Legal Environment of Business Unit 1 Test
_____ is a body of rules of action or conduct prescribed by controlling authority and having binding legal
force. - ✔✔ANSWER✔✔-Law
Which of the following is not a primary function of law in the United States? - ✔✔ANSWER✔✔-
establishing uniform principles of individual morality
Laws that make certain activities crimes are an example of which function of the law? - ✔✔ANSWER✔✔-
keeping the peace
Laws that allow for the settlement of cases prior to trial are an example of which function of the law? -
✔✔ANSWER✔✔-providing a basis for compromise
Laws that are enacted only after considerable study, debate, and public input are an example of which
function of the law? - ✔✔ANSWER✔✔-facilitating orderly change
United States' law evolves and changes along with all of the following EXCEPT - ✔✔ANSWER✔✔-misuses
and oversights of our legal system
The _____ School of jurisprudence asserts that the law is a means of achieving and advancing certain
sociological goals. - ✔✔ANSWER✔✔-Sociological
,The _____ School of jurisprudence believes that the law is a set of rules developed, communicated, and
enforced by the ruling party rather than a reflection of the society's morality, history, logic, or sociology. -
✔✔ANSWER✔✔-Command
The _____ School of jurisprudence proposes that legal rules are unnecessary and are used as an obstacle
by the powerful to maintain the status quo. - ✔✔ANSWER✔✔-Critical Legal Studies
The ________ School of jurisprudence believes that promoting market efficiency should be the central
goal of legal decision making. - ✔✔ANSWER✔✔-Law and Economics
Which of the following schools of jurisprudential thought might suggest that the federal government's
policy of subsidized housing provides incentives resulting in too many homes being built? -
✔✔ANSWER✔✔-Law and Economics
The _____ School of jurisprudence asserts that the law should be based on morality and ethics. -
✔✔ANSWER✔✔-Natural Law
When legal scholars look to past legal decisions (precedent) to solve contemporary problems, it is an
example of which school of jurisprudence? - ✔✔ANSWER✔✔-Historical School
English _____ law was developed by judges, who issued their opinions when deciding cases. The
principles in these cases became precedent for later judges deciding similar cases. - ✔✔ANSWER✔✔-
common
Which of the following are categories of courts that established English common law? -
✔✔ANSWER✔✔-law, equity, and merchant
What was the main reason for the creation of law courts by William the Conqueror during the early
development of the English common law? - ✔✔ANSWER✔✔-to administer the law in a uniform manner
What was the main reason for the establishment of chancery courts during the development of English
common law? - ✔✔ANSWER✔✔-to eliminate unfair results and limited remedies of law courts
,________ courts were allowed to give equitable remedies under the English common law. -
✔✔ANSWER✔✔-Chancery
Which of the following statements is true about the early development of English common law? -
✔✔ANSWER✔✔-Equitable orders and remedies of the Court of Chancery took precedence over the legal
decisions and remedies of the law courts.
_____ the supreme law of the United States. - ✔✔ANSWER✔✔-The United States Constitution is
A(n) _____ is a written law enacted by the legislative branch of the federal and state governments that
establishes certain courses of conduct to which covered parties must adhere. - ✔✔ANSWER✔✔-statute
A(n) _____ is a law enacted by local government bodies, such as cities and municipalities, counties,
school districts, and water districts. - ✔✔ANSWER✔✔-ordinance
The Securities and Exchange Commission is an example of a _____. - ✔✔ANSWER✔✔-federal
administrative agency
_____ means "to stand by the decision." - ✔✔ANSWER✔✔-Stare decisis
The Texas Natural Resources Code is an example of a(n) _____. - ✔✔ANSWER✔✔-state statute
_____ improves a person's problem-solving skills and helps him or her to make clear, logical, rational,
and well-reasoned conclusions and judgments. - ✔✔ANSWER✔✔-Critical legal thinking
Which of the following is not a relevant question according to the IRAC method of critical legal thinking?
- ✔✔ANSWER✔✔-Which executive nominated the judge presiding over the case?
Which of the following is NOT a component of critical thinking? - ✔✔ANSWER✔✔-discounting opposing
positions and arguments
, Which of the following is an example of the Socratic method of teaching? - ✔✔ANSWER✔✔-asking
students questions about a case or legal issue
The Supreme Court in Fisher v. University of Texas at Austin held that _____. - ✔✔ANSWER✔✔-race-
conscious admissions is lawful under the equal protection clause
State limited-jurisdiction trial courts are sometimes referred to as _____ trial courts. - ✔✔ANSWER✔✔-
inferior
Many states have created _____ claims courts to hear cases involving small dollar amounts, such as
$5,000 or less. - ✔✔ANSWER✔✔-small
What is the function of an intermediate appellate court? - ✔✔ANSWER✔✔-to review the trial court
record for errors
The highest court in a state court system is usually referred to as the state _____ court. -
✔✔ANSWER✔✔-supreme
Which of the following is NOT a court in the state court system? - ✔✔ANSWER✔✔-appellate courts of
the military services
What does the highest state court system hear appeals from? - ✔✔ANSWER✔✔-both intermediate
appellate state courts and certain trial courts
Which divisions fall under the state trial courts of general jurisdiction? - ✔✔ANSWER✔✔-domestic
relations, probate, civil, juvenile, criminal
There are _____ circuits in the federal court system. - ✔✔ANSWER✔✔-13
The United States Supreme Court is composed of _____ Justices who are nominated by the _____ and
confirmed by the _____. - ✔✔ANSWER✔✔-nine; President; Senate
_____ is a body of rules of action or conduct prescribed by controlling authority and having binding legal
force. - ✔✔ANSWER✔✔-Law
Which of the following is not a primary function of law in the United States? - ✔✔ANSWER✔✔-
establishing uniform principles of individual morality
Laws that make certain activities crimes are an example of which function of the law? - ✔✔ANSWER✔✔-
keeping the peace
Laws that allow for the settlement of cases prior to trial are an example of which function of the law? -
✔✔ANSWER✔✔-providing a basis for compromise
Laws that are enacted only after considerable study, debate, and public input are an example of which
function of the law? - ✔✔ANSWER✔✔-facilitating orderly change
United States' law evolves and changes along with all of the following EXCEPT - ✔✔ANSWER✔✔-misuses
and oversights of our legal system
The _____ School of jurisprudence asserts that the law is a means of achieving and advancing certain
sociological goals. - ✔✔ANSWER✔✔-Sociological
,The _____ School of jurisprudence believes that the law is a set of rules developed, communicated, and
enforced by the ruling party rather than a reflection of the society's morality, history, logic, or sociology. -
✔✔ANSWER✔✔-Command
The _____ School of jurisprudence proposes that legal rules are unnecessary and are used as an obstacle
by the powerful to maintain the status quo. - ✔✔ANSWER✔✔-Critical Legal Studies
The ________ School of jurisprudence believes that promoting market efficiency should be the central
goal of legal decision making. - ✔✔ANSWER✔✔-Law and Economics
Which of the following schools of jurisprudential thought might suggest that the federal government's
policy of subsidized housing provides incentives resulting in too many homes being built? -
✔✔ANSWER✔✔-Law and Economics
The _____ School of jurisprudence asserts that the law should be based on morality and ethics. -
✔✔ANSWER✔✔-Natural Law
When legal scholars look to past legal decisions (precedent) to solve contemporary problems, it is an
example of which school of jurisprudence? - ✔✔ANSWER✔✔-Historical School
English _____ law was developed by judges, who issued their opinions when deciding cases. The
principles in these cases became precedent for later judges deciding similar cases. - ✔✔ANSWER✔✔-
common
Which of the following are categories of courts that established English common law? -
✔✔ANSWER✔✔-law, equity, and merchant
What was the main reason for the creation of law courts by William the Conqueror during the early
development of the English common law? - ✔✔ANSWER✔✔-to administer the law in a uniform manner
What was the main reason for the establishment of chancery courts during the development of English
common law? - ✔✔ANSWER✔✔-to eliminate unfair results and limited remedies of law courts
,________ courts were allowed to give equitable remedies under the English common law. -
✔✔ANSWER✔✔-Chancery
Which of the following statements is true about the early development of English common law? -
✔✔ANSWER✔✔-Equitable orders and remedies of the Court of Chancery took precedence over the legal
decisions and remedies of the law courts.
_____ the supreme law of the United States. - ✔✔ANSWER✔✔-The United States Constitution is
A(n) _____ is a written law enacted by the legislative branch of the federal and state governments that
establishes certain courses of conduct to which covered parties must adhere. - ✔✔ANSWER✔✔-statute
A(n) _____ is a law enacted by local government bodies, such as cities and municipalities, counties,
school districts, and water districts. - ✔✔ANSWER✔✔-ordinance
The Securities and Exchange Commission is an example of a _____. - ✔✔ANSWER✔✔-federal
administrative agency
_____ means "to stand by the decision." - ✔✔ANSWER✔✔-Stare decisis
The Texas Natural Resources Code is an example of a(n) _____. - ✔✔ANSWER✔✔-state statute
_____ improves a person's problem-solving skills and helps him or her to make clear, logical, rational,
and well-reasoned conclusions and judgments. - ✔✔ANSWER✔✔-Critical legal thinking
Which of the following is not a relevant question according to the IRAC method of critical legal thinking?
- ✔✔ANSWER✔✔-Which executive nominated the judge presiding over the case?
Which of the following is NOT a component of critical thinking? - ✔✔ANSWER✔✔-discounting opposing
positions and arguments
, Which of the following is an example of the Socratic method of teaching? - ✔✔ANSWER✔✔-asking
students questions about a case or legal issue
The Supreme Court in Fisher v. University of Texas at Austin held that _____. - ✔✔ANSWER✔✔-race-
conscious admissions is lawful under the equal protection clause
State limited-jurisdiction trial courts are sometimes referred to as _____ trial courts. - ✔✔ANSWER✔✔-
inferior
Many states have created _____ claims courts to hear cases involving small dollar amounts, such as
$5,000 or less. - ✔✔ANSWER✔✔-small
What is the function of an intermediate appellate court? - ✔✔ANSWER✔✔-to review the trial court
record for errors
The highest court in a state court system is usually referred to as the state _____ court. -
✔✔ANSWER✔✔-supreme
Which of the following is NOT a court in the state court system? - ✔✔ANSWER✔✔-appellate courts of
the military services
What does the highest state court system hear appeals from? - ✔✔ANSWER✔✔-both intermediate
appellate state courts and certain trial courts
Which divisions fall under the state trial courts of general jurisdiction? - ✔✔ANSWER✔✔-domestic
relations, probate, civil, juvenile, criminal
There are _____ circuits in the federal court system. - ✔✔ANSWER✔✔-13
The United States Supreme Court is composed of _____ Justices who are nominated by the _____ and
confirmed by the _____. - ✔✔ANSWER✔✔-nine; President; Senate
