The Legal Environment of Business, 8e (Kubasek)
Chapter 5 Constitutional Principles
1) ________ provides the legal framework for our nation.
A) Capitalism
B) The U.S. Constitution
C) The Declaration of Independence
D) The free enterprise system
2) The ________ of the U.S. Constitution set(s) forth the basic structure of our government and
the respective roles of the state and federal governments.
A) Bill of Rights
B) Articles
C) Codes
D) Due Process Clause
3) The ________ the U.S. Constitution, especially the first ________, were primarily designed to
establish and protect individual rights.
A) Articles of; ten
B) Amendments to; ten
C) Articles of; twenty
D) Amendments to; twenty
4) The Constitution provides the legal framework for the United States.
5) The Bill of Rights sets forth the basic structure of our government and the respective roles of
the state and federal governments.
6) The Articles of the U.S. Constitution, especially the first ten, establish the basic structure of
our government and the respective roles of the state and federal governments.
7) ________ is a system of government in which power is divided between a central authority
and constituent political units.
A) Federalism
B) Communism
C) Despotism
D) Totalitarianism
8) In the U.S. federalist system, the two “sovereigns” are the ________.
A) president and vice-president
B) president and U.S. Senate
C) president and U.S. House of Representatives
D) state and federal governments
9) Under the U.S. Constitution, all powers that are neither given exclusively to the federal
government nor taken from the states are ________.
A) reserved to the states
B) reverted to the president under the principle of sovereignty
C) reserved to the federal government
D) shared equally by the state and federal governments
10) The federal government has only those powers granted to it ________.
A) incrementally by the states
B) in the Declaration of Independence
C) in the U.S. Constitution
D) by the legal principles of sovereignty and eminent domain
11) According to the principle of federal supremacy, any state or local law that directly conflicts
with the U.S. Constitution is ________.
A) enforceable pursuant to the Ninth Amendment
B) enforceable pursuant to the Tenth Amendment
C) voidable
D) void
12) Cases of federal ________ are especially likely to arise in matters pertaining to interstate
commerce, such as when a local regulation imposes a substantial burden on the flow of interstate
commerce through a particular state.
A) redemption
B) exemption
C) preemption
D) redaction
13) Which of the following statements is true of concurrent authority?
A) This situation arises when authority to regulate in an area has been expressly given to the
state government by the Constitution.
B) When the state law is more restrictive, such that compliance with the state law is
automatically compliance with the federal law, the state law will usually be valid.
C) A state can regulate in an area even if the regulation conflicts with the federal regulation of
the same subject matter.
D) In many areas of environmental regulation, states may impose less stringent pollution-control
standards than those imposed by federal law.
14) The outcome of conflicts between state and federal laws is dictated by the ________ of the
U.S. Constitution.
A) Commerce Clause
B) Confrontation Clause
C) Arbitration Clause
D) Supremacy Clause
15) The Supremacy Clause is found in ________ the U.S. Constitution.
A) Article VI of
B) Article I of
C) the First Amendment to
D) the Fifth Amendment to
16) ________ is a principle declaring that any state or local law that directly conflicts with the
federal Constitution, laws, or treaties is void.
A) Federal preemption
B) Federal supremacy
C) Selective incorporation
D) Heckler’s veto
17) The Supremacy Clause of the U.S. Constitution is the basis for the doctrine of ________.
A) federal trust
B) federal preemption
C) eclipse
D) dilution
18) Which of the following best defines federal preemption?
A) It is a constitutional doctrine that empowers the U.S. Congress to regulate commerce with
foreign nations, with Indian tribes, and among the states.
B) It is a constitutional doctrine declaring that any federal law or treaty that directly conflicts
with a state or local law is void.
C) It is a constitutional doctrine whereby the legislative branch enacts laws, the executive branch
sees that the laws are executed, and the judicial branch interprets the laws.
D) It is a constitutional doctrine stating that in an area in which federal regulation is pervasive,
state legislation cannot stand.
19) Pursuant to the doctrine of separation of powers, the U.S. president is responsible for
ensuring that the laws are faithfully ________.
A) created
B) interpreted
C) executed
D) amended
20) The U.S. “separation of powers” system of government is often referred to as a system of
________.
A) government efficiency
B) government effectiveness
C) checks and balances
D) sovereignty
21) The principle of federalism divides the authority to govern between two sovereigns or
supreme lawmakers.
22) The Supremacy Clause provides that the U.S. Constitution and all laws and treaties of the
United States constitute the supreme law of the land.
23) Under the U.S. Constitution, all powers that are neither given exclusively to the federal
government nor taken from the states are reserved to the states.
24) Rules declared by federal administrative agencies cannot be considered as federal laws.
25) Explain the doctrine of federal preemption.
26) The three branches of the federal government as established by the U.S. Constitution are the
legislative, executive, and ________ branches.
A) judicial
B) presidential
C) secretarial
D) civil
27) The ________ is commander-in-chief of the armed forces.
A) secretary of state
B) secretary of defense
C) vice-president
D) president
28) Which of the following statements is true about separation of powers?
A) It calls for the executive branch to enact legislation and appropriate funds.
B) It charges the judicial branch with ensuring that the laws are faithfully executed.
C) The powers given to each branch operate to keep the other branches from seizing power to
dominate the government.
D) The members of a branch owe their tenure in their positions to members of other branches.
29) The ________ branch is charged with interpreting the laws in the course of applying them to
particular disputes.
A) judicial
B) legislative
C) executive
D) autocratic
30) Which of the following best defines separation of powers?
A) It is a constitutional doctrine that distributes power among the three branches of the
government.
B) It is a constitutional doctrine that permits federal laws to stand if they do not conflict with a
state law.
C) It is a constitutional doctrine mandating that a federal court in diversity jurisdiction must
apply federal law.
D) It is a constitutional doctrine that gives the secretary of defense the power to execute the laws.
31) The ________ can overrule the president’s vetoes.
A) secretary of state
B) secretary of defense
C) legislative branch
D) judicial branch
32) Special sessions of the U.S. Congress can be called by the ________.
A) executive branch
B) legislative branch
C) federal court
D) supreme court
33) The ________ has the power to impeach and remove the president.
A) cabinet
B) vice-president
C) judicial branch
D) legislative branch
34) The executive branch ________.
A) appoints federal judges
B) can declare laws passed by the U.S. Congress as unconstitutional
C) proposes amendments to overrule judicial decisions
D) establishes lower courts
35) The ________ establishes the number of judges.
A) legislative branch
B) judicial branch
C) president
D) chief justice
36) The ________ can refuse to approve the appointments by the president.
A) judicial branch
B) legislative branch
C) vice-president
D) secretary of state
37) The legislative branch is charged with interpreting the laws in the course of applying them to
particular disputes.
38) It is easy to determine where the authority of one branch of the government ends and
another’s begins.
39) The system of checks and balances allows each branch to encroach on the power of another.
40) The executive branch of the U.S. government has the power to pardon federal offenders.
41) Which of the following statements is true about the powers of the U.S. Congress?
A) Congress has unlimited legislative power.
B) Congress mainly possesses executive powers.
C) The primary powers of Congress are listed in Article VI of the U.S. Constitution.
D) All acts of Congress not specifically authorized by the Constitution are invalid.
42) The primary powers of the U.S. Congress are listed in ________ the Constitution.
A) Article I of
B) Article VII of
C) the First Amendment to
D) the Fourth Amendment to
43) The Commerce Clause of the U.S. Constitution ________.
A) provides the basis for most of the federal regulation of business
B) provides states the authority to regulate interstate commerce
C) does not regulate commerce with foreign nations
D) does not apply to the transportation of goods
44) ________ power means the residual powers retained by the state to enact legislation to
safeguard the health and welfare of the citizenry.
A) Supremacy
B) Commerce
C) Police
D) Delegated
45) Which of the following is true of police power?
A) It emphasizes maintaining order and is usually found in communities with a declining
industrial base.
B) It is typically used only in cases where the law has been violated and in which a suspect must
be identified and apprehended.
C) It refers to the residual powers retained by the state to enact legislation to safeguard the health
and welfare of its citizenry.
D) It refers to the warning given by police to criminal suspects in custody to preserve the
admissibility of their statements in criminal proceedings.
46) Laws attempting to regulate the use of child labor in manufacturing plants were struck down
due to the U.S. Supreme Court’s initial narrow interpretation of the Commerce Clause.
47) Explain how the interpretation of the Commerce Clause of the U.S. Constitution has
changed, thereby empowering the U.S. Congress to regulate commerce.
48) Article ________, Section ________ of the U.S. Constitution gives the federal government
the “Power to lay and collect Taxes, Duties, Imports, and Excises.”
A) I; 6
B) I; 8
C) II; 3
D) II; 5
49) In 2012, the U.S. Supreme Court determined that the penalty imposed by the Affordable
Care Act (ACA) on those who did not purchase health insurance was a(n) ________.
A) constitutional tax
B) unconstitutional surcharge
C) constitutional surcharge
D) unconstitutional tax
50) Which of the following statements is true about the taxing powers of the federal
government?
A) The U.S. Congress can levy different taxes on different states.
B) The Internet Tax Freedom Act permanently banned taxes on the Internet.
C) States are only allowed to require a business to submit sales tax payments if the business has a
store or distribution center in the state.
D) The government charges lower taxes to discourage the development of certain industries.
51) Explain the U.S. Supreme Court’s reasoning in upholding the constitutionality of a federally-
imposed penalty on those who do not purchase health insurance as required by the Affordable
Care Act (ACA).
52) Explain the additional functions served by the collection of taxes other than the generation of
revenue.
53) Which of the following statements is true of the Bill of Rights?
A) It consists of the first 14 amendments to the Constitution.
B) It protects activities that take place in a commercial setting.
C) It does not include the right to petition the government for redress of grievances.
D) It has not been extended to the state governments.
54) The ________ Amendment to the U.S. Constitution guarantees freedom of speech and the
press.
A) First
B) Fourth
C) Fifth
D) Eleventh