Chapter 01: Law and Legal Reasoning

Chapter 01: Law and Legal Reasoning

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Indicate whether the statement is true or false.

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

• All laws establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling

group.

• True
• False

• The legal rules that control the actions of a business, reflect past and current thinking about how similar businesses

should and should not act.

• True
• False

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

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

area of the law.

• True
• False

• A constitution is a primary source of law.
• True
• False

• A statute is a secondary source of law.
• True
• False

• A secondary source of law is one that clarifies a source of primary law.
• True
• False

• Legal encyclopedias, law review articles, and treatises are sources of primary law.
• True
• False

• Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
• True
• False

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

(The Legal Environment Today, 10e by Roger LeRoy Miller, Frank Cross) (Test Bank, Answer at the end of each Chapter) 1 / 4

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Class:

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Chapter 01: Law and Legal Reasoning

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• True
• False

• Only if a state legislature passes a statute, does that law become part of the relevant state code of laws.
• True
• False

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

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

• A federal statute applies to all states.
• True
• False

• The UCC is a uniform law that most states have adopted to govern commercial transactions.
• True
• False

• Federal, state, and local governments may establish an administrative agency to perform a specific function.
• True
• False

• Independent regulatory agencies are not subject to the authority of the President.
• True
• False

• Rules issued by administrative agencies affect almost every aspect of the operations of a business.
• True
• False

• Federal agency regulations take precedence over conflicting state regulations.
• True
• False

• An administrative legislative rule is not legally binding on businesses.
• True
• False

• The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in

legislative rulemaking and other functions.

• True 2 / 4

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Chapter 01: Law and Legal Reasoning

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• False

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

be binding.

• True
• False

• Common law is a body of law developed from judge’s decisions in legal controversies.
• True
• False

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

• Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their

jurisdictions.

• True
• False

• Controlling precedents are binding authorities.
• True
• False

• A court might look at fairness, social values and customs, and public policy in deciding a case if there is no precedent.
• True
• False

• In the IRAC method of case-briefing, the A stands for analysis.
• True
• False

• There is one right answer to every legal question.
• True
• False

• Because courts of law and equity have merged, there is no distinction between the two any longer.
• True
• False

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

• Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
• True 3 / 4

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• False

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

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

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

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

Indicate the answer choice that best completes the statement or answers the question.

• 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

• accounting and finance manager.
• human resources manager.
• marketing manager.
• silent partner.

39. An example of a primary source of law would be:

• legal encyclopedias.
• official comments to statutes.
• Constitutional law.
• legal treatises.

• Secondary sources of law include
• state constitutions.
• law review articles.
• laws passed by local governing bodies.
• regulations created by administrative agencies.

41. A constitution sets forth the government’s general organization’s:

• limits, but not powers.
• limits and powers.
• lack of limits or powers.
• powers, but not limits.

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