Deck 1: An Introduction to the Fundamentals of Dynamic Business Law

Question 1

The term stare decisis means "standing by the decision."

Answer 1

True
Explanation: When courts rely on precedent,they are obeying stare decisis ("standing by their decision").

Question 2

Stare decisis is a legal principle that rulings made by lower courts are binding on higher courts in the same jurisdiction.

Answer 2

False
Explanation: Stare decisis is a legal principle that rulings made by higher courts are binding on lower courts in the same jurisdiction.

Question 3

The legislative branch of government creates statutory law.

Answer 3

True
Explanation: Legislative actions,called statutes,are an important source of law.The assortment of rules and regulations put forth by legislatures is statutory law.

Question 4

Law is rules of conduct in any organized society that are enforced by the governing authority of the community.

Question 5

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

Question 6

The National Conference of Commissioners on Uniform State Laws (NCC)regularly urges states to enact model laws to provide greater uniformity of law.

Question 7

Crimes are prosecuted not by individuals but by the state or federal government.

Question 8

A decision from the New Jersey Supreme Court is not binding on a New York trial court,even if New York has no applicable law on the issue involved.

Question 9

The U.S.Constitution is the foundation for approximately one-half of all laws in the United States.

Question 10

A decision of a state appeals court is not binding on a trial court located in the same state.

Question 11

Private law involves disputes between private individuals or groups and their government.

Question 12

Many market transactions occur without legal guidelines.

Question 13

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

Question 14

The purpose of stare decisis is to create less predictability for businesses and individuals.

Question 15

Judicial decisions are law even if the legislative branch should revoke them later by enacting new statutory law.

Question 16

If a pet store dumps waste from its business behind its building,it is a violation of a public law.

Question 17

Laws comparing and studying the laws in different countries are known as contributory law.

Question 18

The respect we give to the law as a source of authority is in part a recognition of the fact that in the absence of law,we would rely solely on the goodwill and dependability of one another.

Question 19

A treaty is a non-binding agreement between two states or international organizations.

Question 20

An alternative name for case law is statutory law.

Question 21

________ consists of the enforceable rules of conduct that govern commercial relationships.

A)Ethics
B)Equity
C)Business law
D)The Uniform Contracts Code
E)The International Contracts Code

Question 22

Assume a businessperson who owns a computer equipment store is delinquent in paying rent to the landlord.The resulting dispute involves ________.

A)public law
B)federal law
C)the Uniform Contracts Code
D)private law
E)equity

Question 23

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

Question 24

If someone commits an act against the public,he or she will be violating what type of law?

A)Civil law
B)Criminal law
C)Procedural law
D)Civil law and procedural law,but not criminal law
E)Civil law,criminal law,and procedural law

Question 25

Which of the following is not a purpose of the law as set forth in the text?

A)Encouraging taxation
B)Serving as a moral guide by indicating minimal expectations of citizens and organizations
C)Encouraging social justice
D)Guaranteeing personal freedoms
E)Providing order such that one can depend on a promise or an expectation of obligations

Question 26

Ordinances address all but which of the following business considerations?

A)Local taxes
B)Environmental standards
C)Zoning
D)Building codes
E)Federal taxes

Question 27

In 2009,Mississippi Valley Silica Company was ordered to pay a plaintiff $9 million because the court ruled that it sold sand to the plaintiff's employer with the knowledge that using the sand on a regular basis would expose a worker to a form of cancer,and Mississippi Valley did not alert those who bought the sand about the risk.The $9 million recovery is an example of a ________.

A)frivolous lawsuit
B)jury nullification
C)public law remedy
D)civil law remedy
E)criminal law remedy

Question 28

Which of the following involves remedies available to an individual when his or her rights are violated?

A)Civil law
B)Criminal law
C)Procedural law
D)Civil law and procedural law,but not criminal law
E)Civil law,criminal law,and procedural law

Question 29

Assume the Securities and Exchange Commission (SEC)prosecutes someone for insider trading.That prosecution is an example of ________.

A)criminal law
B)procedural law
C)civil law
D)natural law
E)adherence to the Uniform Criminal Code

Question 30

"Guaranteeing personal freedoms" is:

A)The exclusive purpose of the law.
B)One of the numerous purposes fulfilled by the law.
C)A purpose of criminal,but not civil,law.
D)A purpose of civil,but not criminal,law.
E)A cultural,but not legal,expectation.

Question 31

Which of the following is not one of the numerous purposes fulfilled by the law?

A)Providing order such that one can depend on a promise or an expectation of obligations
B)Serving as an alternative to fighting
C)Facilitating change without requiring a rational consideration of options
D)Encouraging social justice
E)Serving as a moral guide by indicating minimal expectations of citizens and organizations

Question 32

Which of the following involves disputes between private individuals or groups?

A)Public law
B)Private law
C)Governmental law
D)Public law and private law,but not governmental law
E)Public law,private law,and governmental law

Question 33

Crimes are prosecuted by:

A)Only injured individuals
B)Any interested person,whether injured or not
C)State governments only
D)The federal government only
E)The state or federal government

Question 34

How many of the functional areas of business sit on a foundation of business law?

A)Six
B)Five
C)Four
D)Three
E)Two

Question 35

Which of the following involves disputes between private individuals or groups and their government?

A)Public law
B)Private law
C)Governmental law
D)Public law and private law,but not governmental law
E)Public law,private law,and governmental law

Question 36

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 ________.

A)the electoral college
B)good faith and fair dealing
C)respondeat superior
D)stare decisis
E)the law

Question 37

Which of the following is one of the numerous purposes fulfilled by the law?

A)Discouraging social justice
B)Limiting personal freedoms
C)Serving as a moral guide by indicating maximum expectations of citizens and organizations
D)Providing order such that one can depend on a promise or an expectation of obligations
E)Serving as a supplement to fighting

Question 38

Which of the following is not a commonly recognized classification of the law?

A)National
B)Federal
C)International
D)Private
E)Philosophical

Question 39

Which type of law involves 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

Question 40

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

Question 41

________ are summaries of the common law rules in a particular area of the law that have been enacted by most states.

A)Appellate briefs
B)Amicus briefs
C)Statutes
D)Codifications
E)Restatements

Question 42

Which of the following are summaries of common law rules in a particular area of the law that have been enacted by most states?

A)Restatements of the Law
B)Codifications of the Law
C)Reporters
D)Reports of the Law
E)Codes of Reporters

Question 43

Which of the following is a term used to refer to laws that are contained in one convenient location?

A)Area laws
B)Codes
C)Classifications
D)Filings
E)Reports

Question 44

The United States Constitution and ________ establish the fundamental principles and rules by which the United States and the several states are governed.

A)the administrative rules
B)the procedural rules
C)the constitution of each state
D)the bylaws of each state
E)both the procedural rules and the bylaws of each state

Question 45

The term ________ involves the use of past decisions to guide future decisions.

A)res ipsa loquitur
B)precedent
C)restatement
D)respondeat superior
E)certiorari

Question 46

Legislative acts passed by the United States Congress can be found in the ________.

A)U)S.Code
B)various state codes
C)Uniform Register
D)Uniform Contracts Code
E)Restatement (Second)of Statutory Law

Question 47

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.

Question 48

Which of the following is an example of an independent federal administrative agency?

A)The Consumer Product Safety Commission
B)The Occupational Safety and Health Administration
C)The Small Business Administration
D)The National Science Foundation
E)The Veteran's Administration

Question 49

When courts rely on precedent,they are obeying ________.

A)legislative stasis
B)res judicata
C)stare decisis
D)in rem jurisdiction
E)federal law

Question 50

An alternative name for case law is ________.

A)common law
B)statutory law
C)constitutional law
D)equity
E)ethics

Question 51

A case that has been used in accordance with stare decisis as a binding precedent is ________,which abolished discriminatory policies for individuals of different racial backgrounds.

A)Curtis v.School Board
B)Laughlin v.Glover
C)Grover v.BreeBee
D)Brown v.Board of Education
E)Story v.Price

Question 52

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.

Question 53

In which of the following cases did the U.S.Supreme Court rely on precedent to strike down a school's admissions policy that reserved slots for members of minority races?

A)Story v.Price
B)Brown v.Board of Education
C)University of California v.Bakke
D)Grover v.University of Mississippi
E)Adkins v.Price

Question 54

The ________ is a significant body of law for business activities.It includes sales laws and other regulations affecting commerce,such as bank deposits and collections,title documents,and warranties.

A)Federal Business Code
B)Model Business Code
C)Uniform Contracts Code
D)Uniform Commercial Code
E)International Commercial Code

Question 55

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 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 required.
E)A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate and two-thirds of the state legislatures.

Question 56

What are local legislative laws called?

A)Area laws
B)Ordinances
C)Classifications
D)Filings
E)Reports

Question 57

The National Conference of Commissioners on Uniform State Laws (NCC)was an important source of the ________.

A)Uniform Contracts Code
B)International Criminal Court
C)Uniform Commercial Code
D)Uniform Criminal Code
E)International Commercial Code

Question 58

Legislative acts passed by state legislatures can be found in ________.

A)the United States Code
B)state codes
C)the Uniform Register
D)the State Reporter
E)the State Reference Manual

Question 59

The ________ is the supreme law of the land.

A)United States Constitution
B)Declaration of Independence
C)U)S.Code
D)International Contracts Code
E)Uniform Commercial Code

Question 60

The laws put forth by the legislative branch are referred to as:

A)Administrative Codes
B)Statutes
C)Uniform Rules
D)Executive Orders
E)Secondary Laws

Question 61

In which school of jurisprudence is the concept of stare decisis rooted?

A)The historical school
B)Legal realism
C)Cost-benefit analysis
D)Legal positivism
E)Cultural retrenchment

Question 62

The Stolen Book.Betty tells Susan that Bob stole her business law book from her car.The next day Susan confronts Bob and slaps him for stealing her book.Bob has Susan arrested for slapping him.Susan sues Bob for damages in the amount of the book and for maliciously having her arrested.Claiming that she lied,Bob sues Betty for defamation.The action Bob has against Betty for defamation involves which of the following?

A)Criminal law
B)Civil law
C)Insider law
D)Both criminal and civil law
E)Administrative law

Question 63

Inattentive Driving.While cutting class and driving off campus to check on her new dress for the upcoming formal,Molly,a busy college student,is busy talking on her cell phone with her friend Sharon.Molly is trying to talk Sharon into going to the dance with her brother,who has a big crush on Sharon.Unfortunately for Molly,there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle.Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans.A police officer just down the street comes over to investigate.Molly explains to him that it was difficult to hold the cell phone in one hand,the soda in the other,and also drive.The officer was not impressed.Around that time Sam comes along.He is furious regarding the significant dent in his new car.Molly says she has insurance and that she will cover the whole incident.Sam says that is insufficient.The officer is annoyed because it is his lunch break.He tells Molly that she must obey the law and proceeds to write several citations to her.Which of the following is true regarding Molly's predicament?

A)Molly can be given a ticket and prosecuted criminally by government officials,but she may not be sued for a civil violation.
B)Molly can be sued for a civil action and must pay for Sam's car,but she cannot be prosecuted for a criminal violation.
C)Molly can be sued in a civil action by Sam,and the government can also prosecute her for a criminal violation.
D)So long as Molly has insurance and can pay for Sam's vehicle damage,she cannot be prosecuted in a civil or criminal action.
E)Sam can prosecute Molly in a criminal action,but he cannot sue her in a civil action.

Question 64

The cost-benefit analysis approach to legal change is tied closely to the pursuit of ________.

A)fairness
B)efficiency
C)equity
D)self-actualization
E)legal realism

Question 65

The Stolen Book.Betty tells Susan that Bob stole her business law book from her car.The next day Susan confronts Bob and slaps him for stealing her book.Bob has Susan arrested for slapping him.Susan sues Bob for damages in the amount of the book and for maliciously having her arrested.Claiming that she lied,Bob sues Betty for defamation.Bob is anxious to see Susan punished for slapping him.Which of the following is true regarding action Bob can take?

A)Bob can hire his own lawyer to prosecute Susan and send her to jail but cannot bring a civil action if he prosecutes criminally.
B)Bob's privately retained lawyer may not prosecute Susan alone but may insist on jointly trying the criminal case with the government lawyer.
C)Bob can bring an additional civil action against Susan for slapping him only if he loses the criminal case.
D)Bob can hire his own lawyer to prosecute Susan and send her to jail,and Bob can also bring an additional civil action against Susan for slapping him.
E)Bob's privately retained lawyer may not prosecute Susan because that is the government's job,but the privately retained lawyer can bring a civil action against Susan.

Question 66

International Expansion.Zach wants to expand his coffee business internationally - into Zeno,a small remote country in Africa.His best friend Zora asks him if he plans to hire legal counsel for the expansion.Zach replies,"Of course not.The U.S.has the strictest laws regarding contracts,employment,and business practices.So long as I'm legal here,I'm legal anywhere.Besides,I studied up on Zeno law ten years ago,and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits.Authorities there claim that he sexually harassed an employee,failed to pay sufficient wages,and failed to give employees Zeno's mandated 12 weeks of vacation per year. The type of law involved in comparing laws between the U.S.and Zeno is ________.

A)comparative law
B)contributory law
C)comprehensive law
D)complete law
E)delineated law

Question 67

Laws that help establish the conditions of trade between countries are:

A)The Uniform Commercial Code and the U.S.Constitution
B)Executive Orders and Administrative Codes
C)The North American Free Trade Agreement and the Bill of Rights
D)The North American Free Trade Agreement and the General Agreement on Tariffs and Trade
E)The General Agreement on Tariffs and Trade and the Uniform Commercial Code

Question 68

Define "stare decisis," discuss when it occurs in the legal system,and explain why stare decisis is important to businesses and individuals.

Question 69

International Expansion.Zach wants to expand his coffee business internationally - into Zeno,a small remote country in Africa.His best friend Zora asks him if he plans to hire legal counsel for the expansion.Zach replies,"Of course not.The U.S.has the strictest laws regarding contracts,employment,and business practices.So long as I'm legal here,I'm legal anywhere.Besides,I studied up on Zeno law ten years ago,and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits.Authorities there claim that he sexually harassed an employee,failed to pay sufficient wages,and failed to give employees Zeno's mandated 12 weeks of vacation per year. Which of the following is true regarding Zach's legal problems in Zeno?

A)Zach can rely upon the federal statutory laws of the U.S.as a defense but not his U.S.Constitutional rights.
B)Zach is entitled to all U.S.Constitutional rights in Zeno because he is a U.S.citizen,but he cannot rely on U.S.statutory rights.
C)Zach can rely upon the federal statutory laws of the U.S.as a defense,and he is also entitled to all U.S.Constitutional rights in Zeno because he is a U.S.citizen.
D)Zach must obey the laws of Zeno when operating a business in Zeno and cannot rely upon U.S.laws as a defense.
E)Zach is subject to civil laws but not criminal laws of Zeno.

Question 70

The Stolen Book.Betty tells Susan that Bob stole her business law book from her car.The next day Susan confronts Bob and slaps him for stealing her book.Bob has Susan arrested for slapping him.Susan sues Bob for damages in the amount of the book and for maliciously having her arrested.Claiming that she lied,Bob sues Betty for defamation.The lawsuit Susan has against Bob for damages for stealing her book involves which of the following?

A)Public law
B)Private law
C)Administrative law
D)Both public and private law
E)Comprehensive law

Question 71

Inattentive Driving.While cutting class and driving off campus to check on her new dress for the upcoming formal,Molly,a busy college student,is busy talking on her cell phone with her friend Sharon.Molly is trying to talk Sharon into going to the dance with her brother,who has a big crush on Sharon.Unfortunately for Molly,there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle.Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans.A police officer just down the street comes over to investigate.Molly explains to him that it was difficult to hold the cell phone in one hand,the soda in the other,and also drive.The officer was not impressed.Around that time Sam comes along.He is furious regarding the significant dent in his new car.Molly says she has insurance and that she will cover the whole incident.Sam says that is insufficient.The officer is annoyed because it is his lunch break.He tells Molly that she must obey the law and proceeds to write several citations to her.Which type or types of law is or are involved in the above situation considering Molly's interaction with both the officer and Sam?

A)Public law only
B)Private law only
C)Civil law and private law only
D)Criminal law and public law only
E)Public law,private law,civil law,and criminal law

Question 72

Candy wants to start an Internet business.The Chinese government tells her 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.

Question 73

International Expansion.Zach wants to expand his coffee business internationally - into Zeno,a small remote country in Africa.His best friend Zora asks him if he plans to hire legal counsel for the expansion.Zach replies,"Of course not.The U.S.has the strictest laws regarding contracts,employment,and business practices.So long as I'm legal here,I'm legal anywhere.Besides,I studied up on Zeno law ten years ago,and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits.Authorities there claim that he sexually harassed an employee,failed to pay sufficient wages,and failed to give employees Zeno's mandated 12 weeks of vacation per year. Which of the following is true regarding Zach's defense that he thought he knew the law of Zeno because he had studied it some years before and that the laws under which he was arrested were new?

A)Rules in international business change frequently,and Zach had a duty to stay current.It is not a defense that he studied the law at one time and that the laws at issue were new.
B)Zach is entitled to rely as a defense on the fact that he had studied the law at one time.Officials in Zeno were charged with publicizing any changes.
C)If Zach can prove that the laws at issue were passed within the last twelve months before he was arrested,he will get out of jail because under international law,there is a twelve month grace period for foreigners.
D)If Zach can prove that the laws at issue were passed within the last six months before he was arrested,he will get out of jail because under international law,there is a six-month grace period for foreigners.
E)Zach cannot be prosecuted so long as he was not aware he was violating the law.He did not have the requisite intent to perform a criminal act regardless of whether the laws were new.

Question 74

One of the most often-used guidelines for shaping the law is tradition,or custom,which is also called ________.

A)the historical school
B)legal realism
C)cost-benefit analysis
D)identification with the vulnerable
E)none of these

Question 75

Inattentive Driving.While cutting class and driving off campus to check on her new dress for the upcoming formal,Molly,a busy college student,is busy talking on her cell phone with her friend Sharon.Molly is trying to talk Sharon into going to the dance with her brother,who has a big crush on Sharon.Unfortunately for Molly,there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle.Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans.A police officer just down the street comes over to investigate.Molly explains to him that it was difficult to hold the cell phone in one hand,the soda in the other,and also drive.The officer was not impressed.Around that time Sam comes along.He is furious regarding the significant dent in his new car.Molly says she has insurance and that she will cover the whole incident.Sam says that is insufficient.The officer is annoyed because it is his lunch break.He tells Molly that she must obey the law and proceeds to write several citations to her.The law in Molly's state regulating cell phone usage would be classified as which of the following?

A)A statute
B)A type of common law
C)An executive order
D)A uniform law
E)A negative law

Question 76

List the purposes of the law and discuss why these purposes are necessary for an ordered society.

Question 77

Explain in what ways a treaty between a foreign country and the United States is similar to a contract.

Question 78

Comparative law:

A)Compares and studies the laws in different countries.
B)Compares and studies state constitutions.
C)Compares and studies executive orders.
D)Compares and studies laws of federal administrative agencies.
E)Compares and studies laws of the European Union.

Question 79

The Stolen Book.Betty tells Susan that Bob stole her business law book from her car.The next day Susan confronts Bob and slaps him for stealing her book.Bob has Susan arrested for slapping him.Susan sues Bob for damages in the amount of the book and for maliciously having her arrested.Claiming that she lied,Bob sues Betty for defamation.The prosecution by the government against Susan for slapping Bob involves which of the following?

A)Public law
B)Private law
C)Administrative law
D)Both public and private law
E)Comprehensive law

Question 80

To the Dogs.Alice loves all animals and is starting a new grooming business for dogs.She believes that animals are very important and plans to exceed any applicable regulations regarding cleanliness and health standards.Alice thinks some local regulations make no sense.For example,there is a local ordinance that all dogs must be kept on a leash at all times when not in a fenced area.Although Alice lives on a large lot with plenty of room for dogs to run free,she plans to obey the leash regulation and all others.She is aware,however,that members of the community have had success in changing local regulations by petitioning the city council.Alice plans to proceed in that manner to attempt a change in the leash law.Alice's plan to seek change through following what others have done in the past by petitioning city council is rooted in which of the following?

A)Legal positivism
B)The historical school
C)Legal realism
D)Natural law
E)Cost-benefit analysis