BUL 5810 COMMERCIAL TRANSACTIONS
AND LEGAL FRAMEWORK EXAM PAPER
QUESTIONS SOLUTIONS BUSINESS
DECISION GUIDE 2026
◉ What are the functions of law?
Answer: To maintain stability in the social, political, and economic
system through dispute resolution, protection of property, and the
preservation of the state, while simultaneously permitting ordered
change.
◉ What are legal sanctions?
Answer: Means by which the law enforces the decisions of the
courts.
◉ What is the difference between law and morals?
Answer: They are different but overlapping; Law provides sanctions,
while morals do not.
◉ What is the difference between Law and Justice?
,Answer: They are separate and distinct concepts; Justice is the fair,
equitable, and impartial treatment of competing interests with due
regard for the common good.
◉ What is substantive law?
Answer: Law creating rights and duties.
◉ What is procedural law?
Answer: Rules for enforcing substantive law.
◉ What is civil law?
Answer: Law dealing with rights and duties the violation of which
constitutes a wrong against an individual or other legal entity.
◉ What is criminal law?
Answer: Law establishing duties which, if violated, constitute a
wrong against the entire community.
◉ What are the four sources of law?
Answer: Constitutional law, Judicial law, Legislative law, and
Administrative law.
◉ What is Constitutional law?
,Answer: Fundamental law of government establishing its powers
and limitations.
◉ Into how many parts is Judicial law divided?
Answer: 2 parts: Common law and Equity
◉ What is Common Law?
Answer: The branch of Judicial Law that is developed by the courts
ans serves as precedent for determination of later controversies.
◉ What is Equity?
Answer: The branch of Judicial law that is based upon principles
distinct from common law and providing remedies not available at
law.
◉ Into how many parts is Legislative law divided?
Answer: 2 parts: Treaties and Executive Orders
◉ What is a Treaty?
Answer: Agreements between or among independent nations.
◉ What is an Executive Order?
Answer: Laws issued by the President or by the Governor of a state.
, ◉ What is Administrative law?
Answer: Body of law created by Administrative agencies to carry out
their regulatory powers and duties.
◉ What is the supreme law of the land?
Answer: The U.S. Constitution
◉ Administrative agencies are powerful because they have 3 powers
of government:
Answer: 1. Power to make rules
2. Power to investigate or enforce
3. Power to decide if you violated rules
◉ What is Stare Decisis?
Answer: The legal principle of determining points in litigation
according to precedent.
◉ What is ethics?
Answer: Study of what is good or right for human beings.
◉ What is Business Ethics?
AND LEGAL FRAMEWORK EXAM PAPER
QUESTIONS SOLUTIONS BUSINESS
DECISION GUIDE 2026
◉ What are the functions of law?
Answer: To maintain stability in the social, political, and economic
system through dispute resolution, protection of property, and the
preservation of the state, while simultaneously permitting ordered
change.
◉ What are legal sanctions?
Answer: Means by which the law enforces the decisions of the
courts.
◉ What is the difference between law and morals?
Answer: They are different but overlapping; Law provides sanctions,
while morals do not.
◉ What is the difference between Law and Justice?
,Answer: They are separate and distinct concepts; Justice is the fair,
equitable, and impartial treatment of competing interests with due
regard for the common good.
◉ What is substantive law?
Answer: Law creating rights and duties.
◉ What is procedural law?
Answer: Rules for enforcing substantive law.
◉ What is civil law?
Answer: Law dealing with rights and duties the violation of which
constitutes a wrong against an individual or other legal entity.
◉ What is criminal law?
Answer: Law establishing duties which, if violated, constitute a
wrong against the entire community.
◉ What are the four sources of law?
Answer: Constitutional law, Judicial law, Legislative law, and
Administrative law.
◉ What is Constitutional law?
,Answer: Fundamental law of government establishing its powers
and limitations.
◉ Into how many parts is Judicial law divided?
Answer: 2 parts: Common law and Equity
◉ What is Common Law?
Answer: The branch of Judicial Law that is developed by the courts
ans serves as precedent for determination of later controversies.
◉ What is Equity?
Answer: The branch of Judicial law that is based upon principles
distinct from common law and providing remedies not available at
law.
◉ Into how many parts is Legislative law divided?
Answer: 2 parts: Treaties and Executive Orders
◉ What is a Treaty?
Answer: Agreements between or among independent nations.
◉ What is an Executive Order?
Answer: Laws issued by the President or by the Governor of a state.
, ◉ What is Administrative law?
Answer: Body of law created by Administrative agencies to carry out
their regulatory powers and duties.
◉ What is the supreme law of the land?
Answer: The U.S. Constitution
◉ Administrative agencies are powerful because they have 3 powers
of government:
Answer: 1. Power to make rules
2. Power to investigate or enforce
3. Power to decide if you violated rules
◉ What is Stare Decisis?
Answer: The legal principle of determining points in litigation
according to precedent.
◉ What is ethics?
Answer: Study of what is good or right for human beings.
◉ What is Business Ethics?
