TBCh04RF - CHAPTER 4 Constitutional Bases for Business...

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C H A P T E R 4 Constitutional Bases for Business Regulation T RUE -F ALSE Q UESTIONS 1. The Fifth Amendment contains the “due process” restriction on actions by the federal government. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 2. The doctrine of federalism serves to allocate power between the federal government and government by the states. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 3. The U.S. Supreme Court has original jurisdiction over cases affecting ambassadors and cases in which a state is a party. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 4. Under some circumstances a law passed by Congress may be valid even if it violates the U.S. Constitution. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 5. The Equal Protection Clause of the Fourteenth Amendment limits the power of the federal government to regulate commerce. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 6. The U.S. Supreme Court struck down as unconstitutional the line-item veto given to the president by Congress. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 7. The U.S. Supreme Court upheld a federal law banning guns near schools as being within Congress’s power under the Commerce Clause. 16
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17 MANAGERS AND THE LEGAL ENVIRONMENT ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 8. The Second Amendment to the U.S. Constitution grants persons the right to bear arms. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 9. No provisions of the Bill of Rights have been held to limit the actions of state governments because the Bill of Rights only applies to federal government actions. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 10. Obscene material does not enjoy any protection under the First Amendment. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 11. Procedural due process protects fundamental rights. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 12. The Tenth Amendment immunizes states from lawsuits in federal court brought by citizens of another state or of another nation. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 13. Misleading advertising may not be entirely prohibited. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 14. The right to privacy has been interpreted to be a fundamental right. ANSWER: True SKILL LEVEL: AACSB Analytic
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CHAPTER 4 CONSTITUTIONAL BASES FOR BUSINESS REGULATION 18 OBJECTIVE: AICPA Legal 15. Eminent Domain is the power of government to take property for private uses. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 16. Executive privilege provides the President qualified or partial immunity from damages liability predicated on his official acts. ANSWER:
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TBCh04RF - CHAPTER 4 Constitutional Bases for Business...

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