently from another when there is no reasonable ground for classifying them differently

Question 24

Interstate Commerce Clause

Answer 24

To protect commerce, Congress was given Article I, Section 8, Clause 3: the power to regulate commerce with foreign nations, and along the several states and with the Indian Tribes

• Until 1937, The Supreme Court held that this provision gave Congress the power to control or regulate only that commerce crossing a state line (i.e. interstate railway train/telegraph message)
• 1947 The power expanded to the point that it gave authority to Congress to adopt regulatory laws that were “as broad as the economic needs of the nation” (manufacturing, agriculture, mining, stock exchanges, insurance, loan sharking etc)
• Today legislation and congressional authority is shared, some limitations are placed on this clause in order to asses the nature in which underlying activities are being regulated

Question 25

Discrimination against Interstate Commerce

Answer 25

States many not use their tax power for the purpose of discriminating against interstate commerce

Question 26

Tying

Answer 26

Occurs when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want It is a violation of the Sherman Antitrust Act (section 1)

Question 27

Closeout

Answer 27

A sale on goods of a type that will no longer be carried by the store

Question 28

The Sherman Antitrust Act

Answer 28

Contains two sections that control monopolistic behavior 1. Every contract, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is declared to be illegal 2. Every person who shall monopolize or attempt to monopolize any part of trade or commerce among the several states (or foreign nations), or combine with others (who plan to do the same), shall be deemed guilty of a felony

Question 29

Per Se Violation

Answer 29

(Of the Sherman Antitrust Act) Any agreement to change an agreed-upon price or to set maximum or minimum prices between or among competitors are doing this Sometimes referred to as Horizontal Price-Fixing

Question 30

Divestiture Order

Answer 30

If the Clayton Act is violated through ownership or control of competing enterprises, a court may order the violating defendant to dispose of such interest by issuing a decree called _____

Question 31

Parens Patriae

Answer 31

"Parent of its people" i.e. The attorney general of a state may bring a class-action suit to recover damages on behalf of those who have paid the higher prices, this action is based on the theory that the sate is suing as the parent of its people

Question 32

Ombudsman

Answer 32

An official appointed to investigate individuals' complaints against maladministration, especially that of public authorities

Question 33

Monopolization

Answer 33

Attempts to monopolize Monopolies and combinations that restrain trade are prohibited under the federal antitrust laws

Question 34

The Right of Privacy

Answer 34

An individual right granted by The Constitution that has two components 1) The right to be secure against unreasonable searches and seizures by the government The Fourth Amendment (exclusionary rule) of the U.S. Constitution guarantees this position

Question 35

Interrogatories

Answer 35

Written questions used as a discovery tool that must be answered under oath

Question 36

1937 Supremacy Clause

Answer 36

In this year, the Supreme Court moved from an expansive interpretation of the Commerce Clause to a more narrow view, striking down numerous laws intended to protect the publics health

Question 37

Conflict of Law

Answer 37

When a lawsuit is brought, there is not just the question of where a case will be tried but also of what law will be applied in determining the rights of the parties. The principle that deter- mines when a court applies the law of its own state—the law of the forum—or some foreign law is called Some general rules apply. For example, the law of the state in which the court is located governs the case on procedural issues and rules of evidence. In contract litigation, the court applies the law of the state in which the contract was made for determining issues of formation. Performance disputes and damages for nonperformance are generally governed by the law of the state where the contract is to be performed. International con- tracts follow similar rules. * In the absence of a law-selecting provision in the contract, there is a growing acceptance of the rule that a contract should be governed by the law of the state that has the most significant contacts with the transaction.*

Question 38

Specific Performance

Answer 38

Courts can order defendants in contract disputes to actually perform the contractual duties as originally agreed if it is determined that money alone cannot resolve the issue An equitable remedy i.e. could require the owner to convey title to the house

Question 39

Precedent

Answer 39

When a court decides a new questions or problem its decision becomes a ____ Which stands as the law in future cases that involve that particular problem

Question 40

Stare Decisis

Answer 40

Using precedent and following decisions is also known as the doctrine of ___ This rule is not set in stone, judges have some flexibility. When a court finds an earlier decision to be incorrect, it overrules that decision

Question 41

Common Law

Answer 41

The body of unwritten principles originally based upon the usages and customs of the community that were recognized and enforced by the courts; time honored rules of the community

Question 42

Changes in The U.S. Constitution

Answer 42

Changes in the constitution are brought about by 1. Interpretation - The U.S. Supreme Court has made the greatest changes by interpreting 2. Amendment - Article V gives the procedure to follow for amending the constitution 3. Practice - In practice, the letter of the constitution is not always followed

Question 43

Substantive Law

Answer 43

Creates, defines and regulates rights and liabilities; the law that determines when a contract is formed

Question 44

Procedural Law

Answer 44

Specifies the steps that must be followed in enforcing those rights and liabilities (substantive law)

Question 45

Criminal Law

Answer 45

The laws that define wrongs against society Violations carry fines and imprisonment as penalties

Question 46

Civil Law

Answer 46

The laws that define the rights of one person against another Violations carry damage remedies for the wronged individual`

Question 47

Positive Law

Answer 47

Law enacted and codified by governmental authority

Question 48

Natural Law

Answer 48

A system of principles to guide human conduct independent of, and sometimes contrary too, enacted law and discovered by man's rational intelligence Imposes higher standards of behavior and they must be followed even if those higher standards run contrary to codified law

Question 49

Civil Disobedience

Answer 49

The term used when natural laws proponents violate positive law

Question 50

Subpoena

Answer 50

The usual writ for the summoning of witnesses or the submission of evidence, as records or documents, before a court or other deliberative body

Question 51

Law

Answer 51

The order or pattern of rules that society establishes to govern the conduct of individuals and the relationships among them

Question 52

Sources of Law

Answer 52

``` The U.S. Constitution State Constitutions Federal Statues State Statues Common Law Case Law Administrative Law ```

Question 53

Administrative Agencies

Answer 53

Promulgate administrative regulations, they have a significant amount of power delegated to them. All members belonging to these entities are not elected by voters, they are appointed by the president and at certain levels appointment they possible candidates must be approved by Congress State and federal examples - Securities and Exchange Commission (SEC) - Environmental Protection Agency (EPA)

Question 54

Statutory Law

Answer 54

Legislative acts declaring, commanding or prohibiting something

Question 55

Private Law

Answer 55

The rules and regulations parties agree to as part of their contractual relationships

Question 56

Case Law

Answer 56

Law that includes principles that are expressed for the first time in the court decisions

Question 57

Administrative Agencies and The Constitution

Answer 57

These units of government were virtually unheard of in 1789, and the Constitution made no mention of them The vast powers of the new Constitution are exercised to a very large degree by administrative agencies. They are in effect a fourth branch of the government, not provided for in the written Constitution They are ones that come in contact with the majority of businesspersons and citizens

Question 58

Deposition

Answer 58

The testimony of witness taken out of court before a person authorized to administer oaths;

Question 59

Expert Witness

Answer 59

One who has acquired special knowledge in a particular field as through practical experience or study, or both, whose opinion is admissible as an aid to the trier of fact

Question 60

Jurisdiction

Answer 60

The power of a court to hear and determine a given class of cases; the power to act over a particular defendant

Question 61

Original Jurisdiction

Answer 61

The authority to hear a controversy when it is first brought to court (trail court)

Question 62

Appellate Jurisdiction

Answer 62

The power of a court to hear and decide a given class of cases on appeal from another(lower) court or administrative agency

Question 63

Limited (Special) Jurisdiction

Answer 63

The authority to hear only particular kinds of cases i.e. many states have courts that can hear only disputes where damages are $10,000 or less

Question 64

General Jurisdiction

Answer 64

The power to hear and decide most controversies involving legal rights and duties

Question 65

Subject Matter Jurisdiction

Answer 65

Judicial authority to hear a particular type of case

Question 66

Appeal

Answer 66

Taking a case to a reviewing court to determine whether the judgment of the lower court or administrative agency was correct

Question 67

The U.S. District Courts

Answer 67

The general trial courts for the federal system, they are courts of original jurisdiction that hear both civil and criminal matters

Question 68

Civil Case in Federal Court

Answer 68

1. Civil suits in which the United States is a party 2. Cases between citizens of different states that involve damages of $75,000 or more 3. Cases that arise under the U.S. Constitution or federal laws and treaties.

Question 69

Writ of Certiorari

Answer 69

The U.S. Supreme Court granting a right of review by the court of a lower court decision

Question 70

Counterclaim

Answer 70

A claim that the defendant in an action may make against the plaintiff, which is asking the court for damages as a result of the underlying dispute

Question 71

Pleadings

Answer 71

The papers filed by the parties in an action in order to set forth the facts and frame the issues to be tried, although, under some systems, the pleadings merely give notice or a general indication of the nature of the issue (all documents filed in the the initial phase of the case)

Question 72

Discovery

Answer 72

Procedures for ascertaining facts prior to the time of the trial in order to eliminate the element of surprise in litigation Requires each side to name its potential witnesses and to provide each side the chance to question those witnesses in advance of the trial

Question 73

Impeach

Answer 73

Using prior inconsistent evidence to challenge the credibility of a witness

Question 74

Motion for Summary Judgment

Answer 74

Request that the court decide a case on basis of law only because there are no material issues disputed by the parties

Question 75

Direct Examination

Answer 75

Examination of a witness by his or her attorney

Question 76

Cross Examination

Answer 76

The examination made of a witness by the attorney for the adverse party

Question 77

Redirect Examination

Answer 77

Questioning after cross examination, in which the attorney for the witness testifying may ask the same witness other questions to overcome effects of the cross examination

Question 78

Recross Examination

Answer 78

An examination by the other side's attorney that follows the redirect examination

Question 79

Motion for Directed Verdict

Answer 79

A direction by the trial judge to the jury to return a verdict in favor of a specified party to the action

Question 80

Motion for Mistrial

Answer 80

A court's declaration that terminates a trial and postpones it to a later date; commonly entered when evidence has been of a highly prejudicial character or when a juror has been guilty of misconduct

Question 81

Motion for Judgment n.o.v. | non obstinate verdicto/not with standing the verdict

Answer 81

A judgment entered after verdict upon the motion of the losing party on the ground that the verdict is so wrong that a judgment should be entered the opposite of the verdict

Question 82

The Taxing Power

Answer 82

"Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States"

Question 83

Privileges and Immunities Clause

Answer 83

A clause that entitles a person going into another state to make contracts, own property, and engage in business to the same extent as citizens of the state

Question 84

Power to Regulate Business

Answer 84

Under the police power, states may regulate all aspects of business so long as they do not impose an unreasonable burden on interstate commerce or any activ- ity of the federal government.

Question 85

Horizontal Restraints

Answer 85

Statues set in place, by both the federal and state governments, that regulate anticompetitive behavior among competitors

Question 86

Vertical Restraints

Answer 86

Statues set in place, by both the federal and state governments, that regulate anticompetitive behavior throughout the supply chain

Question 87

Clayton Act

Answer 87

The Sherman Anti Trust Act does not prohibit bigness.. However, this act provides that "no corporation ... shall acquire the whole or any part of the assets of another corporation ... where in any line of commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.” Prohibits price discrimination

Question 88

Mergers

Answer 88

Mergers among competitors is feared because the combination of large companies could result in their domination of the distribution chain and would result in price increases When large-size enterprises plan to merge, they must give written notice to the FTC and to the head of the Antitrust Division of the Department of Justice. This advance notice gives the department the opportunity to block the merger and thus avoid the loss that would occur if the enterprises merged and were then required to separate

Question 89

Farmers' Cooperatives

Answer 89

An association of export, who is exempt from the Sherman Act

Question 90

State Constitutions

Answer 90

Each state has one

Question 91

Goods Deterioration

Answer 91

Price discrimination expresses permission for this reason

Question 92

E-mail

Answer 92

Even though technology affords others the ability to eavesdrop on conversations and intercept electronic messages the law has stepped in to reestablish that the right of privacy still exists even in these technologically nonprivate circumstances Some laws now make it a crime and a breach of privacy to engage in such interceptions of communications

Question 93

National Conference of Commissioners on Uniform State Laws (NCCUSL)

Answer 93

Facilitates the national nature of business and transactions, composed of representatives of every state and has drafted statues on various subjects for adoption by the states

Question 94

Legal Remedy

Answer 94

Also known as judicial relief is the means with which a court of law, usually in the exercise of civil law jurisdiction, enforces a right, imposes a penalty, or makes another court order to impose its will

Question 95

Currency/War Power

Answer 95

A delegated power that belongs to the national government alone (U.S. Congress)

Question 96

Transport Costs (goods)

Answer 96

Price discrimination expresses permission for this reason

Question 97

Closeout of Line (goods)

Answer 97

Price discrimination expresses permission for this reason

Question 98

Contempt of Court

Answer 98

Actions which either defy a court's authority, cast disrespect on a court, or impede the ability of the court to perform its function Two types: Civl & Criminal Contempt

Question 99

Criminal Contempt of Court

Answer 99

A party causing a serious disruption in the courtroom, yelling at the judge and refusing to testify before a grand jury are all actions that constitute a

Question 100

Civil Contempt of Court

Answer 100

Someone failing to adhere to an order from the court (with resulting injury to a private party's rights) and someone failing to pay court ordered child support are both that constitute a

Question 101

Who has the power to borrow on U.S. credit?

Answer 101

Federal Government (U.S. Congress Only)

Question 102

Conspiracy, in Restraint of Trade or Commerce

Answer 102

The Sherman Antitrust Act declared this to be illegal

Question 103

Article I of the Constitution

Answer 103

Gives Congress its powers and limits, creates the two sections of Congress and Article 8 contains The Commerce Clause

Question 104

Article II of the Constitution

Answer 104

Makes The Executive Branch of the United States

Question 105

Article III of the Constitution

Answer 105

Creates The Judicial Branch of The Constitution

Question 106

Choice of Law

Answer 106

A set of rules used to select which jurisdiction's laws to apply in a lawsuit It is becoming more common for parties to specify this in their contract

Question 107

General Welfare Clause

Answer 107

Article I, Section 8 of The Constitution/The Commerce Clause

Question 108

Peremptory Challenges

Answer 108

A challenge that is used to strike (remove) a juror for any reason except on racial grounds

Question 109

Challenge for Cause

Answer 109

Attorneys question potential jurors to determine if they should be

Question 110

Motion to Dismiss

Answer 110

A pleading that may be filed to attack the adverse party's pleading as not stating a cause of action or a defense

Question 111

Diversity Jurisdiction

Answer 111

A form of subject-matter jurisdiction in civil procedure in which a United States district court in the federal judiciary has the power to hear a civil case when the amount in controversy exceeds $75,000 and where the persons that are parties are "diverse" in citizenship, which generally indicates that they are citizens of different states or non-U.S. citizens

Question 112

Question of Law

Answer 112

An issue in court that is to be decided by the judge

Question 113

Burdening Interstate Commerce

Answer 113

Under the police power, states may regulate all aspects of business so long as they do not impose an unreasonable ___ on ____ _____ or any activity of the federal government i.e. If the federal government establishes safety device regulations for interstate carriers, a state cannot require different devices

Question 114

Price Regulation

Answer 114

The Sherman Act is the federal law that regulates this form of anticompetitive behavior among horizontal competitors Both national and state governments may do this

Question 115

Commodity

Answer 115

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee