Question 1

Brooke and Travis are looking to build a small building where they can run their trendy coffee shop as a business. When they find the perfect spot, they are told that cannot put a business there because it is zoned residential. The zoning limit is an example of
A) Common law
B) An ordinance
C) Unethical conduct
D) Unconstitutional conduct

Accepted Answer

Zoning limits are established through ordinances, which are laws or regulations enacted by a municipal or county government to dictate land use within its jurisdiction. This is why Brooke and Travis cannot build their coffee shop in an area zoned for residential use.

Question 2

Secondary sources of law, such as Restatements,
A) Are binding in all 50 states
B) Ensure that the law is clear to all that read it
C) Requires that the executive branch approves it
D) Have no independent authority or legally binding effect

Accepted Answer

Restatements are not legally binding; they are secondary sources that aim to distill the common law and its principles into a coherent form, but they do not have independent authority. Courts may consider them persuasive, but they are not required to follow them.

Question 3

Janet enters into a contract with Laura to tutor her in Chemistry one day a week for a year. After the second session, Janet decides to stop tutoring Laura due to their conflciting schedules. Laura sues Janet for breach of contract. This is an example of:
A) Private laws
B) Public laws
C) Procedural laws
D) Equitable laws

Accepted Answer

This scenario involves a breach of contract, which falls under private law. Private law governs disputes between private individuals or entities, such as the agreement between Janet and Laura for tutoring services.

Question 4

Regulation of financial markets through the Dodd-Frank Act show a current regulatory trend of
A) An increase in the monitoring of fiscal responsibility
B) An increase in the regulations of corporate ethics
C) An increase in the expense of litigation in corporations.
D) An increase in U.S. and foreign regulations.

Accepted Answer

The Dodd-Frank Act increased U.S. and foreign regulations on financial markets.

Question 5

The "general counsel," may also
A) Supervise the Board of Directors in a large corporation
B) Supervise one or more attorneys, usually called "associate counsel"
C) Supervise and approve or disapprove all managerial decisions
D) Supervise the actions of the shareholders

Accepted Answer

The general counsel typically supervises one or more attorneys within an organization, often referred to as "associate counsel." This role involves overseeing the legal aspects of the organization, rather than supervising the Board of Directors, managerial decisions, or the actions of shareholders directly.

Question 6

Which statement below is correct as it relates to business strategy?
A) Since legal fees and representation costs have sky-rocketed, large businesses should focus on hiring one attorney to address all their legal needs.
B) Those in managerial roles should learn more about the law so as to decrease their need for legal representation.
C) Since the law has become increasingly complex and specialized, and businesses routinely face many different legal issues, it is not unusual for a business to need to seek advice from more than one attorney.
D) All business decisions should be run by an attorney before the business moves forward with any plans.

Accepted Answer

The complexity and specialization of law, along with the variety of legal issues businesses face, often necessitate consulting multiple attorneys with different areas of expertise.

Question 7

The governmental body charged with actually enforcing and carrying out the laws promulgated by Congress is:
A) Administrative agencies
B) The judicial branch
C) Local townships
D) the American Law Institute

Accepted Answer

Administrative agencies are responsible for enforcing and carrying out laws passed by Congress. They have the authority to create regulations and ensure compliance with federal laws.

Question 8

Japan, for example, does not rely extensively on precedent, but rather adheres to a strict interpretation of a legislatively established code or regulation. What type of system of law is that called?
A) Common law system
B) Civil law system
C) Statutory law system
D) Administrative law system

Accepted Answer

Japan operates under a civil law system, which is characterized by a reliance on written codes and statutes passed by the legislative body, rather than judicial decisions and precedent as in common law systems.

Question 9

Lisa owns a wedding planning business. Her signature wedding services are in demand all over the country and keep her very busy. She seeks legal advice from counsel when necessary. A new federal statute becomes effective in six months that allows a wedding planner to protect their signature wedding techniques as a trade secret and also creates penalties if a wedding planner infringes upon the protected trade secrets of another wedding planner. Chris, her trusted counsel, offers four strategies to plan for the new statute. First, Chris says the penalties are rather small compared to the profit she makes each time she plans a wedding. Therefore, she can just ignore the new law and all the hassle that comes with it. A second option Chris offers is that should could change her business classification from a wedding planner to an event planner because this new law only applies to wedding planners and not event planners. He believes this is a legal loophole. The third option Chris offers is to register some of her most popular services as trade secrets and create a brochure where she lists the types of signature wedding plans she has registered and not deviate from that list of offered services. This will ensure that she does not risk infringing upon a trade secret another wedding planner has protected. Finally, the fourth option Chris offers is that since the law is relatively new and virtually unknown to anyone in her industry, they should register for every possible type of wedding technique that she has ever used or can think to possibly use in the future. This will limit the options of all the other wedding planners and will therefore make her the wedding planner with the most services to offer. For each of the four options Chris offered, identify and briefly explain the type of business strategy employed.

Accepted Answer

The answer of Lisa owns a wedding planning business. Her...

Quiz 1: Legal Foundations and Thinking Strategically

Brooke and Travis are looking to build a small building where they can run their trendy coffee shop as a business. When they find the perfect spot, they are told that cannot put a business there because it is zoned residential. The zoning limit is an example of

Secondary sources of law, such as Restatements,

Janet enters into a contract with Laura to tutor her in Chemistry one day a week for a year. After the second session, Janet decides to stop tutoring Laura due to their conflciting schedules. Laura sues Janet for breach of contract. This is an example of:

Regulation of financial markets through the Dodd-Frank Act show a current regulatory trend of

The "general counsel," may also

Which statement below is correct as it relates to business strategy?

The governmental body charged with actually enforcing and carrying out the laws promulgated by Congress is:

Japan, for example, does not rely extensively on precedent, but rather adheres to a strict interpretation of a legislatively established code or regulation. What type of system of law is that called?