Business & Finance Chapter 4 the original Constitution had to be adopted by at least one half

subject Type Homework Help
subject Pages 14
subject Words 2998
subject Authors Al H. Ringleb, Frances L. Edwards, Roger E. Meiners

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True / False
1. To become effective, the original Constitution had to be adopted by at least one half of the original states of the
union.
a. True
b. False
2. The Bill of Rights was added to the Constitution after it had been adopted.
a. True
b. False
3. The first ten amendments to the Constitution are the Bill of Rights.
a. True
b. False
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4. Amendments to the Constitution must be initiated by the Senate then approved by the President and the Supreme
Court.
a. True
b. False
5. Amendments to the Constitution become effective when approved by two-thirds of the House and the Senate and
signed by the President.
a. True
b. False
6. As required by Article III of the Constitution, the Supreme Court has the primary role in amending the Constitution.
a. True
b. False
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7. The Supreme Court has never reversed itself on a major constitutional issue.
a. True
b. False
8. The way the Constitution is interpreted has changed over time.
a. True
b. False
9. The Commerce Clause, in practice, has a small effect on the operation of business in the United States.
a. True
b. False
10. The Commerce Clause requires Congress and the states to share the power to regulate trade with foreign nations.
a. True
b. False
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11. The Commerce Clause requires Congress and the states to share the power to regulate domestic business.
a. True
b. False
12. "Commerce among the states" means interstate commerce.
a. True
b. False
13. In McCulloch v. Maryland the Supreme Court upheld the constitutionality of a bank chartered by Congress.
a. True
b. False
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14. In McCulloch v. Maryland, the Supreme Court held that the Congress did not have the constitutional power
necessary to charter a bank; that was a function reserved to the states.
a. True
b. False
15. In McCulloch v. Maryland the Supreme Court held that federal government actions are "supreme" over actions
taken by state governments.
a. True
b. False
16. The Supreme Court struck down a tax imposed by Maryland on a national bank because the tax violated the
Supremacy Clause.
a. True
b. False
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17. It was not until the 1930s that the Supreme Court held the states could not interfere with federal regulation of
business.
a. True
b. False
18. The Necessary and Proper Clause states that the Supreme Court is to ensure that statutes passed by Congress are
"necessary and proper" under the Constitution.
a. True
b. False
19. The Necessary and Proper Clause concerns the specific steps Congress must take to pass needed laws under the
Constitution.
a. True
b. False
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20. In Gibbons v. Ogden, the Supreme Court held that commerce among the states means interstate commerce.
a. True
b. False
21. In general, the Supreme Court holds it constitutional for Congress to regulate most every aspect of business.
a. True
b. False
22. If a person produces a product locally and sells the product locally, federal regulation of the product would not apply
since there is only intrastate commerce.
a. True
b. False
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23. In Wickard v. Filburn, the Supreme Court held that if a farmer only produced wheat to be used on that farmer's
property then there is no commerce to be regulated by Congress.
a. True
b. False
24. In Wickard v. Filburn the Supreme Court held that Congress has the constitutional authority to regulate
agricultural production even if the output is not sold into commerce.
a. True
b. False
25. The Supreme Court defines the term "interstate," as used in connection with the Commerce Clause, narrowly.
a. True
b. False
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26. In Katzenback v. McClung, concerning race discrimination at a restaurant, the Court held that the Constitution
does not allow federal regulation of purely local businesses, even if the goal is socially desirable.
a. True
b. False
27. In Katzenback v. McClung, concerning race discrimination at a restaurant, the Court held that the Constitution
allows federal regulation of even local businesses.
a. True
b. False
28. Congress passes a law banning racial discrimination at restaurants. One located in a small town does not want to
serve African-Americans. The discrimination law will not apply because the business is not in interstate commerce.
a. True
b. False
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29. Congress and the states may share regulatory responsibilities.
a. True
b. False
30. The states may insist Congress allow them to share regulatory responsibilities.
a. True
b. False
31. If Congress passes a regulation, a state is allowed to eliminate parts of the federal rule that injure businesses in that
state.
a. True
b. False
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32. Arizona passed a law requiring trains passing through the state to be shortened for safety purposes. The Supreme
Court struck down the state rule as unconstitutional.
a. True
b. False
33. If a state bans the sale of milk that is not produced by cows in the state, the ban will probably be upheld as
constitutional because it helps ensure the freshness of milk.
a. True
b. False
34. States may not adopt regulations that are stricter than regulations adopted by Congress.
a. True
b. False
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35. If a state regulates a business and later Congress imposes its own regulations, under the Tenth Amendment, the
existing state rules may not be replaced by federal rules adopted later.
a. True
b. False
36. The Supreme Court strikes down state laws that are found to restrict interstate commerce.
a. True
b. False
37. A state may charge higher fees for disposal of hazardous wastes if the wastes are generated outside the state than
for hazardous wastes that are generated in-state.
a. True
b. False
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38. Illinois passes a law requiring all restaurants in the state to buy 5% of all foods they use from Illinois food
companies. This does not violate the commerce clause.
a. True
b. False
39. A state may not regulate the airline industry, even if flights come into the state, because Congress has chosen to
regulate the industry.
a. True
b. False
40. A state may not regulate public safety without permission of Congress.
a. True
b. False
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41. A state may regulate public health without permission of Congress.
a. True
b. False
42. In Hughes v. Oklahoma, a statute passed by Oklahoma prohibiting the export of minnows out of the state, to help
protect the specie, was held to be constitutional.
a. True
b. False
43. The Supreme Court in Hughes v. Oklahoma held that the state was unconstitutionally discriminating in interstate
trade.
a. True
b. False
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44. The Supreme Court in Hughes v. Oklahoma held that states have compelling interests in protecting natural
resources and these interests supersede the Commerce Clause.
a. True
b. False
45. The Supreme Court in Hughes v. Oklahoma held that when states have a "compelling interests" in regulating an
area, such as environmental protection, that interest supersedes the Commerce Clause.
a. True
b. False
46. The Supreme Court in Hughes v. Oklahoma held that when states have legitimate interests in regulating an area,
such as environmental protection, the regulations imposed must have only "incidental" effects on interstate
commerce.
a. True
b. False
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47. The Supreme Court in Hughes v. Oklahoma held that when states have legitimate interests in regulating an area
the regulations imposed must impose as small a burden as possible on interstate commerce, given the alternatives.
a. True
b. False
48. If Congress passes a law regulating business in a certain manner, states may then pass laws that duplicate the
effect of the regulation.
a. True
b. False
49. If the federal government creates regulations over certain business practices, states may not imitate those
regulations if state rules, like the federal rules, will limit interstate commerce.
a. True
b. False
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50. Congress may not impose regulations on a particular industry that have a primary impact in one state.
a. True
b. False
51. The Supreme Court has held that Congress may pass taxes so long as they do not interfere with interstate
commerce.
a. True
b. False
52. Tax laws passed by Congress may not be "discriminatory" in impact according to the Supreme Court.
a. True
b. False
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53. Tax laws passed by Congress may be "crushing" in impact on business, according to the Supreme Court, and still be
constitutional.
a. True
b. False
54. The Supreme Court has held that taxes may not have a "crushing effect on businesses."
a. True
b. False
55. Congress passes a law requiring cocaine dealers to report income from cocaine so it may be taxed. If they report
the income, they will be prosecuted for drug dealing. Because of the self-incrimination, taxes from illegal sources
may not be taxed.
a. True
b. False
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56. In Northwest States Portland Cement Co. v. Minnesota, the Supreme Court held that states may impose specific
taxes on persons "passing through the state," if they are in the state for business purposes, not recreation.
a. True
b. False
57. The states do not have the power to limit federal taxes on property owned by citizens in their own states.
a. True
b. False
58. If, to help the development of small businesses, a state legislature imposes a lower tax rate on goods produced by
small businesses in the state than it imposes on goods produced by similar businesses from other states, the tax is
unconstitutional.
a. True
b. False
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59. States may impose sales taxes on items shipped to state residents from out-of-state mail order businesses.
a. True
b. False
60. States may impose taxes on goods imported from other countries so long as the tax rate is the same as that imposed
on businesses within the state.
a. True
b. False
61. States may tax the portion of an interstate business that is produced within its borders.
a. True
b. False

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