Deck 1: Law As a Foundation for Business

Question 1

Common law relies more on legislation than judicial decisions to determine what the law is.

Answer 1

False
Explanation: The common law legal system emphasizes the role of judges in determining the meaning of laws and how they apply.

Question 2

Louisiana is the only state in the U.S. that follows a partial civil law system due to Louisiana's historical ties with France, a civil law nation.

Answer 2

True
Explanation: Only Louisiana among the U.S. states follows a partial civil law system. This is due to Louisiana's historical ties with France, a civil law nation.

Question 3

In administrative law, a government official represents society, or "the people," and the official is responsible for seeking justice to achieve the ends of society.

Answer 3

True
Explanation: Public law includes constitutional law, administrative law and criminal law. In each of these matters, a government official represents society, or "the people," and the official is responsible for seeking justice to achieve the ends of society.

Question 4

Although property law is categorized as one kind of private law; in our legal system, it is at the heart of both public and private law.

Question 5

Law and "rule of law" are synonymous terms.

Question 6

Sociological jurisprudence emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation.

Question 7

Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'.

Question 8

The secret to economic prosperity and the wealth of nations lies in the foundation of property law and the legal system to implement it under the rule of law.

Question 9

The United Kingdom, the United States, Canada, Jamaica, India, Nigeria, New Zealand, and a few other countries-all colonized by England-follow the common law.

Question 10

Natural law theory asserts that law contains universal moral principles.

Question 11

Contract law compensates owners whose resources are wrongfully harmed by the actions of others.

Question 12

Jurisprudence is the rule of law.

Question 13

Legislation passed by the Congress is called a statute or an act.

Question 14

The first known written set of laws was the Code of Hammurabi.

Question 15

Jurisprudence refers to the general body of law interpretations by judges as different from legislation passed by legislators.

Question 16

Civil law arose in the eleventh and twelfth centuries as the English monarch appointed royal judges to ride circuits around the English countryside and to resolve disputes in the name of the king (or queen).

Question 17

Common property, applies to public resources owned by the government (or "state") like roads, public buildings, public lands, and monuments.

Question 18

Legal realism is the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it.

Question 19

The Second Amendment to the Constitution holds that "No State shall . . . deprive any person of life, liberty or property without due process of law."

Question 20

Contract law often but not always requires actual injury to the owner's resources.

Question 21

Corporate governance can fail even when corporate managers do nothing illegal.

Question 22

Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis.

Question 23

With reference to the hierarchy of sources of law, Case law prevails over local ordinances.

Question 24

_____ property is an ownership fence which applies to resources like land that more than one individual owns jointly.

A) Private
B) Civil
C) Public
D) Common
E) Tort

Question 25

_____ law both protects ownership and sets limits on private resource use.

A) Tort
B) Antitrust
C) Securities
D) Regulatory
E) Contract

Question 26

The law protecting the owners of a business organization from the managers who run it for them is _____.

A) corporate governance
B) antitrust law
C) labor law
D) contract law
E) tort law

Question 27

_____ can be thought of as the central concept underlying Western legal systems.

A) Rule of law
B) Property
C) Tort law
D) Ethics
E) Stare decisis

Question 28

Drake verbally lashes out at his neighbor one evening following a drunken party. He also beats him up when Drake tries to back away from the argument. He is said to have committed a strict liability tort.

Question 29

Economic growth depends "in particular on the rule of law" which is a "lodestar for all countries." Why?

A) Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'.
B) It distinguishes lawmakers as being above the rule of law.
C) It allows special interest groups to benefit at the expense of others.
D) It adopts laws supporting the growth of the public markets over private markets increasing economic growth of nations.
E) It removes the power of the courts and creates an autocratic regime where businesses can freely invest and economic growth is high.

Question 30

The single largest number of lawsuits today, especially in the federal courts, involves one business suing another business for tortious conduct.

Question 31

Contract law:

A) enables an owner to exchange resources, especially at a future date.
B) compensates owners whose resources are wrongfully harmed by the actions of others.
C) punishes those who harm an owner's resources in particular ways.
D) identifies how individuals can own and use private resources in groups.
E) protects ownership and sets limits on private resource use.

Question 32

In addition to compensatory damages, breach-of-contract cases may award punitive damages, when the breaching party knew or had reason to know that special circumstances existed that would cause the other party to suffer additional losses if the contract were breached.

Question 33

Tort law helps protect property boundaries by providing compensation when someone wrongfully crosses such boundaries.

Question 34

Which law forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources?

A) Regulatory
B) Tort
C) Antitrust
D) Antidiscrimination
E) Contract

Question 35

Judges in future cases are not so likely to follow the dicta in prior cases as they are the holdings.

Question 36

Conflicting precedents when applying the principle of stare decisis do not create confidence in the certainty of law.

Question 37

The Fourteenth Amendment to the Constitution recognizes that the law is enforced by taking a person's life, freedom, or the resources that he or she owns.

Question 38

Whether it's stated in the contract or not, when a breach of contract occurs, the injured party will usually recover her attorney fees as part of her compensatory damages.

Question 39

Article 6 of the Treaty on European Union, called the Maastricht Treaty, says the EU is "founded" on:

A) specific performance.
B) private markets.
C) stare decisis.
D) rule of law.
E) property.

Question 40

A property based legal system:

A) is unimportant in Western legal systems.
B) protects and assists the wealthy over the poor.
C) applies only to common property or resources like land that more than one individual owns jointly.
D) does not allow for the transfer of private resources.
E) allows people to exclude others from interfering with what their efforts produce.

Question 41

Judicial decisions, called _____ laws, apply to a legal problem and interpret the relevant constitutional, legislative, and regulatory laws.

A) case
B) procedural
C) ordinance
D) commercial
E) code

Question 42

At the state level, the hierarchy of law sources begins with the state _____.

A) act
B) statute
C) constitution
D) citation
E) commercial code

Question 43

_____ law jurisprudence believes that law is simply the commands of the state backed up by force and punishments.

A) Positive
B) Natural
C) Historical
D) Sociological
E) Tort

Question 44

Friedrich Savigny, a prominent German legal philosopher, helped develop _____ jurisprudence, which emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation.

A) sociological
B) tort
C) positive
D) historical
E) natural

Question 45

The ideas and philosophies that explain the origin of law and its justification is called _____.

A) rule of law
B) torts
C) stare decisis
D) jurisprudence
E) statutes

Question 46

_____ law courts do not make law nor do their judges think themselves obligated to follow prior judicial decisions, called precedents.

A) Common
B) Religious
C) Civil
D) Hybrid
E) Constitutional

Question 47

Which of the following statements are true of tort law?

A) It involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources such as copyrights, patents, trademarks etc.
B) It covers the rules of how owners transfer resources by exchanging them.
C) It specifies various offenses against the proper order of the state.
D) It covers the legal principles that apply to government agencies, bureaus, boards, or commissions.
E) It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another.

Question 48

Which of the following is not a typical area of concern in property law?

A) Promises to exchange resources in the future
B) Rules regarding patent, copyright, trademark, and trade secret
C) Rules for compensation when an owner's legal boundaries are wrongfully crossed
D) Rules regarding injury to an owner's resources
E) Legal principles that apply to government agencies, bureaus, boards, or commissions

Question 49

Which of the following statements about substantive law is true?

A) It is regulation and made by agencies of the federal government.
B) It covers the rules of how owners transfer resources by exchanging them.
C) The time allowed for one party to sue another is an example of substantive law.
D) Enforcement of a contractual promise is substantive in nature.
E) It provides the machinery for rights and duties.

Question 50

Stephanie has written a book, "Mirari" and was talking to some interested parties from Hollywood about making a movie based on it. However, she turned down the offer due to differences of opinion. A year later, Mirari was made into a movie but it did not acknowledge the author. Such situations come under _____ law.

A) property
B) administrative
C) constitutional
D) criminal
E) tort

Question 51

Kate has entered into a binding agreement to sell a house to Michael. When Michael shows up to complete the deal as per the agreement, Kate refuses to go through with the transaction. Which of the following best categorizes Kate and Michael's issues with regard to classification of laws?

A) This is a public law issue regarding contract law.
B) This is a private law issue regarding contract law.
C) This is a public law issue regarding property law.
D) This is a private law issue regarding criminal law.
E) This is a public law issue regarding tort law.

Question 52

_____ law covers the legal principles that apply to government agencies, bureaus, boards, or commissions.

A) Administrative
B) Constitutional
C) Tort
D) Criminal
E) Contract

Question 53

_____ jurisprudence supports the idea that law can and should change to meet new developments in society.

A) Historical
B) Natural
C) Sociological
D) Positive law
E) Tort

Question 54

Following much debate the Congress has decided to pass a bill that will increase the taxes on tobacco. This legislation is called a:

A) statute.
B) regulation.
C) ordinance.
D) tort.
E) citation.

Question 55

In most criminal cases, an arrest can be made only based on probable cause and requires the officer to read out the Miranda rights to the criminal suspect before the arrest is made. This is an example of:

A) tort law.
B) procedural law.
C) rule of law.
D) substantive law.
E) sociological jurisprudence.

Question 56

So significant is the role of judges in the United States that they determine the meaning of the Constitution and can declare void the legislation of Congress and the acts of the president. This illustrates that the legal system in the U.S. is based on _____.

A) civil law
B) religious law
C) common law
D) hybrid law
E) constitutional law

Question 57

Burberry is a luxury brand that has its own distinctive trademark pattern. The company recently learned that another retailer has been selling fake Burberry bags. The legal dispute that will arise here is governed by _____ law.

A) administrative
B) constitutional
C) property
D) criminal
E) tort

Question 58

The City of Dover has passed a written law banning smoking in most restaurants and bars. Dover has enacted a/an:

A) statute.
B) act.
C) regulation.
D) ordinance.
E) jurisprudence.

Question 59

A collection of legislations passed by the Congress on the same subject are called:

A) statutes.
B) jurisprudence.
C) stare decisis.
D) codes.
E) citations.

Question 60

Which idea of law tries to go beyond just the words of law to examine what police, administrators, prosecutors, and judges are actually doing as they enforce, interpret, and apply laws?

A) Positive law jurisprudence
B) Sociological jurisprudence
C) Stare Decisis
D) Legal realism
E) Originalism

Question 61

Each of the following is a remedy in case of a breach of contract EXCEPT:

A) punitive damages.
B) consequential damages.
C) specific performance.
D) rescind the contract.
E) cancel the contract.

Question 62

The _____ in prior cases are precisely what was necessary to the decision reached.

A) dicta
B) holdings
C) citations
D) statutes
E) ordinances

Question 63

In constitutional law the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it is known as _____.

A) constitutional relativity
B) legal realism
C) originalism
D) dicta
E) rule of law

Question 64

_____ are in effect a form of punishment for violating the law and sometimes also serve as a preventive action.

A) Ordinances
B) Statutes
C) Sanctions
D) Torts
E) Opinions

Question 65

In a broad general sense, _____ includes the legal property relations that large businesses have with each other, with their customers, and with society.

A) corporate governance
B) specific performance
C) stare decisis
D) tort law
E) strict liability

Question 66

When judges, decide appeals from trial courts, make decisions on legal issues, they write their decisions, or _____, setting out reasons.

A) citations
B) opinions
C) codes
D) statutes
E) ordinances

Question 67

The right of an individual to take another person's resources (especially money) because that person has failed to meet the requirements of the law (e.g., the breach of a contract) is known as a(n) _____.

A) sanction
B) amendment
C) remedy
D) dicta
E) holding

Question 68

Give three explanations for why national economies are weak or strong.

Question 69

Which of the following statements about a breach of contract is false?

A) If a breach by one party is serious enough, the other party may be permitted to rescind or cancel the contract.
B) The remedy of an injured party may be an order by the court commanding the other party actually to perform a bargain as agreed.
C) The single largest number of lawsuits today involves businesses suing one another for a breach of contract.
D) A tort is a kind of breach of contract which is a civil wrongdoing.
E) Compensatory damages along with additional consequential damages may be awarded in some cases of breach of contract.

Question 70

According to _____, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases.

A) stare decisis.
B) constitutional realism.
C) statutory construction.
D) constitutional relativism.
E) legal realism.

Question 71

_____ stands for the idea that courts should interpret the Constitution only according to the intentions of those who wrote it.

A) Constitutional relativity
B) Originalism
C) Legal realism
D) Dicta
E) Conflicts of law

Question 72

A(n) _____ is a civil wrong other than a breach of contract.

A) ordinance
B) tort
C) sanction
D) remedy
E) dicta

Question 73

What is rule of law?

Question 74

Punitive damages are frequently awarded in:

A) ordinary negligence cases.
B) intentional tort cases.
C) breach of contract cases.
D) criminal cases.
E) violating the statutes.

Question 75

When the former Soviet Union collapsed, many observers thought that the new private market would promptly improve Russia's economy. Why has the Soviet economy been slow to recover from the decline that it experienced?

Question 76

In some cases of a breach of contract, a decree of _____ may be made -an order by the court commanding the other party actually to perform a bargain as agreed.

A) consequential damages
B) compensatory damages
C) stare decisis
D) specific performance
E) dicta

Question 77

Which of the following are judicial decisions that interpret the relevant constitutional, legislative, and regulatory laws?

A) Citations
B) Opinions
C) Case law
D) Dicta
E) Statutes

Question 78

With reference to property in the legal sense, what are the 3 main types of ownership?

Question 79

The source of law which ranks the lowest among all the others is a _____.

A) local ordinance
B) statute
C) case law
D) state administrative regulation
E) federal administration regulation

Question 80

Coach Kleats is in charge of the softball team at Phoenix Junior School. He loses his temper with one of the substitutes following a game and slams the child against the lockers in his anger. The child is badly bruised and is bleeding from the nose. The coach can be sued for committing a(n) _____ tort.

A) negligence
B) intentional
C) strict liability
D) specific performance
E) criminal conduct