Test bank for business law text and exercises 6th edition by miller

Administrative law includes only federal regulations.. Administrative law includes only state regulations.. Under Ohio’s state constitution, the Ohio Environmental Protection Agency issu

Introduction to the Law and Our Legal System

N.B.: TYPE indicates that a question is new, modified, or unchanged,

as follows

N A question new to this edition of the Test Bank

+ A question modified from the previous edition of the Test

Bank,

= A question included in the previous edition of the Test Bank

TRUE/FALSE QUESTIONS

government regulations, except to pass this test

2 Law consists of enforceable rules governing relationships among

individuals and between individuals and their society

sound

1

ANSWER: T PAGE: 3 TYPE: N

4 Whether financial statements created by an accountant need to be

verified for accuracy is not a legal question

5 Considering ways to raise capital so that a business can grow does

not involve legal questions

6 Choosing an appropriate business organizational form does not

involve legal questions

8 Common law is a term for the laws that are familiar to most of us

valid

10 Stare decisis is a doctrine obligating judges to help persons who

have failed to protect their own rights

11 Courts can rely on the common law as a guide to interpreting

legislation

12 Damages is a remedy at law.

13 In most states, the courts no longer grant “equitable” remedies

14 Equity is a branch of unwritten law that seeks to supply remedies

equal measure to the parties in a legal dispute

15 In most states, the courts no longer grant “legal” remedies

16 Constitutional law includes only the U.S Constitution

17 The U.S Constitution is the supreme law of the United States

18 To determine whether a law is constitutional, a court will look at its

source

19 A state law that conflicts with the U.S Constitution will be deemed

unconstitutional

ANSWER: T PAGE: 7 TYPE: =

20 State constitutions are supreme within their respective borders

21 Congress can only pass legislation that falls within the limits set up

by the U.S Constitution

22 Statutory law includes only state statutes

23 How the courts interpret a particular statute determines how that

statute will be applied

24 Uniform laws apply in all states, including those in which the laws

have not been adopted

25 The Federal Trade Commission developed the Uniform Commercial

Code

26 Congress can charge an administrative agency with carrying out the

terms of particular laws

ANSWER: T PAGE: 8 TYPE: N

27 No state has adopted the Uniform Commercial Code in its entirety

28 Every state has adopted some or all of the Uniform Commercial

Code

29 Administrative law includes only federal regulations

30 Administrative law includes only state regulations

31 Common law and civil law systems are wholly distinct

32 Criminal law focuses on duties that exist between persons

33 Legal systems around the world are generally divided into criminal

law and civil law systems

34 Government authorities cannot enforce national law

35 International law is the law of a foreign nation and varies from

country to country

ANSWER: F PAGE: 9 TYPE: =

MULTIPLE CHOICE QUESTIONS

1 Cato and Dolly are involved in a lawsuit The best definition of a

lawsuit is

a a criminal prosecution, not a civil proceeding

b a failure to perform a legal obligation

c a judicial proceeding for the resolution of a dispute

d an enactment of law by a legislative body

2 Congress enacts a statute, the Federal Deposit Insurance

Corporation (an administrative agency) issues rules, the SoutheastFinancial Institutions Association (a private organizations) issuesinstructions, South Valley Bank posts a memo with orders for itsemployees, and Tina tells her co-worker about a recent news story.Sources of law include

a the instructions issued by private associations

c the rules issued by federal administrative agencies

d the stories released by news agencies

3 Under Ohio’s state constitution, the Ohio Environmental Protection

Agency issues a new rule, the Polk County Commission approves anew property tax measure, and the professors and students at OhioLaw School publish the results of their most recent legal research.Sources of law do not include

b the results of legal scholars’ research

c the rules issued by state administrative agencies.

d the states’ constitutions

4 The “common law” is referred to as the common law because

a it is the same in all states

b it was originally applied only to commoners

c it was more or less uniform throughout England

U.S legal system This system is based on the legal system of

6 Karen is a judge hearing the case of Local Dispatch Co v National

Transport Corp Applying the relevant rule of law to the facts of thecase requires Karen to find previously decided cases that, in relation

to the case under consideration, are

a as different as possible

b as similar as possible

d exactly identical

d proposed uniform laws.

8 Miley and Otis are involved in a case The best definition of a case is

a a criminal prosecution, not a civil proceeding

b a failure to perform a legal obligation

c a judicial proceeding for the resolution of a dispute

d a type of regulation applied to a business

9 In Beneficial Business Corp v City Distribution Co., the court decides

that a precedent is incorrect or inapplicable With this in mind, thecourt

c must refuse to decide the Beneficial case

10 In Financial Investment Co v Goodhands Insurance, Inc., there is no

precedent on which the court can base a decision The court canconsider

a neither public policy nor social customs and values

b public policy only

c public policy or social customs and values

d social customs and values only

11 The United States has a common law system The common law

began

a in the Islamic courts of predominantly Muslim countries

b as part of Greek and Roman civil law

c as a body of general rules applied in the courts throughout

England

d as a code of legal principles enacted by continental European

nations

12 In Benny v City 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 Daphne v Even Steven Auto Deals, Inc,,

a case with similar facts Under the doctrine of stare decisis, the trialcourt is likely to

a allow the minor to cancel the contract

c order the minor to cancel the contract

d require the minor to fulfill the contract

13 Beth and Celia are involved in an action The best definition of an

action is

a a criminal prosecution, not a civil proceeding

b a failure to perform a legal obligation

c a judicial proceeding for the resolution of a dispute

d a way to raise capital so that a business can grow

14 Craig is a state court judge In his court, as in most state courts,

legal and equitable remedies have merged But it is important todistinguish between equitable and legal remedies

c to negotiate an enforceable business contract

15 As a judge, Nina decides cases that involve principles of

administrative law, case law, civil law, and statutory law Commonlaw is

c civil law

16 Starlight Café has a cause of action, which is best defined as

a a criminal prosecution, not a civil proceeding

b a failure to perform a legal obligation

c a judicial proceeding for the resolution of a dispute

d a situation giving a person a right to initiate a judicial

proceeding

17 Eliza is a state court judge Flora appears in a case in Eliza’s court,

claiming that Glover breached a contract As in most state courts,Eliza may

c cancel the contract only

18 Diana is a state court judge In her court, as in most state courts, she

may grant in a particular case

c equitable and legal remedies.

d neither an equitable nor a legal remedy

19 Maggie and Nate enter into a contract for the sale of car, but Nate

later refuses to deliver the goods Maggie asks a court to order Nate

to perform as promised Ordering a party to perform what waspromised is

20 Leona enters into a contract with Munchie Bakery to cater a sales

conference When the conference is postponed indefinitely, Leonaasks a court to cancel the contract and return the parties to thepositions that they held before its formation This request involves

21 Owen is a federal judge whose judicial decisions are part of case law,

which includes interpretations of

a administrative regulations only

b constitutional provisions only

d administrative regulations, constitutional provisions, and

statutes

22 Areas of the law not governed by statutory or administrative law are

b open to each individual’s own interpretation

c regulated by the states under the U.S Constitution

d subject to local ordinances

23 If a provision in the California state constitution conflicts with a

provision in the U.S Constitution

a neither provision applies

b the provisions are balanced to reach a compromise

c the state constitution takes precedence

d the U.S Constitution takes precedence

24 The Pennsylvania legislature enacts a state law that violates the U.S

Constitution This law can be enforced by

c the state of Pennsylvania only

25 Gold & Silver Exchange Company is a jewelry and gems dealer

subject to the laws of New York In New York, the highest-ranking(superior) law is

b a provision in the New York constitution

c a rule created by a New York state administrative agency

d a statute enacted by the New York legislature

ANSWER: B PAGE: 7 TYPE: =

26 The River City Council, the Santa Clara County Board, the Texas state

legislature, and the U.S Congress enact laws These laws constitute

c stare decisis

issues rules, orders, and decisions The Georgia state legislatureenacts statutes The Jackson County Board and the Peach CityCouncil enacts ordinances Administrative law includes

a all law that affects a business’s operation

b decisions, orders, and rules of the FTC

c ordinances enacted by county board and the city council

d statutes enacted by the state legislature

28 The Uniform Commercial Code has been adopted, at least in part, in

a all states

b forty-five states

c thirty-five states

29 The term civil law refers to

a case law.

c federal law, as opposed to state law

d law that provides for societal order

30 The Securities Exchange Commission is an administrative agency.

The chief purpose of such agencies is to

a act as liaisons between federal and state governments

b carry out the terms of particular laws

d standardize laws for the executive and judicial branches

31 Rupert is a victim of Sara’s violation of a criminal law Criminal law is

concerned with

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

32 Civil law is concerned with disputes between persons and

a other persons and between citizens and their governments

d the public as a whole only

33 In theory, in a civil law system, the courts

b are obligated to follow the doctrine of stare decisis

c must create new rules of law

d must develop legal concepts by case law

ANSWER: A PAGE: 8 TYPE: =

34 MadeRite Containers, Inc., based in the United States, does business

in China International law governs

a the acts of nations and individuals

b the acts of nations but not individuals

c the acts of individuals but not nations

d only international organizations

35 National law is

a law that pertains to a particular nation

b law that has an extraterritorial effect

c all law that is applied within a nation’s courts, including

international law and the law of another country

d federal law, as opposed to state law

ESSAY QUESTIONS

1 Americans with a Better Cause (ABC), a nonprofit organization, files a

suit against the U.S Department of Justice (DOJ), claiming that a tain federal statute the DOJ is empowered to enforce conflicts withthe U.S Constitution and with a state constitution In each situation,which source of law has priority?

law in violation of the Constitution, no matter what its source, will bedeclared unconstitutional and will not be enforced Thus, the federalstatute does not have priority over the Constitution The federalstatute would have priority over the state constitution, however,because under the U.S Constitution, when there is a conflict

between a federal law and a state law, the state law is renderedinvalid.

2 In a dispute between Digital Hardware Corporation and Software

Engineering Associates, Inc., the court applies the doctrine of staredecisis What is this doctrine? What does this doctrine have to dowith the American legal system?

ANSWER: In a common law legal system, past judicial decisions arebinding in current disputes with similar facts This feature of thecommon law, which is the basis of the American legal system, isunique because, unlike the law in other legal systems, it is judge-made law Within the common law system, when possible, judgesattempt to be consistent and to base their decisions on the principlessuggested by earlier cases The body of principles and doctrinesthat form the common law emerged over time as judges applied theprinciples announced in earlier cases to subsequent legalcontroversies The practice of deciding cases with reference toformer decisions, or precedents—the cornerstone of the Americanlegal system—is called the doctrine of stare decisis Under thisdoctrine, judges are obligated to follow the precedents establishedwithin their jurisdictions This helps courts to be more efficient, andmakes the law more stable and predictable