CLEp Introductory Business Law
UPDATED Study Guide QUESTIONS
AND CORRECT ANSWERS
Law - CORRECT ANSWERS Represents a set of rules or principles
established by government or some other controlling body that members of
society must follow and obey.
Legal System - CORRECT ANSWERS A system of established laws.
Civil Law/Code Law System - CORRECT ANSWERS Laws established
by reference to a single comprehensive code. Judges make decisions by
referring to a set code. Example countries include: France, Spain, Germany, and
Latin America Countries.
Common Law/ Case Law System - CORRECT ANSWERS Judge-made
law whereby judges make decisions on a case-by-case basis, and those decisions
generate a body of rules and principles. Judges decide cases by referring to their
own decisions or the decisions of other courts. Example countries include:
England, United States, Australia, Canada, New Zealand, and most countries
colonized by England.
Commentaries on the Law of England (1765-1769) - CORRECT ANSWERS
Written by Sir William Blackstone. Considered to be the most
comprehensive historical treatment of English common law.
Precedent - CORRECT ANSWERS A decision in a previous court case
that is used as the basis for a decision in a similar case.
Stare Decisis - CORRECT ANSWERS The notion that judges must make
decisions consistent with precedent. Judges must follow their own decisions or
the decisions of their own court as well.
,Three Branches of Government - CORRECT ANSWERS Article I-
Legislative
Article II- Executive
Article III- Judicial
The Legislative Branch (Congress) - CORRECT ANSWERS
Responsible for making the laws. Members are deemed to act as
representatives of the people. Divided into the Senate and the House of
Representatives.
The Executive Branch - CORRECT ANSWERS Responsible for
enforcing the laws. Consists of the president, the vice president, and other
executive officers.
The Judicial Branch - CORRECT ANSWERS Responsible for
interpreting the law. Comprised of the court system= Supreme Court and
inferior courts.
Supreme Court - CORRECT ANSWERS Established by Article III.
Consists of nine justices appointed by the president with the advice and consent
of the Senate.
Judicial Review - CORRECT ANSWERS The process of the judiciary
branch reviewing the decisions of federal and state legislatures to ensure that
they do not violate the Constitution. Gives courts the ability to declare a federal
or state law unconstitutional, and thereby invalidate it. It was set forth in the
1803 decision of Marbury vs. Madison, 5 U.S. 137 (1803).
Checks and Balances - CORRECT ANSWERS Each branch of
government has specific power and authority, and can check or balance out the
power exercised by other branches.
, Bill of Rights - CORRECT ANSWERS The first ten amendments to the
Constitution. Written by James Madison. There are 27 total amendments.
Federalism - CORRECT ANSWERS The states and the federal
government share the power of governing.
Supremacy Clause - CORRECT ANSWERS State constitutions and
statutes cannot violate the federal constitution or federal law. Laws made in
pursuit of the Constitution and all U.S. treaties shall be the "supreme law of the
land."
Ordinances - CORRECT ANSWERS Aimed at addressing purely local
matters and set in place by local governments.
Uniform Laws - CORRECT ANSWERS Laws established by a group of
experts seeking to create uniform legislation on a given topic. Each state is
given the opportunity to adopt the law in whole or in part.
Uniform Commercial Code - CORRECT ANSWERS A collection of
laws that governs various types of business transactions.
The First Amendment - CORRECT ANSWERS Congress shall make no
law respecting an establishment of religion, or prohibiting the free exercise
thereof; or abridging the freedom of speech, or of the press; or the right of the
people peaceably to assemble, and to petition the government for a redress of
grievances.
Commercial Speech - CORRECT ANSWERS Speech regarding
commercial or economic activities.
UPDATED Study Guide QUESTIONS
AND CORRECT ANSWERS
Law - CORRECT ANSWERS Represents a set of rules or principles
established by government or some other controlling body that members of
society must follow and obey.
Legal System - CORRECT ANSWERS A system of established laws.
Civil Law/Code Law System - CORRECT ANSWERS Laws established
by reference to a single comprehensive code. Judges make decisions by
referring to a set code. Example countries include: France, Spain, Germany, and
Latin America Countries.
Common Law/ Case Law System - CORRECT ANSWERS Judge-made
law whereby judges make decisions on a case-by-case basis, and those decisions
generate a body of rules and principles. Judges decide cases by referring to their
own decisions or the decisions of other courts. Example countries include:
England, United States, Australia, Canada, New Zealand, and most countries
colonized by England.
Commentaries on the Law of England (1765-1769) - CORRECT ANSWERS
Written by Sir William Blackstone. Considered to be the most
comprehensive historical treatment of English common law.
Precedent - CORRECT ANSWERS A decision in a previous court case
that is used as the basis for a decision in a similar case.
Stare Decisis - CORRECT ANSWERS The notion that judges must make
decisions consistent with precedent. Judges must follow their own decisions or
the decisions of their own court as well.
,Three Branches of Government - CORRECT ANSWERS Article I-
Legislative
Article II- Executive
Article III- Judicial
The Legislative Branch (Congress) - CORRECT ANSWERS
Responsible for making the laws. Members are deemed to act as
representatives of the people. Divided into the Senate and the House of
Representatives.
The Executive Branch - CORRECT ANSWERS Responsible for
enforcing the laws. Consists of the president, the vice president, and other
executive officers.
The Judicial Branch - CORRECT ANSWERS Responsible for
interpreting the law. Comprised of the court system= Supreme Court and
inferior courts.
Supreme Court - CORRECT ANSWERS Established by Article III.
Consists of nine justices appointed by the president with the advice and consent
of the Senate.
Judicial Review - CORRECT ANSWERS The process of the judiciary
branch reviewing the decisions of federal and state legislatures to ensure that
they do not violate the Constitution. Gives courts the ability to declare a federal
or state law unconstitutional, and thereby invalidate it. It was set forth in the
1803 decision of Marbury vs. Madison, 5 U.S. 137 (1803).
Checks and Balances - CORRECT ANSWERS Each branch of
government has specific power and authority, and can check or balance out the
power exercised by other branches.
, Bill of Rights - CORRECT ANSWERS The first ten amendments to the
Constitution. Written by James Madison. There are 27 total amendments.
Federalism - CORRECT ANSWERS The states and the federal
government share the power of governing.
Supremacy Clause - CORRECT ANSWERS State constitutions and
statutes cannot violate the federal constitution or federal law. Laws made in
pursuit of the Constitution and all U.S. treaties shall be the "supreme law of the
land."
Ordinances - CORRECT ANSWERS Aimed at addressing purely local
matters and set in place by local governments.
Uniform Laws - CORRECT ANSWERS Laws established by a group of
experts seeking to create uniform legislation on a given topic. Each state is
given the opportunity to adopt the law in whole or in part.
Uniform Commercial Code - CORRECT ANSWERS A collection of
laws that governs various types of business transactions.
The First Amendment - CORRECT ANSWERS Congress shall make no
law respecting an establishment of religion, or prohibiting the free exercise
thereof; or abridging the freedom of speech, or of the press; or the right of the
people peaceably to assemble, and to petition the government for a redress of
grievances.
Commercial Speech - CORRECT ANSWERS Speech regarding
commercial or economic activities.
