Form A
Law 3800, Legal Environment
Dr. Edmonds
Spring Term 2016
First Exam
This is a closed book examination. Any conversation or communication between
students during the Examination will be considered prima facie evidence of
academic dishonesty.
Questions 1 –4 are based upon the following facts. Wilson Pumps is a Chicago, IL
based company selling specialty fluid pumps. Wilson sells a pallet (34 pumps) of
high pressure pumps to Parts Are Us, a parts supply company located in Macon,
GA. Wilson maintains a web site that describes their products and contains a link
to independent companies who sell their pumps.
John lives in Davenport, IA. He visits the Wilson website and determines that
Wilson makes a pump that is ideal for his application. He follows the link on the
Wilson website to Parts Are Us. John arranges the purchase of a Wilson pump with
the salesperson he contacts at Parts Are Us. John pays by credit card and Parts Are
US ships him the pump from their Macon location.
John receives the pump shipped by Parts Are Us and installs it in a machine in his
public restaurant. Due to a defect in the manufacturing process, the pump fails
suddenly, causing the machine to explode and injure John’s customer, Susan.
Susan consults you regarding a potential lawsuit. Susan wants to sue Wilson
Pumps on a theory on negligent tort (you will learn shortly that she can do that if
she does so in a court that has the power to compel Wilson Pumps to appear and
answer her suit) she attempts to sue Wilson Pumps in a court in Davenport, IA; her
hometown.
1. Which of the following would you be correct in advising Susan regarding her
case?
a. The issue of whether Susan can successfully sue Wilson Pumps in
Davenport raises the issue of the venue of the Davenport court.
b. The issue of whether Susan can successfully sue Wilson Pumps in
Davenport raises the issue of the jurisdiction of the Davenport court.
c. The issue of whether Susan can successfully sue Wilson Pumps in
Davenport raises the issue of double jeopardy.
d. The issue of whether Susan can successfully sue Wilson Pumps in
Davenport raises the issue of parallel law suits.
2. The issue you identified as the answer in the previous question would be
resolved by the rule applied by the US Supreme Court in which of the following
cases?
a. United States v. Watson
b. Miranda v. Arizona
c. Long v. Smithfield Packing Co.
d. NiCastro v. McIntyre Machinery
3. What is the test or standard that the Supreme Court has established and applied
in the case you identified in the previous question to decide whether Susan can
require Wilson Pumps to appear and answer her lawsuit in Davenport?
a. The substantial effect test.
b. The physical presence test.
c. The minimal presence test.
d. The ink blot test.
4. Applying the test you identified in the previous question, would the Supreme
Court standard allow Susan to sue Wilson Pumps in Davenport?
a. No
b. Yes
Questions 5 and 6 are based upon the following facts. O.J. Simpson was
arrested and charged with the crime of murder, based upon the allegation
that he murdered his ex-wife and her friend. He was tried before a jury
and found not guilty. Subsequently the family of his ex-wife sued him in
civil court for the tort of inflicting a wrongful death. A jury in the civil
case found for the family and held that Simpson had intentionally killed
his ex-wife.
5. Is the jury verdict in the second lawsuit valid?
a. No, it is double jeopardy.
b. No, he was already found not guilty by a previous jury.
c. Yes.
d. Both a and b.
6. Your answer to Question 5 is properly based upon which of the
following?
a. The doctrine of double jeopardy.
b. The concept of parallel lawsuits.
c. The difference in the burden of proof and purpose of the two
different cases.
d. Fundamental fairness.
e. both b and c.
Questions 7 and 8 are based upon the following facts. Larry and Curley
have a written contract for the sale of widgets. Among other clauses, the
contract contains the following language:
“The parties agree by their signature below that should a dispute arise
under this contract that the parties cannot settle between them then said
dispute shall be submitted to a third party under the rules of the
American Dispute Resolution Association. The third party shall issue a
decision.”
7. This clause requires the parties to submit their dispute to which of the
following?
a. Mediation.
b. Arbitration.
c. Negotiation.
d. Judicial determination.
A dispute arises between Larry and Curley regarding how to interpret
one of the clauses in their contract. In accordance with the clause
regarding disputes, they submit their dispute to a third party who rules in
favor of Larry.
8. Which of the following is a true statement regarding this process?
a. Curley can ignore the ruling and sue Larry because you cannot
eliminate a person’s access to the courts by a simple agreement.
b. Curley can ignore the ruling and sue Larry because a key phrase
is missing from the dispute resolution clause.
c. Curley is bound by the third party decision; he agreed to do so in
the contract.
d. None of the above.
Questions 9 –15 are based upon the following facts. Aldo is served with
a legal document by a process server. The document informs Aldo that
he is being sued in a civil court in Atlanta, GA for damages incurred by
a GA citizen who claims that Aldo negligently caused an auto crash
while driving in Atlanta on June 7, 2013. The document further directs
Aldo to respond. Aldo can prove he was in class at Whatsa Matta U. in
Kalamazoo on June 7, 2013, Aldo does live in Atlanta when he is not at
school at Whatsa Matta U.
9. What is the legal document Aldo was served with called?
a. A complaint and summons.
b. A Lawsuit Initiation Form.
c. A criminal complaint.
d. None of the above.
10. What must Aldo do, if anything, in response to the document he was served
with?
a. File an answer, appear and defend against the lawsuit.
b. Nothing; the plaintiff has the wrong person.
c. Send the court a letter stating the fact that Aldo wasn’t in Atlanta that day.
d. Both b and c.
Aldo discovers that there is a Georgia law that says that lawsuits based upon a
claim of negligence must be brought within two years of the discovery of the
actual injury or they are barred (not allowed).
11. This law is called:
a. A statute of repose.
b. A statute of timeliness.
c. A statute of limitations.
d. A statute of frauds.
12. If Aldo wishes to raise this law as a defense to the lawsuit, which of the
following must he use?
a. Motion for directed verdict.
b. A summary judgment motion.
c. A “Ha, ha, we win” motion.
d. A motion for judgment on the pleadings.
Aldo discovers yet another Georgia law. This one says that after 7 years from the
date of occurrence, a lawsuit for negligence is forever barred (prohibited)
regardless of when the injury was discovered.
13. Which of the following is a correct statement regarding this law?
a. It is called a statute of limitations.
b. It is called a statute of repose.
c. It is of no use to Aldo because the 7 year time period has not occurred.
d. Both a and c.
e. both b and c.
The Court in which the plaintiff filled his lawsuit sets the case for trial.
14. Aldo wants to know what the Plaintiff is going to say at trial, and how the
Plaintiff has computed his lost income. Which of the following discovery methods
may Aldo use to find out what the Plaintiff will testify to at trial and how Plaintiff
computed his lost income?
a. A deposition.
b. Written interrogatories.
c. A motion for production.
d. A motion for Examination.
e. Both a and b.
15. Aldo knows that the Plaintiff has hired an expert witness to testify to Plaintiff’s
physical injuries. Aldo wants to know what the expert for Plaintiff is going to say,
and the basis for her opinions. Which of the following discovery methods may
Aldo use to find out what the Plaintiff’s expert witness will testify to at trial?
a. A deposition.
b. Written interrogatories.
c. A motion for production.
d. A motion for Examination.
e. Both a and b.
Questions 16 and 17 are based upon the following facts. Crawford County, IL has
a policy that all persons who are lodged in the county jail who are creating a
serious disturbance at the time of their booking into the jail be jailed in an
individual cell, and their clothing taken away. They are then left naked until and
unless they behave. A group of inmates sue the County for a violation of their civil
rights based upon being jailed naked.
In its answer to the lawsuit, the County admits the practice of jailing inmates
naked, but defends the practice as reasonable under the law.
16. Plaintiffs make a motion before the Court, asking the court to determine as a
matter of fact that the County has jailed the plaintiffs naked in their cells so that all
that would be left for determination at trial would be the issue of reasonableness of
the procedure. What is the name of the motion the Plaintiffs have filed?
a. A summary judgement motion.
b. A motion for judgment on the pleadings.
c. A motion for new trial.
d. A motion for discovery.
17. The court can only grant the motion you identified above if which of the
following conditions exist?
a. The plaintiffs have a strong probability of winning at trial.
b. The defendants have a very weak case.
c. There is no legitimate dispute of fact as to the subject of the motion.
d. Both a and b.
Questions 18 –20 are based upon the following facts. Wickard raises wheat on his
farm. Congress passes a law setting maximum quotas for farmers raising wheat as
a price support for wheat. Wickard raises more wheat than he is allowed under the
law and is fined. Wickard appeals to the U.S. Supreme Court, claiming the law is
unconstitutional as applied to him because he doesn’t sell his wheat on the open
market. He can prove he uses it for seed on his farm, or feeds it to his farm
animals. Wickard v. Fillmore.
18. Where would the authority for Congress to regulate wheat production have to
come from?
a. The Necessary and Proper Clause of the Constitution.
b. The Supremacy Clause of the Constitution.
c. Article III of the Constitution.
d. Article I, Section 8 of the Constitution
19. What must the Federal Government prove to uphold the validity of the statute
under which Wickard was fined?
a. That his production of wheat had a substantial effect on interstate
commerce.
b. . . That his production of wheat had a substantial effect on intrastate
commerce.
c. That he actually did sell his wheat across state lines.
d. That he was a communist sympathizer.
20. Was the Federal Law under which Wickard was fined upheld or reversed by
the Supreme Court?
a. Reversed.
b. Upheld.
c. I don’t know.
d. I don’t care.
e. Both c and d.
Questions 21 and 22 are based upon the following facts. Carol owns a large tract
(90 acres) of prime real estate on the shore of Lake Michigan which is zoned for
residential development. Her land is rolling, wooded land with a high bluff at the
lake’s edge; ideal for the construction of high value homes. It is Carol’s intent to
plat the property and sell lots for home sites. Carol hires a surveyor to plat the
property. The surveyor calls Carol one afternoon to inform her that the surveyor
has discovered that a locally based sand mining operation has set up on Carol’s
land and is about to mine sand, destroying the value of the property for residential
use. When Carol confronts the sand miners, they show her a document which they
insist is a grant to mine the sand, but the document is signed by the owner of land
several miles away. Carol believes that the property description on the document is
in error. Carrol needs to stop the mining operation before it does permanent
damage to her property. Carol hires an attorney and files a lawsuit against the
miners.
21. Which of the following types of legal remedies must Carol seek to save her
land?
a. An equity remedy.
b. A remedy in law.
c. A Federal Court Order.
d. A zoning violation order.
22. Carol files her lawsuit in a local court, but the court promptly dismisses her
complaint, noting that the court she filed with doesn’t have the power to hear the
type of dispute Carol and the sand miners have. What mistake has Carol made?
a. She has filed in a court that lacks venue over the dispute.
b. She has filed in a court that lacks subject matter jurisdiction.
c. she has filed in a court that lacks in personum jurisdiction.
d. She has filed in a court that lacks in rem jurisdiction.
Question 23 is based upon the following facts. Ralph is the president and CEO of
Dynamart, a U.S. corporation. Under his leadership, the corporation develops a
policy of not contributing any corporate funds in support of local or national
charities or public works, even those who clearly benefit corporate employees.
Money made by the corporation is used to pay its bills and dividends to its owners.
23. Which of the following best describe Ralph’s policy?
a. He is pursuing the “Profit Maximization Model” we discussed in
class.
b. He is following the mandate of the law.
c. He is following the “stakeholder” model of corporate ethics.
d. He is following the “shareholder” model of corporate ethics.
Questions 24 and 25 are based upon the following facts. The Michigan Legislature
passes a law that allows in-state wineries to sell the wine they make directly to
customers at their wineries but requires all out of state wine producers to sell their
wines to a dealer in Michigan who may then resell the wine to customers.
The legislature’s rationale for the two step requirement for out of state wineries is
that it will preclude minors from buying wine illegally over the internet. A group
of out of state wineries sue the State of Michigan and the case goes to the U.S.
Supreme Court. Granholm v. Heald.
24. The out of state wineries ask the Supreme Court to invalidate the Michigan
law. Under which U.S. Constitutional provision, if any, would the U.S. Supreme
Court have the power to invalidate this state law?
a. Article III of the Constitution.
b. The Supremacy Clause of the U.S. Constitution.
c. Article I, Section 8 of the U.S. Constitution.
d. There is no section of the U.S. Constitution that allows for the
invalidation of a state law.
25. What did the U.S. Supreme Court do?
a. Nothing; they had no authority to strike down a state law.
b. They struck down the Michigan law.
c. They upheld the Michigan law.
d. They issued a writ of mandamus to the Michigan Supreme Court.
Questions 26 –29 are based upon the following facts. The U.S. Congress passed
the Federal Civil Rights Act of 1964. Among other things, the Act prohibited
discrimination in the provision of public accommodations. A motel owner (The
Heart of Atlanta Motel) in Atlanta, GA continued his practice of refusing to rent
rooms to people of color, despite the passage of the Federal law. He was sued by
the U.S. Department of Justice and the trial court found him guilty of violating the
Act. The motel owner appealed to the U.S. Supreme Court, arguing that the
application of the Act to his activities was unconstitutional. Heart of Atlanta
Motel, Inc. v. U.S. Department of Justice.
26. Which of the following did the Justice Department argue gave Congress the
right to pass the public accommodations portion of the Civil Rights Act?
a. The 22nd Amendment
b. The Commerce Clause
c. The Supremacy Clause
d. The Necessary and Proper Clause
e. The Santa Clause
27. Which of the following did the motel owner argue in his defense?
a. That he was simply engaging in intrastate commerce.
b. That he was simply engaging in interstate commerce.
c. That he wasn’t providing public accommodations as defined in the Act.
d. That he really wasn’t discriminating.
28. Which of the following facts proven by the Justice Department were mentioned
by the Supreme Court as important to their decision?
a. The fact that the motel was close to Interstate Highways.
b. The fact that discrimination would discourage interstate travel.
c. The fact that President Johnson who sponsored the legislation was from
the South.
d. Both a and b.
29. How did the Supreme Court rule in the Heart of Atlanta Motel case?
a. They struck down the Civil Rights Act as it was applied to the motel
owner.
b. They found the “public accommodations” portion of the Act too broad in
its application to the Heart of Atlanta Mote.
c. Both a and b.
d. They upheld the Act as it was applied to the motel owner.
30. Which of the preceding questions present an ethical issue as well as a legal
issue?
a. Questions 26 – 29, and question 23.
b. Questions 21 and 22
c. Questions 1 – 4.
d. None of the questions on this exam.