Question 1

When firms do not wish to accept the rules of the CISG, what do they often opt for to settle contract disputes?
A) UN involvement
B) arbitration
C) collective bargaining
D) common law system of the United States
E) Islamic law

Accepted Answer

Firms often opt for arbitration to settle contract disputes when they do not wish to accept the rules of the CISG, as it provides a private and flexible method of resolving disputes outside of court.

Question 2

The United Nations created CISG in response to ________ that occur in international trade.
A) contract disputes
B) environmental concerns
C) political uprisings
D) tariff differences
E) foreign exchange rates

Accepted Answer

The United Nations created the CISG (Convention on Contracts for the International Sale of Goods) to address and provide a uniform framework for resolving contract disputes in international trade.

Question 3

A ________ law system is based on a detailed set of laws organized into codes.
A) civil
B) theocratic
C) common
D) traditional
E) religious

Accepted Answer

Civil law systems are based on comprehensive, codified sets of laws that are applied and interpreted by judges.

Question 4

The ________ system of a country encompasses the rules that regulate behavior.
A) economic
B) theocratic
C) legal
D) demographic
E) political

Accepted Answer

The legal system of a country consists of the rules and regulations that govern behavior and ensure order within the society.

Question 5

Theocratic law systems are based on
A) legal precedent.
B) a detailed set of codes and laws.
C) religious teachings.
D) beliefs of a tribe .
E) beliefs of the ruling class.

Accepted Answer

Theocratic law systems are based on religious teachings, where the legal system is derived from the religious texts and doctrines of a particular faith.

Question 6

The common law system enjoys a degree of flexibility not found in other systems because
A) it is usually found in democratic republics.
B) it originated from Great Britain and can be found in almost all of its former colonies.
C) it is interpreted by the law courts with regard to tradition, precedent, and custom.
D) it is based on a detailed set of laws organized into codes.
E) it has originated recently-just a decade ago.

Accepted Answer

The common law system is flexible because it relies on judicial interpretations, traditions, precedents, and customs, allowing it to adapt over time.

Question 7

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.
A) command
B) pure market
C) mixed
D) centrally planned
E) laissez-faire

Accepted Answer

A mixed economy features both private ownership and free market mechanisms alongside significant state ownership and government planning in certain sectors.

Question 8

Theft, piracy, and blackmail by private individuals or groups are examples of
A) private consumption.
B) private practice.
C) privacy tort.
D) private action.
E) privacy norms.

Accepted Answer

Private action refers to actions taken by individuals or groups that are not sanctioned by the state, such as theft, piracy, and blackmail.

Question 9

In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of
A) memoranda.
B) manifesto.
C) contract.
D) white paper.
E) precedent.

Accepted Answer

A contract is a legally binding document that outlines the rights and obligations of the parties involved, which is what Torc Tools Corp. agreed to with the supplier.

Question 10

When considering the legal use of the word, ________ is the term given to a resource over which an individual or business holds a legal title.
A) liability
B) contract
C) shareholder
D) property
E) possession

Accepted Answer

Property is the term used to describe a resource over which an individual or business holds a legal title, indicating ownership rights.

Question 11

Which legal system is based on tradition, precedent, and custom?
A) common law
B) civil law
C) autocracy law
D) monarchy law
E) universal law

Accepted Answer

Common law is based on tradition, precedent, and custom, where past judicial decisions are used as a guide for future cases.

Question 12

Under a civil law system, it is the responsibility of a judge only to ________ the law.
A) create
B) apply
C) assess
D) interpret
E) change

Accepted Answer

In a civil law system, judges primarily apply the law to cases, as the laws are typically codified and detailed, leaving little room for interpretation or creation.

Question 13

When comparing the three broad types of economic systems, it can be said that
A) for a pure market economy to function efficiently, product supply must be restricted.
B) in a command economy, state-owned enterprises have little incentive to control costs and be efficient.
C) the sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.
D) mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.
E) production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

Accepted Answer

In a command economy, state-owned enterprises often lack the incentive to control costs and be efficient because they do not face competition and are not driven by profit motives.

Question 14

When comparing contracts in common law and civil law systems, it can be said that
A) contracts drafted under a common law system tend to be longer than those drafted under a civil law system.
B) contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system.
C) it is more expensive to draw up contracts in a civil law system than in a common law system.
D) resolving contract disputes tends to be less adversarial in common law systems than in civil law systems.
E) civil law systems allow for judges to interpret a contract dispute, but this feature is absent in common law systems.

Accepted Answer

Contracts in common law systems tend to be longer because they often include detailed terms and conditions to cover various contingencies, as common law relies heavily on case law and precedent.

Question 15

The government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the energy industry were enraged by this decision. As a result, the government had to reduce the tax burden on all private energy firms so that both the state-owned enterprise and private firms could coexist. What type of economy does this portray?
A) mixed
B) market-based
C) command
D) laissez-faire
E) communist

Accepted Answer

This scenario describes a mixed economy, where both state intervention and private enterprise coexist. The government intervenes by taking a company into state ownership and also adjusts policies to support private firms.

Question 16

Jewish law is an example of what type of law system?
A) autocratic
B) civil
C) common
D) theocratic
E) universal

Accepted Answer

Jewish law, also known as Halakha, is a theocratic legal system as it is based on religious texts and principles.

Question 17

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that
A) the economic system of a country is independent of its legal system.
B) the legal system of a country is not influenced by the prevailing political system.
C) the legal system does not affect the attractiveness of a country as an investment site or market.
D) all countries have the same legal environments.
E) the legal framework of a country reflects the rulers' dominant political ideology.

Accepted Answer

The legal framework of a country often reflects the dominant political ideology of its rulers, influencing how laws are structured and enforced.

Question 18

What is the most widely practiced theocratic legal system in the modern world?
A) Christian law
B) Islamic law
C) Jewish law
D) Hindu law
E) Buddhist law

Accepted Answer

Islamic law, also known as Sharia, is the most widely practiced theocratic legal system in the modern world, particularly in countries with significant Muslim populations.

Question 19

Jonah is a lawyer representing a company in a lawsuit. During the trial, Jonah referred to a court case from ten years ago and asked the witness if she felt her company had acted in a similar manner as the company in the previous case. When Jonah referred to the previous court case, he was relying on ________ to make his case.
A) tradition
B) precedent
C) custom
D) interpretation
E) culture

Accepted Answer

Jonah was relying on precedent, which is a legal principle or rule established in a previous case that is either binding or persuasive for a court when deciding subsequent cases with similar issues or facts.

Question 20

In 2008, the U.S. government stepped in to help some failing financial institutions as a way to prevent further collapse of the economy. Typically, the U.S. government does not interfere in these situations. What type of economy does this exemplify?
A) command
B) centrally planned
C) pure market
D) mixed
E) laissez-faire

Accepted Answer

The U.S. economy is a mixed economy, which combines elements of both market and government intervention. The government's intervention in 2008 to stabilize financial institutions is an example of this mixed approach.

Quiz 2: National Differences in Political, Economic, and Legal Systems

When firms do not wish to accept the rules of the CISG, what do they often opt for to settle contract disputes?

The United Nations created CISG in response to ________ that occur in international trade.

A ________ law system is based on a detailed set of laws organized into codes.

The ________ system of a country encompasses the rules that regulate behavior.

Theocratic law systems are based on

The common law system enjoys a degree of flexibility not found in other systems because

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

Theft, piracy, and blackmail by private individuals or groups are examples of

In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of

When considering the legal use of the word, ________ is the term given to a resource over which an individual or business holds a legal title.

Which legal system is based on tradition, precedent, and custom?

Under a civil law system, it is the responsibility of a judge only to ________ the law.

When comparing the three broad types of economic systems, it can be said that

When comparing contracts in common law and civil law systems, it can be said that

Jewish law is an example of what type of law system?

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that

What is the most widely practiced theocratic legal system in the modern world?

In 2008, the U.S. government stepped in to help some failing financial institutions as a way to prevent further collapse of the economy. Typically, the U.S. government does not interfere in these situations. What type of economy does this exemplify?