Question 1

In the context of property rights,_____ refers to theft,piracy,blackmail,and the like by private individuals or groups.

Accepted Answer

Private action refers to actions taken by private individuals or groups that violate property rights, such as theft, piracy, and blackmail. Choice A (private consumption) refers to the use of goods and services by individuals or groups, and is not relevant to property rights. Choice B (private practice) and Choice C (privacy tort) are also not relevant to property rights violations. Choice E (privacy violation) refers to the violation of an individual's right to privacy, which is a separate issue from property rights.

Question 2

Which of the following is true about legal systems?

Accepted Answer

The government of a country defines the legal framework within which firms do business. Legal systems vary greatly across countries and are influenced by a variety of factors, including culture, history, and political and economic systems. Governments create laws and regulations to govern business practices within their country. As such, it is important for firms to understand the legal environment of the countries in which they operate.

Question 3

Which of the following is true about the three main types of legal systems?

Accepted Answer

Islamic law, also known as Sharia law, not only covers moral behavior but has also been extended to cover certain commercial activities. Choices A, B, D, and E are incorrect.

Question 4

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

Accepted Answer

A civil law system is based on a detailed set of laws organized into codes, which are used to make judgments and decisions. This is in contrast to a common law system, which relies on precedents set by previous court decisions, and a theocratic system, which is based on religious texts and teachings. A traditional law system is a system that has developed over time based on the customs and practices of a particular culture or society.

Question 5

_____ is the most widely practiced theocratic legal system in the modern world.

Accepted Answer

Islamic law, also known as Sharia, is the most widely practiced theocratic legal system in the modern world. It is followed by approximately 25% of the world's population, mainly in the Muslim-majority countries of the Middle East, North Africa, and Asia. Islamic law covers a wide range of topics, including religion, politics, economics, society, and personal behavior, and is based on the Quran and the teachings of Prophet Muhammad.

Question 6

Which of the following is true about property rights?

Accepted Answer

In many countries, laws protecting property rights are not enforced by the authorities and the rights are violated. The other options are false. Ideas can be considered intellectual property and therefore a form of property (A), legal systems defining and protecting property vary widely between countries (B), and individuals in China do have legal protection for their property (C). Regarding private action, it refers to actions taken by individuals or groups (not politicians or government officials) that violate property rights (D).

Question 7

Jewish law is an example of a _____ law system.

Accepted Answer

Jewish law, also known as Halakha, is based on religious beliefs and principles and is governed by religious leaders. Therefore, it is a theocratic law system.

Question 8

Which of the following statements is true about the difference between contracts in common law and civil 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. Civil law contracts are generally shorter, as they rely more on codified statutes and principles.

Question 9

A legal system which is based primarily on religious teachings is referred to as the:

Accepted Answer

A theocratic law system is based on religious teachings and is often found in countries where religion plays a major role in society and government. Civil law systems are based on written codes and statutes, common law systems rely on judicial precedent, and public law systems deal with the organization and function of the government.

Question 10

In the context of common law,the term "tradition" most likely refers to the:

Accepted Answer

In the context of common law, "tradition" refers to the legal history of a country. Common law systems rely heavily on precedent and the decisions made in previous cases, which form a body of traditional legal principles. These principles are based on the accumulated experience of judges and lawyers over time and are continually interpreted and applied to new cases. Therefore, understanding the legal history of a country is essential to understanding the common law system.

Question 11

The _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Accepted Answer

The Contracts for the International Sale of Goods (CISG) is a set of internationally recognized rules that governs the making and performance of commercial contracts for the sale of goods between parties from different nations. The CISG is widely used in international trade and has been adopted by over 90 countries.

Question 12

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises,whereas the 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 the:

Accepted Answer

The question suggests that the legal environment of a country is influenced by its political system and dominant political philosophy. Therefore, the legal framework reflects the rulers' dominant political ideology. This is evident in the different approaches taken by collectivist-inclined totalitarian states and democratic states with individualism as the dominant philosophy.

Question 13

Which of the following law systems is most likely to be used by a law court if it solves a complicated case related to property rights,by basing his judgment on similar,old cases that have come before the courts?

Accepted Answer

The Precedent law system relies on previous legal decisions to guide current cases. Therefore, if a complicated case related to property rights is being tried, the court is likely to base its judgment on similar old cases that have come before it. This is a characteristic feature of the Precedent law system.

Question 14

In comparison to contracts in a civil law system,contracts drafted under a common law framework tend to be:

Accepted Answer

Contracts under a common law framework tend to be more specific than those in a civil law system. This is because in a common law system, contracts are interpreted based on the intentions of the parties, whereas in a civil law system, contracts are interpreted based on the words used in the agreement. Therefore, common law contracts often include more specific language to clarify the intentions of the parties.

Question 15

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called _____ rights.

Accepted Answer

Property rights refer to the bundle of legal rights that an owner has over a resource. These rights include the right to use the resource, the right to exclude others from using the resource, and the right to sell or transfer the resource. Property rights are important in economics because they provide individuals with the incentive to invest in and improve resources, since they are able to retain the benefits of their efforts. Civil, political, shareholder, and public rights are all important, but they do not pertain specifically to property ownership and use.

Question 16

_____ are documents that specify the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

Accepted Answer

Contracts are legal documents that lay out the terms and conditions of an exchange or sale. They outline the rights and obligations of all parties involved and provide a framework for resolving any disputes that may arise. Memoranda, manifestoes, white papers, and minutes are all different types of documents that serve different purposes and do not necessarily involve an exchange or sale.

Question 17

In the context of common law,which of the following terms refers to the ways in which laws are applied in specific situations?

Accepted Answer

Common law is based on tradition, precedent, and custom, where custom refers to the ways in which laws are applied in specific situations.

Question 18

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

Accepted Answer

The common law system is interpreted by the law courts with regard to tradition, precedent, and custom which allows for greater flexibility than other systems. The other options do not fully explain the reason for the flexibility in the common law system.

Question 19

When firms do not wish to accept the rules of the CIGS,they often opt for _____ to settle contract disputes.

Accepted Answer

When firms do not wish to accept the rules of the CIGS, they often opt for arbitration to settle contract disputes as it allows them to choose an impartial third-party arbitrator and tailor the arbitration process to meet their specific needs, rather than being bound by the standardized rules of the CIGS.

Question 20

Which of the following legal systems is most likely to be based on tradition,precedent,and custom?

Accepted Answer

Common law is a legal system where court decisions establish legal principles and precedents, rather than codified law. It is based on tradition, precedent, and custom. Civil law, on the other hand, is based on written laws and codes, and is less reliant on precedent. Autocracy law, Monarchy law, and Universal law are not recognized legal systems.

Quiz 2: National Differences in Political Economy