Business and the Constitution
TRUE/FALSE QUESTIONS
1. In a federal form of government, the national government does not share sovereign power with the states. False, they do share sovereign power
2. The full faith and credit clause prevents a state from imposing unreasonable burdens on citizens of another, particularly with regard to means of doing business. False, it applies only to civil matters & it ensures that the rights established under wills, contracts, etc. in one state be honored by other states.
3. The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power. True
4. The term police powers encompasses just the enforcement of criminal laws. False, they are …show more content…
the state regulatory powers; they give state governments broad rights to regulate private activities
5. Under the U.S. Constitution, the judicial branch interprets the laws. True
6. The states can establish laws and regulations that would interfere with trade and commerce among themselves. False, they cannot
7.
The breadth of the commerce clause permits the government to legislate only in areas in which Congress has explicitly been granted power. False, the national government will get involved if it involves commerce in more than one state
8. Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting state or local law or regulation on the same general subject. True
9. Congress may tax some states and exempt others. False, uniformity in taxation
10. The Bill of Rights protects individuals, but not business entities, against various types of interference by the government. False, protects them too
11. Traditionally, the courts have protected the right to free speech to the fullest extent possible. True
12. Expression—oral, written, or symbolized by conduct—is not subject to restrictions. False, it is subject to restriction
13. According to the United States Supreme Court, the First Amendment prevents limits from being placed on independent political expenditures by corporations. True
14. The First Amendment does not require a complete separation of church and state. True
15. To obtain a search warrant, law enforcement officers must convince a judge that they have reasonable grounds to believe a search will reveal evidence of a specific illegality.
True
16. Generally, government inspectors do not have the right to enter business premises without a warrant. True
17. Substantive due process limits what the government can do in its legislative and executive capacities. True
18. A law that prohibits or inhibits only some persons from exercising a fundamental right will be subject to “strict scrutiny” by the courts. True
19. Pretexting is the process of obtaining information by false means. True, a pretext is a false motive put forth to hide the real motive
20. State laws protect individuals’ privacy rights, often to a significant degree. True
MULTIPLE-CHOICE QUESTIONS
1. The Constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to carry its expressly designated powers. Under the Tenth Amendment, all other powers are expressly reserved to
a. none of the choices.
b. the states.
c. the national government.
d. the people.
2. Savers Mart, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate
a. any commercial activity in the United States. b. only activities that are in intrastate commerce. c. only activities that are in local commerce. d. none of the choices.
3. A statute enacted by the Arizona state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will balance the burden that it imposes on interstate commerce against
a. the courts’ authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the state’s interest in regulating the matter.
d. the statute’s impact on noneconomic activity.
4. Selena’s Fajitas, a fast food outfit, files a suit against the state of Texas, claiming that a Texas 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.
5. Congress enacts a law prohibiting toys made in Indonesia from being sold in the United States. The Washington state legislature enacts a law allowing the sale of Indonesian-made toys. Washington’s law will most likely be
a. rendered invalid under the supremacy clause. b. held to be valid under the equal protection clause. c. struck down under the taxing and spending clause. d. upheld under the commerce clause.
6. A decision by the federal Environmental Protection Agency (EPA) on the amount of carbon that can be emitted from a car’s exhaust system conflicts with a California state law. In this situation, under the supremacy clause,
a. both the decision and the law are invalid.
b. both the decision and the law apply concurrently.
c. California’s law takes precedence.
d. the EPA’s decision takes precedence.
7. Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of New Jersey from federal taxes until their coastal towns are rebuilt from the ravages of a recent hurricane. SITA will most likely be
a. rendered invalid under the supremacy clause. b. held to be valid under the equal protection clause. c. struck down under the taxing and spending clause. d. upheld under the commerce clause.
8. Rodrick, the chief executive officer of Social Post Host Inc., claims that certain actions by the state of Texas infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit
a. federal actions only.
b. federal and state actions.
c. federal and state actions, and actions by nongovernment entities.
d. actions by nongovernment entities only.
9. Mariah creates a t-shirt design that expresses support for Nathan, a presidential candidate, and distributes t-shirts imprinted with the design to her friends. The t-shirts are an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.
10. Port Harbor City enacts an ordinance that bans the distribution of all printed materials on city streets. Later, Quint protests a new “revenue-enhancing” measure also enacted by the city by distributing handbills. When Quint is charged with violating the printed-materials ban, he files a suit against the city. Most likely, the court will hold that the ban is
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 national interests.
11. The Long-haul Truckers Association wants the federal government to spend funds to build a new highway. Congress can spend revenues
a. only to carry out its enumerated powers.
b. to promote any objective that it deems worthwhile.
c. as long as the funds are spent uniformly among the states.
d. without regard to whether the expense violates the Constitution.
12. Sustainable Products Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is given
a. discouraged.
b. forbidden.
c. protected.
d. required.
13. Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in comparison with noncommercial speech, the protection given these ads is
a. equally extensive.
b. less extensive.
c. more extensive.
d. non-existent.
14. Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest
a. and goes no further than necessary to achieve its purpose.
b. without regard to how “far” it goes.
c. and the parties affected by it can elect how “far” to go in applying it. d. and goes further than necessary to ensure full coverage.
15. Utah enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law 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.
16. Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-Lo Mart files a suit to block the law’s enforcement. The court would likely hold that this law violates
a. no clause in the U.S. Constitution. b. the establishment clause. c. the free exercise clause. d. the supremacy clause.
17. Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech
a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
18. Coffee Klatch Party Group, a political organization, files a claim to challenge a Delaware statute that limits the liberty of all persons to broadcast “annoying” radio commercials. This claim is most likely based on the right to
a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
19. In an effort to reduce traffic, Bay City enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of
a. the commerce clause.
b. the equal protection clause.
c. the due process clause.
d. the First Amendment.
20. 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.