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Question
The power of courts to establish law in matters not specifically addressed by statutes is very limited in common law countries.
Answer
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Congress may tax activities and property that it might not be authorized to regulate under any of the enumerated regulated powers.
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Define and explain the concepts of permanence and preemption as they apply regarding the U.S. Constitution.
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Iowa has just passed a law mandating a 30-day jail sentence for those convicted of harassing a bicyclist on any Iowa road. This law would be best described as:
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B. a public law.
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The source of bankruptcy law is a combination of:
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B. constitutional and common law.
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A statute of limitations that most appropriately falls under the equitable maxim is:
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Which of the following is not a primary source of law?
A. uniform model law
B. administrative law
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The National Conference of Commissioners on Uniform State Laws (NCCUSL) was formed by the ________ for the purpose of establishing uniform standards in areas of law where national interests would be achieved through the use of uniform laws.
A. Congress
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C. American Legal Institute
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Which of the following, from highest to lowest, properly demonstrates preemption?
A. federal common law; federal statutes; U.S. Constitution
B. state statutory law; federal common law; federal administrative law
C. state common law; state administrative law; state statutory law
D. federal administrative law; federal common law; state statutory law
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Bradley collects historic memorabilia, and one of his prized possessions is the pistol used by Aaron Burr in his duel with Alexander Hamilton. After reading an article in a magazine, Bradley discovers that Sam owns the matching pistol, used by Hamilton in the duel. Bradley contacts Sam and offers him $500,000 for the pistol. Sam e-mails Bradley that he accepts his offer but that the transaction must be for cash and face-to-face. Bradley responds that he'll be at Sam's home at noon the next day with the money. When he arrives, Sam informs him that he's received an offer of $600,000 for the pistol and states that Bradley must pay that amount or he'll sell to the other buyer. Bradley wants the weapon to complete the set. If he sues Sam, what course of action will best provide him the results he desires?
A. Sue for breach of contract and seek a legal remedy.
B. Sue for an injunction.
C. Bring a suit in equity and seek monetary damages.
D. Sue for breach of contract and seek a decree of specific performance.
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The U.S. system of common law is deep-seated in the French common law established by the Norman kings around 1066.
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The common law is the law that all states follow to avoid confusion and to promote consistency from state to state.
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Restatements of the Law are written and revised by Congress and state legislatures as needed.
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Criminal law is designed to compensate parties for money lost as a result of another's unlawful conduct.
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Certain businesses are classified as pervasively regulated, and there is an exception to the warrant requirement when the agency is conducting regularly scheduled inspections.
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The substantial evidence test is applied by the courts to determine whether or not the agency's actions were lawful with regard to investigations and licensing.
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The powers of an administrative agency to carry out the enabling statute are exercised through rulemaking, enforcement, licensing, and adjudication.
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Publishing a new rule in the Federal Register is the first step in the rulemaking process after research and study are performed.
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A business that is subject to an agency's jurisdiction is required to turn over documents relevant to determining compliance with a particular rule.
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________ is a body of law that defines, regulates, and limits the exercise of authority by federal regulatory agencies.
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A heightened standard of judicial review called the ________ test is used when the formal rulemaking process is required by the enabling statute.
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Frank is the president and CEO of a publicly held corporation and is quoted in the paper as saying that the company is solid and has a bright future. He mentions a number of projects and plans that he anticipates will be successful in both the short term and long term, thus benefiting the company. Betty Sue reads this article and calls a broker, directing him to buy shares in Frank's company. After two years the stock is below the price she paid for it, and she brings suit, claiming that Frank committed a fraud when he stated that the company was solid and would be very successful in the future. What must be proved by each side, and what is the likely outcome of this suit?
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Brent has opened a fruit and vegetable business named Brent's Country Stand near an affluent suburban neighborhood. After six months Brent wishes to raise capital for expansion, so he offers a number of his customers the following deal: If the individual gives Brent $10,000, Brent will provide a promissory note, payable in five years with full repayment of the principal and a 10 percent interest rate of return. Brent's Country Stand is the maker of the notes, and about 10 customers have purchased these notes. Do these promissory notes qualify as securities? Why or why not?
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One form of private placement exemption involves sales of securities:
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B. only to employees, officers, and board members of the issuing corporation.
C. to accredited investors.
D. to other corporations, with no sales to individuals permitted.
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Gina is the executive secretary to the CEO of a large public corporation. One day her boss takes her into a back room containing numerous cardboard file boxes and three shredding machines, and he orders her to shred every document and file in the room. He then says, "We're under investigation by the SEC, and if they get their hands on anything in this room, we're ruined." She asks what is going on and is told that the company has been perpetrating frauds for years and needs to destroy all the evidence.
A. Since Sarbanes-Oxley does not have a whistle-blower provision, Gina has no recourse if she wants to keep her job.
B. Since Gina didn't actually participate in the frauds and since she is only following orders, she will have no liability.
C. Since the investigation is ongoing and no charges have been brought, shredding the documents is not a punishable offense yet.
D. Gina could be imprisoned for up to 20 years if she shreds the documents.
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The Financial Stability Oversight Board created by the Restoring American Financial Stability Act of 2010 has the power to:
A. break up companies deemed to pose a threat to the nation's financial markets even if the company is not insolvent.
B. compel the SEC to assume an oversight position over institutions that pose a global risk to financial markets.
C. approve or disapprove executive compensation packages, including bonuses, regarding companies deemed "too big to fail."
D. criminally prosecute officers and board members of companies that are found to have committed fraud and that have harmed the public or the national economy.
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Which of the following debts may be discharged in a bankruptcy?
A. taxes
B. child support
C. a new auto purchased 90 days before filing
D. punitive damages
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Chris wanted to get a loan from the bank, but he had bad credit. In order to get the money, he convinced Eric to cosign as a surety. Now Chris has stopped making the payments. When is Eric liable for repayment of the loan?
A. at any point
B. when Chris stopped making payments
C. only after the bank attempts to recover the full amount from Chris
D. never, because Eric was not the one actually using the money