The United States Legal System
A core component of common law systems is the principle of stare decisis. Under this principle, past court decisions
Are applied to similar future cases
Under the “American Rule,” which party pays legal fees in a civil litigation?
Each party pays their own legal fees
In a criminal trial, what is the standard of proof required for the prosecution to establish the defendant's guilt?
beyond a reasonable doubt
What is the purpose of perfecting a security interest in a secured transaction?
To notify other potential lenders of the existing security interest
ABC, Inc., a small company, decides to merge with another business to expand its geographic market reach. Who makes the final decision to approve the merger?
shareholders
Military law is federal law passed by Congress under its Constitutional powers. Military law applies to
All members of the military
An agreement between an attorney and their client under which the attorney is paid when there is a monetary award granted to the client is known as a
Contingency fee agreement
In the event a person injures another person on purpose, legal action(s) can be brought
By both the government and the victim
In a secured transaction, what is the role of collateral?
It acts as a form of insurance for the lender in case of default
What laws were created to promote competition and prevent monopolistic behavior
Antitrust laws
A legal action in a civil case is between two private parties. Assuming the parties are not businesses, which of the following is not a remedy the party bringing the lawsuit can request from the court?
Imprisionment of the guilty party
In a litigation, what is the formal written complaint that initiates a lawsuit called?
Pleading
In a criminal trial, which party has the burden of proving the defendant's guilt?
Procecutor
A financial instrument that promises to pay a specific amount of money to a designated person or entity
negociable instrument
What Act requires possession of monopoly power and misuse of that power through monopolistic acts to establish monopolization
Sherman Act
Which is not an action the President can take when receiving a bill passed in both chambers of Congress and sent for their signature?
Change the bill
Which party in a civil lawsuit is responsible for initiating the legal action by filing a complaint?
Plaintiff
What is the legal concept that protects individuals from being tried for the same crime twice?
Double Jeopardy
A financial instrument that promises to pay a specific amount of money to a designated person or entity
The person in possession of the instrument
Two companies plan to combine their business operations. The companies plan to establish a joint holding company that will consolidate and own the two existing businesses. This is an example of a(n)
Merger
Which of the following represents the hierarchy of laws in the United States (highest to lowest)?
U.S. Constitution, Federal law, State constitutions, State law, common law
What is a key advantage of using arbitration as a method of dispute resolution?
It is typically faster and less expensive than litigation
What is the term for the act of offering or accepting something of value in exchange for influencing an official decision?
Bribery
What is the primary objective of Chapter 7 bankruptcy?
Liquidating the debtor's non-exempt assets to repay creditors
What is a significant advantage of a sole proprietorship compared to other business forms?
Simplicity in decision-making and management