Page 1 of 272
BLAW 341 — BUSINESS LAW I: INTRODUCTION
TO CONTRACTS, LIABILITY ISSUES, AND
INTELLECTUAL PROPERTY
| Section | Title | Page |
|---------|-------|------|
| 1.0 | Topic 1: Foundations of Law and the Legal System | 3 |
| 2.0 | Topic 2: Court Systems and Alternative Dispute Resolution | 8 |
| 3.0 | Topic 3: Constitutional Law and Business Regulation | 13 |
| 4.0 | Topic 4: Torts — Intentional Torts | 18 |
| 5.0 | Topic 5: Torts — Negligence and Strict Liability | 23 |
| 6.0 | Topic 6: Introduction to Contracts — Formation | 28 |
| 7.0 | Topic 7: Contract Enforceability — Defenses | 34 |
| 8.0 | Topic 8: Contract Performance, Breach, and Remedies | 39 |
| 9.0 | Topic 9: Sales and the Uniform Commercial Code (UCC) | 44 |
| 10.0 | Topic 10: Intellectual Property | 49 |
| 11.0 | Topic 11: Agency and Employment Law | 54 |
| 12.0 | Topic 12: Business Organizations | 59 |
,Page 2 of 272
SECTION 2.0: TOPIC 1 — FOUNDATIONS OF LAW AND THE LEGAL SYSTEM
Question 1
Topic: Foundations of Law — Sources of Law
Learning Objective: Identify and distinguish primary sources of law in the American legal
system.
Difficulty: Easy
**Question:**
Which of the following is considered a **primary source** of law in the American legal system?
A. A legal encyclopedia article summarizing contract law principles
B. A law review article analyzing recent Supreme Court decisions
C. The United States Constitution and its amendments
D. A Restatement of the Law published by the American Law Institute
Correct answer: C — The United States Constitution and its amendments
Detailed rationale:
Primary sources of law are those that establish the actual law itself and have binding legal
authority. The U.S. Constitution is the supreme law of the land and is the foundational primary
source from which all other law derives its authority. Statutory law, case law, and administrative
regulations are also primary sources. By contrast, legal encyclopedias, law review articles, and
Restatements are secondary sources—they explain, analyze, or summarize the law but do not
themselves create legally binding rules.
,Page 3 of 272
Why the other options are incorrect:
- **A:** A legal encyclopedia is a secondary source that summarizes and explains the law but
does not have binding legal authority.
- **B:** A law review article is a scholarly analysis of legal issues and constitutes a secondary
source, not binding law.
- **D:** Restatements are influential secondary sources that organize and clarify common law
principles, but they are not primary sources of law.
Exam tip: Remember: **Primary = Binding Authority** (Constitution, statutes, regulations, case
law). **Secondary = Persuasive Authority** (encyclopedias, Restatements, law reviews).
---
## Question 2
**Topic:** Foundations of Law — Stare Decisis
**Learning Objective:** Explain the doctrine of stare decisis and its role in the common law
system.
**Difficulty:** Easy
**Question:**
The doctrine of **stare decisis** requires courts to:
A. Interpret statutes according to the plain meaning of the text
B. Follow precedents established by prior court decisions
, Page 4 of 272
C. Defer to administrative agency interpretations of law
D. Apply the law of the jurisdiction where the contract was formed
**Correct answer:** B — Follow precedents established by prior court decisions
**Detailed rationale:**
*Stare decisis* is Latin for "to stand by things decided." Under this doctrine, courts are generally
bound to follow legal precedents established by prior court decisions in the same jurisdiction.
This principle promotes stability, predictability, and consistency in the law. When a court faces a
legal issue that has been previously decided, it will apply the same rule unless there is a
compelling reason to depart from precedent.
**Why the other options are incorrect:**
- **A:** Plain meaning interpretation is a statutory interpretation technique, not the doctrine
of stare decisis.
- **C:** Deference to administrative agencies is associated with *Chevron* deference, not stare
decisis.
- **D:** Choice of law rules determine which jurisdiction's law applies, not the doctrine of stare
decisis.
**Exam tip:** Remember: *Stare decisis* = **"Let the decision stand."** It creates binding
precedent within the same jurisdiction. Lower courts must follow higher courts' decisions.
---
## Question 3
BLAW 341 — BUSINESS LAW I: INTRODUCTION
TO CONTRACTS, LIABILITY ISSUES, AND
INTELLECTUAL PROPERTY
| Section | Title | Page |
|---------|-------|------|
| 1.0 | Topic 1: Foundations of Law and the Legal System | 3 |
| 2.0 | Topic 2: Court Systems and Alternative Dispute Resolution | 8 |
| 3.0 | Topic 3: Constitutional Law and Business Regulation | 13 |
| 4.0 | Topic 4: Torts — Intentional Torts | 18 |
| 5.0 | Topic 5: Torts — Negligence and Strict Liability | 23 |
| 6.0 | Topic 6: Introduction to Contracts — Formation | 28 |
| 7.0 | Topic 7: Contract Enforceability — Defenses | 34 |
| 8.0 | Topic 8: Contract Performance, Breach, and Remedies | 39 |
| 9.0 | Topic 9: Sales and the Uniform Commercial Code (UCC) | 44 |
| 10.0 | Topic 10: Intellectual Property | 49 |
| 11.0 | Topic 11: Agency and Employment Law | 54 |
| 12.0 | Topic 12: Business Organizations | 59 |
,Page 2 of 272
SECTION 2.0: TOPIC 1 — FOUNDATIONS OF LAW AND THE LEGAL SYSTEM
Question 1
Topic: Foundations of Law — Sources of Law
Learning Objective: Identify and distinguish primary sources of law in the American legal
system.
Difficulty: Easy
**Question:**
Which of the following is considered a **primary source** of law in the American legal system?
A. A legal encyclopedia article summarizing contract law principles
B. A law review article analyzing recent Supreme Court decisions
C. The United States Constitution and its amendments
D. A Restatement of the Law published by the American Law Institute
Correct answer: C — The United States Constitution and its amendments
Detailed rationale:
Primary sources of law are those that establish the actual law itself and have binding legal
authority. The U.S. Constitution is the supreme law of the land and is the foundational primary
source from which all other law derives its authority. Statutory law, case law, and administrative
regulations are also primary sources. By contrast, legal encyclopedias, law review articles, and
Restatements are secondary sources—they explain, analyze, or summarize the law but do not
themselves create legally binding rules.
,Page 3 of 272
Why the other options are incorrect:
- **A:** A legal encyclopedia is a secondary source that summarizes and explains the law but
does not have binding legal authority.
- **B:** A law review article is a scholarly analysis of legal issues and constitutes a secondary
source, not binding law.
- **D:** Restatements are influential secondary sources that organize and clarify common law
principles, but they are not primary sources of law.
Exam tip: Remember: **Primary = Binding Authority** (Constitution, statutes, regulations, case
law). **Secondary = Persuasive Authority** (encyclopedias, Restatements, law reviews).
---
## Question 2
**Topic:** Foundations of Law — Stare Decisis
**Learning Objective:** Explain the doctrine of stare decisis and its role in the common law
system.
**Difficulty:** Easy
**Question:**
The doctrine of **stare decisis** requires courts to:
A. Interpret statutes according to the plain meaning of the text
B. Follow precedents established by prior court decisions
, Page 4 of 272
C. Defer to administrative agency interpretations of law
D. Apply the law of the jurisdiction where the contract was formed
**Correct answer:** B — Follow precedents established by prior court decisions
**Detailed rationale:**
*Stare decisis* is Latin for "to stand by things decided." Under this doctrine, courts are generally
bound to follow legal precedents established by prior court decisions in the same jurisdiction.
This principle promotes stability, predictability, and consistency in the law. When a court faces a
legal issue that has been previously decided, it will apply the same rule unless there is a
compelling reason to depart from precedent.
**Why the other options are incorrect:**
- **A:** Plain meaning interpretation is a statutory interpretation technique, not the doctrine
of stare decisis.
- **C:** Deference to administrative agencies is associated with *Chevron* deference, not stare
decisis.
- **D:** Choice of law rules determine which jurisdiction's law applies, not the doctrine of stare
decisis.
**Exam tip:** Remember: *Stare decisis* = **"Let the decision stand."** It creates binding
precedent within the same jurisdiction. Lower courts must follow higher courts' decisions.
---
## Question 3
