Test Bank - Dynamic Business Law: The
Essentials 5th Edition
by Nancy K. Kubasek, M. Neil Browne,
Daniel J. Herron, Lucien Dhooge &
Linda Barkacs
Chapter 1-25 Answers are at the End of Each Chapter
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Chapter 1
1) List the purposes of the law and discuss why these purposes are necessary for an ordered society.
2) Define "stare decisis," discuss when it occurs in the legal system, and explain why stare decisis is important to
businesses and individuals.
3) Explain in what ways a treaty between a foreign country and the United States is similar to a contract.
4) Explain the function of administrative agencies and why they are necessary.List five independent agencies and
five executive agencies.
5) Judge Susie Justice, who is newly appointed to the bench, is presented with a question of law involving a cat
named Chester who scratched a neighbor's antique jalopy. The neighbor, George, demands justice in the form of full
payment from Chester's owner, Bill, and also requests that Chester be shipped to the local animal shelter. Bill says
that he should not have to pay anything because Chester had never scratched before, that Chester should be allowed
to stay in the neighborhood, and that he should be reimbursed for his legal fees by George who is a grump and never
should have brought the lawsuit. Judge Justice is perplexed and wants to make a good decision since she is new to
the bench. Describe how the judge should go about reaching a decision. Discuss in your answer the impact of cases
from other jurisdictions assuming there is no relevant law in Judge Justice's jurisdiction. Also, assuming there is
relevant law in this jurisdiction, discuss the applicable legal standard the judge should apply if she finds a relevant
statute that conflicts with earlier case law.
6) Describe contrasts between the cost-benefit school of jurisprudence and the identification with the vulnerable
school of jurisprudence.
7) Which of the following is not one of the six functional areas of business that sits on a foundation of business law?
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A) management
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B) production and transportation
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C) marketing
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D) accounting and finance
E) state and federal taxation
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8) A commercial firm that seeks to merge with another firm must obey the laws of antitrust. This is an example of:
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A) business law
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B) equity
C) ethics
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D) The Uniform Contracts Code
E) The International Contracts Code
9) “Guaranteeing personal freedoms” is:
A) the exclusive purpose of the law.
B) one of the numerous purposes fulfilled by the law.
C) a purpose of criminal, but not civil, law.
D) a purpose of civil, but not criminal, law.
E) a cultural, but not legal, expectation.
10) Which of the following is one of the numerous purposes fulfilled by the law?
A) Discouraging social justice
B) Limiting personal freedoms
C) Serving as a moral guide by indicating maximum expectations of citizens and organizations
D) Providing order such that one can depend on a promise or an expectation of obligations
E) Serving as a supplement to fighting
11) Which of the following is not one of the numerous purposes fulfilled by the law?
A) Providing order such that one can depend on a promise or an expectation of obligations
B) Serving as an alternative to fighting
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C) Facilitating change without requiring a rational consideration of options
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D) Encouraging social justice
E) Serving as a moral guide by indicating minimal expectations of citizens and organizations
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12) Louisville, Kentucky is debating a new business ordinance that will address sidewalks in its city. Members of
the Louisville city council do not need to concern themselves with which of the following issues?
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A) Local taxes
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B) Environmental standards
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C) Federally-mandated restrictive covenants
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D) Building codes
E) Local zoning
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13) Which of the following is not a purpose of the law as set forth in the text?
A) Encouraging taxation
B) Serving as a moral guide by indicating minimal expectations of citizens and organizations
C) Encouraging social justice
D) Guaranteeing personal freedoms
E) Providing order such that one can depend on a promise or an expectation of obligations
14) When classifying law, which of the following is not a way in which law is classified?
A) National vs. international
B) Philosophical vs. ethical
C) Civil vs. criminal
D) Private vs. public
E) Federal vs. state
15) If Dalynda caused Tonya to breach a contract with a customer because she did not ship the promised goods,
which type of law is applicable?
A) Civil law
B) Public law
C) Governmental law
D) Criminal Law
E) Ethical law
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16) When Austin, Texas decides to implement a new tax code that will impose a new tax on business owners within
its city limits, which law is applicable?
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A) Private law
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B) Public law
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C) Federal law
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D) Criminal law
E) State law
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