ACCT215 Exam 1 ReviewCh. 1 Vocabulary

Federal Law: Laws created by an entity of the federal government of to the US ConstitutionThe US Constitution is the highest authority of federal law in the United States

Regulation: A law which has the same force as statutory law but is passed by an agency of the federal government

A statute is passed by congressAdministrative law: creates the rules agencies must follow when making regulatory law and when enforcing regulatory lawJudicial Branch: Interprets and applies federal law to cases and controversies.Judge: a court-appointed official who governs a court’s proceedingsJustices: Judges who sit on the supreme courtPrecedent: the holding, or legal ruling, provided in a court’s opinionStare decisis: a doctrine which states a court should not overturn its previous rulings except in rare situations where Justice requires a departure from precedent

Even though a court may overturn its own precedent, a lower court must always follow the precedent of a superior court in its jurisdiction

Case of first impression: When a court hears a case for the first timeMajority opinion: a majority of the judges hearing a case have the same opinion as to the outcome of the caseDissenting opinion: a minority number of judges hearing a case have the same opinion as to the outcome of a case which is different from the majority opinion.

Sometimes referred to as a minority opinionConcurring opinion: the opinion of one or more judges who agree with the outcome of the majority opinion but for different legal reasonsState law: refers to laws created by an entity of a state governmentMunicipal law: a term used to refer to law made by cities and counties in the United StatesOrdinances: A form of statutory law that generally applies to a small geographic area such as a city or a countyInternational law: composed of the laws and judicial customs of all nations or countriesSovereign: no one country is superior to another countryCommon law: a term used to refer to a set of general legal principles and definitions largely derived from the precedent of court cases as opposed to statutesStatutory law: refers to statutes passed by legislatures such as the United States Congress or a state legislatureRegulatory law: refers to regulations passed by an agency such as the Environmental Protection Agency or a state agency such as a state department of human servicesCivil law: a body of law that defines private rights and remedies of a citizenCriminal law: defines what is a crimeSubstantive law: refers to rights or obligations of an individualProcedural law: defines the process by which an individual’s rights can be taken awayRemedy at law: Has historically included the plaintiff being awarded money damages or other assets such as land

Plaintiff: the party who initiates a lawsuitSometimes referred to as the petitioner

Defendant: the person against whom a lawsuit is being broughtSometimes referred to as the respondent

Equitable damages: damages not consisting of money damages and include:RescissionInjunctionSpecific performance

Rescission: to undo a contract and return both parties to their pre-contract positionsInjunction: requires a party to quit and refrain from engaging in certain behaviorSpecific performance: requires a party to perform a certain actionLaw: defines what is legal and what is illegalEthics: refers to the principles of wrong and right held by an individual and derived from various sources such as custom, societal norms, and personal beliefs that guide an individual when deciding which behavior is morally acceptableBusiness Ethics: a term generally used to refer to the application of ethics in the business contextIntegrity: means a person has a strong character for being honest, fair and consistent in the application of their moral beliefs of right and wrong.Duty-Based: ethical theories determine ethical behavior by focusing on a prescribed set of duties one must follow.The Golden Rule: “Do unto others as you would have them do unto you.”Categorical Imperative: “what if everyone acted this way”

Immanuel KantRossian Ethics: focuses on prima facie ethical duties and actual ethical dutiesPrima facie: ethical duties are to be self-evident principles that one must strive to preserve or furtherOutcome-based: ethical theories focus on the potential outcomes of a particular situation as opposed to the duties of the actors involvedUtilitarianism: requires a cost-benefit analysis to determine the appropriate ethical actionStakeholder approach: requires company officials to consider the consequences of their actions on all relevant stakeholders of the firmCoase Theorem: holds an efficient outcome will be obtained through bargaining as long as transaction costs are lowMaximum profit: defined as the most profit a company can create even if it means acting unethicallyOptimal profit: the most profit a company can create without violating its ethical duties

Chapter 2 Vocab

Judicial Review: “to say what the law is” and declare whether a statute passed by Congress violates constitutional principlesJurisdiction: the power of a court to decide a case regarding certain legal mattersPersonal Jurisdiction: Refers to the court’s authority over a particular person or organizationLong-arm statute: A law passed by the legislature giving courts power over people who have sufficient connections with the state

In Rem jurisdiction: gives a state court authority over a dispute when the property at issue is located within that state, even if its owner is not a resident of that state.Subject matter jurisdiction: refers to whether the court has authority over the specific matter in controversy.Courts of general jurisdiction: courts that have authority over every matter not specifically reserved for other courts (state courts)Courts of limited jurisdiction: courts that have the power to hear only cases arising out of the Constitution and laws passed by Congress (federal courts)Concurrent jurisdiction: two or more courts have jurisdiction over the same matter

Diversity of citizenshipWhen the lawsuit involves both federal law and state law

Diversity jurisdiction: the authority to hear cases of diverse citizenshipRemoval: the transfer from one court that has jurisdiction to anotherErie Doctrine: Used when deciding which law to apply to diversity cases.

Originates from the US Supreme Court’s decision from Erie Railroad Co. v Tompkins. This case establishes that when federal courts exercise jurisdiction over cases arising out of state law, they must apply state rather than federal law

This way litigants can expect to get the same result regardless of whether their cases are heard in state or federal courthouses

Venue: the proper court or forum to hear a caseEx: in the state court system, the proper venue for a state court case is generally the county where the defendant resides or where the legal dispute arose

United States District Court: the main federal trial court; federal lawsuits typically originate in themDistrict Court judges: appointed by the president, subject to confirmation by the United States Senate (as well as judges of the Court of Appeals and Supreme Court Justices)Magistrate Judges: Appointed by the chief judge of the District Court; handle cases, or portions of cases, assigned to them by a district judgeBankruptcy courts: hear only bankruptcy mattersUnited States Court of Appeals (circuit courts): hear appeals from the district courts Federal Circuit: The only division of the Court of Appeals to receive cases based on the subject matter of the case rather than the geography of the lower courtUS Supreme Court: the final arbiter of federal law and all appeals from the United States Court of Appeals are appealed to the Supreme Court, which decides whether or not to hear the appealAppeal of Right: litigants are entitled to one appeal to the Court of AppealsDiscretionary Appeals: appeals to the Supreme Court; the Supreme Court may or may not agree to hear the case.Rule of Four: requires that at least four of nine Supreme Court Justices must vote to hear a discretionary appealWrit of Certiorari (Writ of Cert): When four of nine Supreme Court Justices decide to hear a case and the Court exercises its discretionary power to hear an appealSmall claims court: a municipal court that hears civil law cases where a small amount of money is in disputeAppellate Court: A state court that reviews decisions made by state trial courts

Intermediate Appellate Court (Court of Appeals): a court that hears appeals from state trial courts and is subject to the authority of a higher court (usually supreme court)Missouri Plan: a system which utilizes a commission to appoint judgesSubstantive law: refers to matters of substance and creates legal rights and dutiesProcedural law: the portion of the law that dictates how rights can be enforced or taken awayCivil procedure: the procedural law for civil casesStanding: a person or organization must have sufficient interest in the controversy to bring the casePleadings: Documents filed with the court that state the legal position of the partiesPlaintiff (petitioner): the party who brings the lawsuitComplaint (petition): a pleading setting forth the names of the parties, a description of the controversy, and the specific legal theories that justify the plaintiff’s request for reliefStatute of limitations: the maximum amount of time after the alleged incident occurs in which one must file suit-expires.Discovery rule: an exception to the statute of limitations, extends it by the amount of time that a reasonable person would not have had any idea that a claim existedDefendant (respondent): the person whom a lawsuit is being brought against; the person being suedSummons (original notice): a document that formally advises the defendant that a complaint has been filedProcess of service: the formal way the summons must be delivered to the defendantRegistered agent: the person officially listed with the government in the state where the company is incorporated or organizedMotion to dismiss: describes the specific grounds for its argument and asks the judge to dismiss the case before any other proceedings are heldAnswer: the defendant’s formal response to the complaintDefault judgement: the failure to timely file an answer; the plaintiff obtains a judgement against the defendant because of the defendant’s failure to defend the caseCounterclaim: when a defendant responds with a lawsuit against the plaintiffReply: the plaintiffs response to a counterclaim (like a defendants answer to a complaint)Motion for judgement on the pleadings: a motion requesting the judge rule based upon the pleadings onlyDiscovery: the process by which the parties find out what evidence is available to be presented at trialSettlement agreement (release): the contract between the parties that spells out the terms of the settlementConfidentiality clause: the portion of the settlement agreement that keeps the terms secretPrivileged communication: involves communication between attorneys and their clientsAttorney work product: the attorney’s own notes, strategies, and intra-office communicationInterrogatories: written questions that the other side must answerRequest for production: a demand for documents that are relevant to the issues being litigatedDepositions: an opportunity for each side to interview the other party, or other potential witnesses such as an employee, under oath prior to trialTranscript: a written record of everything that is saidRequest for admissions: as the other side to admit certain things are true

Expert witness: provide opinions about the incident (most witnesses testify as to what they saw or heard)Factfinder: the judge in a bench trial or the jury in a jury trial; makes the final determination of whether the experts’ opinion had meritSubpoena: an order to a third party requiring them to allow inspection of their propertyMotion to compel discovery: a pleading asking the court to force the other side to produce the informationProtective order: a direction from the court to limit discovery or to require the parties to treat certain produced information as confidentialMotion for summary judgement: often filed around the end of the discovery process to ask the judge to decide some or all matters in controversy before the trailConfession of judgement: when the defendant offers to pay a certain amount of money to settle the caseMotions in limine: filed just before the trial to prevent juries from hearing about certain irrelevant information learned during discoveryBench trial: a trial without a juryJury trial: a trial with a juryPretrial conference: the judge may summon the parties to the courthouse to discuss the upcoming trial (especially in jury trials)Voir dire: when the parties have an opportunity to question potential jurorsChallenge for cause: a request that the judge remove the juror for a specific reasonPeremptory challenges: potential jurors are excused without the attorneys having to disclose a certain reasonEvidence: presented after opening arguments, includes witness testimony and certain other information to the juryWitness testimony: involves calling a witness to the witness stand and asking him or her questions

Direct examination: where the side that called the witness asks questionsCross examination: when the other side asks question, but only on subjects related to the direct examinationRedirect: allows the party that originally called the witness to cover items covered during cross examination

Credibility: often focuses on bias, or past acts of the witness such as lying or cheating, it can also relate to the witness’s competenceExhibits: pieces of information or evidence that is presented in courtHearsay evidence: when a witness states what the witness heard someone else say (generally not allowed in court because it is not considered reliable)Motion for directed verdict: a request to dismiss the plaintiff’s case because the plaintiff failed to assemble enough evidence to carry the plaintiff’s burden of proofClosing arguments: after all evidence is presented each side gets a chance to orally summarize the evidence to assist the factfinder in how to analyze itJury instructions: the judge instructs the jury on what the law isVerdict: the rendering of liability, guilt, or the absence of it

Judgment: a final ruling on the result of the trialPost-trial motions: when either side asks the judge to adjust the verdict or convene a new trialAppellant: the party who appealsAppellee: the opposite partyNotice of appeal: a formal notice requesting an appeals court to review the caseInterlocutory appeal: an appeal prior to trialBrief: a lengthy written argument with citations to the law and evidenceSatisfaction: the formal document indicating that the judgement has been paidLevy: to seize assets or fundsAlternative Dispute Resolution: includes ways to resolve legal disputes without a trialNegotiation: Occurs when the parties, with or without an attorney representing them, directly negotiate with each otherMediation: when the parties rely on a neutral third party called a mediator to help them negotiateArbitration: uses a third party to produce a final, legally binding resolutionAward: the final decision of the arbitrator and is much like a judgement in a trial

Chapter 3 Vocab

Legislative Branch: creates legislation (Article 1 of Constitution): powers expressly granted to Congress, such as the power to collect taxes and the power to regulate commerce

Executive Branch: Offices of the President and vice president; (Article 2): The president is the executive and enforcer of the laws passed by Congress and the Commander of the Armed Forces. The vice president is to be the president of the Senate and is allowed to cast a tie-breaking vote if necessary

Judicial Branch: a system of a Supreme Federal Court and inferior federal courts(Article 3): establishes a Supreme Court and such inferior courts as Congress may deem necessary

Dormant Commerce Clause: a constitutional principle that states only Congress can regulate interstate commercePolice Power: allows a state to regulate the health, safety, and morals of its citizensPreemption: the process by which federal law overrules or preempts state lawUnprotected speech: defamation (wrongfully damaging a person’s reputation), obscene language, or inflammatory language likely to incite violence. An individual cannot have his or her speech regulated by the government unless the person is engaging in unprotected speech.Obscene speech: occurs when 1) the work or speech appeals to a prurient interest, 2) the work or speech is patently offensive, and 3) the work or speech lacks serious literary, artistic, political, or scientific meritCommercial speech: includes speech that promotes a product of service, communicates information that benefits the economic interest of the speaker, or intends to create goodwill for the companyProbable cause: a reasonable belief that a crime has been committedReasonable suspicion: the belief a person may be engaged in a criminal activity

The Fifth Amendment: “No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury…” (look in book at pg. 70 for the exceptions)Double Jeopardy: prohibits the state from trying a defendant twice for the same crimeEminent domain: the process of a government taking property of a citizen provided they are offering the fair value of the propertyDue process: prevents the federal government from arbitrarily taking a citizen’s life, liberty, or property.

Substantive due process: citizens have certain rights that the government cannot take away by legislation; for example, the right to marry, raise children, or work at a jobProcedural due process: the federal government must follow certain procedures when taking away a citizen’s life, liberty, or property.

Equal Protection: holds states cannot treat classes of citizens differently under the law unless they have a legitimate, important, or compelling reason for doing so.

Practice Test

1. Amy changes the oil for her car on her driveway. Some oil runs down the driveway and onto the public road. Mike drives on the public road past Amy’s house and gets some of the oil on his tire. He drives home and parks the car in his garage. His daughter Rebecca walks into the garage and lights a cigarette. The oil catches fire on the tire of the car and the car explodes. Amy’s best defense against a case of negligence brought by Mike would be

a. Assumption of risk by Mikeb. Negligence per sec. Res ispa loquitord. But for causatione. Proximate causation

2. Alex is involved in an auto accident with Linda in the state of Iowa. The accident occurred in Osceola County. What would be the proper venue for Alex to bring a lawsuit against Linda?

a. Federal Courtb. Small claims court in Nebraska c. The County of Osceola District Courtd. Any State Court of Iowa

3. What term is used when there is no precedent for a case?a. Case of first impressionb. Preponderancec. Case of initial viewd. None of the above

4. Ross is the vice-present of the Black Jacket company. His goal is to make the greatest amount of coats and to do absolutely anything that is necessary to make the most money. What kind of profit would this describe?

a. Optimal profitsb. Economic profitsc. Gross profitd. Maximum profit

5. Pol sues Bobby and asserts jurisdiction in federal court based on diversity of citizenship. $76,000 is in dispute. Bobby lives in the territory covered by the Federal District Court of the Northern District of California. Pol lives in the territory covered by the Federal District Court of the Southern District of Oregon. Where is the proper venue to hear the case?

a. Federal District Court of the Northern District of Californiab. Federal District Court of the Southern District of Oregonc. State Court of Californiad. A or B

6. Mary is in a room answering questions from attorneys from both sides of the lawsuit. She is giving her testimony while being recorded, what is this called?

a. Testimonyb. Trialc. Depositiond. None of the above

7. Acme Computer Corp. sues Silicone Express for supplying it with faulty components, but waits until after the statute of limitations has passed. What result?

a. Computer Corp receives new componentsb. Acme’s claims are dismissedc. case is heard in a Federal Courtd. The case is heard in the State Court where Silicone Express headquarters is

located8. 10.  The Marbury vs Madison case formed a basis for?

a. Judicial Reviewb. Concurrent Jurisdictionc. Personal Jurisdictiond. In Rem Jurisdiction

9. Which of these does NOT have a neutral third party present?a. Mediationb. Facilitationc. Arbitrationd. Negotiation

10. What term is used to describe a law passed by a city council?a. Common Lawb. Ordinancec. Regulationd. Statuary Law

11. The body of law that is carried out by legislative bodiesa. Cyberlawb. Criminal lawc. Natural lawd. Statutory law

12. Bob owns a company and wants to give a raise to one of his manager, but he would have to cut the pay of all the other employees. The one manager already makes twice as much as the other employees. If bob was to do this which ethical reasoning would this violate?

a. Cost-benefit analysisb. Utilitarianismc. Corporate social responsibilityd. Principle of rights

13. What amount of money in controversy must be exceeded before a federal court can exercise jurisdiction based upon a diversity of citizenship?

a. $25,000b. $50,000c. $75,000d. $100,000

14. Ken is running late for work and needs to get there quickly. Ken thinks about speeding the rest of the way to work and not slowing down for yellow lights. He is sure he won’t get caught so that wouldn’t be an issue. Despite this Ken decides not to speed to work because he believes if everyone sped to work it would be unsafe, so he won t and decides to just call in to work. What form of ethics is Ken engaging in?

a. Principle of rightsb. Utilitarianismc. The ten commandmentsd. Kantian Ethics

15. When a neutral third party is being brought into a dispute to help find common ground on a lawsuit, but the decision is NOT legally binding, the ADR is referred to as

a. Arbitrationb. Negotiationc. Bench triald. Mediation

16. John likes Carrie and he calls Carrie every night at least three times. However, his behavior makes Carrie feel disturbed and uncomfortable. She files a lawsuit against John. What would remedy would she most likely seek in court?

a. Rescissionb. Legal Remediesc. Specific Performance

17. In the criminal trial of George Zimmerman, George Zimmerman was found:a. Innocentb. Not-guiltyc. Guiltyd. Criminally liable

18. Which of the following is legal yet unethical?a. Stealing money from your company safeb. Not reporting your boss for stealingc. Giving pam flowers for her birthday d. Working off the clock (voluntarily or not)

19. John is determining what the next move for his company will be and is analyzing both the negative and positive effects his decisions may have. He is performing which type of analysis?

a. Pro-con analysisb. Cost-benefit analysisc. Hire-fire analysisd. Effects analysis

20. Which of the following means to undo a contract?a. Rescissionb. Specific performancec. Injunctiond. Equitable Remedy

21. This court deals with civil matters under a certain dollar amount ($5,000 in Iowa):a. Bankruptcy courtsb. Tax courtsc. Small claims courtd. Probate courts

22. Which constitutional clause prevents the state from sponsoring one religion?a. Equal Protectionb. Free Exercise Clausec. Establishment Claused. Freedom of Speech

23. Paul and his family live in Minnesota. Minnesota states personal injury claims must be brought within three years. Suppose a manufacturer was dumping toxic chemicals into a creek starting in 2008, contaminating Paul’s family’s well. As a result, several family members developed a disease in 2010, didn’t have symptoms until 2013, did not find out about the chemicals until 2015, and then filed suit against the manufacturer immediately thereafter. The manufacturer may seek to dismiss the complaint because the family waited too long. What might allow the family to peruse the lawsuit?

a. The discovery ruleb. Process of servicec. Statute of limitationsd. An expert witness

24. The right of an attorney to say what she wants in court, even if it is normally defamation, is an

a. Absolute privileged statementb. Qualified privileged statementc. Conditional privileged statementd. Procedural privileged statement

25. Joe is out partying on Welch Ave. on a Saturday night. Joe has had way too much to drink, but decides to get behind the wheel and drive home. However, on his way home, he weaves in and out of the lanes, and gets pulled over and arrested for driving under the influence, and for assaulting a police officer as he was getting arrested. The type of law related to this situation can be classified as

a. Civil lawb. Procedural lawc. Police lawd. Criminal law

26. Which case established the Dormant Commerce Clause?a. Wicker v. Filburnb. Gibbons v. Ogdenc. US v. Lopezd. Arizona v. US

27. Eric leaves his moped parked by a gas station. The owner of the gas station can sue Eric for

a. Trespass to personal propertyb. Trespass to real propertyc. Negligenced. Criminal trespass

28. Juan writes a letter to Emily telling her he thinks Roy’s Used Autos sells cars which are stolen. Juan has potentially committed

a. Slanderb. Slander of qualityc. Intentional Interference with a contractual relationshipd. Slander of Title

29. Which of the following are the elements needed to prove a case of negligence?a. Defendant owed plaintiff a duty of careb. Defendant breached their duty of carec. Damages resultedd. Factual and proximate causation existe. All of the above

30. The commerce clause prevents:a. States from doing business with businesses in another stateb. States from interfering with interstate commercec. States from interfering with business operationsd. States from imposing unreasonable burdens on citizens of another state

31. Under the equal protection clause, an example of strict scrutiny would be?a. Wearing a uniform at workb. Not letting women work in a particular career fieldc. A police officer asking someone for their papers because they are a minorityd. Questioning the legitimacy of a child

32. Which of the following would not be an example of a check and balance?a. The president using a veto on a law passed by congressb. The executive branch needing advice and consent for making treaties with foreign

governmentsc. The Judicial Branch holding actions of the executive or legislative branch

unconstitutionald. The president not needing consent from the senate to appoint federal judges

33. Which case involved bringing a gun to school in violation of the Gun-Free School Zones Act of 1990?

a. US v. Lopezb. Gibbons v. Ogdenc. Wicker v. Filburnd. Arizona v. US

Ch. 1 Court Cases

Kimble Et Al. V. Marvel Entertainment, Llc, Successor to Marvel Enterprises, Inc. US Supreme CourtFacts:

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Nuremburg TrialsFacts:

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Florida v. ZimmermanFacts:

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Walkovsky v. CarltonFacts:

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Ch. 2 Court Cases

Marbury v. Madison

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DaimlerChrysler v. Bauman

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Erie Railroads v. Tompkins

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Edmonson v. Leesville Concrete Co.

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National Football League Mgt. Council v. NFL Players Ass’n

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Chapter 3

United States v. Lopez

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National Federation of Independent Businesses v. Sebelius

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Lorillard Tobacco Co. v. Reilly

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Kotch v. Board of River Port Pilot Commissioners for the Port of New Orleans

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