Question 1

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

Accepted Answer

A) Six 
B) Five 
C) Four 
D) Three 
E) Two

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

When courts rely on precedent,they are obeying ________.

Accepted Answer

A) legislative stasis 
B) res judicata 
C) stare decisis 
D) in rem jurisdiction 
E) federal law

Question 4

Judge Susie Justice,who is newly appointed to the bench,is presented with a question of law involving a cat named Chester who scratched a neighbor's antique jalopy.The neighbor,George,demands justice in the form of full payment from Chester's owner,Bill,and also requests that Chester be shipped to the local animal shelter.Bill says that he should not have to pay anything because Chester had never scratched before,that Chester should be allowed to stay in the neighborhood,and that he should be reimbursed for his legal fees by George who is a grump and never should have brought the lawsuit.Judge Justice is perplexed and wants to make a good decision since she is new to the bench.Describe how the judge should go about reaching a decision.Discuss in your answer the impact of cases from other jurisdictions assuming there is no relevant law in Judge Justice's jurisdiction.Also,assuming there is relevant law in this jurisdiction,discuss the applicable legal standard the judge should apply if she finds a relevant statute that conflicts with earlier case law.

Accepted Answer

The answer of Judge Susie Justice,who is newly appointed to...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The cost-benefit analysis approach to legal change is tied closely to the pursuit of ________.

Accepted Answer

A) fairness 
B) efficiency 
C) equity 
D) self-actualization 
E) legal realism

Question 7

Many market transactions occur without legal guidelines.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A case that has been used in accordance with stare decisis as a binding precedent is ________,which abolished discriminatory policies for individuals of different racial backgrounds.

Accepted Answer

A) Curtis v.School Board 
B) Laughlin v.Glover 
C) Grover v.BreeBee 
D) Brown v.Board of Education 
E) Story v.Price

Question 10

Define "stare decisis," discuss when it occurs in the legal system,and explain why stare decisis is important to businesses and individuals.

Accepted Answer

The answer of Define "stare decisis," discuss when it occurs...

Question 11

International Expansion.Zach wants to expand his coffee business internationally - into Zeno,a small remote country in Africa.His best friend Zora asks him if he plans to hire legal counsel for the expansion.Zach replies,"Of course not.The U.S.has the strictest laws regarding contracts,employment,and business practices.So long as I'm legal here,I'm legal anywhere.Besides,I studied up on Zeno law ten years ago,and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits.Authorities there claim that he sexually harassed an employee,failed to pay sufficient wages,and failed to give employees Zeno's mandated 12 weeks of vacation per year. Which of the following is true regarding Zach's defense that he thought he knew the law of Zeno because he had studied it some years before and that the laws under which he was arrested were new?

Accepted Answer

A) Rules in international business change frequently,and Zach had a duty to stay current.It is not a defense that he studied the law at one time and that the laws at issue were new. 
B) Zach is entitled to rely as a defense on the fact that he had studied the law at one time.Officials in Zeno were charged with publicizing any changes. 
C) If Zach can prove that the laws at issue were passed within the last twelve months before he was arrested,he will get out of jail because under international law,there is a twelve month grace period for foreigners. 
D) If Zach can prove that the laws at issue were passed within the last six months before he was arrested,he will get out of jail because under international law,there is a six-month grace period for foreigners. 
E) Zach cannot be prosecuted so long as he was not aware he was violating the law.He did not have the requisite intent to perform a criminal act regardless of whether the laws were new.

Question 12

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 ________.

Accepted Answer

A) the electoral college 
B) good faith and fair dealing 
C) respondeat superior 
D) stare decisis 
E) the law

Question 13

What are local legislative laws called?

Accepted Answer

A) Area laws 
B) Ordinances 
C) Classifications 
D) Filings 
E) Reports

Question 14

Inattentive Driving.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.Which of the following is true regarding Molly's predicament?

Accepted Answer

A) Molly can be given a ticket and prosecuted criminally by government officials,but she may not be sued for a civil violation. 
B) Molly can be sued for a civil action and must pay for Sam's car,but she cannot be prosecuted for a criminal violation. 
C) Molly can be sued in a civil action by Sam,and the government can also prosecute her for a criminal violation. 
D) So long as Molly has insurance and can pay for Sam's vehicle damage,she cannot be prosecuted in a civil or criminal action. 
E) Sam can prosecute Molly in a criminal action,but he cannot sue her in a civil action.

Question 15

International Expansion.Zach wants to expand his coffee business internationally - into Zeno,a small remote country in Africa.His best friend Zora asks him if he plans to hire legal counsel for the expansion.Zach replies,"Of course not.The U.S.has the strictest laws regarding contracts,employment,and business practices.So long as I'm legal here,I'm legal anywhere.Besides,I studied up on Zeno law ten years ago,and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits.Authorities there claim that he sexually harassed an employee,failed to pay sufficient wages,and failed to give employees Zeno's mandated 12 weeks of vacation per year. The type of law involved in comparing laws between the U.S.and Zeno is ________.

Accepted Answer

A) comparative law 
B) contributory law 
C) comprehensive law 
D) complete law 
E) delineated law

Question 16

If a computer store dumps waste behind its building in violation of local,state,or federal environmental regulations,the resulting dispute focuses on ________ law.

Accepted Answer

A) public 
B) preferential 
C) consensual 
D) private 
E) black letter

Question 17

________ consists of the enforceable rules of conduct that govern commercial relationships.

Accepted Answer

A) Ethics 
B) Equity 
C) Business law 
D) The Uniform Contracts Code 
E) The International Contracts Code

Question 18

To the Dogs.Alice loves all animals and is starting a new grooming business for dogs.She believes that animals are very important and plans to exceed any applicable regulations regarding cleanliness and health standards.Alice thinks some local regulations make no sense.For example,there is a local ordinance that all dogs must be kept on a leash at all times when not in a fenced area.Although Alice lives on a large lot with plenty of room for dogs to run free,she plans to obey the leash regulation and all others.She is aware,however,that members of the community have had success in changing local regulations by petitioning the city council.Alice plans to proceed in that manner to attempt a change in the leash law.Alice's plan to seek change through following what others have done in the past by petitioning city council is rooted in which of the following?

Accepted Answer

A) Legal positivism 
B) The historical school 
C) Legal realism 
D) Natural law 
E) Cost-benefit analysis

Question 19

When the organization in charge of proposing uniform laws proposes a statute,which of the following is true?

Accepted Answer

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.

Question 20

The United States Constitution and ________ establish the fundamental principles and rules by which the United States and the several states are governed.

Accepted Answer

A) the administrative rules 
B) the procedural rules 
C) the constitution of each state 
D) the bylaws of each state 
E) both the procedural rules and the bylaws of each state

Exam 1: An Introduction to the Fundamentals of Dynamic Business Law

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

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

When courts rely on precedent,they are obeying ________.

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

The cost-benefit analysis approach to legal change is tied closely to the pursuit of ________.

Many market transactions occur without legal guidelines.

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

A case that has been used in accordance with stare decisis as a binding precedent is ________,which abolished discriminatory policies for individuals of different racial backgrounds.

Define "stare decisis," discuss when it occurs in the legal system,and explain why stare decisis is important to businesses and individuals.

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 ________.

What are local legislative laws called?

If a computer store dumps waste behind its building in violation of local,state,or federal environmental regulations,the resulting dispute focuses on ________ law.

________ consists of the enforceable rules of conduct that govern commercial relationships.

When the organization in charge of proposing uniform laws proposes a statute,which of the following is true?

The United States Constitution and ________ establish the fundamental principles and rules by which the United States and the several states are governed.