Business Law, 8e (Cheeseman)
Chapter 4 Constitutional Law for Business and E-Commerce
1) The primary purpose of the Constitutional Convention of 1787 was to limit the power of the
federal government and restrict it from levying or collecting taxes.
2) The U.S. Constitution limits the government’s ability to restrict individual rights.
3) The form of government in the U.S.A. is known as federalism.
4) In federalism, the federal government and the state governments share powers.
5) When the states ratified the Constitution, they delegated certain powers—called enumerated
powers—to the federal government.
6) Reserved powers are delegated to the judiciary by the President of the United States.
7) The House of Representatives has the power to impeach the President for certain activities,
such as treason, bribery, and other crimes.
8) The concept of federal law taking precedence over state or local law is called the preemption
doctrine.
9) The Supremacy Clause establishes that the fundamental legal and political authority is vested
in the citizens of the U.S.A.
10) Checks and balances built into the Constitution ensure that amendments to the Constitution
are not contradictory to existing laws.
11) The Due Process Clause of the U.S. Constitution grants Congress the power “to regulate
commerce with foreign nations, and among the several states, and with Indian tribes.”
12) The United States considers Native American tribes as “domestic dependent” nations with
limited sovereignty.
13) Indian Gaming Regulatory Act establishes the requirements for conducting casino gambling
and other gaming activities on tribal land.
14) State governments do not have the power to regulate commerce with foreign nations.
15) Police power permits states and local governments to enact laws to protect or promote the
public health, safety, morals, and general welfare.
16) If the federal government has chosen not to regulate an area of commerce despite possessing
the Commerce Clause powers to regulate it, the area is subject to Dormant Commerce Clause.
17) The power to regulate interstate commerce lies exclusively with the federal government.
18) Police power permits states and local governments to enact laws to protect or promote the
public health, safety, morals, and general welfare.
19) E-commerce is not subject to the Commerce Clause of the Constitution, as most businesses
that conduct e-commerce over the Internet do not have any physical location.
20) The Bill of Rights establishes the United States as a federal nation and divides power
between the centre and the states.
21) The First Amendment’s Freedom of Speech Clause protects both speech and conduct.
22) Lila, a newspaper columnist from Chicago, is unhappy with the soaring price of fuel in the
U.S. She publishes an article that criticizes the government’s refusal to offer gasoline at a
subsidized price. This is an example of fully protected speech.
23) Advertising is categorized as limited protected speech.
24) The U.S. government can gag citizens from criticizing the current President.
25) Speech that is offensive to many members of the society, but is not obscene or violent, is
held “unprotected” by the U.S. Supreme Court.
26) The Supreme Court has held that the content of offensive speech may not be forbidden but
that it may be restricted by the government.
27) The Establishment Clause guarantees that there will be no state-sponsored religion.
28) The Establishment Clause prohibits the government from enacting laws that either prohibit
or inhibit individuals from participating in or practicing their chosen religions.
29) The Equal Protection Clause of the Fourteenth Amendment provides that a state cannot
promote one religion over other religions.
30) The Equal Protection Clause makes the classification of individuals based on their race
unlawful.
31) Strict scrutiny test is applied to classifications not involving a suspect or protected class.
32) Intermediate scrutiny test is applied to classifications based on a protected class other than
race.
33) Substantive due process requires that that the government give a person proper notice and
hearing of legal action before that person is deprived of his or her life, liberty, or property.
34) The Privileges and Immunities Clauses require that the government give a person proper
notice and hearing of legal action before that person is deprived of his or her life, liberty, or
property.
35) The Privileges and Immunities Clause prohibits states from enacting laws that unduly
discriminate in favor of their residents.
36) The ________ was a document that restricted the newly created U.S. federal government
from levying and collecting taxes, regulating commerce with foreign countries, and regulating
interstate commerce.
A) U.S. Constitution
B) Declaration of Independence
C) Bill of Rights
D) Articles of Confederation
37) When the states ratified the Constitution, they delegated ________ powers to the federal
government.
A) enumerated
B) reserved
C) police
D) statutory
38) Reserved powers are given to the ________ by the Constitution.
A) federal government
B) judiciary
C) state governments
D) U.S. Congress
39) Jintopia is a country in which the federal government and the twelve state governments share
powers. The form of government in Jintopia is ________.
A) sovereignty
B) federalism
C) unitarianism
D) democracy
40) The legislative branch of the U.S. federal government is ________.
A) monocameral
B) bicameral
C) tricameral
D) polycameral
41) The ________ is responsible for making federal law.
A) President
B) state governments
C) legislative branch
D) Supreme Court
42) Why have checks and balances been built into the U.S. Constitution?
A) to keep a check on the number and frequency of amendments made to the Constitution
B) to ensure the judiciary is not biased or corrupt
C) to prevent any one of the three branches of the government from becoming too powerful
D) to ensure that people of all races and ethnicities are uniformly represented
43) The ________ provides that federal law takes precedence over state or local law.
A) Preemption doctrine
B) Bill of Rights
C) Due Process Clause
D) Free Exercise Clause
44) Which of the following is established by the Supremacy Clause of the U.S. Constitution?
A) The President is the supreme and sovereign head of the United States.
B) The legislative branch of the federal government is the supreme law-making authority in the
country.
C) The judiciary is the supreme law-enforcing authority and cannot be influenced by anyone,
however powerful, in any manner.
D) The U.S. Constitution and federal treaties, laws, and regulations are the supreme law of the
land.
45) The concept of federal law taking precedence over state or local law is commonly called the
________.
A) Preemption doctrine
B) Bill of Rights
C) Due Process Clause
D) Free Exercise Clause
46) Which of the following statements is true of the Supremacy Clause of the U.S. Constitution?
A) A particular federal statute cannot exclusively regulate a specific area or activity.
B) Any state or local law that “directly and substantially” conflicts with valid federal law is
preempted.
C) A particular federal statute can expressly provide for exclusive jurisdiction.
D) Any state or local law that “directly and substantially” conflicts with valid federal law is held
valid until such a time that the relevance of the federal law is tested and held in harmony with the
cultural diversity in the state.
47) The Indian Gaming Regulatory Act sets the terms of ________ activities on tribal land.
A) casino gambling
B) hunting and gathering
C) agriculture and animal rearing
D) mining
48) Santo belongs to the Eliok tribe in an Indian reservation in southern Nevada. He wants to
open a casino in the reservation. However, the state authority denies the tribe permission to open
a casino in its own territory. Which of the following permits the tribe to bring suit in federal
court and force the state to comply?
A) Establishment Clause
B) Indian Gaming Regulatory Act
C) Dormant Commerce Clause
D) Indian Reorganization Act
49) Which of the following statements is true of the United States’ Foreign Commerce Clause?
A) Regulation of foreign commerce by state governments is unconstitutional.
B) A state can enact a law that forbids a foreign country from doing business in that state, if that
country engages in activities that are not condoned by that state.
C) Direct regulation of foreign commerce by the federal government violates the Commerce
Clause.
D) A state government is only permitted to regulate foreign trade indirectly.
50) Fierra Inc. is a German automobile manufacturer that has a 5 percent market share in the
United States’ automobile market. The company has a unit in North Carolina that imports Fierra
automobiles from its parent company in Germany and assembles them. Which of the following
measures is in accordance with U.S.A.’s Foreign Commerce Clause?
A) The government of North Carolina imposes an additional 10% tax on Fierra cars.
B) The government of Georgia bans the sale of Fierra cars.
C) The government of North Carolina asks Fierra Inc. to shut down its import unit in the state.
D) The federal government imposes an additional 100 percent tax only on Fierra cars being sold
in North Carolina.
51) Which of the following statements is true of states’ police power?
A) Police power restricts states from regulating inter-state commerce, although it happens within
their borders.
B) The states are allowed to regulate army activities within their borders.
C) They are given the authority to enact laws that regulate the conduct of business.
D) The police force of a state is controlled by the federal police department.
52) Which of the following is/are enacted under state police power?
A) personal property laws
B) intellectual property laws
C) corporate governance laws
D) equal opportunity laws
53) Kingsland is a country that has been exporting apples to the United States for over a century,
shipping 300 tons to Georgia each month. However, last month, Kingsland violated a trading
norm which was not condoned by Georgia. Which of the following measures should be taken to
regulate apple imports from Kingsland?
A) Georgia can stop trading with Kingsland after serving a notice.
B) Georgia can stop trading with Kingsland without serving a notice.
C) Georgia can appeal to the federal authority which can stop imports from Kingsland.
D) Georgia can make Kingsland export its apples to North Carolina.
54) If the federal government has chosen not to regulate an area of interstate commerce that it
has the power to regulate under its Commerce Clause powers, this area of commerce is subject to
the ________.
A) Free Exercise clause
B) Dormant Commerce clause
C) Due Process clause
D) Privileges and Immunities clause
55) The first ten amendments to the U.S. Constitution are collectively known as the ________.
A) Due Process clause
B) Privileges clause
C) Bill of Rights
D) Articles of Confederation
56) Which of the following statements is true about the freedom of speech guaranteed by the Bill
of Rights?
A) The Freedom of Speech clause was added to the Constitution in the third amendment.
B) The Freedom of Speech clause protects speech only, not conduct.
C) There is no provision for fully protected speech in the Constitution.
D) Burning the American flag in protest to a federal government military action is in violation of
the Freedom of Speech clause.
57) Jerome wears a t-shirt that bears a picture of the current U.S. president. Under this picture,
there are words which imply that the President is doing a bad job of running the country. In
accordance to the Freedom of Speech Clause, which of the following is valid?
A) Criticizing the current president is fully protected speech and Jerome cannot be prosecuted.
B) Jerome could be arrested as his t-shirt violates the Freedom of Speech doctrine.
C) Jerome wearing that t-shirt is an instance of limited protected speech.
D) Wearing that t-shirt makes Jerome liable for prosecution on the basis of defamatory language.
58) A group of students organizing a protest march would be an instance of ________ speech.
A) limited protected
B) prohibited
C) unprotected
D) fully protected
59) Which of the following is a form of limited protected speech?
A) defamatory language
B) speech that incites the violent or revolutionary overthrow of the government
C) dangerous speech
D) offensive speech
60) Which of the following is a form of unprotected speech?
A) offensive speech
B) defamatory language
C) commercial speech
D) political speech
61) Advertising is categorized as ________ speech.
A) fully protected
B) limited protected
C) uncensored
D) unprotected
62) The ________ prohibits the government from promoting one religion over another.
A) Due Process clause
B) Privileges clause
C) Establishment clause
D) Free Exercise clause
63) The ________ clause prevents the government from enacting laws that either prohibit or
inhibit individuals from participating in or practicing their chosen religions.
A) Due Process
B) Privileges
C) Establishment
D) Free Exercise
64) Which of the following amendments to the U.S. Constitution contains the Due Process,
Equal Protection, and Privileges and Immunities Clauses?
A) the Twelfth Amendment
B) the Thirteenth Amendment
C) the Fourteenth Amendment
D) the Fifteenth Amendment
65) A(n) ________ test is applied to classifications of people based on a suspect class.
A) strict scrutiny
B) intermediate scrutiny
C) rational basis
D) cogent basis
66) Vanessa was born to American parents from a minority group in Miami. She applies to a
public university which offers scholarships only to students from minority groups. Which of the
following standards of review is used to decide if the university violates the Equal Protection
Clause by offering Vanessa the scholarship?
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) cogent basis
67) The lawfulness of government classifications based on a protected class is examined using
a(n) ________ test.
A) strict scrutiny
B) intermediate scrutiny
C) rational basis
D) cogent basis
68) An organization provides six months of maternity leave to its female employees, whereas its
male employees can avail paternity leave for a maximum of two weeks. Which of the following
tests is used to examine the lawfulness of this classification?
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) cogent basis
69) The lawfulness of all government classifications that do not involve suspect or protected
classes is examined using a(n) ________.
A) strict scrutiny test
B) intermediate basis test
C) due process test
D) rational basis test
70) The federal government’s Social Security program, which pays benefits to older members of
society but not to younger members of society, is lawful as examined by a(n) ________ test.
A) rational basis
B) intermediate scrutiny
C) strict scrutiny
D) due process
71) Which of the following is an instance of a decision involving the Equal Protection Clause
being made on the basis of the rational basis test?
A) The government requires only men above the age of 18 to volunteer for military service.
B) The government establishes a trust fund to provide financial aid to minority groups.
C) A state government employs measures to improve living conditions in the reservations.
D) The government provides subsidies to farmers, but not to carpenters or lumberjacks.
72) Which of the following provisions is made by the Due Process clauses?
A) No person shall be deprived of life, liberty, or property without due process of the law.
B) No state can regulate foreign trade directly or indirectly without due process of the law.
C) Motions for amendments to the constitution cannot be made without a majority in the
parliament.
D) Violation of freedom of speech makes the violator liable for immediate prosecution with due
process of the law.
73) The ________ requires that government statutes, ordinances, regulations, and other laws be
clear on their face and not overly broad in scope.
A) procedural due process
B) substantive due process
C) intermediate scrutiny test
D) rational scrutiny test
74) A certain state in the U.S. declares that its citizens should only wear “modest” clothing.
Which of the following conclusions is made when this law is tested for substantive due process?
A) unconstitutional for compulsion
B) invalid for violation of equal protection clause
C) void for vagueness
D) invalid for violating freedom of expression
75) The ________ requires that the government give a person proper notice and hearing of legal
action before that person is deprived of his or her life, liberty, or property.
A) procedural due process
B) substantive due process
C) Supremacy Clause
D) Equal Protection Clause
76) The ________ clauses in the Constitution collectively prohibit states from enacting laws that
unduly discriminate in favor of their residents.
A) Due Process
B) Equal Protection
C) Establishment
D) Privileges and Immunity
77) How is the federal government divided? Why are checks and balances necessary? Explain
with instances.
78) How is power divided between the federal government and the state governments?
79) How has the U.S. government regulated commerce with Native Americans?
80) Why is it unconstitutional for a state government to ban products imported from a foreign
country, despite that country engaging in activities not condonable by that state?
81) Distinguish between limited protected speech and unprotected speech, as divided by the U.S.
Supreme Court.