LEGAL ENVIRONMENT OF BUSINESS
COMPREHENSIVE TEST PAPER QUESTIONS
WITH VERIFIED SOLUTIONS RESOURCE
●● What do laws establish?
Answer: rights, duties, privileges consistent with the value system of a
society
●● Breach
Answer: failure to perform a legal obligation
●● Primary Sources of Law
Answer: sources that establish the law
●● What are the primary sources of US law?
Answer: 1. US Constitution
2. Statutes passed by Congress and state legislatures
3. Regulations created by administrative agencies
4. Case law//court decisions
●● Secondary Sources of Law
,Answer: a publication that summarizes or interprets the law, such as a
legal encyclopedia, a legal treatise, or an article in a law review (books
and articles that summarize and clarify the primary sources of law)
●● Constitutional Law
Answer: the body of law derived from the US Constitution and the
constitution of various states (supreme law of the land, backbone of all
law)
●● Statutory Law
Answer: the body of law enacted by legislative bodies federally and at
the state level (local ordinances, uniform laws)
●● Citation
Answer: a reference to a publication in which a legal authority, such as a
statute or a court decision, or other source can be found
●● Ordinance
Answer: a regulation enacted by a city or county legislative body that
becomes part of that state's statutory law
●● Uniform Law
, Answer: a model law created by the National Conference of
Commissioners on Uniform State Laws and/or the American Law
Institute for the states to consider adopting
●● Administrative Law
Answer: consists of rules, orders, and decisions of federal or state
administrative agencies
●● Case Law and Common Law Doctrines
Answer: the rules of law announced in court decisions (precedent) ---
governs all areas of law not covered by statutory or administrative law
●● Common Law
Answer: a body of law developed from custom or judicial decisions in
English and US courts (what US law is built on - comes from English)
●● Precedent
Answer: court decision that furnishes an example or authority for
deciding subsequent cases involving identical or similar facts
●● Stare Decisis
Answer: a common law doctrine under which judges are obligated to
follow the precedents established in prior decisions (precedent with
binding authority over lower courts)
COMPREHENSIVE TEST PAPER QUESTIONS
WITH VERIFIED SOLUTIONS RESOURCE
●● What do laws establish?
Answer: rights, duties, privileges consistent with the value system of a
society
●● Breach
Answer: failure to perform a legal obligation
●● Primary Sources of Law
Answer: sources that establish the law
●● What are the primary sources of US law?
Answer: 1. US Constitution
2. Statutes passed by Congress and state legislatures
3. Regulations created by administrative agencies
4. Case law//court decisions
●● Secondary Sources of Law
,Answer: a publication that summarizes or interprets the law, such as a
legal encyclopedia, a legal treatise, or an article in a law review (books
and articles that summarize and clarify the primary sources of law)
●● Constitutional Law
Answer: the body of law derived from the US Constitution and the
constitution of various states (supreme law of the land, backbone of all
law)
●● Statutory Law
Answer: the body of law enacted by legislative bodies federally and at
the state level (local ordinances, uniform laws)
●● Citation
Answer: a reference to a publication in which a legal authority, such as a
statute or a court decision, or other source can be found
●● Ordinance
Answer: a regulation enacted by a city or county legislative body that
becomes part of that state's statutory law
●● Uniform Law
, Answer: a model law created by the National Conference of
Commissioners on Uniform State Laws and/or the American Law
Institute for the states to consider adopting
●● Administrative Law
Answer: consists of rules, orders, and decisions of federal or state
administrative agencies
●● Case Law and Common Law Doctrines
Answer: the rules of law announced in court decisions (precedent) ---
governs all areas of law not covered by statutory or administrative law
●● Common Law
Answer: a body of law developed from custom or judicial decisions in
English and US courts (what US law is built on - comes from English)
●● Precedent
Answer: court decision that furnishes an example or authority for
deciding subsequent cases involving identical or similar facts
●● Stare Decisis
Answer: a common law doctrine under which judges are obligated to
follow the precedents established in prior decisions (precedent with
binding authority over lower courts)
