Business Law Midterm
Questions/Answers with correct
answers 100% 2026
Law can be classified into areas of public and private law. Public law includes those bodies of
law (such as constitutional law, administrative law, and criminal law) that affect the public
generally. - Correct Answers True
The reasoning and principles for a decision by a Federal Court of Appeals or the United States
Supreme Court are considered a source of law in America. - Correct Answers True
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own
rights. - Correct Answers False
With respect to negligence, the concept of actual causation can generally be summarized as the
"but-for" test. - Correct Answers True
An action may be legal but not necessarily ethical. - Correct Answers True
Procedural law is that aspect of the law that regulates and controls the rights and duties of
persons and is used to resolve disputes. - Correct Answers False
A state court can generally exercise jurisdiction over any property within the boundaries of the
state. - Correct Answers True
A business is only subject to the jurisdiction of those states in which it is incorporated. - Correct
Answers False
, A counterclaim is prepared by a plaintiff as an answer against a defendant's initial petition or
complaint. - Correct Answers False
A federal court always has diversity of citizenship jurisdiction over a particular dispute when the
plaintiff and defendant are from two different states. - Correct Answers False
A small claims court is an example of a court of limited jurisdiction. - Correct Answers True
When determining which state's law to apply in a dispute between persons from two or more
states, courts will look to principles of conflicts of law. - Correct Answers True
A writ of certiorari is a type of equitable remedy available when someone defaults under a
contract. - Correct Answers False
Living in the United States, all the states have the same laws so there is no advantage in trying
to bring a lawsuit in California versus in New York. - Correct Answers False
Venue relates to and defines the particular territorial area within the state, out of all those with
jurisdiction, in which the case should be filed and tried, and is often based on convenience. -
Correct Answers True
A federal court has jurisdiction over federal questions, so long as the amount in dispute exceeds
$75,000. - Correct Answers False
A summons is issued by the court and then it, along with a copy of the petition, is served to the
defendant, and it notifies the defendant of the date by which he is required to file a response to
the plaintiff's allegations. - Correct Answers True
Questions/Answers with correct
answers 100% 2026
Law can be classified into areas of public and private law. Public law includes those bodies of
law (such as constitutional law, administrative law, and criminal law) that affect the public
generally. - Correct Answers True
The reasoning and principles for a decision by a Federal Court of Appeals or the United States
Supreme Court are considered a source of law in America. - Correct Answers True
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own
rights. - Correct Answers False
With respect to negligence, the concept of actual causation can generally be summarized as the
"but-for" test. - Correct Answers True
An action may be legal but not necessarily ethical. - Correct Answers True
Procedural law is that aspect of the law that regulates and controls the rights and duties of
persons and is used to resolve disputes. - Correct Answers False
A state court can generally exercise jurisdiction over any property within the boundaries of the
state. - Correct Answers True
A business is only subject to the jurisdiction of those states in which it is incorporated. - Correct
Answers False
, A counterclaim is prepared by a plaintiff as an answer against a defendant's initial petition or
complaint. - Correct Answers False
A federal court always has diversity of citizenship jurisdiction over a particular dispute when the
plaintiff and defendant are from two different states. - Correct Answers False
A small claims court is an example of a court of limited jurisdiction. - Correct Answers True
When determining which state's law to apply in a dispute between persons from two or more
states, courts will look to principles of conflicts of law. - Correct Answers True
A writ of certiorari is a type of equitable remedy available when someone defaults under a
contract. - Correct Answers False
Living in the United States, all the states have the same laws so there is no advantage in trying
to bring a lawsuit in California versus in New York. - Correct Answers False
Venue relates to and defines the particular territorial area within the state, out of all those with
jurisdiction, in which the case should be filed and tried, and is often based on convenience. -
Correct Answers True
A federal court has jurisdiction over federal questions, so long as the amount in dispute exceeds
$75,000. - Correct Answers False
A summons is issued by the court and then it, along with a copy of the petition, is served to the
defendant, and it notifies the defendant of the date by which he is required to file a response to
the plaintiff's allegations. - Correct Answers True
