Chapter 1

How many of the functional areas of business sit on a foundation of business law?

6 Manangement, production and transportation, marketing, research and development, accounting and finance, and human resource management

In 2009, Mississippi Valley Silica Company was ordered to pay a plaintiff $9 million because the court ruled that it sold sand to the plaintiff's employer with the knowledge that using the sand on a regular basis would expose ta worker to a form of cancer, and Mississippi Valley did not alert those who bought the sand about the risk. The $9 million recovery is an example of a

Civil Law Remedy

An alternative name for case law is Statutory Law.

False An alternative name for case law is common law.

Judicial decisions are law even if the legislative branch should revoke them later by enacting new statutory law.

False Judicial decisions are law unless new statutory law revokes them later.

Judges claim the power to issue executive orders on the basis of the Article II, Section 1 constitutional power to "take care that the laws be faithfully executed"

False Presidents claim the power to issue executive orders on the basis of their Article II, Section 1 constitutional power to "take care that the laws be faithfully executed"

Private law involves disputes between private individuals or groups and their government.

False Public law involves disputes between private individuals or groups and their government.

The U.S. Constitution is the foundation for approximately one-half of all laws in the United States.

False The U.S. Constitution is the supreme law of the land; the foundation for all laws in the United States

"Guaranteeing personal freedoms" is

One of the numerous purposes fulfilled by the law

Assume a restaurant chain is forced to pay damage to a person who suffered food poisoning after eating at the restaurant. What type of law is involved?

Private law and civil law Private law involves disputes between private individuals or groups, and civil law involves the rights and responsibilities found in relationships between persons and between persons and their governments.

Legislative acts passed by state legislatures can be found in

State codes Legislative acts can be found in the various state codes when they are enacted by state legislatures. The codes are a collection of all the laws in one convenient location.

If a pet store dumps waste from its business behind its building, it is a violation of a public law,

True

A decision from the New Jersey Supreme Court is not binding on a New York trial court, even if New York has no applicable law on the issue involved.

True Different state courts are not bound by each other's decision, and so they might have different decisions on the same subject.

The legislative branch of government creates statutory law.

True Legislative actions, called statutes, are an important source of law. The assortment of rules and regulations put forth by legislatures is statutory law.

The national Conference of Commissioners on Uniform State Laws (NCC) regularly urges states to enact model laws to provide greater uniformity of law.

True The national Conference of Commissioners on Uniform State Laws (NCC) regularly urges states to enact model laws to provide greater uniformity of law. The response is entirely in the hands of the state legislatures. They can ignore a suggestion or adopt part of or all of the proposed model law.

comparative law

studies and compares the laws in different countries

One of the most often-used guidelines for shaping the law is tradition, or custom, which is also called

the historical school

The respect we give to the law as a source of authority is in part a recognition of the fact that in the absence of law, we would rely solely on the goodwill and dependability of one another.

True The respect we give to the law as a source of authority is in part a recognition of the fact that in the absence of law, we would rely solely on the goodwill and dependability of one another. Most of us greatly prefer the law to that option.

Which of the following is not a purpose of the law as set forth in the text? a) Encouraging taxation b) serving as a moral guide indicating minimal expectations of citizens and organizations c) encouraging social justice d) guaranteeing personal freedoms e) Providing order such that one can depend on a promise or an expectation of obligations

a) Encouraging taxation

Which of the following involves disputes between private individuals or groups and their government? a) Public Law b) Private Law c) Government Law d) Public Law and Private law, but not Government Law e) Public Law, Private Law, and Government Law

a) Public Law

Which of the following are summaries of common law rules in a particular area of the law that have been enacted by most states? a) Restatements of the Law b) Codifications of the Law c) Reporters d) Reports of the Law e) Codes of Reporters

a) Restatements of the Law

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 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) Administrative agencies exist at the federal, state, and local level

An alternative name for case law is?

Common Law

While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy college student, is busy talking on her cell phone with her friend Sharon. Molly is trying to talk Sharon into going to the dance with her brother, who has a big crush on Sharon. Unfortunately for Molly, there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle. Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans. A police officer just down the street comes over to investigate. Molly explains 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. Around that time Sam comes along. He is furious regarding the significant dent in his new car. Molly says she has insurance and that she will cover the whole incident. Sam says that is insufficient. The officer is annoyed because it is his lunch break. He tells Molly that she must obey the law and proceeds to write several citations to her. The law in Molly's state regulating cell phone usage 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) a statute

Betty tells Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her book. Bob has Susan arrested for slapping him. Susan sues Bob for damages in the amount of the book and for maliciously having her arrested. Claiming that she lied, Bob sues Betty for defamation. The action Bob has against Betty for Defamation involves which of the following? a) Criminal Law b) Civil Law c) Insider Law d) Both Criminal and Civil Law e) Administrative Law

b) Civil Law

Which of the following involves disputes between private individuals or groups? a) public law b) Private law c) Governmental law d) Public law and private law, but not governmental law e) public law, private law, and governmental law

b) Private law