Dynamic Business Law, 5e Chapter 1

45) The ________ contain(s) legislative acts passed by state legislatures. A) U.S. Code B) State codes C) Uniform Register D) State Reporter E) State Reference Manual

B.

Another name for case law is common law.

True

"Legal positivism" is also known as "natural law."

false

A decision of a state supreme court is binding on a lower state court located in the state.

true

Case law interpretations are law unless they are revoked later by new statutory law.

true

Contracts, employment decisions and payments to suppliers are protected by business law.

true

39) The law in Hannah's state regulating using cell phones would be classified as which of the following? A) A statute B) A type of common law C) An executive order D) A uniform law E) A negative law

A.

37) Bob's action against Ricardo for defamation involves which types of law? A) Criminal law and public law B) Civil law and public law C) Insider law and public law D) Civil law and private law E) Administrative law and public law

D.

42) Lori and Tim are negotiating a new business deal that requires an interpretation of a law made by their state twenty years ago. Tim knows that there are cases regarding this law that have been tried in a court within their city's boundaries. If Tim relies on these cases as the law, he is referring to ________. A) Statutory law B) Administrative law C) Executive orders D) Precedent E) Constitutional law

D.

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the ________. A) Electoral college B) Community standard C) Democratic validation D) Stare decisis E) Law

E.

Business law consists of the enforceable rules of conduct that govern commercial relationships.

True

Presidents base the power to issue executive orders on Article II, Section 3 of the Constitution, which establishes the constitutional power of the president to "take care that the laws be faithfully executed"

True

Only civil law regulates the behavior of individuals

false

Public law controls both disputes between private individuals and their government and disputes involving only private individuals.

false

Model or uniform laws are a source of law that are binding on courts

false --> only suggestions for statutory law at the state levels

When courts overturn precedent and create new precedent, they are obeying the principle of stare decisis.

false --> stare decisis refers to standing by a decision

There are many purposes of the law. One such purpose is serving as a moral guide by indicating minimal expectations of citizens and organizations.

true

29) ________ law cases involve either two individuals or two organizations. A) Civil B) Legal realism C) Criminal D) Precedent E) Public

A.

69) In which school of jurisprudence is the concept of stare decisis rooted? A) The historical school B) Legal realism C) The cost-benefit analysis school D) Positivism E) Cultural reenactment

A.

71) Which of the following is reported in the United States Code? A) Statutes B) Executive orders C) Common law D) Administrative law E) Local ordinances

A.

Which of the following entities would be responsible to make new federal laws? A) State legislatures B) Congress C) Judges D) The federal courts E) The executive branch

B.

47) The group that urges states to enact model laws to provide greater uniformity of law is called the ________. A) Model Law on Uniform State Laws Organization B) Federal Uniform Law Commission C) National Conference of Commissioners on Uniform State Laws D) Model and Uniform Law Consortium E) Uniform Statutory Enforcement Commission

C.

70) Which of the following is reported in the Federal Reporter? A) Statutes B) Executive orders C) Common law D) Administrative laws E) Local ordinances

C.

When courts rely on precedent, they are obeying ________. A) Common analysis B) Res judicata C) Stare decisis D) In rem process E) Federal law

C.

41) Judge Jones is reviewing a cyberbullying case in her courtroom. When Judge Jones rules, in her pronouncement of the case, she discusses the law along with the importance of social conditions behind her ruling. She also is parting from past precedents in order to follow societal values in regards to cyberbullying. Judge Jones is using which school of jurisprudence? A) The historical school of law B) Legal positivism C) Natural law D) Legal realism E) Stare decisis

D.

44) ________ laws are those laws that are implemented by a legislative body. A) Administrative B) Common C) Executive D) Statutory E) Natural

D.

Constitutions or statutes always cover all of the detailed rules that affect business and government relations.

False

Criminal law lays out the rights and responsibilities implied in relationships between persons.

False --> Civil law does this

Statutory law is the supreme law of the land and the foundation for all laws in the United States.

False --> the US Constitution

90) The text discusses five factors suggested as a structure for critical thinking when reviewing case law. List and describe the five factors.

(1) Find the facts. (2) Look for the issue. (3) Identify the judge's reasons and conclusion. (4) Locate in the decision the rules of law that govern the judge's reasoning. (5) Apply critical thinking to the reasoning.

46) The United States Code is where you can go to find ________. A) Laws enacted by Congress B) Presidential Enactments C) Laws of all 50 states D) Federal Supreme Court cases E) Court cases of all 50 states

A.

63) Which of the following is an executive agency? A) The Federal Deposit Insurance Corporation B) The Federal Trade Commission C) The Securities and Exchange Commission D) The Federal Communications Commission E) The Nuclear Regulatory Commission

A.

66) Maria's strategy to try to change the law through petitioning city council, which others have done in the past, is rooted in which of the following? A) Legal positivism B) The historical school C) Legal realism D) Natural law E) Cost-benefit analysis

B.

72) If the city of Normandy passes a new municipal ordinance, what type of law would this be considered? A) Executive order B) Common law C) Statute D) Administrative law E) Local ordinance

C.

After a court action brought by Mary, Mary was awarded $1,000 in damages from Stanley because she proved by a preponderance of the evidence that Stanley damaged her bicycle. What type of law applied to Mary's case that resulted in her being awarded $1,000? A) Criminal B) Procedural C) Civil D) Natural E) Positive

C.

Some laws have been adopted to help business conduct business online. Cyberlaw is based primarily on ________. A) International law B) Administrative law C) Existing law D) Natural E) Positive

C.

Judge Bob rules on a case in his state. A case in a neighboring state has the exact same facts. Judge Judy, when referring to Judge Bob's case A) Must follow the case as precedent B) Must follow the case as precedent but only if the law is exactly the same in her state C) May be influenced by the ruling but is not obligated to follow it D) Would have to seek guidance on whether or not she must follow it from a higher court in her jurisdiction E) Would need to seek guidance from a federal court in order to determine if she is obligated to follow Judge Bob's ruling

C

50) The court hears a discrimination case in which they are asked to decide whether local anti-discrimination laws protect against a person being fired because they have red hair. The court holds that since Irish people are more likely to have red hair, this is an example of national origin discrimination and anti-discrimination laws should apply. The legislature, following the court ruling, passes a statute saying hair color is not covered by anti-discrimination laws. The legislature's action is an example of: A) Overturning stare decisis B) Overturning precedent C) Revoking common law by new statutory law D) Following precedent E) Following stare decisis

C.

Tim decides that he is in desperate need of money and decides to rob a bank. He is caught and arrested. What type of law would be applied to him when brought to trial? A) Civil B) Procedural C) Tort D) Consumer E) Criminal

E.

Adriana Gomez is a newly hired Production Manager for ABC Corporation which manufactures wind turbines. As a new manager, ABC Corp sends Adriana to training to familiarize herself with laws that might impact her work. What laws would most likely impact a production manager? A) White collar crime, contracts, antitrust laws B) Tort law, environmental law, contracts C) Antitrust law, contracts, intellectual property law D) Property law, negotiable instruments, contracts E) Consumer law, international law, employment law

B.

Which of the following refers to the ability to understand the structure of what someone is saying and then apply a set of criteria to evaluate its worth? A) Absolute skills B) Critical-thinking skills C) Cost-benefit skills D) Reviewability skills E) Traditional lawyer skills

B. Critical-thinking skills

Miko comes to Jamal's law office to ask him about the law in regard to dogs running at large in her neighborhood. Jamal tells Miko that he will research the issue and get back to her. Where should Jamal look first in order to locate applicable law? A) Restatements B) State statutes C) Case law D) Uniform laws E) Executive orders

B. state statutes

84) The EU regulates taxes on Internet sales and the amount of pollution differently than the U.S. government. U.S. companies doing business in the EU: A) Are required to comply with EU regulations only if their main headquarters are located within the European Union. B) Must pay taxes to the EU when conducting all business globally if they wish to do any business in the EU. C) Must comply with EU regulations when doing business in the European Union only. D) Are never required to comply with EU regulations as long as they are headquartered in the United States. E) Have the option to conduct business under either EU or U.S. regulations.

C.

40) Bob and Tom were in a car accident on a street within Normandy city boundaries. Bob was ticketed for driving under the influence (DUI). This was Bob's third DUI. Tom sustained bodily damages and damage to his vehicle. If Bob is sued by Tom and the city of Normandy: A) Bob will be sued under the criminal laws only of Normandy by both parties. B) Bob will be sued under the civil laws of Normandy only by both parties. C) Bob will be sued by Tom under the criminal laws of Normandy and the civil laws of Normandy by the city's prosecutor. D) Bob will be sued by Tom under the civil laws of Normandy and the criminal laws of Normandy by the city's prosecutor. E) Only Tom would be able to be sue Bob because of the accident.

D.

67) The United States entered into a trade agreement with ________ known as NAFTA. A) Canada B) Mexico C) Canada and Russia D) Mexico and Canada E) Russia and Mexico

D.

74) Which of the following is reported in the Code of Federal Regulations? A) Statutes B) Executive orders C) Common law D) Administrative law E) Congressional orders

D.

77) When the Supreme Court made its ruling on the legality of homosexual marriage, they considered social and economic conditions surrounding marriage rather than relying on precedent alone. This was an example of: A) Cost-benefit analysis B) Legal positivism C) Historical school D) Legal realism E) Executive positivism

D.

When you read a case, you should: A) Find the facts, look for the issue, critically think about the issue, and determine if your reasoning matches the reasoning of the judge. B) Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning of the judge in light of the facts of the case. C) Consider the truth of the facts of the case, identify legal questions raised, review the decision of the judge, and determine if the judge's decision was justified by the rule of law. D) Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical thinking to the judge's reasoning. E) Identify the facts, apply critical thinking skills to determine the truths of the facts, and identify how the judge interpreted the facts in the case.

D.

[To the Dogs] Maria loves animals and is opening a grooming business. She believes that caring for animals properly is very important and plans to exceed any applicable regulations regarding cleanliness and health standards. Maria thinks, however, some local regulations make no sense. For example, there is a local ordinance that all dogs always must be kept on a leash when not in an inside area. Maria believes dogs need to exercise and to run freely in a safe area, so she is placing her business on a large lot with a fenced outside area. She thinks it is wrong to have to keep the dogs tied up while in a securely fenced area. She is aware that some members of the community have had success in changing local regulations by petitioning city council. Maria plans to proceed by petitioning to attempt a change in the leash law. 64) If Maria decides to ignore the leash law and let dogs run freely in the fenced outside area, this is an example of which legal school of thought? A) Legal positivism B) The historical school C) Legal realism D) Natural law E) Cost-benefit analysis

D.

[Inattentive Driving] Hannah, a first year law student, drove off campus to register for an upcoming conference. Although lawmakers in her state passed a law prohibiting the use of a cell phone while operating a motor vehicle, Hannah was doing just that. When she looked down to pick up a can of soda she dropped, Hannah crashed into the side of Dev's new convertible. A police officer down the street came over to investigate. Hannah explained to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Dev approached, furious about the significant dent in his new car. Hannah says she has insurance and that she will cover the costs of the whole incident. Dev says that is insufficient; but Hannah says that under case precedent, that is his only remedy. The officer tells Hannah that she must obey duly authorized law, and proceeds to write several citations to her. 38) What type or types of law are involved in the above situation, considering Hannah's interaction with both the officer and Dev? A) Public law but not private law B) Private law but not public law C) Civil law and private law but not public law D) Criminal law and public law but not private law E) Public law, private law, civil law, and criminal law

E.

58) Which of the following cases overturned prior precedent? A) Brown v. Board of Education B) Wygant v. Jackson Board of Education C) Planned Parenthood of Southeastern Pennsylvania v. Casey D) Plessy v. Ferguson E) Precedent cannot be overturned

A.

65) If Maria decides to follow all laws and regulations, even if she does not agree with them, this approach is rooted in what? A) Legal positivism B) The historical school C) Legal realism D) Natural law E) Cost-benefit analysis

A.

49) A treaty is a binding agreement between two states or between international organizations. If the executive branch negotiates a treaty it must then be approved by: A) The House of Representatives B) All 50 states C) The Senate D) The Supreme Court E) All of Congress

C.

78) If a United States company is determining whether or not to move their manufacturing plant to a foreign nation to help decrease costs but potentially could help the foreign nation build infrastructure and bring needed jobs to that region, the company would use which approach in their decision making? A) Natural law B) Common law C) Historical school D) Cost-benefit analysis E) Legal realism

D.

If a manufacturing plant continues to allow toxins above the legal limit to escape into the atmosphere in violation of state law, which law is implicated? A) Private B) Common law C) Criminal D) Public E) Black letter

D.

Judge George decides a case before his court that has the same set of facts as a case he heard four months ago. Judge George should apply ________. A) Procedural laws B) A different state statute C) Restatement D) Precedent E) Legal realism

D.

One purpose of the law is to: A) Allow individuals to impose rules on others B) Require businesses and individuals to rely on the dependability of others C) Enable businesses and individuals to rely on the good will of one another D) Facilitate a sense that change is possible after a rational consideration of options E) Preserve existing social order and prevent change

D.

When a state supreme court issues a binding ruling on a matter of law, who must follow the precedent set by the state supreme court? A) The United States Supreme Court B) The U.S. Congress C) State legislatures D) Lower courts within the same state E) All lower courts in the United States

D.

A national restaurant chain must pay damages for breach of contract to a cooking oil supplier. What type of law is involved? A) Public law only B) Private law only C) Civil law only D) Public, private, and civil law E) Private law and civil law

E.

82) What is the role of the World Trade Organization? A) To stimulate negotiations among member nations and to adjudicate trade disagreements among member nations. B) To enforce U.S. trade laws globally throughout 160 member nations. C) To restrict the flow of goods across borders in order to promote and protect domestic trade among member nations. D) To promote standardized trade laws globally. E) To create model trade treaties such as NAFTA and GATT to help establish conditions of global trade.

A.

Jill hires Bob to deliver flowers to local customers. If Bob and Jill get into a dispute in regards to Bob's expenses and salary, what type of law would govern the dispute? A) Private B) Joint C) Criminal D) Public E) Common law

A. (they are private individuals)

86) List the purposes of the law and discuss why these purposes are necessary for an ordered society.

1. Providing order such that one can depend on a promise or an expectation of obligations 2. Serving as an alternative to fighting 3. Facilitating a sense that change is possible, but only after a rational consideration of options 4. Encouraging social justice 5. Guaranteeing personal freedom 6. Serving as a moral guide by indicating minimal expectations of citizens and organizations

68) Assume a judge writes that she is deciding to enforce a law in question but that her decision does not mean that she sees the law as the morally correct rule. The judge would have leanings in the direction of ________. A) Legal positivism B) Natural law C) Legal realism D) Conscience reaction E) Concluding law

A.

76) Which of the following is based on the idea that, when ruling on a case, judges consider more than just the law; they also weigh factors such as social and economic conditions? A) Cost-benefit analysis B) Legal realism C) Historical school D) Legal positivism E) Executive positivism

B.

83) What is the North American Free Trade Agreement? A) A U.S. law which protects citizens of the United States from being required to follow rules of commerce in foreign countries. B) A trade agreement with Canada and Mexico to help establish the conditions of global trade. C) A trade agreement with 150 countries to establish the conditions of global trade. D) An agreement with the World Trade Organization which allows the WTO to adjudicate trade disputes. E) A U.S. law which mandates citizens of the United States must follow rules of commerce in foreign countries.

B.

Which of the following is an independent agency? A) The Federal Deposit Insurance Corporation B) The Consumer Product Safety Commission C) The General Services Administration D) The Small Business Administration E) The Office of Personnel Management

B.

73) Where can you find local common law? A) State reporters B) Regional reporters C) The local courthouse and clerk's office D) The state administrative code E) Municipal ordinances

C.

52) The ________ is a body of law significant to business activities including sales, banking, and warranty. A) Federal Business Code B) Model Business Code C) Uniform Transactional Model D) Uniform Commercial Code E) Marketing Transaction Code

D.

59) Which of the following is true regarding administrative agencies? A) There are state administrative agencies, but no federal administrative agencies. B) There are federal administrative agencies, but no state administrative agencies. C) There are state and federal administrative agencies, but no local administrative agencies. D) Administrative agencies exist only at the local county level. E) Administrative agencies exist at the federal, state, and local level.

E.

When the organization in charge of proposing uniform laws proposes a statute, which of the following is true? A) All states must adopt the uniform statute within one year. B) All states must adopt the uniform statute within six months. C) The uniform statute automatically goes into effect without any action by state legislatures. D) A state legislature is not required to adopt the uniform statute; but if the state legislature decides to go forward with adoption, all portions of the statute must be adopted. E) A state legislature can ignore the proposed uniform law, adopt it in full, or adopt it in part.

E.

What is "stare decisis" and why is it so important to the American legal system? Why must business managers pay attention to changes in the law?

Students should discuss first what stare decisis is and how courts rely on precedent in making their decisions which helps provide a greater stability and predictability to the law. Business managers need to pay attention to the laws and any changes that may influence the decisions they make on a day to day basis.

If a victim of assault does not want the abuser arrested but the prosecutor brings charges anyway since the assault violated criminal laws, the reason for the prosecutor's actions is: A) A violation of criminal laws is an act against the public as a whole. B) The abuser has committed a civil law violation in addition to a criminal one. C) Private law has been violated and the prosecutor has a duty to act. D) Natural law has been violated and the prosecutor has a duty to act. E) The prosecutor's responsibility is to regulate disputes between private individuals under criminal law.

A.

60) Which of the following is true regarding treaties at the federal level? A) A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate. B) A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the House of Representatives. C) A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate and also by two-thirds of the House of Representatives. D) A treaty is generally negotiated by the executive branch and no approval by the Senate or House of Representatives is needed. E) A treaty is generally negotiated by the executive branch and must then be approved by two-thirds of the Senate and also by two-thirds of the state legislatures.

A.

A new type of hydraulic fracturing ("fracking") has been implemented to help bring more natural gas to a well site. The company associated with this process has followed all federal and state guidelines associated with the process of fracking. Residents however are very unhappy and vocal about the process of fracking and fights have broken out amongst the resident's and workers. Resident's demand the company be shut down. A new law was implemented that is designed to help keep the peace yet look at alternatives to the fracking process. The purposes of the new law include: A) Providing order, serving as a moral guide, serving as an alternative to fighting, facilitating a sense that change is possible B) Creating enforceable rules of law which change the way that the manufacturing process must be changed C) Providing new rules that would allow for civil disobedience D) Setting new rules and guidelines that would allow for protests to happen on the fracking site E) Guaranteeing the personal freedoms of the company to continue fracking as long as they were doing so within state and federal guidelines

A.

If someone has failed to live up to a promise made to a business organization, the business organization should: A) Seek a legal remedy within the courts B) Ask the lawmakers to impose a punishment upon the violation C) Publicly shame the violator for breaking his promise D) Turn to the executive branch to impose legal penalties E) Ask lawmakers and the executive branch to impose consequences

A.

Which areas of business law would a human resources manager find most relevant? A) Contracts, employment and labor law, and employment discrimination B) Contracts only C) Contracts and labor law, but not employment discrimination D) Employment and labor law, but not contracts E) Human resource managers hold administrative positions and are not concerned with areas of business law

A.

[The Stolen Laptop] Ricardo told Ashley that Bob stole her laptop computer from her car. The next day, Ashley confronted Bob and slapped him for stealing her laptop. Bob had Ashley arrested for slapping him, and the local district attorney prepared to prosecute Ashley on behalf of the state. Ashley sued Bob for damages to the laptop and for maliciously having her arrested. Bob also sued Ricardo for defamation, claiming Ricardo lied to Ashley about Bob stealing the laptop. 35) Which statements are true regarding Ashley's claim against Bob for damages involving the laptop and her claim that Bob maliciously had her arrested? A) The claim for damages involving the laptop and also the claim that Bob maliciously had her arrested are civil claims involving private law. B) The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a civil claim involving public law. C) The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a criminal claim involving public law. D) The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a criminal claim involving private law. E) The claim for damages involving the laptop and also the claim that Bob maliciously had her arrested are criminal claims involving private law.

A.

[The Stolen Laptop] Ricardo told Ashley that Bob stole her laptop computer from her car. The next day, Ashley confronted Bob and slapped him for stealing her laptop. Bob had Ashley arrested for slapping him, and the local district attorney prepared to prosecute Ashley on behalf of the state. Ashley sued Bob for damages to the laptop and for maliciously having her arrested. Bob also sued Ricardo for defamation, claiming Ricardo lied to Ashley about Bob stealing the laptop. 36) Which of the following would be involved in the prosecution of Ashley for slapping Bob? A) Public law and criminal law B) Private law and criminal law C) Private law and civil law D) Public law and civil law E) Civil law and criminal law

A.

The president issued an executive order requiring that every citizen purchase a head of broccoli to eat once a week in order to maintain health. The executive order was challenged and the case went to the U.S. Supreme Court. The Supreme Court declared the executive order could not be enforced because it was an abuse of the president's power. What is the primary source of law the Supreme Court would interpret to determine if the executive order was enforceable? A) The Constitution B) State statutes C) Case law D) Uniform laws E) Executive orders

A. The Constitution

89) The text references two ways in which a treaty between the U.S. and a foreign country is similar to a contract. Discuss these two ways.

Both treaties and contracts are attempts by parties to determine rights and obligations among themselves. Additionally, when a party fails to obey a treaty or contract, law imposes liability on the party who failed to obey the agreement.

75) The United States has strict standards for the production and transportation of chemicals. Dow Chemical insists that its suppliers conform to all the United States laws when they supply chemicals to other countries, even if the laws of these foreign countries are less restrictive in nature. This is a would be: A) Legal positivism B) Legal realism C) Natural law D) Cost benefit analysis E) Historical school

C.