Business Law Exam 1 (ch. 1,2,3,6,7) with
correct answers 100% 2026
law - Correct Answers A body of enforceable rules governing relationships among individuals
and between individuals and their society.
Primary sources of law - Correct Answers 1. The U.S. Constitution and the constitutions of the
various states.
2. Statutory law—including laws passed by Congress, state legislatures, or local governing
bodies.
3. Regulations created by administrative agencies, such as the Food and Drug Administration.
4. Case law and common law doctrines.
Secondary sources of law - Correct Answers books and articles that summarize and clarify the
primary sources of law.
Examples include legal encyclopedias, treatises, articles in law reviews, and compilations of law,
such as the Restatements of the Law.
Courts often refer to secondary sources of law for guidance in interpreting and applying the
primary sources of law discussed here.
constitutional law - Correct Answers Law that is based on the U.S. Constitution and the
constitutions of the various states.
(supreme law of the land)
state constitutional law - Correct Answers Each state in the union has its own constitution.
Unless it conflicts with the U.S. Constitution or a federal law, a state constitution is supreme
within the state's borders.
statutory law - Correct Answers The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law).
, When a legislature passes a statute, that statute ultimately is included in the federal code of
laws or the relevant state code of laws.
ordinances - Correct Answers A law passed by a local governing unit, such as a municipality or a
county.
Ordinances commonly have to do with city or county land use (zoning ordinances), building and
safety codes, and other matters affecting the local community.
uniform law - Correct Answers 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. If the state adopts the law, it becomes statutory law in that state. Each state
has the option of adopting or rejecting all or part of a uniform law
administrative law - Correct Answers The body of law created by administrative agencies (in the
form of rules, regulations, orders, and decisions) in order to carry out their duties and
responsibilities.
administrative agency - Correct Answers A federal, state, or local government agency
established to perform a specific function. Administrative agencies are authorized by legislative
acts to make and enforce rules to administer and enforce the acts.
executive agencies - Correct Answers An administrative agency within the executive branch of
government. At the federal level, executive agencies are those within the cabinet departments.
(ex. FDA, subject to authority of the president.)
case law and common law doctrines - Correct Answers Judge-made law, including
interpretations of constitutional provisions, of statutes enacted by legislatures, and of
regulations created by administrative agencies.
remedies - Correct Answers The relief given to an innocent party to enforce a right or
compensate for the violation of a right.
correct answers 100% 2026
law - Correct Answers A body of enforceable rules governing relationships among individuals
and between individuals and their society.
Primary sources of law - Correct Answers 1. The U.S. Constitution and the constitutions of the
various states.
2. Statutory law—including laws passed by Congress, state legislatures, or local governing
bodies.
3. Regulations created by administrative agencies, such as the Food and Drug Administration.
4. Case law and common law doctrines.
Secondary sources of law - Correct Answers books and articles that summarize and clarify the
primary sources of law.
Examples include legal encyclopedias, treatises, articles in law reviews, and compilations of law,
such as the Restatements of the Law.
Courts often refer to secondary sources of law for guidance in interpreting and applying the
primary sources of law discussed here.
constitutional law - Correct Answers Law that is based on the U.S. Constitution and the
constitutions of the various states.
(supreme law of the land)
state constitutional law - Correct Answers Each state in the union has its own constitution.
Unless it conflicts with the U.S. Constitution or a federal law, a state constitution is supreme
within the state's borders.
statutory law - Correct Answers The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law).
, When a legislature passes a statute, that statute ultimately is included in the federal code of
laws or the relevant state code of laws.
ordinances - Correct Answers A law passed by a local governing unit, such as a municipality or a
county.
Ordinances commonly have to do with city or county land use (zoning ordinances), building and
safety codes, and other matters affecting the local community.
uniform law - Correct Answers 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. If the state adopts the law, it becomes statutory law in that state. Each state
has the option of adopting or rejecting all or part of a uniform law
administrative law - Correct Answers The body of law created by administrative agencies (in the
form of rules, regulations, orders, and decisions) in order to carry out their duties and
responsibilities.
administrative agency - Correct Answers A federal, state, or local government agency
established to perform a specific function. Administrative agencies are authorized by legislative
acts to make and enforce rules to administer and enforce the acts.
executive agencies - Correct Answers An administrative agency within the executive branch of
government. At the federal level, executive agencies are those within the cabinet departments.
(ex. FDA, subject to authority of the president.)
case law and common law doctrines - Correct Answers Judge-made law, including
interpretations of constitutional provisions, of statutes enacted by legislatures, and of
regulations created by administrative agencies.
remedies - Correct Answers The relief given to an innocent party to enforce a right or
compensate for the violation of a right.
