Business Law: Text & Cases, Chapter 3

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1

Emily retains Michael, an attorney, on a contingency-fee basis to seek $1 million in damages in a personal-injury suit against Prescription Pharmaceuticals Inc. Emily wins. She must pay​

a. ​court costs and other expenses, but not Michael’s fee.

b. ​Michael’s fee, court costs, and other expenses.

c. ​Michael’s fee only.

d. ​neither Michael’s fee nor court costs and other expenses.

b. ​Michael’s fee, court costs, and other expenses.

2

Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it,​

a. ​Isabel must file an amended complaint.

b. ​Isabel will have a judgment entered in her favor.

c. ​Josh must be served with a second summons.

d. ​Josh will have a judgment entered in his favor.

b. ​Isabel will have a judgment entered in her favor.

3

Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services. The document that informs Concessions & Tailgate that it must file an answer within a specified time period is​

a. ​the answer.

b. ​the complaint.

c. ​the writ of certiorari.

d. ​the summons.

d. ​the summons.

4

Pad, Pod & Phone Accessories LLC (3PA) makes “PacBacs,” a famous brand of cases for electronic devices. Without 3PA’s consent, Offshoot Rip-Offs Inc. begins to use “pacbacs” as part of a domain name. 3PA files a suit against ORO. Service of process for this suit must provide​

a. ​a medium for Offshoot to respond.

b. ​notice of the lawsuit.

c. ​instructions about the steps involved in this, or any, lawsuit.

d. ​a secure means to guaranty privacy between the litigants.

b. ​notice of the lawsuit.

5

Sweet Lemonade, Inc., disputes the use of “sweet-lemonade.com” as a domain name by Sweet Citrus Beverages, Ltd., and files a suit to resolve the dispute. Service of process must be by​

a. ​e-mail.

b. ​personal delivery.

c. ​regular mail.

d. ​whatever means is reasonably calculated to do the job.

d. ​whatever means is reasonably calculated to do the job.

6

In a suit by the National Forest Preservation Organization (NFPO) against Old Growth Logging, Inc., NFPO serves a written request for Old Growth to admit the truth of matters relating to the trial. Old Growth’s admission in response is the equivalent of​

a. ​an admission in court.

b. ​a statement to the media.

c. ​information to which Old Growth has a right of privacy.

d. ​irrelevant evidence.

a. ​an admission in court.

7

Gilbert wants to initiate a suit against Healthways Insurance Company by filing a complaint. The complaint should include​

a. ​an explanation of the proof to be offered at trial.

b. ​a statement refuting any defense that the defendant might assert.

c. ​a motion for judgment on the pleadings.

d. ​a statement alleging the facts showing the court has jurisdiction.

d. ​a statement alleging the facts showing the court has jurisdiction.

8

Gabrielle files a suit against Hard ‘n Fast Adhesives, Inc. Hard ‘n Fast responds that even if Gabrielle’s statement of the facts is true, according to the law Hard n’ Fast is not liable. This is​

a. ​a counterclaim.

b. ​a motion for judgment on the pleadings.

c. ​a motion for summary judgment.

d. ​a motion to dismiss.

d. ​a motion to dismiss.

9

Sofia files a suit against Turista Airlines, Inc. Turista responds that it appears from the pleadings that the parties do not dispute the facts and the only question is how the law applies to those facts. Turista supports this response with witnesses’ sworn statements. This is a

a. ​counterclaim.

b. ​motion for judgment on the pleadings.

c. ​motion for summary judgment.

d. ​motion to dismiss.

c. ​motion for summary judgment.

10

Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services. The document that informs Concessions & Tailgate that it must file an answer within a specified time period is​

a. ​the answer.

b. ​the complaint.

c. ​the respondent.

d. ​the summons.

d. ​the summons.

11

Pietro files a suit against Qiana. If Qiana fails to respond,​

a. ​Pietro will have a default judgment entered against him.

b. ​Qiana will be considered to be in denial.

c. ​the suit will be dismissed.

d. ​Qiana will have a default judgment entered against her.

d. ​Qiana will have a default judgment entered against her.

12

Lyn files a suit against Karl. Karl denies Lyn’s charges and sets forth his own claim that Lyn breached their contract and owes Karl money for the breach. Karl’s claim is​

a. ​a counterclaim.

b. ​a motion for judgment on the pleadings.

c. ​a motion for summary judgment.

d. ​a motion to dismiss.

a. ​a counterclaim.

13

Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo files a motion to dismiss, he is asserting that​

a. ​Destiny did not state a claim for which relief can be granted.

b. ​Destiny’s statement of the facts is not true.

c. ​Destiny’s statement of the law is not true.

d. ​Enzo suffered greater harm than Destiny.

a. ​Destiny did not state a claim for which relief can be granted.

14

Mountain States Trucking wants to initiate a suit against Open Pit Mining Corporation by filing a complaint. The complaint should include a statement alleging the facts establishing​

a. ​an explanation to refute any defense Open Pit might assert.

b. ​a motion for summary judgment.

c. ​a motion to dismiss.

d. ​Mountain’s basis for relief.

d. ​Mountain’s basis for relief.

15

Daniel files a suit against Ava, alleging that she failed to pay him for two months’ labor at her Choice Cheese Factory. Ava denies the charge and claims that Daniel breached their contract to produce a certain quantity of cheeses and owes Ava damages for the breach. Ava’s claim is a​

a. ​contra charge.

b. ​counterclaim.

c. ​counterpoint.

d. ​cross-complaint.

b. ​counterclaim.

16

Madison files a complaint in a suit against Christopher, and he files an answer. The case may now be​

a. ​appealed to a higher court.

b. ​dismissed or settled.

c. ​resolved but only after a trial.

d. ​remanded for further proceedings.

b. ​dismissed or settled.

17

Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to examine certain documents in Sunrich’s possession. A legitimate reason for this examination is that the documents contain​

a. ​information that is relevant to the case.

b. ​private information about Sunrich’s operations.

c. ​public information about energy generation.

d. ​irrelevant data that can be eliminated from consideration.

a. ​information that is relevant to the case.

18

To prepare for a trial between Fones, Inc., and G-Bytes Company, G-Bytes’s attorney places Fones’s chief executive officer (CEO) under oath. A court official makes a record of the attorney’s questions and the CEO’s answers. This is​

a. ​a cross-examination.

b. ​a deposition.

c. ​voir dire.

d. ​hearsay.

b. ​a deposition.

19

During the trial phase of Sof’ Drink Corporation’s suit against TimeOut Stores, Inc., their attorneys engage in voir dire. This is​

a. ​an assessment of the arguments on the issues.

b. ​the determination of the issues to be argued.

c. ​the testimony by a party to the lawsuit or by any witness, recorded by an authorized court official.

d. ​the selection of jurors.

d. ​the selection of jurors.

20

In Research & Development Company’s suit against Structural Engineers, Inc., Research & Development wants to introduce evidence that it claims is relevant. Relevant evidence is evidence that​

a. ​establishes the degree of probability of a fact or action.

b. ​tends to disprove a fact in question.

c. ​tends to prove a fact in question.

d. ​all of the choices.

d. ​all of the choices.

21

Bibi brings a lawsuit against Cocteau over an allegedly defective shipment of machine parts. During the trial, Bibi’s attorney asks questions of Bibi’s witness Drummond. This is​

a. ​a cross-examination.

b. ​a direct examination.

c. ​voir dire.

d. ​hearsay.

b. ​a direct examination.

22

Sara brings a lawsuit against Tucci over a sale of 1,500 acres of ranchland. During the trial, Tucci’s attorney asks questions of the plaintiff’s witness Ulysses. This is​

a. ​a cross-examination.

b. ​a direct examination.

c. ​voir dire.

d. ​hearsay.

a. ​a cross-examination.

23

Kent’s witness Lois is not an expert in the matter about which she is being questioned. Lois can​

a. ​testify about any of the facts in the case.

b. ​testify only about what she personally observed.

c. ​offer her opinion about any of the evidence.

d. ​offer her conclusion with regard to the case.

b. ​testify only about what she personally observed.

24

Lacey files a civil suit against Mischa. To succeed, Lacey must prove her case​

a. ​beyond a reasonable doubt.

b. ​by a preponderance of the evidence.

c. ​through a scintilla of evidence.

d. ​to the extent promised in her attorney’s opening statement.

b. ​by a preponderance of the evidence.

25

In Precise Paving Company’s suit against Ride, Park n’ Go, Inc., the jury returns a verdict in Precise Paving’s favor. The company will most likely ask the court to​

a. ​enter a judgment in accordance with the verdict.

b. ​enter a judgment n.o.v.

c. ​enter a judgment as a matter of law.

d. ​order a new trial.

a. ​enter a judgment in accordance with the verdict.

26

In Fuel Injection Products & Service Corporation’s suit against Gears & Cylinders, Inc., the jury returns a verdict in Fuel Injection’s favor. Gears & Cylinders files a motion asking the judge to set aside the verdict and begin new proceedings. This is a motion for​

a. ​a judgment in accordance with the verdict.

b. ​a judgment on the pleadings.

c. ​a new trial.

d. ​judgment n.o.v.

c. ​a new trial.

27

In Coastal Fishing Company’s suit against Dockside Marina, Inc., the jury returns a verdict in Coastal’s favor. Dockside files a motion stating that even if the evidence is viewed in the light most favorable to Coastal, a reasonable jury should not have found in its favor. This is a motion for​

a. ​a judgment in accordance with the verdict.

b. ​a judgment as matter of law.

c. ​a new trial.

d. ​judgment n.o.v.

d. ​judgment n.o.v.

28

Garvey files a suit in a state court against Hi-Rise Apartments. At the conclusion of Garvey’s case, Hi-Rise files a motion asking the judge to direct a verdict for the defendant on the ground that Garvey has presented no evidence to support his claim. This is a motion for​

a. ​a judgment in accordance with the verdict.

b. ​a judgment as matter of law.

c. ​a new trial.

d. ​judgment n.o.v.

b. ​a judgment as matter of law.

29

Calvert files a suit in a state court against Denny, seeking an amount of allegedly unpaid rent for an office that Denny leased and later vacated. If Denny losses the suit and decides to appeal, his attorney must file, with the clerk of the trial court, within a prescribed period of time​

a. ​a formal refusal to abide by the verdict.

b. ​a notice of appeal.

c. ​a transcript of the trial and copies of the exhibits.

d. ​the judgment order from which the appeal is taken.

b. ​a notice of appeal.

30

Dirt Machines Inc. files a suit in a state court against Earth Movers Inc., claiming that the defendant leased and failed to return a bulldozer. The case proceeds to trial, after which the court renders a verdict. If Earth Movers to, and files a brief with, a state appellate court, Dirt Machines’s attorney may file within a prescribed period of time​

a. ​an advisory interrogatory.

b. ​an answering brief.

c. ​a request for a deposition.

d. ​a responding motion for judgment on the brief.

b. ​an answering brief.

31

New Cuisine Café files a suit in a state court against Olive Oil Inc., alleging a breach of contract. The case proceeds to trial, after which the court renders a verdict. If New Cuisine decides to appeal to a state appellate court, its attorney must file, with the clerk of the appellate court, within a prescribed period of time​

a. ​a brief including the arguments of both parties.

b. ​a copy of the record on appeal.

c. ​an explanation for the verdict.

d. ​a statement of the grounds for reversal.

b. ​a copy of the record on appeal.

32

In Hazel’s suit against Ingrid, the court issues a judgment in Ingrid’s favor. If the case is appealed to an appropriate court of appeals, the appellate court will hear​

a. ​all of the evidence.

b. ​most of the evidence.

c. ​none of the evidence.

d. ​select pieces of evidence.

c. ​none of the evidence.

33

Bull files a suit against Clay in a state court over payment due on a short-term lease of grazing land. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After its review of Bull v. Clay, the appellate court upholds the lower court’s verdict. The appellate court has​

a. ​affirmed the case.

b. ​reversed the case.

c. ​remanded the case.

d. ​reversed and remanded the case.

a. ​affirmed the case.

34

Dawn files a suit in a state court against Entrée Enterprises Inc., alleging the breach of an employment contract. After a final determination in the case of Dawn v. Entrée Enterprises Inc. in favor of Dawn, the judgment will be satisfied

a. ​if Entrée pays the judgment.

b. ​if Dawn has sufficient assets to cover the amount of damages sought.

c. ​if Entrée proves that it is unable to pay the judgment.

d. ​all of the choices.

a. ​if Entrée pays the judgment.

35

Faye files a suit in a state court against Gas Station Stop, claiming employment discrimination. Gas Station loses the suit and appeals. After the state’s highest court’s review of Faye v. Gas Station Stop, either party can appeal the decision to the United States Supreme Court if​

a. ​a federal question is involved.

b. ​a question of state law remains unresolved.

c. ​the party is unsatisfied with the result.

d. ​the state trial and appellate court rulings are different.

a. ​a federal question is involved.