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1
Chapter 3
Court Procedures
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. Procedural law does not have a significant impact on a person’s ability to
pursue a legal claim.
B2. The litigation process has three phases: filing, answering, and appealing.
B3. Before a lawsuit begins, the court must have proof that the defendant was
notified of the lawsuit.
B4. A counterclaim is raised by a plaintiff against a defendant’s answer.
B5. Only a defendant can file a motion to dismiss.
2 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
B6. The use of additional evidence distinguishes the motion for summary judgment
from the motion for judgment on the pleadings.
B7. Discovery is the process of obtaining information from an opposing party before
trial.
B8. Interrogatories are written questions for which written answers are prepared by
a judge.
B9. Any written material, including information stored electronically, can be the
object of a discovery request.
B10. In most states, if neither party requests a jury, the court presumes the parties
waive this right.
B11. At the beginning of a trial, only the defendant’s attorney makes an opening
statement.
B12. Hearsay evidence is what someone heard someone else say.
B13. An expert witness is a person who is directly involved in the events concerning
a lawsuit.
B14. A judge instructs a jury in the law that applies in a case.
B15. After both sides have rested their cases, only the plaintiff’s attorney makes a
closing argument.
B16. Either party may appeal a jury’s verdict but only the defendant may appeal a
judge’s ruling.
B17. The expenses associated with an appeal can be considerable.
B18. A court of appeals does not hear any evidence.
B19. A reviewing court may reverse a trial court’s judgment only in a case in which
the plaintiff lost.
B20. It is guaranteed that any judgment will be enforceable.
MULTIPLE-CHOICE QUESTIONS
4 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
B1. Gilbert wants to initiate a suit against Healthways Insurance Company by filing
a complaint. The complaint should include
a. an explanation of the proof to be offered at trial.
b. a statement refuting any defense that the defendant might assert.
c. a motion for judgment on the pleadings.
d. a statement alleging the facts showing the court has jurisdiction.
BUSPROG: Reflective AICPA: BB-Legal
B2. Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services.
The document that informs Concessions & Tailgate that it must file an answer
within a specified time period is
a. the answer.
b. the complaint.
c. the writ of certiorari.
d. the summons.
B3. Neville files a suit against Olina. If Olina fails to respond,
a. Neville must appeal the case to a different court.
b. Olina’s failure to respond will be considered to be a denial.
c. Neville will not be awarded the remedy sought.
d. Olina will have a default judgment entered against her.
B4. Lyn files a suit against Karl. Karl denies Lyn’s charges and sets forth his own
claim that Lyn breached their contract and owes Karl money for the breach.
Karl’s claim is
a. counterclaim.
b. motion for judgment on the pleadings.
c. motion for summary judgment.
d. motion to dismiss.
CHAPTER 3: COURT PROCEDURES 5
Fact Pattern 3–B1 (Questions B5–B7 apply)
Destiny and Enzo engage in a business transaction for the creation and baking of a
cake and other pastries and desserts for Destiny’s wedding dinner and reception.
When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint.
B5. Refer to Fact Pattern 3–B1. If Enzo files a motion to dismiss, he is asserting
that
a. Destiny did not state a claim for which relief can be granted.
b. Destiny’s statement of the facts is not true.
c. Destiny’s statement of the law is not true.
d. Enzo suffered greater harm than Destiny.
BUSPROG: Reflective AICPA: BB-Legal
B6. Refer to Fact Pattern 3–B1. If Enzo files a motion to dismiss, and the court
denies it,
a. Destiny will be given time to file an amended complaint.
b. Destiny will have a judgment entered in her favor.
c. Enzo will be given time to file another response.
d. Enzo will have a judgment entered in his favor.
B7. Refer to Fact Pattern 3–B1. If Enzo files a motion to dismiss, and the court
grants it,
a. Destiny will be given time to file an amended complaint.
b. Destiny will have a judgment entered in her favor.
c. Enzo will be given time to file another response.
d. Enzo will have a judgment entered in his favor.
B8. Renewable Resources, Inc., files a suit against Sunrich Utility Company and
seeks to examine certain documents in Sunrich’s possession. A legitimate
reason for this examination is that the documents contain
a. information that is relevant to the case.
b. private information about Sunrich’s operations.
c. public information about energy generation.
6 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
d. irrelevant data that can be eliminated from consideration.
B9. To prepare for a trial between SmartPhones, Inc., and TechApps Company,
TechApps’ attorney places SmartPhones’ chief executive officer (CEO) under
oath. A court official makes a record of the attorney’s questions and the CEO’s
answers. This is
a. a cross-examination.
b. a deposition.
c. voir dire.
d. an interrogatory.
B10. During the trial phase of Sof’ Drink Soda Corporation’s suit against TimeOut
Convenience Stores, Inc., their attorneys engage in voir dire. This is
a. an assessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. the testimony by a party to the lawsuit or by any witness, recorded by an
authorized court official.
d. the selection of jurors.
B11. In Research & Development Company’s suit against Structural Engineers, Inc.,
Research & Development wants to introduce evidence that it claims is relevant.
Relevant evidence is evidence that
a. establishes the degree of probability of a fact or action.
b. tends to disprove a fact in question.
c. tends to prove a fact in question.
d. all of the choices.
B12. Posy brings a lawsuit against Quisa over a sale of 350 acres of farmland.
During the trial, Quisa’s attorney asks questions of the plaintiff’s witness
Raina. This is
CHAPTER 3: COURT PROCEDURES 7
a. a cross-examination.
b. a deposition.
c. a direct examination.
d. an interrogatory.
B13. Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case
a. beyond a reasonable doubt.
b. by a preponderance of the evidence.
c. by indisputable proof.
d. to the extent promised in her attorney’s opening statement.
B14. In Precise Paving Company’s suit against Ride, Park n’ Go, Inc., the jury
returns a verdict in Precise Paving’s favor. The company will most likely ask the
court to
a. enter a judgment in accordance with the verdict.
b. enter a judgment n.o.v.
c. enter a judgment on the pleadings.
d. order a new trial.
B15. In Fuel Injection Products & Service Corporation’s suit against Gears &
Cylinders, Inc., the jury returns a verdict in Fuel Injection’s favor. Gears &
Cylinders files a motion asking the judge to set aside the verdict and begin new
proceedings. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
B16. In Coastal Fishing Company’s suit against Dockside Marina, Inc., the jury
returns a verdict in Coastal’s favor. Dockside files a motion stating that even if
8 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
the evidence is viewed in the light most favorable to Coastal, a reasonable jury
should not have found in its favor. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
B17. In Hazel’s suit against Ingrid, the court issues a judgment in Ingrid’s favor. If the
case is appealed to an appropriate court of appeals, the appellate court will
hear
a. all of the evidence.
b. most of the evidence.
c. none of the evidence.
d. select pieces of evidence.
Fact Pattern 3-B2 (Questions B18–B20 apply)
Martin files a suit against Nichelle in a state court over payment due on a short-term
employment contract. The case proceeds to trial, after which the court renders a
verdict. The case is appealed to an appellate court.
B18. Refer to Fact Pattern 3–B2. After its review of Martin v. Nichelle, the appellate
court upholds the lower court’s verdict. The appellate court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.
B19. Refer to Fact Pattern 3–B2. After a final determination in the case of Martin v.
Nichelle, any judgment will be satisfied
a. if the losing party pays the judgment.
b. if the winning party has sufficient assets to cover the amount of
damages sought.
CHAPTER 3: COURT PROCEDURES 9
c. if the losing party proves that he or she is unable to pay the judgment.
d. all of the choices.
B20. Refer to Fact Pattern 3–B2. After the state’s highest court’s review of Martin v.
Nichelle, a party can appeal the decision to the United States Supreme Court if
a. a federal question is involved.
b. a question of state law remains unresolved.
c. the party is unsatisfied with the result.
d. the state trial and appellate court rulings are different.
ESSAY QUESTIONS
B1. Chase is injured in an accident while driving an off-road vehicle made by
Drivers Edge, Inc., an out-of-state corporation. Chase files a suit against
Drivers Edge, alleging negligence, and mails a summons and a copy of the
complaint to the firm by certified mail, return receipt requested. The envelope is
addressed in part to “Elvin, President, Drivers Edge, Inc.” The receipt is
returned with the signature of “Francine,” a Drivers Edge employee. A U.S.
Postal employee later testifies that Francine usually receives mail on Drivers
Edge’s behalf. Drivers Edge does not respond to the suit. In a default
judgment, Chase is awarded damages of $500,000. Later, Elvin claims that he
was not notified of the suit and asks the court to set aside the judgment. What
is the issue in this set of facts? What rule applies? What should be the result on
the application of the rule? Why?
10 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
B2. Tech Performance, Inc., completes programming and other tech services for
Uno IT Products Corporation. When Uno’s computer system crashes, it loses
$500,000 worth of business and pays $100,000 to have the system
reprogrammed. Uno IT announces to the media that the crash was due to Tech
Performance’s incompetence and files a complaint in a federal court against
the firm. What are Tech Performance’s options in response?
