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Business Law 316 Chapter 4


Question 11 pts

The concept of stare decisis focuses most on:

legislative intent.




Question 21 pts

Michael is a strong swimmer.  One afternoon he is having a picnic at a lake and sees a woman he does not know drowning. Generally, Michael:

has a legal duty to rescue the woman, but only if his efforts will not pose a serious threat to his own safety.
has a legal duty to rescue the woman since, as a strong swimmer, he is treated as a “special class” of persons who must get involved in such situations.


has no legal duty to rescue the woman.
has a legal duty to rescue the woman.


Question 31 pts

The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use:

a de novo.
an excaliber.


a subpoena duces tecum.
a stare decisis.


Question 41 pts

If in 1990 the Michigan Supreme Court ruled that a minor can void a contract at any time during minority and in 2008 the courts in Michigan still follow this ruling, this is an example of:

stare decisis.
enabling legislation.


the bystander rule.
statutory law.


Question 51 pts

Administrative agency rules consist of:

legislative and interpretive rules.
executive and independent rules.


promulgated and unpromulgated rules.
informal and “notice and comment” rules.


Question 61 pts

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum:

is binding on a person even if it is mailed to the person rather than handed to her by a process server.
requires the person to bring specified documents to the court or administrative hearing.


allows for privileged or confidential information to be turned over the a court or administrative agency.
can only be given to an expert to require a personal appearance before a court or administrative hearing.


Question 71 pts

Bert had his driver’s license suspended by the state department of transportation. He believes his constitutional due process rights were violated by the administrative agency.  Can he immediately file a court action to have agency’s actions reviewed?

Yes. Bert must specifically allege his constitutional rights have been violated and file a court action in federal court – not a state court.
No. A court of law does not have jurisdiction to review an administrative agency’s actions.


Yes. A court has the jurisdiction to immediately review an agency’s alleged unconstitutional action.
No. Bert must first utilize the administrative agency’s procedures to review the suspension before he seeks judicial review by a court.


Question 81 pts

SharCo and Blyron Productions are each applying for a television license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before:

the OSHA.
an administrative law judge.


an administrative mediator.
an administrative mediator.


Question 91 pts

The Consumer Product Safety Commission (CPSC) is an independent federal administrative agency. Which statement is correct about the chairperson?

The chairperson has a lifetime appointment and cannot be fired.
The chairperson can only be fired by the President for good cause.


The chairperson cannot be fired by the President since the CPSC is an independent agency.
The chairperson serves at the whim of the President and can be fired at any time.


Question 101 pts

Which law regulates how federal agencies make rules, conduct investigations, hold meetings and hearings, obtain information, and reach decisions?

The Clean Agency Act.
The Freedom of Information Act.


The 1964 Civil Rights Act.
The Administrative Procedure Act.

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