Deck 1: Law and Legal Reasoning

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

A constitution is a primary source of law.

Question 10

A statute is a secondary source of law.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

An administrative legislative rule is not legally binding on businesses.

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

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

Question 23

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 24

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

Question 25

Rescission is an equitable remedy.

Question 26

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

Question 27

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 28

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

Question 29

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

Question 30

There is one right answer to every legal question.

Question 31

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

Question 32

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

Question 33

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

Question 34

Controlling precedents are binding authorities.

Question 35

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

Question 36

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 37

Primary sources of law include

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

Question 38

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

Question 39

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

Question 40

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 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

The Uniform Commercial Code provides a set of rules governing

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

Question 49

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 50

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 51

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 52

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 53

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 54

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 55

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 56

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 57

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 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

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 60

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 61

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 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

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 64

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.

Question 65

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 66

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 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

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 69

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 70

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 71

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

Question 72

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.