(Test Bank) Business Law

Langvardt, 17

Business

Test Bank

17th Edition

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Test Bank for Business Law, The downloadable file consists of 2186 pages, and the total size of the file is 12.51 MB. Purchase now only for highly discounted price.

Author(s): Langvardt

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PRIMEXAM.COM Business Law 17th Edition Langvardt Test Bank Business Law, 17e (Langvardt) Chapter 1 The Nature of Law 1) The U.S. Constitution recognizes the states' power to make law in certain areas. Answer: TRUE Explanation: The U.S. Constitution structures the relationship between the federal government and the states around the system of federalism, which recognizes the states' power to make law in certain areas. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) Uniform acts are model statutes drafted by private bodies of lawyers and scholars; they become law only after a legislature enacts them. Answer: TRUE Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars and do not become law until a legislature enacts them. Difficulty: 1 Easy Topic: Types and Classi fications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 3) Common law exists only at the state level and only state courts can apply it. Answer: FALSE Explanation: Although common law generally exists only at the state level, both state courts and federal courts are involved in applying it. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand PRIMEXAM.COM AACSB: Analytical Thinking Accessibility: Keyboard Navigation 4) The Restatements are binding laws and are promulgated by the American Law Institute. Answer: FALSE Explanation: The Restatements are promulgated by the American Law Institute, not the courts; hence, they are not considered binding laws. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 5) According to the U.S. Constitution, treaties made by the president with foreign governments and approved by two -thirds of the U.S. Senate validate inconsistent state and federal laws. Answer: FALSE Explanation: According to the U.S. Constitution, treaties made by the president with foreign governments and approved by two -thirds of the U.S. Senate become "the supreme Law of the Land." Treaties invalidate inconsistent state and federal laws. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) The same behavior will sometimes violate both civil law and criminal law, and in such a case, a person may be held both civilly and criminally liable for the same act. Answer: TRUE Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same behavior will sometimes violate both. For instance, if A commits an intentional act of physical violence on B, A may face both a criminal prosecution by the state and B's c ivil suit for damages. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 7) A state statute making murder a crime is an example of a substantive law, criminal law, and public law. Answer: TRUE Explanation: Substantive law sets the rights and duties of people as they act in society. Criminal law is the law under which the government prosecutes someone for committing a crime. Public law concerns the powers of government and private parties (which includes criminal law). Hence, a state's murder statute is an example of all three types of laws. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8) Though a natural law defense is not recognized in court, judges may take natural law -oriented views into account when interpreting the law. Answer: TRUE Explanation: While interpreting the law, judges may take natural law-oriented views into account. Typically, when judges are influenced by natural law ideas, they may be more likely to read constitutional provisions more broadly in order to strike down positive laws they regard as unjust. Difficulty: 2 Medium Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Understand AACSB: Ethics; Analytical Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 9) American legal realists regard the law in the books as less impor tant than the law in action and define law as the behavior of public officials (mainly judges) as they deal with matters before the legal system. Answer: TRUE Explanation: American legal realism defines law as the behavior of public officials (mainly judges) as they deal with matters before the legal system. Because the actions of such decision makers really affect people's lives, the realists believe, this behavior is what deserves to be called law. Difficulty: 1 Easy Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) The critical legal studies movement regards law as the product of political calculation and longstanding class biases on the part of lawmakers. Answer: TRUE Explanation: The critical legal studies (CLS) movement regards law as inevitably the product of political calculation and longstanding class biases on the part of lawmakers, including judges. Articles published by CLS adherents provide controversial assessments and critiques of legal rules. Difficulty: 1 Easy Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 11) The doctrine of stare decisis states that like cases should be decided alike. Answer: TRUE Explanation: The standard for choosing and applying pri or cases to decide present cases is the doctrine of stare decisis which states that like cases should be decided alike. Difficulty: 1 Easy Topic: Legal Reasoning Learning Objective: 01-05 Describe the respective roles of adhering to precedent (stare decisis) and distinguishing precedent in case law reasoning. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 12) Common law provides certainty because a court is bound to make the same decision in a case with a similar issue, despite any factual differences. Answer: FALSE Explanation: When an earlier case may seem similar enough to the present case to constitute a precedent but the court deciding the present case nevertheless identifies a meaningful difference between the cases, the court distinguishes the earlier decision and is not bound by it under these circumstances. Difficulty: 2 Medium Topic: Legal Reasoning Learning Objective: 01-05 Describe the respective roles of adhering to precedent (stare decisis) and distinguishing precedent in case law reasoning. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 13) It is unimportant for the court, whether the i nterpretation of a statute is consistent with its legislative purpose; it is the actual language (plain or ambiguous) of the statute that needs to be analyzed. Answer: FALSE Explanation: When the language of a statute is ambiguous, courts may go to its legislative history. In this, courts study whether the interpretation of the statute is consistent with its legislative purpose. Difficulty: 2 Medium Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislative history, and general public purpose). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 14) The doctrine of standing to sue requires that, in order to be able to mount a civil suit, a plaintiff must have some direct and substantial stake in the outcome of the suit. Answer: TRUE Explanation: The doctrine of standing to sue requires that the plaintiff have some direct, tangible, and substantive stake in the outcome of the litigation. Difficulty: 1 Easy Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislati ve history, and general public purpose). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 15) State and federal declaratory judgment statutes do not allow parties to determine their rights and duties when their controversy has not advanced to the point where harm has occurred and legal relief may be necessary. Answer: FALSE Explanation: State and federal declaratory judgment statutes allow parties to determine their rights and duties even though their controvers y has not advanced to the point where harm has occurred and legal relief may be necessary. Difficulty: 1 Easy Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislative history, and general public purpose). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 16) Although not binding, the Restatements are persuasive and stimulate changes in the common law by suggesting new rules that courts later decide to follow. Answer: TRUE Explanation: The Restatement rules usually are the rules followed by a majority of the states. Occasionally, however, the Restatements stimulate changes in the common law by suggesting new rules that courts later decide to follow. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statut es, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 17) A reformation occurs when a court rewrites the parties' contract terms to reflect the parties' real intentions. Answer: TRUE Explanation: Reformation is an equitable remedy in which a court effectively rewrites the terms of a contract to reflect the parties' real intentions. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 18) Courts often begin their interpretation of a statute by looking at the plain meaning of its language because it never fails to resolve the ambiguity at issue. Answer: FALSE Explanation: Although courts routinely begin their interpretation of a statute with the plain meaning of its actual language, this approach does not always settle the matter. Often, judges find the application of plain meaning unhelpful. It may lead to absurd or patently unjust results, or it might simply fail to resolve the ambiguit y at issue. Difficulty: 2 Medium Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislative history, and general public purpose ). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19) The House of Representatives and the Senate in the U.S. Congress is an example of a bicameral legislature. Answer: TRUE Explanation: A bicameral legislature is a legislative body made up of two branches or chambers, like the House of Representatives and the Senate in the U.S. Congress. Difficulty: 1 Easy Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislative history, and general public purpose). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 20) The ejusdem generis rule is an example of a maxim. Answer : TRUE Explanation: Maxims are general rules of thumb employed in statutory interpretation. The ejusdem generis rule is an example of a maxim and says that when general words follow words of a specific, limited meaning, the general language should be limited to things of the same class as those specifically stated. Difficulty: 1 Easy Topic: Legal Reasoning Learning Objective: 01-06 Identify what courts focus on when applying the major statutory interpretation techniques (plain meaning, legislative purpose, legislative history, and general public purpose). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 21) What is a statute? A) Laws made and applied by judges B) Laws made by Congress or a state legislature C) Laws made by administrative agencies D) Laws made by the federal judiciary Answer: B Explanation: Statutes are laws created by elected r epresentatives in Congress or a state legislature. They are stated in an authoritative form in statute books or codes. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 22) are model statutes drafted by private bodies of lawyers and scholars. A) Precedents B) Uniform acts C) Ordinances D) Equitable remedies Answer: B Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars, which do not become law until a legislature enacts them. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 23) Which of the following is also called "judge -made law"? A) Common law B) Statutes C) Uniform acts D) Equity Answer: A Explanation: The common law (also called judge -made law or case law) is law made and applied by judges as they decide cases not governed by statutes or other types of law. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 24) Which of the followi ng is true of the Restatements? A) They are promulgated by courts. B) They can be adopted as common law by the states. C) They include only statutory laws. D) They are law and binding on courts. Answer: B Explanation: The Restatements are collections of common law (and occasionally statutory) rules covering various areas of the law and usually are the rules followed by a majority of the states. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 25) A(n) is a cancellation of a contract and a return of the parties to their precontractual position. A) injunction B) ordinance C) rescission D) reformation Answer: C Explanation: A rescission is the cancellation of a contract and a return of the parties to their precontractual position. It is one of the equitable remedies. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and admini strative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 26) Which of the following is the most important type of equitable remedy provided by the equity courts? A) Injunction B) Specific performance remedy C) Reformation D) Rescission Answer: A Explanation: Equity courts provide several remedies that are not available in the common law courts; the most important of these equitable remedies is the injunction —a court order forbidding or commanding a party to do something. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 27) Why were equitable remedies developed? A) Common law rules were too flexible to produce fair results. B) The remedies available in common law courts were too few. C) Equitable remedies were rigid rules of law and produced fair results. D) Common law rules were less technical and rigid. Answer: B Explanation: Equitable remedies developed due to the failure of common laws to provide justice in many cases. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACS B: Reflective Thinking Accessibility: Keyboard Navigation 28) Which of the following is a characteristic of administrative agencies? A) They derive their power from the Supreme Court. B) They make ordinances and pass executive orders. C) They are normally created by statute. D) They are elected bodies. Answer: C Explanation: Administrative agencies normally are created by a statute that specifies the areas in which the agency can make law and the scope of its power in each area. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibilit y: Keyboard Navigation PRIMEXAM.COM 29) Ordinances are created by: A) Congress. B) the Supreme Court. C) counties and municipalities. D) equity courts. Answer: C Explanation: State governments have subordinate units, such as counties and municipalities that are given limited powers to exercise various government functions. The enactments of counties and municipalities are called ordinances. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of t he different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 30) The power of executive orders normally derives from a(n): A) legislative delegation. B) federal court. C) injunction. D) restatement. Answer: A Explanation: The power of executive orders normally results from a legislative delegation. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Ident ify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 31) According to the principle of , the U.S. Constitution, federal laws enacted pursuant to it, and treaties are "the supreme Law of the Land." A) judicial activism B) separation of powers C) federalism D) federal supremacy Answer: D Explanation: According to the principle of federal supremacy, the U.S. Constitution, federal laws enacted pursuant to it, and treaties are "the supreme Law of the Land." This means that federal law defeats conflicting state law. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 32) Which of the following takes priority over a federal statute? A) A state statute B) A state constitution C) An equitable principle D) The U.S. Constitution Answer: D Explanation: The U.S. Constitution takes priority over any kind of inconsistent laws. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-02 Identify the type of law that takes precedence when two types of law conflict. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 33) Which of the following is applied in a lawsuit between two private parties? A) Criminal law B) Civil law C) Procedural law D) Public law Answer: B Explanation: Disputes between private parties are generally subject to civil law. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 34) What is substantive law? A) The laws that govern the rights and duties of people as they act in society. B) The code of conduct of government bodies. C) The procedures followed by Congress to make statutes. D) The procedures followed by municipalities in creating ordinances. Answer: A Explanation: Substantive law sets the rights and duties of people as they act in society. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation PRIMEXAM.COM 35) John is angry because Harry is now dating John's former girlfriend. One day, as John was driving his car, he saw Harry walking by the side of the road. John deliberately swerved and struck Harry with the car. John may be successfully sued under: A) criminal law only. B) civil law only. C) either criminal law or civil law but not both. D) both criminal law and civil law. Answer: D Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same behavior will sometimes violate both. If a person commits an intentional act of physical violence, he may face both criminal prosecution by the state and the plaintiff's ci vil suit for damages. Difficulty: 3 Hard Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 36) Which of the following covers the rules of contract, property, and agency? A) Procedural law B) Private law C) Criminal law D) Ordinances Answer: B Explanation: Private law establishes a framework of legal rules that enables parties to set the rights and duties they owe each other. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation