BUSI-LAW Chpt 1

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

False

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

False

A constitution is a primary source of law.

True

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

True

Congress or a state legislature establishes an administrative agency to perform a specific function.

True

Rules issued by administrative agencies affect almost every aspect of a business's operations.

True

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

True

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

True

The common law is a body of law developed from judicial decisions.

True

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

True

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 a. all of the choices. b. marketing manager. c. human resources manager. d. accounting and finance manager.

a. all of the choices.

Common law rules develop from a. principles underlying judges' decisions in actual controversies. b. statutes enacted by Congress and the state legislatures. c. regulations issued by administrative agencies. d. uniform laws drafted by legal scholars.

a. principles underlying judges' decisions in actual controversies.

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as a. statutory law. b. the supreme law of the land. c. the basis of all law in the United States. d. uniform law.

a. statutory law.

In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to a. order the minor to cancel the contract. b. disregard the Peyton case. c. require the minor to fulfill the contract. d. allow the minor to cancel the contract.

d. allow the minor to cancel the contract.

The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by a. the United States Supreme Court only. b. the state of Florida only. c. the federal government only. d. no one.

d. no one.

A precedent is a. a lawsuit in which a number of persons join together. b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles. c. the fundamental procedure by which the government exercises its authority. d. the chief executive officer of the United States.

b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.

Stare decisis is best defined as a. a judicial proceeding to redress a wrong. b. a situation giving a person a right to initiate a judicial proceeding. c. a doctrine under which judges follow established precedents. d. the authority to decide a specific dispute.

c. a doctrine under which judges follow established precedents.

An award of damages is a. an order to do or to refrain from doing a certain act. b. the right to harm another. c. a payment of money or property. d. the cancellation of a contract.

c. a payment of money or property.

Administrative law includes a. model laws developed by the National Conference of Commissioners on Uniform State Laws. b. laws enacted by a legislative body. c. the rules, orders, and decisions of a government agency. d. all laws that affect business operations.

c. the rules, orders, and decisions of a government agency.

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution a. the state provision will be enforced only within that state's borders. b. neither provision will be enforced. c. both provisions will be enforced. d. the state provision will not be enforced.

d. the state provision will not be enforced.