Business Law - Chapter 01 An Introduction to Dynamic Business Law

Business law consists of the enforceable rules of conduct that govern commercial relationships. 
TRUE

Because of the law, we rely on the goodwill and dependability of one another. 
FALSE

Public law controls disputes between private individuals or between groups and their government. 
TRUE

Cyberlaw is based primarily on existing laws. 
TRUE

Another name for case law is common law. 
TRUE

Case law interpretations are law unless they are revoked later by new statutory law. 
TRUE

The term "stare decisis" means "reversing the decision." 
FALSE

The decision of a state supreme court is binding on a lower state court located in the state. 
TRUE

Constitutions and statutes are complete in the sense of covering the detailed rules that affect government and business relations. 
FALSE

Presidents claim the power to issue executive orders on the basis of their Article II, Section 1, constitutional power to "take care that the laws be faithfully executed." 
TRUE

The term "natural law" is another word for "legal positivism." 
FALSE

Which of the following spell out what market participants may and may not legally do? 
A. Constitutions, legislatures, regulatory bodies, and courts
B. Legislatures only
C. Courts only
D. Legislatures and courts but not constitutions or regulatory bodies
E. Constitutions, legislatures, and courts but not regulatory bodies

Which of the following would be relevant areas of business law to a human resource manager? 
A. Contracts, employment and labor law, and employment discrimination
B. Contracts only
C. Contracts and labor law, but not employment discrimination
D. Employment and labor law, but not contracts
E. None of the above because a human resource manager would be involved in work assignments only

Laws are enforced by which of the following? 
A. State legislatures
B. Federal Congress
C. Community consensus
D. Courts
E. All the above

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the ______. 
A. Electoral college
B. Community standard
C. Democratic validation
D. Stare decisis
E. Law

Assume a businessperson who owns a computer equipment store is delinquent in paying rent to the landlord. The resulting dispute focuses on _____ law. 
A. Public
B. Preferential
C. Consensual
D. Private
E. Black letter

If a computer store dumps waste behind its building in violation of local, state, or federal environmental regulations, the resulting dispute focuses on _____ law. 
A. Public
B. Preferential
C. Consensual
D. Private
E. Black letter

Which type of law delineates the rights and responsibilities involved in relationships between persons and between persons and their government? 
A. Criminal
B. Procedural
C. Civil
D. Natural
E. Positive

Which type of law involves incidents in which someone commits an act against the public as a unit? 
A. Criminal
B. Procedural
C. Civil
D. Natural
E. Positive

Assume a restaurant chain is forced to pay damages to a person who suffered food poisoning after eating at the restaurant. What type of law is involved? 
A. Public law only
B. Private law only
C. Civil law only
D. Public, private, and civil law
E. Private law and civil law

Assume the Securities and Exchange Commission prosecutes someone for insider trading. This prosecution is an example of _____ law. 
A. Criminal
B. Procedural
C. Civil and natural
D. Natural
E. Positive

The _______ is the supreme law of the land. 
A. U.S. Constitution
B. Declaration of Independence
C. U.S. Code
D. Model Law
E. Uniform Code

The rules and regulations put forth by legislatures are referred to as _______ law. 
A. Administrative
B. Statutory
C. Uniform
D. Proper
E. Secondary

Legislative acts passed by state legislatures can be found in the ______. 
A. U.S. Code
B. State codes
C. Uniform Register
D. State Reporter
E. State Reference Manual

Legislative acts passed by the U.S. Congress can be found in the ______. 
A. U.S. Code
B. State codes
C. Uniform Register
D. State Reporter
E. The State Reference Manual

The group that urges states to enact model laws to provide greater uniformity of law is called the ______. 
A. Model Law on Uniform State Laws Organization
B. Federal Uniform Law Commission
C. National Conference of Commissioners on Uniform State Laws
D. Model and Uniform Law Consortium
E. Uniform Statutory Enforcement Commission

When the organization in charge of proposing uniform laws proposes a statute, which of the following is true? 
A. All states must adopt the uniform statute within one year.
B. All states must adopt the uniform statute within six months.
C. The uniform statute automatically goes into effect without any action by state legislatures.
D. A state legislature is not required to adopt the uniform statute; but if the state legislature decides to go forward with adoption, all portions of the statute must be adopted.
E. A state legislature can ignore the proposed uniform law, adopt it in full, or adopt it in part.

Case law can be revoked by ______. 
A. New statutes
B. Precedent
C. Stare decisis
D. Critical law
E. None of the above. Case law cannot be revoked

The term ______ involves the use of past decisions to guide future decisions. 
A. Commonality
B. Precedent
C. Restatement
D. Uniformity
E. Modeling

The ______ is a body of law significant to business activities including sales, banking, and warranty. 
A. Federal Business Code
B. Model Business Code
C. Uniform Transactional Model
D. Uniform Commercial Code
E. Marketing Transaction Code

When courts rely on precedent, they are obeying ______. 

A. Common analysis

B. Res judicata

C. Stare decisis

D. In rem process

E. Federal law

Which of the following cases overturned prior precedent? 
A. Brown v. Board of Education
B. Wygant v. Jackson Board of Education
C. Planned parenthood of Southeastern Pennsylvania v. Casey
D. Plessy v. Ferguson
E. None of the above because precedent cannot be overturned

Which of the following is true regarding administrative agencies? 
A. There are state administrative agencies, but no federal administrative agencies.
B. There are federal administrative agencies, but no state administrative agencies.
C. There are state and federal administrative agencies, but no local administrative agencies.
D. Administrative agencies exist only at the local county level.
E. Administrative agencies exist at the federal, state, and local level.

Which of the following is true regarding treaties at the federal level? 
A. A treaty is generally negotiated by the executive branch and must then be approved by two- thirds of the Senate.
B. A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the House of Representatives.
C. A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate and also by two-thirds of the House of Representatives.
D. A treaty is generally negotiated by the executive branch and no approval by the Senate or House of Representatives is needed.
E. A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate and also by two-thirds of the state legislatures.

Which of the following can issue executive orders? 
A. The president only
B. State governors only
C. The president and state governors
D. The president, state governors, and Congress
E. The president, state governors, Congress, and state legislatures

Which of the following contains summaries of common law rules in a particular area of the law? 
A. U.S. Code
B. State Administrative Codes
C. Executive Proclamations
D. Case Reporters
E. Restatements of the Law

Which of the following is an independent agency? 
A. The Federal Deposit Insurance Corporation
B. The Consumer Product Safety Commission
C. The General Services Administration
D. The Small Business Administration
E. The Office of Personnel Management

Which of the following is an executive agency? 
A. The Federal Deposit Insurance Corporation
B. The Federal Trade Commission
C. The Securities and Exchange Commission
D. The Federal Communications Commission
E. The Nuclear Regulatory Commission

The concept of _____ suggests that individuals should have the freedom to disobey a law enacted by people if their conscience goes against the law and they believe the law is wrong. 
A. Legal positivism
B. Natural law
C. Legal-realism
D. Conscience reaction
E. None of the above

Assume a judge writes that she is deciding to enforce a law in question but that her decision does not mean that she sees the law as the morally correct rule. The judge would have leanings in the direction of ______. 
A. Legal positivism
B. Natural law
C. Legal realism
D. Conscience reaction
E. None of the above

In which school of jurisprudence is the concept of stare decisis rooted? 
A. The Historical school
B. Legal realism
C. The cost-benefit analysis school
D. Positivism
E. Cultural reenactment

Which of the following is reported in the Federal Reporter? 
A. Statutes
B. Executive orders
C. Common law
D. Administrative laws
E. Local ordinances

Which of the following is reported in the United States Code? 
A. Statutes
B. Executive orders
C. Common law
D. Administrative laws
E. Local ordinances

Which of the following is reported in the Code of Federal Regulations? 
A. Statutes
B. Executive orders
C. Common law
D. Administrative laws and executive orders
E. Code of Federal Regulations

Which of the following is based on the idea that, when ruling on a case, judges consider more than just the law; they also weigh factors such as social and economic conditions? 
A. Cost-Benefit Analysis
B. Legal Realism
C. Historical School
D. Legal Positivism
E. Executive Positivism

Which approach to jurisprudence is based on choosing alternatives that maximize benefits and minimize costs, and is tied to the pursuit of efficiency? 
A. Cost-Benefit Analysis
B. Legal Realism
C. Historical School
D. Legal Positivism
E. Executive Positivism

Candy wants to start an Internet business. She is told by the Chinese government that certain items on her site are objectionable and illegal, and that if she wants to do business in China, she must remove the objectionable material. Which of the following is true? 
A. Candy is within her rights and should stand her ground. She is a U.S. citizen, and so long as she obeys U.S. laws, she can do business in China.
B. Candy is within her rights only if she petitioned her state senator and obtained his or her permission to proceed.
C. If Candy wants to do business in China, she must abide by Chinese law.
D. By international law, there is a set fee of $10,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification.
E. By international law, there is a set fee of $5,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification.

Which of the following refers to the ability to understand the structure of what someone is saying and then apply a set of criteria to evaluate its worth?
Critical-thinking skills