, Chapter 1
The Legal Environment
N.B.: TYPE indicates that a question is new, modified, or unchanged,
as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test
Bank,
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. The law establishes rights, duties, and privileges that are consistent
with the values of society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
2. Law includes enforceable rules governing relationships between
individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
3. A federal law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
1
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
,2 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
, CHAPTER 1: THE LEGAL ENVIRONMENT 3
5. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
6. The U.S. Constitution is the supreme law of the United States.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
7. Whether a law is constitutional depends on its source.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
8. A state constitution is supreme within the state’s borders so long as it
does not conflict with the U.S. Constitution or a federal law.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
9. Uniform laws apply in all states, including those in which the laws
have not been adopted.
ANSWER: F PAGE: 6 TYPE: =
NAT: AACSB Analytic AICPA Legal
10. Federal statutes apply to all states.
ANSWER: T PAGE: 6 TYPE: =
NAT: AACSB Analytic AICPA Legal
11. No state has adopted the Uniform Commercial Code in its entirety.
ANSWER: F PAGE: 6 TYPE: +
NAT: AACSB Reflective AICPA Legal
12. Federal administrative agencies specify the powers of Congress.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
The Legal Environment
N.B.: TYPE indicates that a question is new, modified, or unchanged,
as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test
Bank,
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. The law establishes rights, duties, and privileges that are consistent
with the values of society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
2. Law includes enforceable rules governing relationships between
individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
3. A federal law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
1
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
,2 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
, CHAPTER 1: THE LEGAL ENVIRONMENT 3
5. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
6. The U.S. Constitution is the supreme law of the United States.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
7. Whether a law is constitutional depends on its source.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
8. A state constitution is supreme within the state’s borders so long as it
does not conflict with the U.S. Constitution or a federal law.
ANSWER: T PAGE: 5 TYPE: =
NAT: AACSB Analytic AICPA Legal
9. Uniform laws apply in all states, including those in which the laws
have not been adopted.
ANSWER: F PAGE: 6 TYPE: =
NAT: AACSB Analytic AICPA Legal
10. Federal statutes apply to all states.
ANSWER: T PAGE: 6 TYPE: =
NAT: AACSB Analytic AICPA Legal
11. No state has adopted the Uniform Commercial Code in its entirety.
ANSWER: F PAGE: 6 TYPE: +
NAT: AACSB Reflective AICPA Legal
12. Federal administrative agencies specify the powers of Congress.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
