BLAW 341 EXAM 1 2026 STUDY GUIDE
COMPLETE BUSINESS LAW PRINCIPLES AND
PRACTICE QUESTIONS
◉ Law - Definition
-What does the law say? Answer: A set of enforceable rules that
regulates the conduct of individuals, businesses, and other
organizations within society
-Says you can or cannot do something
◉ How does the law serve society? (3) Answer: 1. Keeps the peace
(prevents conflict)
2. Create a set of rules that people can refer to
3. Gives protected property rights
◉ Businesspersons must be aware of what _______ may lead to legal
liability Answer: Conduct
◉ Liability - Definition Answer: The state of being legally
responsible (liable) for something such as a debt or obligation
,◉ Businesspersons must develop critical thinking and legal
reasoning skills so that they may evaluate how various laws apply to
a particular situation:
1.
2. Answer: 1. Must think about risk and loss
2. Many different laws may affect a single business transaction
◉ Business Law is integral to what six functional fields of business?
Answer: 1. Corporate Management ex: Supervise your workers
2. Production and transportation ex: Contracts, shipping products
3. Marketing ex: Trademarks, false advertising
4. Research and Development ex: Intellectual property, patents
5. Accounting and Finance ex: Corporate governance issues, looking
after publicly trading entities
6. Human resources management ex: Interpersonal relationships,
treating workers right
◉ What are the two major sources of American Law? Answer:
Primary Sources & Secondary Sources
◉ What are primary sources? Answer: A document that establishes
the law on a particular issue; follow primary source first before
moving on to secondary source
,◉ What are the 4 types of primary sources? Answer: 1. U.S.
Constitution (highest law) and constitutions of various states
2. Statutory law
3. Administrative law
4. Case law
◉ Explain how the U.S. constitution is the highest law. Answer: It
creates the structure that all other law is based upon; if a law
conflicts with Constitution, the Constitution always wins`
◉ Explain the relationship between the State constitutions and the
U.S. constitution. Answer: State constitutions can ADD more
protections to US constitution, but cannot conflict with it
◉ What is Statutory law? Answer: laws passed by U.S. Congress,
state legislatures, and local governing bodies
◉ What is Administrative law? Answer: Regulations created by
administrative agencies (such as SEC, IRS, FDA)
ex: FDA sets standards that companies must meet in order to ensure
a new drug is safe; companies have to follow these standards as law
, ◉ What is case law? Answer: Court decisions. In Civil Law countries
(including France, China, Italy) this type of primary source does not
exist; courts do not produce primary sources.
◉ What are secondary sources? (3) Answer: A publication that
summarizes or interprets the law, such as LEGAL ENCYCLOPEDIA, a
LEGAL TREATISE, or an ARTICLE IN LAW REVIEW. In other words, it
is learned people giving their interpretations of the law.
◉ How are secondary sources used? Answer: Courts refer to these
sources for guidance in interpreting/applying the primary sources
of law. ex: our textbook has explanations and knowledge on the law,
but cannot be used in court
◉ What does case law consist of? Answer: Judicial interpretation of
constitutional provisions, statutes, and administrative regulations
(what judges decides based on prior laws/information)
◉ What does case law govern? Answer: Case law - doctrines and
principles announced in cases - governs all areas NOT covered by
statutory law or administrative law ie if there is no precedent set,
then the case law decides the outcome
◉ Case law is part of the common law tradition. What is the common
law tradition? Answer: This is the way in which COURTS CREATE
COMPLETE BUSINESS LAW PRINCIPLES AND
PRACTICE QUESTIONS
◉ Law - Definition
-What does the law say? Answer: A set of enforceable rules that
regulates the conduct of individuals, businesses, and other
organizations within society
-Says you can or cannot do something
◉ How does the law serve society? (3) Answer: 1. Keeps the peace
(prevents conflict)
2. Create a set of rules that people can refer to
3. Gives protected property rights
◉ Businesspersons must be aware of what _______ may lead to legal
liability Answer: Conduct
◉ Liability - Definition Answer: The state of being legally
responsible (liable) for something such as a debt or obligation
,◉ Businesspersons must develop critical thinking and legal
reasoning skills so that they may evaluate how various laws apply to
a particular situation:
1.
2. Answer: 1. Must think about risk and loss
2. Many different laws may affect a single business transaction
◉ Business Law is integral to what six functional fields of business?
Answer: 1. Corporate Management ex: Supervise your workers
2. Production and transportation ex: Contracts, shipping products
3. Marketing ex: Trademarks, false advertising
4. Research and Development ex: Intellectual property, patents
5. Accounting and Finance ex: Corporate governance issues, looking
after publicly trading entities
6. Human resources management ex: Interpersonal relationships,
treating workers right
◉ What are the two major sources of American Law? Answer:
Primary Sources & Secondary Sources
◉ What are primary sources? Answer: A document that establishes
the law on a particular issue; follow primary source first before
moving on to secondary source
,◉ What are the 4 types of primary sources? Answer: 1. U.S.
Constitution (highest law) and constitutions of various states
2. Statutory law
3. Administrative law
4. Case law
◉ Explain how the U.S. constitution is the highest law. Answer: It
creates the structure that all other law is based upon; if a law
conflicts with Constitution, the Constitution always wins`
◉ Explain the relationship between the State constitutions and the
U.S. constitution. Answer: State constitutions can ADD more
protections to US constitution, but cannot conflict with it
◉ What is Statutory law? Answer: laws passed by U.S. Congress,
state legislatures, and local governing bodies
◉ What is Administrative law? Answer: Regulations created by
administrative agencies (such as SEC, IRS, FDA)
ex: FDA sets standards that companies must meet in order to ensure
a new drug is safe; companies have to follow these standards as law
, ◉ What is case law? Answer: Court decisions. In Civil Law countries
(including France, China, Italy) this type of primary source does not
exist; courts do not produce primary sources.
◉ What are secondary sources? (3) Answer: A publication that
summarizes or interprets the law, such as LEGAL ENCYCLOPEDIA, a
LEGAL TREATISE, or an ARTICLE IN LAW REVIEW. In other words, it
is learned people giving their interpretations of the law.
◉ How are secondary sources used? Answer: Courts refer to these
sources for guidance in interpreting/applying the primary sources
of law. ex: our textbook has explanations and knowledge on the law,
but cannot be used in court
◉ What does case law consist of? Answer: Judicial interpretation of
constitutional provisions, statutes, and administrative regulations
(what judges decides based on prior laws/information)
◉ What does case law govern? Answer: Case law - doctrines and
principles announced in cases - governs all areas NOT covered by
statutory law or administrative law ie if there is no precedent set,
then the case law decides the outcome
◉ Case law is part of the common law tradition. What is the common
law tradition? Answer: This is the way in which COURTS CREATE
