Deck 1: Law and Legal Reasoning

Question 1

Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific area of the law.

Answer 1

False

Question 2

A citation is a regulation enacted by a city or county legislative body.

Answer 2

False

Question 3

The legal rules that control a business's actions reflect past and current thinking about how similar businesses should and should not act.

Answer 3

True

Question 4

A local ordinance commonly has to do with a matter concerning only a local governing unit.

Question 5

Because laws may change,the ability to analyze and evaluate the legal ramifications of situations as they arise is not a lasting skill.

Question 6

A secondary source of law establishes the law on a particular issue.

Question 7

Independent regulatory agencies are not subject to the authority of the president.

Question 8

The study of business law does not involve an ethical dimension.

Question 9

Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law.

Question 10

In the United States,the law consists of written laws and court decisions.

Question 11

A federal statute applies only to those states that agree to apply it within their borders.

Question 12

An administrative legislative rule is not legally binding on businesses.

Question 13

A constitution is a primary source of law.

Question 14

Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state.

Question 15

Federal agency regulations do not take precedence over conflicting state regulations.

Question 16

Even if it conflicts with the U.S.Constitution,a state constitution is supreme within that states' borders.

Question 17

Rules issued by administrative agencies affect almost every aspect of a business's operations.

Question 18

Congress or a state legislature establishes an administrative agency to perform a specific function.

Question 19

The U.S.Constitution is the basis of all law in the United States.

Question 20

A statute is a secondary source of law.

Question 21

The basis of a civil law system is a written code of laws.

Question 22

There is one right answer to every legal question.

Question 23

Controlling precedents are binding authorities.

Question 24

Often,more than one rule of law will be applicable to a case.

Question 25

In a criminal case,the object is to obtain a remedy.

Question 26

International law derives from a variety of sources,including the laws of individual nations.

Question 27

The common law is a body of law developed from judicial decisions.

Question 28

If an agency fails to follow the rulemaking procedures imposed by the Administrative Act,the resulting rule may not be binding.

Question 29

A constitution sets forth a government's

A) limits,but not powers.
B) limits and powers.
C) neither limits nor powers.
D) powers,but not limits.

Question 30

Because courts of law and equity have merged,the principles of equity are no longer applied.

Question 31

A precedent is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.

Question 32

Rescission is an equitable remedy.

Question 33

Civil law has to do with wrongs committed against society for which society demands redress.

Question 34

Power,Inc. ,is a corporation engaged in the business of producing,refining,and distributing energy resources.With respect to the firm's managers,legal concepts can be useful for Power's

A) accounting and finance manager.
B) human resources manager.
C) marketing manager.
D) all of the choices.

Question 35

The basis of all law in the United States is

A) the U.S.Constitution.
B) laws passed by Congress.
C) case law.
D) regulations created by administrative agencies.

Question 36

Courts give significant weight-deference-to an agency's judgment and interpretation of its rules.

Question 37

Courts will not grant an equitable remedy unless the remedy at law is adequate.

Question 38

Primary sources of law include

A) legal encyclopedias.
B) official comments to statutes.
C) case law.
D) legal treatises.

Question 39

Secondary sources of law include

A) state constitutions.
B) legal scholars' research.
C) laws passed by local governing bodies.
D) regulations created by administrative agencies.

Question 40

Case law governs all areas of business not covered by statutory or administrative law.

Question 41

Each court has a jurisdiction.Jurisdiction is best defined as

A) a doctrine that follows established precedents.
B) the geographic area in which a court has the power to apply the law.
C) a judicial proceeding to redress a wrong.
D) a situation giving a person a right to initiate a judicial proceeding.

Question 42

Common law rules develop from

A) principles underlying judges' decisions in actual controversies.
B) regulations issued by administrative agencies.
C) statutes enacted by Congress and the state legislatures.
D) uniform laws drafted by legal scholars.

Question 43

There are no precedents on which the court deciding the case Algorithm Corp.v.Beta Bytes,Inc. ,can base its decision.The court can consider,among other things,

A) the opinions of the friends and relatives of the judge.
B) the results of a poll of those in the courtroom.
C) government policy based on widely held social values.
D) all of the choices.

Question 44

Applying the relevant rule of law to the facts of a case requires a judge to find previously decided cases that,in relation to the case under consideration,are

A) as different as possible.
B) as similar as possible.
C) at odds.
D) exactly identical.

Question 45

Home Care Company is charged with violating a rule of the Social Security Administration.Most likely,Home Care will be required to appear at a hearing presided over by

A) a federal appellate court judge.
B) a federal district court judge.
C) an administrative law judge.
D) a U.S.Marshal.

Question 46

A precedent is

A) the chief executive officer of the United States.
B) a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.
C) a lawsuit in which a number of persons join together.
D) the fundamental procedure by which the government exercises its authority.

Question 47

The Food and Drug Administration (FDA)is an executive agency.As an executive agency,the FDA is subject to the authority of

A) no government official or entity.
B) the president.
C) state legislatures.
D) the U.S.Attorney General

Question 48

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media.The first step is

A) compile the rule with others in the Federal Register.
B) draft the rule.
C) publish a notice of the proposed rulemaking.
D) solicit public comment.

Question 49

Persons who favor the creation of a federal agency to regulate the production of genetically modified agricultural products should concentrate their lobbying efforts on

A) Congress.
B) administrative agencies that oversee agricultural products.
C) the United States Supreme Court.
D) the president of the United States.

Question 50

Stare decisis is best defined as

A) a doctrine under which judges follow established precedents.
B) the authority to decide a specific dispute.
C) a judicial proceeding to redress a wrong.
D) a situation giving a person a right to initiate a judicial proceeding.

Question 51

The Uniform Commercial Code facilitates commerce

A) among the states.
B) between the states and the federal government.
C) in countries that were once colonies of Great Britain.
D) in international markets.

Question 52

The Uniform Commercial Code provides a set of rules governing

A) commercial transactions.
B) state legislative adoptions.
C) congressional procedures.
D) administrative processes.

Question 53

The Environmental Protection Agency (EPA)discovers that Fish Farm Inc.has violated an EPA regulation.If no settlement is reached,the EPA can

A) issue a formal complaint.
B) do nothing.
C) take the matter to the U.S.Supreme Court.
D) immediately impose sanctions.

Question 54

Administrative law includes

A) all laws that affect business operations.
B) the rules,orders,and decisions of a government agency.
C) model laws developed by the National Conference of Commissioners on Uniform State Laws.
D) laws enacted by a legislative body.

Question 55

In Beto v.Car Dealership,a state supreme court held that a minor could cancel a contract for the sale of a car.Now a trial court in the same state is deciding Dora v.Even Steven Autos,Inc. ,a case with similar facts.Under the doctrine of stare decisis,the trial court is likely to

A) allow the minor to cancel the contract.
B) disregard the Beto case.
C) order the minor to cancel the contract.
D) require the minor to fulfill the contract.

Question 56

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S.Constitution

A) neither provision will be enforced.
B) both provisions will be enforced.
C) the state provision will be enforced only within that state's borders.
D) the state provision will not be enforced.

Question 57

The means to enforce a right or compensate for the violation of a right is

A) a cornerstone.
B) a remedy.
C) jurisdiction.
D) stare decisis.

Question 58

The Montana legislature enacts a state law that violates the U.S.Constitution.This law can be enforced by

A) no one.
B) the federal government only.
C) the state of Montana only.
D) the United States Supreme Court only.

Question 59

In the case of Sales Corp.v.Transport Co. ,the court may rule contrary to a precedent if the court decides that the precedent

A) is incorrect or inapplicable.
B) is not in line with the judge's personal values.
C) would lead to unintended consequences.
D) would not bring about the result the judge prefers.

Question 60

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as

A) statutory law.
B) the basis of all law in the United States.
C) the supreme law of the land.
D) uniform law.

Question 61

Federico and Gwen are involved in a court proceeding to enforce a right.This is

A) an action.
B) stare decisis.
C) an injunction.
D) a remedy.

Question 62

At one time,a court of law could grant as a remedy only

A) monetary damages.
B) an order to perform a contract as promised.
C) a judicial proceeding for the resolution of a dispute.
D) an injunction.

Question 63

The National Rights Council,a nonprofit organization,files a suit against the U.S.Department of Justice (DOJ),claiming that a certain federal statute the DOJ is empowered to enforce conflicts with the U.S.Constitution and with a state constitution.In each situation,which source of law has priority?

Question 64

In a suit against Guillermo,Hailey obtains an award of damages.This is

A) an order to do or to refrain from doing a certain act.
B) the right to harm another.
C) a payment of money or property.
D) the cancellation of a contract.

Question 65

Jaime and Kay enter into a contract for the sale of a bicycle,but Kay later refuses to deliver the goods.Jaime asks a court to order Kay to perform as promised.Ordering a party to perform what was promised is

A) an equitable remedy.
B) an unenforceable demand.
C) an action.
D) beyond the court's authority.

Question 66

In a civil case,the object is to

A) resolve a dispute to the satisfaction of all concerned parties.
B) take coercive action against a violating party.
C) punish a wrongdoer to deter others from similar actions.
D) obtain a remedy to compensate the injured party.

Question 67

Criminal statutes proscribe

A) the prosecution of private individuals by other private individuals.
B) the prosecution of public officials by private individuals.
C) the relief available when a person's rights are violated.
D) wrongs committed against society for which society demands redress.

Question 68

When Lara and Mick cannot resolve their dispute amicably,Lara initiates a lawsuit against Mick.Lara is

A) the case of first impression.
B) the persuasive authority.
C) the plaintiff.
D) the defendant.

Question 69

What is the doctrine of stare decisis? In the American legal system,how is it applied,and what is its effect?

Question 70

The classification of law that concerns the rights and duties that exist between persons and between citizens and their government is

A) criminal law.
B) civil law.
C) natural law.
D) legal positivism.

Question 71

To benefit from international trade,individual nations agree to be governed by

A) international law.
B) the Uniform Commercial Code.
C) none of the choices.
D) the laws of other nations.

Question 72

In a suit against Karen,Luke obtains an injunction.This is

A) an order to do or to refrain from doing a certain act.
B) a departure from precedent.
C) a payment of money.
D) the cancellation of a contract.