Chapter 4 Constitutional Authority to Regulate Business. All Answers

Document Content and Description Below

Chapter 4 Constitutional Authority to Regulate Business N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test ... Bank. + A question modified from the previous edition of the Test Bank. = A question included in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS A1. The state governments retain all powers not specifically delegated to the federal government. T 74 TYPE: = NAT: AACSB Analytic AICPA Legal A2. Under their police powers, states can regulate only public activities, such as political demonstrations. F 74 TYPE: = NAT: AACSB Analytic AICPA Critical Thinking A3. National legislation governs nearly every major business activity, including conduct that has nothing to do with commerce. F 75 TYPE: N NAT: AACSB Analytic AICPA Critical Thinking A4. The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power. T 75 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A5. Congress can regulate all commerce in the United States. T 76 TYPE: N NAT: AACSB Analytic AICPA Critical Thinking A6. The Constitution expressly excludes state regulation of commerce. F 76 TYPE: = NAT: AACSB Analytic AICPA Legal A7. When there is a direct conflict between a federal and a state law, the state law is rendered invalid. T 78 TYPE: = NAT: AACSB Analytic AICPA Legal A8. Whether the federal government has preempted a certain area is always clear. F 78 TYPE: = NAT: AACSB Analytic AICPA Critical Thinking A9. The taxing and spending clause of the U.S. Constitution has had a greater impact on business than any other clause in the Constitution. F 79 TYPE: = NAT: AACSB Analytic AICPA Legal A10. Some constitutional protections apply to business entities. T 79 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A11. The First Amendment does not protect corporate political speech. F 80 TYPE: + NAT: AACSB Reflective AICPA Critical Thinking A12. The First Amendment does not protect commercial speech as extensively as noncommercial speech. T 81 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A13. The establishment clause of the U.S. Constitution prohibits the federal government from promoting a religion. T 84 TYPE: + NAT: AACSB Analytic AICPA Legal A14. A law that has any impact on religion is unconstitutional. F 84 TYPE: N NAT: AACSB Reflective AICPA Critical Thinking A15. The right to due process of law applies to corporations. T 87 TYPE: N NAT: AACSB Analytic AICPA Legal A16. A law that regulates economic matters violates the equal protection clause. F 87 TYPE: N NAT: AACSB Analytic AICPA Critical Thinking A17. Procedural due process requires that any government decision to take a person’s property must be made fairly. T 87 TYPE: N NAT: AACSB Analytic AICPA Legal A18. A law that discriminates based on gender must substantially relate to an important government objective to be valid. T 88 TYPE: N NAT: AACSB Analytic AICPA Legal A19. There is a specific guarantee of a right to privacy in the Constitution. F 88 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A20. Law enforcement officials can track the e-mail communications of one party to find out the identities of other parties. T 89 TYPE: N NAT: AACSB Reflective AICPA Legal MULTIPLE CHOICE QUESTIONS A1. Enterprising Markets Coalition (EMC), a political lobbying group, wants a certain policy enacted into law. If EMC’s policy conflicts with the U.S. Constitution, a law embodying it can be imposed by a. Congress. b. a federal court. c. a state legislature. d. none of the choices. D 74 TYPE: + NAT: AACSB Reflective AICPA Legal A2. The state of New York regulates private activities to protect or promote the public or¬der, health, safety, and general welfare under its a. police powers. b. taxing powers. c. spending powers. d. supremacy powers. A 74 TYPE: = NAT: AACSB Reflective AICPA Legal A3. The Financial Institutions Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its members, which include banks. Under the Constitution, Congress a. administers the laws. b. enforces the laws. c. interprets the laws. d. makes the laws. D 75 TYPE: N NAT: AACSB Analytic AICPA Legal A4. Ulrich, a citizen of Virginia, wants to enforce in the state of Washington certain rights that he has under a contract with Xtreme SnoBoards Inc. A Washington state court is most likely to enforce such rights under a. no provision in the U.S. Constitution. b. the commerce clause. c. the full faith and credit clause. d. the privileges and immunities clause. C 75 TYPE: = NAT: AACSB Reflective AICPA Legal A5. The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that a. Congress writes checks and the other branches balance the budget. b. each branch has some power to limit the actions of the others. c. the courts balance their authority to the other branches’ checklists. d. the president “checks” the courts, which “balance” the laws. B 75 TYPE: + NAT: AACSB Analytic AICPA Legal A6. Tami’s Tasty Tacos, a mobile vendor, files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on a. a local government. b. interstate commerce. c. noneconomic activity. d. the state. B 76 TYPE: N NAT: AACSB Reflective AICPA Legal A7. Len, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates a. no provision in the U.S. Constitution. b. the commerce clause. c. the due process clause. d. the supremacy clause. D 78 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A8. Congress enacts a law that sets out a medical-device approval process for the Food and Drug Administration to follow. The law includes a preemption provision. A device that goes through the process injures Joe, who files a claim under state law to recover. The court will most likely rule that a. Joe’s state law claim preempts the federal law. b. the federal law and state law claim are concurrent. c. the federal and state law claim cancel each other out. d. the federal law preempts Joe’s state law claim. D 78 TYPE: N NAT: AACSB Reflective AICPA Legal A9. Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion’s principles. The First Amendment guarantees Mike’s freedom of a. religion only. b. speech only. c. the press only. d. the press, speech, and religion. D 79 TYPE: = NAT: AACSB Reflective AICPA Legal A10. The Motor Vehicle Insurance Association wants the federal government to spend money to build a new highway. Congress can spend revenues a. only to carry out Congress’s enumerated powers. b. to promote any objective that Congress deems worthwhile. c. without regard to whether the expense violates the Bill of Rights. d. without regard to whether the expense violates the Constitution. B 79 TYPE: = NAT: AACSB Analytic AICPA Legal A11. Beachside City enacts an ordinance that bans the distribu¬tion of all printed materials on city streets. Carl opposes the city’s latest “revenue-enhancing” measure and wants to protest by distributing handbills. In his suit against the city, a court would likely hold the printed-materials ban to be a. constitutional under the First Amendment. b. not subject to the U.S. Constitution. c. unconstitutional under the commerce clause. d. unconstitutional under the First Amendment. D 80 TYPE: = NAT: AACSB Reflective AICPA Critical Thinking A12. Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is a. discouraged. b. forbidden. c. protected. d. required. C 80 TYPE: N NAT: AACSB Reflective AICPA Legal A13. Minnesota enacts a statute to ban advertising in “bad taste.” This stat¬ute would likely be held by a court to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect state interests. A 81 TYPE: = NAT: AACSB Reflective AICPA Decision Modeling A14. Xtreme Publications, Inc., disseminates obscene materials. This is a. a crime under nu¬merous state and federal statutes. b. a privilege under Article IV, Section 2. c a right under the commerce clause. d. a right under the First Amendment. A 82 TYPE: = NAT: AACSB Analytic AICPA Legal A15. The police obtain a search warrant and search Errol’s apartment. After yelling obscenities at the officers, Errol confesses to a crime and impli¬cates his friends. The Constitution protects against a. obscene speech. b. implication of others. c. unreasonable searches. d. none of the choices. C 85 TYPE: + NAT: AACSB Reflective AICPA Legal A16. Wyoming enacts a statute that limits the liberty of all persons, including corporations, to broadcast “annoying” radio commercials. This may violate a. equal protection. b. procedural due process. c. substantive due process. d. the right to privacy. C 87 TYPE: = NAT: AACSB Reflective AICPA Legal A17. Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona that features horseback riding and bunkhouse accommodations. The Constitution provides that no person shall be deprived of “life, liberty, or property without due process of law.” Included as “legal persons” under this clause are a. the bunkhouses and other “manmade creations.” b. the corporation and Parker. c. horses and other “beings in nature.” d. none of the choices. B 87 TYPE: N NAT: AACSB Reflective AICPA Legal A18. Myra claims that a Nebraska state statute infringes on her “procedural due process” rights. This claim focuses on a. procedures used in making decisions to take life, liberty, or property. b. the content of the statute. c. the similarity of the treatment of similarly situated individuals. d. the steps to be taken to protect Mary’s privacy. A 87 TYPE: = NAT: AACSB Reflective AICPA Legal A19. A Massachusetts state statute imposes a prison term, without a trial, on all street entertainers who operate in certain areas. A court would likely review this statute under the principles of a. equal protection. b. free exercise. c. procedural due process. d. substantive due process. C 87 TYPE: N NAT: AACSB Reflective AICPA Legal A20. Jon, a law enforcement official, monitors Kelsey’s Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey’s right to a. equal protection of the law. b. privacy. c. procedural due process. d. substantive due process. B 89 TYPE: N NAT: AACSB Reflective AICPA Risk Analysis ESSAY QUESTIONS A1. Jen operates Jen’s Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jen’s activities? What is Jen’s best argument against federal regulation of her farm and business? A2. Old Oak Brewery, Inc., makes and sells alcoholic beverages with labels that display a drawing of a squirrel making the gesture generally known as “giving the finger.” Old Oak applies to the Ohio State Liquor Authority (OSLA) for brand-label approval to sell the beer in Ohio. Without consid¬er¬ing alternatives, OSLA denies approval because “the label could ap¬pear in grocery stores, with obvious exposure on the shelf to children of tender age.” Why would a court hold that the denial of Old Oak’s applica¬tion vio¬lates the First Amendment? [Show More]

Last updated: 3 years ago

Preview 1 out of 18 pages