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Kelley School of Business L201 Exam 1 | Practice Questions, Answers & Complete Study Guide | 2026/2027

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Prepare for Kelley School of Business L201 Exam 1 with a focused exam-prep resource featuring practice questions, answers, and structured review material. Designed to support active recall and efficient revision, this resource helps students review important L201 concepts, test their understanding, identify knowledge gaps, and prepare more confidently for Exam 1. What this resource offers: practice questions and answers, focused Exam 1 review, convenient revision material, and organized preparation for L201 coursework. Ideal for searches including Kelley L201 Exam 1, Indiana University L201, IU Kelley L201 practice questions, L201 study guide, business law exam prep, and L201 questions and answers.

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KELLEY SCHOOL OF BUSINESS - L201
EXAM 1 QUESTIONS WITH COMPLETE
SOLUTIONS!!



The Supreme Court is mainly an ____ court. Answer - Appellate (meaning it only
questions the law of the federal court of appeals and the highest state courts).

Separation of Powers Answer - The U.S. Constitution established Congress and
allows it to make laws in certain areas, the president to enforce the laws, and a
federal judiciary to interpret them.

Federalism Answer - Gives states power to make laws in certain areas

Statutes Answer - laws created by elected representatives in Congress or a state
legislation, their interpretation and application are often difficult.

Uniform Acts Answer - model statutes drafted by private bodies of scholars and
lawyers.

Common Law Answer - 1) law made and applied by judges (precedents)
2) typically only used at state level, although sometimes federal courts apply it
3) "Stare Decisis" or "let the decision stand"

Administrative Agencies... Answer - obtain the ability to make law through a
delegation of power from legislature. Their decisions are legally binding but appeals
to the legislation are sometimes allowed

treaties Answer - "supreme law of the land" made by president and other
governments and must be approved by 2/3 of senate

Rules of Supremacy? Answer - 1) U.S Constitution > State Constitution
2) Constitutions > Other Laws
3) Statutes > Legislative Delegation
4) Statutes > Common Law
4) Federal Statute > State Statute (This is known as the SUPREMACY CLAUSE)

Substantive Law Answer - sets the rights and duties of people as they act in society.

Procedural Law Answer - controls the behavior of government bodies as they
establish and enforce rules of substantive law

, 4 schools of jurisprudence and description of each Answer - 1) Legal Positivism-
sees legal validity and moral validity as separate... laws should be enforced and
obeyed, just or not
2) Natural Law- good law=just, bad law=not just
3) American Legal Realism- what really affects peoples lives is true law
4) Sociological (Public Policy)- what would people want to happen?

Judicial Review Answer - questions constitutionality of laws (established during
Marbury vs Madison)

How do judges determine the plain meaning of statutes? Answer - They use the
dictionary

6 functions of law? Answer - 1) peacekeeping
2) checking gmt. power and promoting personal freedom
3) facilitating planning and the realization of reasonable expectations
4) promoting economic growth via free comp.
5) promoting social justice
6) protecting the environment

Maxims Answer - general rules of thumb employed in statutory interpretation

Subject Matter Jurisdiction Answer - a court's power to decide the type of dispute
involved in the case (ex: criminal courts cant hear civil matters, small claims courts
can't hear $500,000)

In Personam Jurisdiction Answer - based on the residence, location, or activities of
the defendant. a state has in personam jurisdiction over a defendant who is a citizen
or resident of the state, who are within state border when the process is served, or
who consent to the court's authority (i.e. entering the state to defend the plaintiff's
claim).

In Rem Jurisdiction Answer - Court jurisdiction over a defendant's property (ex:
fighting over property in Indiana, Indiana would hear the case)

Venue Requirements that are satisfied Answer - A court must have this for a case to
be legally binding. This questions where the case will be held. (ex: if there's a school
shooter at IU, they will try to get the case moved to another state to get a fair trial)

Concurrent Jurisdiction Answer - when both state and federal courts have jurisdiction
over the case.

>When concurrent jurisdiction exists and plaintiff files for state court, defendant has
the option to "remove" the case to a federal court.

The U.S Supreme Court Answer - -highest court of the land
-mainly functions as an appellate court
-has certiorari jurisdiction (gives them the option to hear a case or not)

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