Skip to content
Exam Guides

Test Bank for Business Law, 10th Edition

Maximize your study time with Test Bank for Business Law, 10th Edition, featuring a range of exam questions and answers for rapid review.

Preview 16 of 1153 pages

See the first 16 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    1 Business Law, 10e (Cheeseman) Chapter 1 Legal Heritage and the Digital Age 1) ________ is that which must be obeyed and followed by citizens subject to sanctions or legal consequences. A) Morality B) Philosophy C) Law D) Religion Answer: C Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 2) Law is described as ________. A) a body of rules of action or conduct prescribed by controlling authority, and having binding legal force B) a study of fundamental problems, such as those connected with existence, knowledge, and language C) a system that builds and organizes knowledge in the form of testable explanations and predictions D) a group of hypotheses employed to explain a phenomenon Answer: A Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 3) Which of the following would be considered an example of shaping moral standards, as seen as a function of the law? A) laws granting freedom of speech and religion B) laws discouraging drug and alcohol abuse C) laws providing rights to peaceful protest D) laws preventing overthrow of a government Answer: B Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept

  2. Page 2
  3. Page 3
    Read page 3 as text

    2 4) What function of the law is being served when passing laws that prohibit discrimination at workplaces? A) keeping the peace B) providing a basis for compromise C) maintaining the status quo D) promoting social justice Answer: D Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 5) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of Halizona sets up a committee to study the effects of past earthquakes on Halfren and the possible methods that could be used to minimize damage and loss of life. The committee found that a new technique of using steel reinforcements in building columns would help reduce overall damages. The findings were put to a debate at the local town hall, where it was accepted by a majority of the residents of Halfren. The state government then passed a law making it mandatory to use the new steel-reinforced columns while constructing new buildings in Halfren. Which of the following functions of the law did the state government of Halizona exhibit in this case? A) promoting social justice B) maximizing individual freedom C) shaping moral standards D) facilitating orderly change Answer: D Diff: 2 LO: 1.1 Define law. AACSB: Application of knowledge Classification: Application 6) What function of the law is being served when passing laws that protect the U.S. government from the risk of being forcefully overthrown? A) maintaining the status quo B) shaping moral standards C) facilitating orderly change D) promoting social justice Answer: A Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept

  4. Page 4
    Read page 4 as text

    3 7) By allowing the U.S. citizens to practice any religion of their choice, what essential function of the law does the U.S. Constitution serve? A) facilitating orderly change B) maintaining the status quo C) maximizing individual freedom D) facilitating planning Answer: C Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 8) Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He sued the car manufacturer for installing faulty airbags. But in the course of the case being heard in court, the car company and Mark decided to settle the lawsuit out of court. What important function of the law was served in this case? A) promoting social justice B) maximizing individual freedom C) providing a basis for compromise D) maintaining the status quo Answer: C Diff: 2 LO: 1.1 Define law. AACSB: Application of knowledge Classification: Application 9) The Supreme Court case decision on the case of Brown v. Board of Education was important because it exhibited ________. A) the use of the affirmative action policy B) the flexibility of the law C) the state's supremacy over federal rulings D) the importance of following precedent Answer: B Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 10) Businesses that are organized in the United States are subject to its laws, but not to the laws of other countries in which they do business. Answer: FALSE Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept

  5. Page 5
    Read page 5 as text

    4 11) Laws in the United States are not set to evolve with changes in social norms. Answer: FALSE Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 12) Laws should not attempt to shape society's moral standards. Answer: FALSE Diff: 1 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 13) The American system of law is set up to be one of the fairest and most democratic systems ever developed. When our system of law fails, it is often because of human failure — abuses of discretion, mistakes by judges and juries, and unequal application of law. Answer: TRUE Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept 14) What characteristic of the American legal system was most clearly illustrated by the U.S. Supreme Court's opinion in Brown v. Board of Education ? Explain your answer. Answer: The U.S. Supreme Court illustrated flexibility of the law in deciding Brown v. Board of Education in 1954. The Court in Brown v. Board of Education overturned an 1896 U.S. Supreme Court decision, Plessy v. Ferguson , in which the Court had held the separate but equal doctrine to be constitutional. In reversing its 1896 decision, the Court in 1954 found that the separate but equal doctrine violated the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution. Although the decision was controversial in 1954, requiring both court orders and military action to enforce it, the Supreme Court was unanimous in its determination that society had evolved to prohibit separate facilities for schoolchildren of different races. Diff: 2 LO: 1.1 Define law. AACSB: Analytical thinking Classification: Concept

  6. Page 6
    Read page 6 as text

    5 15) ________ is described as the science or philosophy of the law. A) Morality B) Ethics C) Justice D) Jurisprudence Answer: D Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 16) Philosophers of the ________ School of jurisprudence emphasize a moral theory of law, where law is based on morality and ethics, and is discovered by human reasoning and making choices between good and evil. A) Sociological B) Analytical C) Historical D) Natural Law Answer: D Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 17) The Analytical School of jurisprudence maintains that the law is ________. A) shaped by logic B) based on social behavior C) set by the ruling class D) based on morality Answer: A Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 18) Which school of jurisprudence views law as a sort of evolutionary process, where changing norms of society will be reflected in the law? A) the Natural Law School of jurisprudence B) the Sociological School of jurisprudence C) the Analytical School of jurisprudence D) the Historical School of jurisprudence Answer: D Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept

  7. Page 7
    Read page 7 as text

    6 19) Imposing a ban on public smoking can serve as an example of a law that adheres to the ________ School of jurisprudence. A) Command B) Sociological C) Law and Economics D) Analytical Answer: B Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 20) The philosophers of the Command School of jurisprudence will assert that the law is ________. A) developed, communicated, and enforced by the ruling party B) a means to achieve and advance sociological goals C) a collection of a society's traditions and customs that has developed over the centuries D) based on human reasoning, and humans' choosing power between what is good and evil Answer: A Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 21) Which school of jurisprudence bases its principles, for solving legal disputes, on broad notions of fairness, and subjective decision making by judges? A) the Natural Law School of jurisprudence B) the Analytical School of jurisprudence C) the Critical Legal Studies School of jurisprudence D) the Sociological School of jurisprudence Answer: C Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 22) Which school of jurisprudential thought emphasizes using law as a tool for market efficiency while solving legal disputes? A) the Critical Legal Studies School of jurisprudence B) the Command School of jurisprudence C) the Sociological School of jurisprudence D) the Law and Economics School of jurisprudence Answer: D Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept

  8. Page 8
    Read page 8 as text

    7 23) Which school of jurisprudential thought is reflected in documents such as the U.S. Constitution, the Magna Carta, and the United Nations Charter? A) the Natural Law School B) the Historical School C) the Sociological School D) the Analytical School Answer: A Diff: 2 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 24) The U.S. government passed draft laws during the Vietnam War decreeing that men of a certain age had to serve in the military if they met specific physical requirements. Which of the following schools of jurisprudential thought does such draft laws adhere to the most? A) the Historical School of jurisprudential thought B) the Natural Law School of jurisprudential thought C) the Sociological School of jurisprudential thought D) the Command School of jurisprudential thought Answer: D Diff: 2 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 25) The Law and Economics School of jurisprudential thought believes that promoting market efficiency should be the central goal of legal decision making. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 26) The Critical Legal Studies School proposes that legal rules are unnecessary and are used as an obstacle by the powerful to maintain the status quo. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept

  9. Page 9
    Read page 9 as text

    8 27) The Critical Legal Studies School of jurisprudential thought seeks to restrict the subjective decision-making powers of judges. Answer: FALSE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 28) The Command School of jurisprudence believes that the law is a set of rules developed, communicated, and enforced by the ruling party. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 29) Sociological philosophers are unlikely to adhere to past law as precedent. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 30) The Analytical School of jurisprudence lays emphasis on how the result of a case is reached rather than the logic of the result itself. Answer: FALSE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 31) Natural Law School of jurisprudence emphasizes shaping laws based on morals and ethics. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 32) Legal precedent is a key feature of the Historical School of jurisprudence. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept

  10. Page 10
    Read page 10 as text

    9 33) The Law and Economics School believes that legal decision making should be functional to market efficiency. Answer: TRUE Diff: 1 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 34) Differentiate between the Historical School of jurisprudence and the Sociological School of jurisprudence. Answer: The Historical School of jurisprudence believes that the law is an aggregate of social traditions and customs that have developed over the centuries. It believes that changes in the norms of society will gradually be reflected in the law. To these legal philosophers, the law is an evolutionary process. The Sociological School of jurisprudence asserts that the law is a means of achieving and advancing certain sociological goals. The followers of this philosophy, known as realists, believe that the purpose of law is to shape social behavior. Sociological philosophers are unlikely to adhere to past law as precedent. Diff: 2 LO: 1.2 List and describe the schools of judicial thought. AACSB: Analytical thinking Classification: Concept 35) What was a result of the development of the English common law? A) the development of forensic science in helping decide cases B) the supremacy of the king and his intervening powers when deciding cases C) the use of precedent of past cases for judges to decide present similar cases D) the subjective decision making of judges when it came to similar cases Answer: C Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 36) What was a reason for the creation of law courts during the early development of the English common law? A) to administer law in a uniform manner B) to help merchants form a standardized set of commercial laws C) to increase the power of the king in law-making D) to facilitate legal disputes for the wealthy and influential Answer: A Diff: 2 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept

  11. Page 11
    Read page 11 as text

    10 37) Which of the following statements best indicates how chancery courts were different from law courts? A) Chancery courts emphasized developing merchant laws rather than laws for the common citizen. B) Chancery courts inquired into the merits of a case rather than emphasize legal procedures. C) Chancery courts emphasized a standard set of remedies across different cases rather than provide equitable remedies. D) Chancery courts had lower precedence level over legal decisions than the law courts. Answer: B Diff: 2 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 38) ________ courts were allowed to give equitable remedies under the English common law. A) Merchant B) Law C) Chancery D) Appellate Answer: C Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 39) What led to the creation of the Chancery Courts? A) the insistence for a court system that emphasized legal procedure rather than the merits of a case B) the law courts' inability to hear all the cases presented to them C) the increase in overseas trade and proliferation of piracy D) the unfair results and limited remedies provided by the law courts Answer: D Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 40) Equitable orders and remedies of the Court of Chancery took precedence over the legal decisions and remedies of the law courts. Answer: TRUE Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept

  12. Page 12
    Read page 12 as text

    11 41) The merchant courts were established because of the unfair results and limited remedies available in the chancery courts. Answer: FALSE Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 42) When the American colonies were first settled, the English system of law was adopted as the system of jurisprudence. Answer: TRUE Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 43) The Chancery courts under the English common law were under the authority of the Lord Chancellor. Answer: TRUE Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 44) The law courts of the English common law could only provide monetary awards for damages. Answer: TRUE Diff: 2 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 45) The law courts of the English common law emphasized legal procedure over the merits of an individual case. Answer: TRUE Diff: 1 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept

  13. Page 13
    Read page 13 as text

    12 46) Give an account of the Law Merchant in early English common law. Answer: As trade developed during the Middle Ages, merchants who traveled about England and Europe developed certain rules to solve their commercial disputes. These rules, known as the "law of merchants" or the Law Merchant, were based on common trade practices and usage. Eventually, a separate set of courts was established to administer these rules. This court was called the Merchant Court. In the early 1900s, the Merchant Court was absorbed into the regular law court system of England. Diff: 2 LO: 1.3 Learn the history and development of American law. AACSB: Analytical thinking Classification: Concept 47) What is considered as the supreme law of the land in the United States? A) judicial decisions issued by the state courts B) the Constitution of the United States of America C) the federal statutes passed by the United States Congress D) executive orders passed by the president Answer: B Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 48) The ________ branch of the federal government has the power to enforce the law. A) judicial B) legislative C) executive D) commissary Answer: C Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 49) What is the function of the judicial branch of the federal government? A) It has the power to interpret and determine the validity of the law. B) It has the power to enact the law. C) It has the power to enforce the law. D) It has the power to act as a liaison between the legislative and executive branches. Answer: A Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept

  14. Page 14
    Read page 14 as text

    13 50) The ________ branch of the federal government has the power to enact laws. A) legislative B) judicial C) consulate D) executive Answer: A Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 51) Which of the following legal documents establishes the U.S. federal government and specifies its powers? A) federal statutes B) the U.S. Constitution C) the combined list of state statutes D) the set of codified laws called ordinances Answer: B Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 52) A(n) ________ is a compact made between two or more nations. A) amendment B) treaty C) charter D) statute Answer: B Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 53) A(n) ________ is a written law enacted by the legislative branch of the federal and state governments that establishes certain courses of conduct to which covered parties must adhere. A) charter B) treaty C) executive order D) statute Answer: D Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept

  15. Page 15
    Read page 15 as text

    14 54) From the following, identify an example of codified law in the United States? A) judicial rulings B) federal statutes C) treaties D) executive orders Answer: B Diff: 2 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 55) Ordinances are codified laws that are issued by ________. A) the president B) the state legislature C) the Supreme Court judges D) local government bodies Answer: D Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 56) ________ are established by the legislative and executive branches of the federal and state governments to enforce and interpret statutes enacted by the Congress and state legislatures. A) Commissaries B) State courts C) Administrative agencies D) Councils Answer: C Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 57) What is a judicial decision? A) a decision issued by the executive branch in a state of emergency B) a decision about an individual lawsuit issued by a federal or state court C) a codified law passed by the state legislature D) a decision issued by the legislative branch to establish courses of conduct to which covered parties must adhere Answer: B Diff: 2 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept

  16. Page 16
    Read page 16 as text

    15 58) Stare decisis is the doctrine of ________. A) providing proof to assert a fact in court B) adhering to legal precedent C) separating powers between state and religion D) ensuring all legal rights are provided to a person when otherwise deprived of them Answer: B Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 59) How is legal precedent used between courts of different states? A) Courts of a state cannot cite the judicial decisions of courts of another state in its decisions. B) Courts of a state must follow precedent from courts of another state for similar cases. C) Courts of a state can use precedent from courts of another state as a form of guidance. D) Courts of a state cannot challenge the precedent of courts of another state. Answer: C Diff: 2 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 60) How does the doctrine of stare decisis help in creating stability in a legal system? A) by ensuring that witnesses of a case will be protected by the state B) by ensuring that the legal rights of a defendant are preserved C) by allowing the use of precedent in deciding future cases D) by allowing the use of writs Answer: C Diff: 2 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept 61) The Securities and Exchange Commission (SEC), created by the Congress to enforce federal securities laws, is an example of a(n) ________. A) intelligence agency B) congressional body C) judicial body D) administrative agency Answer: D Diff: 1 LO: 1.4 List and describe the sources of law in the United States. AACSB: Analytical thinking Classification: Concept

1137 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Business Law study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.