Name: Class: Date: - Chapter 01: Law and Legal Reasoning Powered by ...

Name: Class: Date:

Chapter 01: Law and Legal Reasoning

Powered by Cognero Page 1 Indicate whether the statement is true or false.

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

• True
• False

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

• True
• False

3.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

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

• True
• False

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

• True
• False

6.A constitution is a primary source of law.

• True
• False

7.A statute is a secondary source of law.

• True
• False

8.A secondary source of law is one that clarifies a source of primary law.

• True
• False

9.Legal encyclopedias, law review articles, and treatises are sources of primary law.

• True
• False

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

• True
• False

11.The U.S. Constitution is the basis of all law in the United States.Business Law Today, Standard Text & Summarized Cases, 13e Roger LeRoy Miller (Test Bank All Chapters,100% Original Verified, A+ Grade) Answers at the end of each chapter. 1 / 4

Name:

Class:

Date:

Chapter 01: Law and Legal Reasoning

Powered by Cognero Page 2

• 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

Name:

Class:

Date:

Chapter 01: Law and Legal Reasoning

Powered by Cognero Page 3

• 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

Name:

Class:

Date:

Chapter 01: Law and Legal Reasoning

Powered by Cognero Page 4

• 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.

• / 4