Test Bank all Chapters, Answer at the

Business Law Text and Cases, 15e Kenneth Clarkson, Roger LeRoy Miller

(Test Bank all Chapters, Answer at the end of each Chapter)

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Ch01: 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

• The legal rules that control a business’s actions reflect past and current thinking about how similar businesses should

and should not act.

• True
• False

• Because laws may change, the ability to analyze and evaluate the legal ramifications of situations as they arise is not a

lasting skill.

• 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 establishes the law on a particular issue.
• True
• False

• Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law.
• True
• False

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

• The U.S. Constitution is the basis of all law in the United States. 2 / 4

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Ch01: Law and Legal Reasoning

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• True
• False

• Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state.
• 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 only to those states that agree to apply it within their borders.
• True
• False

• Congress or a state legislature establishes 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 a business’s operations.
• True
• False

• Federal agency regulations do not take precedence over conflicting state regulations.
• True
• False

• Administrative law plays a relatively insignificant role in the regulatory environment of business.
• True
• False

• The doctrines and principles announced in court decisions govern all areas not covered by statutory or administrative

law.

• True
• False

• The common law is a body of law developed from judicial decisions.
• True 3 / 4

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Ch01: Law and Legal Reasoning

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• False

• A court should overturn its precedents unless there is a compelling reason not to.
• True
• False

• Controlling precedents are binding authorities.
• True
• False

• A case of first impression is any legal authority or source of law that a court may look to for guidance but need not

follow when making its decision.

• True
• False

• Often, more than one rule of law will be applicable to a case.
• True
• False

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

• Because courts of law and equity have merged, the principles of equity are no longer applied.
• True
• False

• With respect to the study of jurisprudence, there is only one school of legal thought.
• True
• False

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

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

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

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