Test Bank all Chapters

Business Law Principles and Practices 9e Arnold Goldman, William Sigismond

(Test Bank all Chapters)

• / 4

Chapter 1—Foundations of Law and the Role of Ethics in Business

TRUE/FALSE

• Law actually refers to the duties imposed upon people requiring them to act in a certain manner.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 6 OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Business Ethics is the inquiry into the moral judgment people make in deciding what is right or good

in their daily lives.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 16 OBJ: LO: 1-8 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The constitution of a state is the primary legal authority for that state.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• A government may take private property without compensation if it is needed for public use.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The most important influences on the development of law today are criminal law and civil law.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The Romans developed the concept of a written code, which became known as the Justinian Code.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• English common law is the basis for much of the law in Europe today.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• "Law" refers only to the statutes passed by federal and state legislatures.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge 2 / 4

• Laws passed by local governments are called acts.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 10 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Any law, whether enacted by Congress or by a state legislature, may be declared invalid if it conflicts

with the Constitution of the United States.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Administrative regulations have the same force and effect as statutes and court decisions.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 12 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The Environmental Protection Agency is an example of a federal administrative agency.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 12 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Comprehension

• Criminal law includes rules that protect society.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1-6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Because equity is so important, special equity courts have been established within the state court

system.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 14 OBJ: LO: 1-6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Violations of business ethics occur only in large corporations.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 18 OBJ: LO: 1-8 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

MULTIPLE CHOICE

• A major reason rules or laws were first established was to
• provide jobs for people.
• restrict people's movement in society.
• make it possible for the majority to rule the rest.
• protect the rights of individuals against acts by others.

• / 4

ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 7 OBJ: LO: 1-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The Social Security system is an example of using law to
• settle disputes.
• promote worthwhile social objectives.
• protect property.
• protect society.

ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Comprehension

• The body of legal decisions made by English court judges over a period of many years was called
• constitutional law.
• administrative law.
• statute law.
• common law.

ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• Law in the United States is derived primarily from
• constitutions, statutes, and ordinances.
• court decisions.
• administrative regulations.
• all of these.

ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The practice of following precedents in deciding later cases is known as
• stare decisis.
• equity.
• statute law.
• moral law.

ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• The supreme law in the United States is
• the constitutions of the various states.
• decisions made by courts.
• administrative regulations.
• the U.S. Constitution.

ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge

• / 4