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,TESTBANK FOR Business Law, 12th edition Henry
R. Cheeseman
Notes
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,Business Law, 12e (Cheeseman)
Chapter 1 Legal Heritage and Ethics

1) Which of the following refers to rules that citizens must adhere to, with potential sanctions or
legal repercussions for noncompliance?
A) morality
B) philosophy
C) law
D) religion
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept

2) Law may be defined 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 laws would be considered an example of shaping and influencing
moral standards?
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




1
Copyright © 2026 Pearson Education, Inc.

,4) What function is served by establishing laws that prohibit workplace discrimination?
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) Halfrond, a county in the state of Halizona, is earthquake prone. The governor of Halizona
established a committee to investigate the impact of previous earthquakes on Halfrond and
explore potential methods to reduce damage and save lives. The committee discovered that
incorporating steel reinforcements in building columns could significantly lessen overall
damage. These findings were debated at a local town hall meeting, where a majority of Halfrond
residents agreed with the proposal. Subsequently, the state government enacted a law requiring
the use of steel-reinforced columns in all new construction in Halfrond. Which function of the
law did the Halizona state government demonstrate in this situation?
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 role does the law fulfill when enacting laws to safeguard the U.S. government from the
threat 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




2
Copyright © 2026 Pearson Education, Inc.

,7) What essential function of law does the U.S. Constitution serve by allowing U.S. citizens to
practice the religion of their choice?
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) Sonja Sinha was involved in a car accident where the airbag of the vehicle did not deploy.
Sonja filed a lawsuit against the car manufacturer, alleging the airbags were defective. However,
during the legal proceedings, both Sonja and the car company decided to settle the case outside
of court. What key legal function was served in this situation?
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 American legal system is designed to be one of the fairest and most democratic systems
ever created. When our system of law fails, it is often because of human failure — abuses of
discretion, mistakes made by judges and juries, or inconsistent application of the law.
Answer: TRUE
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept

10) Which term is defined as the science or philosophy of law?
A) morality
B) ethics
C) justice
D) jurisprudence
Answer: D
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept



3
Copyright © 2026 Pearson Education, Inc.

,11) Philosophers from the ________ School of jurisprudence focus on a moral theory of law,
asserting that laws are grounded in morality and ethics, and are determined through human
reasoning and the choice between good and evil.
A) Sociological
B) Analytical
C) Historical
D) Natural Law
Answer: D
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

12) The Analytical School of jurisprudence asserts that 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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

13) Which school of jurisprudence views law as an evolving process, where current societal
norms are reflected in legal changes?
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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

14) Implementing a ban on public smoking exemplifies a law that aligns with the ________
School of jurisprudence.
A) Command
B) Sociological
C) Law and Economics
D) Analytical
Answer: B
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

4
Copyright © 2026 Pearson Education, Inc.

,15) Philosophers of the Command School of jurisprudence 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 reflection of the society's morality, history, and logic
D) based on human reasoning, and humans' choosing power between what is good and evil
Answer: A
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

16) Which school of jurisprudence bases its principles for solving legal disputes on broad notions
of fairness, and subjective judicial decision making?
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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

17) Which school of jurisprudential thought highlights the use of law as a means to achieve
market efficiency in resolving 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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

18) Which school of jurisprudential thought suggests that law is "discovered" by humans through
reason and deciding between good and evil?
A) the Natural Law School
B) the Historical School
C) the Sociological School
D) the Analytical School
Answer: A
Diff: 2
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

5
Copyright © 2026 Pearson Education, Inc.

,19) During the Vietnam War, the U.S. government enacted draft laws requiring men of a certain
age to serve in the military if they met specific physical criteria. Which school of jurisprudential
thought do these draft laws most closely align with?
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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

20) What was a consequence of the development of English common law?
A) the advancement of forensic science in case resolution
B) the supremacy of a ruler and their intervention in case decisions
C) the use of precedent from 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: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

21) The Law and Economics School of jurisprudential thought believes that the primary
objective of legal decision-making should be to enhance market efficiency.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

22) The Critical Legal Studies School argues that legal rules are unnecessary and serve as tools
for the powerful to maintain the status quo.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept




6
Copyright © 2026 Pearson Education, Inc.

,23) The Critical Legal Studies School of jurisprudential thought aims to limit the subjective
decision-making authority of judges.
Answer: FALSE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

24) The Command School of jurisprudence asserts that the law consists of rules established,
communicated, and enforced by the ruling party.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

25) Sociological philosophers are unlikely to adhere to past law as precedent.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

26) The Analytical School of jurisprudence focuses on the process by which a case's outcome is
determined, rather than the reasoning behind the outcome itself.
Answer: FALSE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

27) The Natural Law School of jurisprudence highlights the importance of formulating laws
based on moral and ethical principles.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

28) Looking to legal precedent as a method of solving contemporary problems is a key feature of
the Historical School of jurisprudence.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept


7
Copyright © 2026 Pearson Education, Inc.

, 29) The Law and Economics School asserts that legal decision-making should be directed toward
promoting market efficiency.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

30) When the American colonies were first settled, the English system of law was adopted as the
system of jurisprudence.
Answer: TRUE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

31) All of U.S. states base their legal systems primarily on English common law.
Answer: FALSE
Diff: 1
LO: 1.2 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept

32) Differentiate between the Social Justice School of jurisprudence and the Sociological School
of jurisprudence.
Answer: The Social Justice School of jurisprudence focuses on addressing issues of fairness
and equality within the legal system. It advocates for laws that promote social justice and protect
the rights of marginalized groups. This school emphasizes the moral and ethical implications of
legal decisions and seeks to create a more equitable society by highlighting injustices and
advocating for reforms that benefit the disadvantaged. 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 Summarize the schools of judicial thought.
AACSB: Analytical thinking
Classification: Concept




8
Copyright © 2026 Pearson Education, Inc.

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