Exam 1: The Legal Environment

Common law is a term for the laws that are familiar to most of us.

Being a small-business owner means that you will never have to take on the role of finance manager, marketing manager or accountant.

Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jane fails to deliver the roses. Jill initiates a suit against Jane, asking the court to order Jane to deliver the roses. Jill is

In the case of Retail Sales Corp. v. Trucking Delivery Co., the court may rule contrary to a precedent if the court decides that the precedent

There are legal questions involved when considering ways to raise capital so a business can grow.

The federal government and the states have the same constitution.

The best definition of a precedent is

Equity is a branch of law, founded in justice and fair dealing, that seeks to supply a remedy when no adequate remedy at law is available.

There is really no reason to be acquainted with business laws and gov?ernment regu?lations, except to pass this test.

To Cody, the written law of a particular society at a particular time is most significant. Cody is a

Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organizations) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker about a recent news story. Sources of law include

State constitutions are supreme within their respective borders.

A court may depart from a precedent if the precedent is no longer valid.

Administrative law consists of the rules, orders, and decisions of administrative agencies. .

Much of American law is based on

Fact Pattern 1-1 The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa?vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion. -Refer to Fact Pattern 1-1. These opinions are collected and published in volumes called

Fact Pattern 1-1 The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa?vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion. -Refer to Fact Pattern 1-1. Bellamy's opin?ion is

Americans with a Better Cause (ABC), a nonprofit organization, files a suit against the U.S. Department of Justice (DOJ), claiming that a cer?tain federal statute the DOJ is empowered to enforce conflicts with the U.S. Constitution and with a state constitution. In each situation, which source of law has priority?

A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged

Whether financial statements created by an accountant need to be verified for accuracy is not a legal question.