Test bank for the legal and regulatory environment of business 15th edition by reed

A federal statute has been enacted establishing a national minimum wage of $8.00 per hour.. Minnesota may enact a state law making the minimum wage $7.50 per hour within the state for pr

Law as the Foundation of Business

True / False Questions

1 The first known written set of laws was the Code of Hammurabi

8 Procedural law defines rights and duties for the parties

12 Legislation enacted by Congress is called a statute while a law passed by a local

government is usually called an ordinance

16 Jurisprudence refers to the law itself and not to the philosophy of law

Multiple Choice Questions

21 Which of the following is not an advantage of stare decisis applied to case law under common law principles?

A Stare decisis provides predictability in law

B Stare decisis and case law helps specify, in detail, the boundaries of our property based legal system

C Case law eliminates conflict of laws problems due to the large number of decisions being made

D Case law decisions cannot be overturned once established as precedent so consistence is maintained and assured

22 means to follow the case precedent

27 Mike has entered into a binding agreement to sell a car to Kathy When Kathy shows up tocomplete the deal as per the agreement, Mike refuses to go through with the transaction Which of the following best categorizes Mike and Kathy's issues with regard to classification

of laws?

A This is a public law issue regarding contract law

B This is a private law issue regarding contract law

C This is a public law issue regarding property law

D This is a private law issue regarding criminal law

28 The prosperous nations exploit the resources and labor of poor nations through trade so the wealthy nations are prosperous because the poor nations are poor describes the:

A Wealth dissemination theory

B Wealth determination theory

C Dependency theory

D Dominance theory

29 Which statement is true?

I Substantive laws define rights and duties

II Procedural rules provide the machinery to enforce rights and duties

A I and II

B I only

C II only

D Neither I nor II

30 The City of Dover has passed a written law banning smoking in most restaurants and bars.Dover has enacted a/an:

A Statute

B Act

C Regulation

D Ordinance

31 jurisprudence believes that law is simply the commands of the state backed up

by force and punishment

33 Which of the following is not an area of property law concern?

A Promises to exchange resources in the future

B Patents and copyrights

C Trademarks and trade secrets

D All of the above are property law concerns

34 Laws passed by Congress are usually referred to as:

A Statutes

B Codes

C Ordinances

D Commandments

35 The Uniform Commercial Code will not apply to:

A The purchase of a new computer

B The purchase of a used car

C The use of a check as payment for a transaction

D The contract to hire a cleaning crew to clean your home or office

36 Judge Alan has issued a decision in a mortgage foreclosure case The issue involved a bank that granted a loan to a person who could not afford the payments Judge Alan found for the bank, however, in his opinion said that the bank acted legally but unethically and that homeowners should have more protection from such unethical lending policies He lamented that the current law forced him to find for the bank When the judge opined about the

unethical lending practices and said that he wished he could have helped the homeowner, his statements would be considered:

A Dicta

B Precedent

C Stare decisis

D A judicial holding

37 The Uniform Commercial Code applies to:

I Commercial transactions involving personal property

II Real estate

III Personal service contracts

39 Sheila goes to the only car dealer in town to purchase a car She tells the dealer that this will be her first car and that she needs it to travel to a distant city for a new job that starts in two days After coming to an agreement, the dealer tells her the car will be ready at 9:00 am the next morning He then asks her out to dinner for that night Sheila says no The dealer is very upset at her rejection so he refuses to provide to her the car the next morning breaching the contract Sheila has no way to get to the new job and she is fired

A Sheila can only sue for compensatory damages related to the breach of contract

B Sheila can sue for exemplary damages because a tort has been committed

C Sheila is entitled to consequential damages because the dealer knew that she needed the carfor travel to the new job

D Sheila is entitled to nothing because the dinner rejection gave the dealer just cause to breach the contract

40 A federal statute has been enacted establishing a national minimum wage of $8.00 per hour

A Minnesota may enact a state law making the minimum wage $8.25 within the state

B Minnesota must keep their minimum wage at $8.00 per hour and may not go higher

C Minnesota may enact a state law making the minimum wage $7.50 per hour within the state for private employers but must honor the $8.00 per hour rate for state and federal

government employees within the state

D Since the federal government has enacted minimum wage legislation, Minnesota may not make any laws in the area which is now reserved for federal enforcement

41 Which of the following would be considered intangible:

A Oxygen

B A house

C Gasoline

D Ownership of your books

42 Administrative agencies can be empowered to:

43 All but which of the following is a disadvantage of stare decisis and the common law system:

A The same thing as the decision

B Like stare decisis

C The comments from the court that accompanies the decision

D The main thrust of the dissent

45 Which of the following is false regarding uniform laws:

A The National Conference of Commissioners on Uniform Laws drafts uniform laws which become binding on the states upon approval by the National Conference

B The National Conference of Commissioners on Uniform Laws drafts uniform laws which, upon approval by the National Conference, are recommended to state legislatures for

approval

C Uniform laws do not have to be adopted in every state

D Uniform laws may be adopted by state legislatures in principle, but, changes may be made

in some provisions to meet local needs

46 An automobile accident occurs in Alabama, but the lawsuit is brought in Georgia The judge will apply what law for the accident?

A Alabama

B Georgia

C Federal law

D Either Alabama or Georgia law

47 Which of the following is not a means of applying the exclusionary right of property?

A Private property

B Common property

C Personal

D Public property

48 Which of the following will be considered the lowest source of law and be voided or prevailed over by the others?

A A federal administrative regulation

B A state constitution

C A Congressional statute

D An amendment to the U.S Constitution

49 Which of the following is not a typical legal sanction for criminal conduct?

A Payment of damages to the victim for her injuries

B Possible disqualification of voting rights

C Possible removal from political office

D Fine paid to the government

50 When judges write their decisions on legal issues they set out their reasoning in _

53 Damages, awarded to make the victim of the breach of a contract "whole" in the economicsense, are called

57 Punitive damages are frequently awarded in:

A Ordinary negligence cases

B Intentional tort cases

C Breach of contract cases

D Criminal cases

58 The Federal Communications Commission has just issued a ruling banning the word

"friggin" on terrestrial radio and non-cable television determining it to be obscene This rulingwould be called a/an:

Short Answer Questions

61 When Princeton graduate student Erica Field researched ownership in Peru, what effects did she find when the "average squatter family" was granted property ownership?

62 Define and distinguish common law and civil law

63 What are the four basic sources of law?

64 Name at least four Internet law issues

65 Congratulations, you have been appointed to the United States Supreme Court? Which

"school" of jurisprudence will you follow as your primary legal philosophy? Explain the philosophy and your reasons for believing in it

66 What are some of the main advantages of stare decisis and why might a judge not follow stare decisis in a particular case?

67 Why is there a need to have a uniformity of law in certain areas and what are the two ways

in which uniformity of law can be attained?

68 When the former Soviet Union collapsed, many observers thought that the new private market would promptly improve Russia's economy Why has the Soviet economy been slow

to recover from the decline that it experienced?

69 What information can be obtained from the citation of a case?

70 The 14th amendment recognizes that law may be enforced by taking resources owned by a citizen Name the instances in which someone's resources may be taken

Chapter 01 Law as the Foundation of Business Answer Key

True / False Questions

cases involving breach of contract and tortuous conduct but not when a statutory violation hasoccurred

5. (p 12) Civil law relies primarily on legislation, while common law relies on court decisions

TRUE

Level: Medium

Objective: 1

party will usually recover her attorney fees as part of her compensatory damages

10. (p 13) Property laws include wills, trusts and estates

TRUE

Level: Hard

Objective: 2

Uniform State Laws

FALSE

Level: Hard

Objective: 3

government is usually called an ordinance

15. (p 18) Dicta is not precedent because it is a comment on a matter not necessary to the decision reached

found in the Constitution is relative to the time in which it is being interpreted

20. (p 17) Under the doctrine of Stare Decisis, courts are bound to follow the holdings and dicta

of prior cases

FALSE

Level: Medium

Objective: 3, 4

Multiple Choice Questions

under common law principles?

A Stare decisis provides predictability in law

B Stare decisis and case law helps specify, in detail, the boundaries of our property based legal system

C Case law eliminates conflict of laws problems due to the large number of decisions being

23. (p 12) The common law system originated in:

27. (p 13) Mike has entered into a binding agreement to sell a car to Kathy When Kathy shows

up to complete the deal as per the agreement, Mike refuses to go through with the transaction Which of the following best categorizes Mike and Kathy's issues with regard to classification

of laws?

A This is a public law issue regarding contract law

B This is a private law issue regarding contract law.

C This is a public law issue regarding property law

D This is a private law issue regarding criminal law

Level: Hard

Objective: 2, 3

so the wealthy nations are prosperous because the poor nations are poor describes the:

A Wealth dissemination theory

B Wealth determination theory

C Dependency theory.

D Dominance theory

Level: Hard

Objective: 1, 2

I Substantive laws define rights and duties

II Procedural rules provide the machinery to enforce rights and duties

30. (p 15) The City of Dover has passed a written law banning smoking in most restaurants and bars Dover has enacted a/an:

up by force and punishment

A Promises to exchange resources in the future.

B Patents and copyrights

C Trademarks and trade secrets

D All of the above are property law concerns

Level: Medium

Objective: 2, 3

34. (p 15) Laws passed by Congress are usually referred to as:

A The purchase of a new computer

B The purchase of a used car

C The use of a check as payment for a transaction

D The contract to hire a cleaning crew to clean your home or office.

Level: Hard

Objective: 2, 3

bank that granted a loan to a person who could not afford the payments Judge Alan found for the bank, however, in his opinion said that the bank acted legally but unethically and that homeowners should have more protection from such unethical lending policies He lamented that the current law forced him to find for the bank When the judge opined about the

unethical lending practices and said that he wished he could have helped the homeowner, his statements would be considered:

37. (p 16) The Uniform Commercial Code applies to:

I Commercial transactions involving personal property

II Real estate

III Personal service contracts

the legislature when the statute was enacted

this will be her first car and that she needs it to travel to a distant city for a new job that starts

in two days After coming to an agreement, the dealer tells her the car will be ready at 9:00 amthe next morning He then asks her out to dinner for that night Sheila says no The dealer is very upset at her rejection so he refuses to provide to her the car the next morning breaching the contract Sheila has no way to get to the new job and she is fired

A Sheila can only sue for compensatory damages related to the breach of contract

B Sheila can sue for exemplary damages because a tort has been committed

C Sheila is entitled to consequential damages because the dealer knew that she needed the car

for travel to the new job

D Sheila is entitled to nothing because the dinner rejection gave the dealer just cause to breach the contract

Level: Hard

Objective: 2, 3

40. (p 18) A federal statute has been enacted establishing a national minimum wage of $8.00 per hour

A Minnesota may enact a state law making the minimum wage $8.25 within the state.

B Minnesota must keep their minimum wage at $8.00 per hour and may not go higher

C Minnesota may enact a state law making the minimum wage $7.50 per hour within the state for private employers but must honor the $8.00 per hour rate for state and federal government employees within the state

D Since the federal government has enacted minimum wage legislation, Minnesota may not make any laws in the area which is now reserved for federal enforcement

43. (p 17-18) All but which of the following is a disadvantage of stare decisis and the common law system:

A The same thing as the decision

B Like stare decisis

C The comments from the court that accompanies the decision.

D The main thrust of the dissent

Level: Easy

Objective: 4

A The National Conference of Commissioners on Uniform Laws drafts uniform laws which

become binding on the states upon approval by the National Conference

B The National Conference of Commissioners on Uniform Laws drafts uniform laws which, upon approval by the National Conference, are recommended to state legislatures for

approval

C Uniform laws do not have to be adopted in every state

D Uniform laws may be adopted by state legislatures in principle, but, changes may be made

in some provisions to meet local needs

Level: Hard

Objective: 2, 3

46. (p 18) An automobile accident occurs in Alabama, but the lawsuit is brought in Georgia The judge will apply what law for the accident?

prevailed over by the others?

A A federal administrative regulation

A Payment of damages to the victim for her injuries.

B Possible disqualification of voting rights

C Possible removal from political office

D Fine paid to the government

Level: Medium

Objective: 2, 3