2 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
ANSWER: F PAGE: 4 TYPE: =
Chapter 1 NAT: AACSB Analytic AICPA Legal
Introduction to Law and
Legal Reasoning
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
A1. The stability and predictability of the law is essential to business activities.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among
individuals and between individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking
A4. Constitutional law includes only the U.S. Constitution.
1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 3 4 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A5. A state constitution is supreme within the state’s borders. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A13. Remedies in equity include injunctions and decrees of specific performance.
A6. Whether a law is constitutional depends on its source. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A14. In most states, the courts no longer grant “equitable” remedies.
A7. Uniform laws apply in all states, including those in which the laws have not ANSWER: F PAGE: 8 TYPE: =
been adopted. NAT: AACSB Analytic AICPA Legal
ANSWER: F PAGE: 4 TYPE: = A15. A defendant is a person against whom a lawsuit is brought.
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 8 TYPE: =
A8. A state law that conflicts with the U.S. Constitution will be deemed NAT: AACSB Analytic AICPA Legal
unconstitutional.
A16. Courts do not depart from precedents.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A9. Statutory law does not include county ordinances.
A17. A judge’s function is to make the law.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
A18. Criminal law focuses on duties that exist between persons.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic AICPA Legal
A11. Common law is a term for law that is common throughout the world.
A19. A reference to “28 U.S.C. Section 1332” means that a statute can be found
ANSWER: F PAGE: 7 TYPE: = in section 1332 of title 28 of the United States Code.
NAT: AACSB Analytic AICPA Critical Thinking
ANSWER: T PAGE: 15 TYPE: =
A12. Damages is a remedy at law. NAT: AACSB Analytic AICPA Research
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 5 6 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A20. Most state trial court decisions are not published. ANSWER: A PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
ANSWER: T PAGE: 16 TYPE: =
NAT: AACSB Analytic AICPA Research
MULTIPLE CHOICE QUESTIONS
A1. The legislature of the state of Mississippi enacts a new statute that sets
standards for the liability of businesses selling defective products. This
statute applies
a. only in Mississippi.
b. only in Mississippi and its border states.
c. in all states.
d. in all states but only to matters not covered by other states’ laws.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Critical Thinking
A2. Lewis is a state court judge. Like other judges, Lewis often refers to
secondary sources of law for guidance. These sources include
a. official comments to statute.
b. other states’ statutes.
c. state constitutions.
d. the U.S. Constitution.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Legal
A3. Hawaii enacts a state law that violates the U.S. Constitution. This law can
be enforced by
a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 7 8 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A4. The Federal Trade Commission is a government agency that issues rules, d. the legal means to recover a right or to redress a wrong.
orders, and decisions. The Georgia state legislature enacts statutes. The
Jackson County Board and the Peach City Council enacts ordinances. ANSWER: D PAGE: 7 TYPE: =
Administrative law includes NAT: AACSB Reflective AICPA Legal
a. all law that affects a business’s operation.
b. the rules, orders, and decisions of the Federal Trade Commission.
c. statutes enacted by the Georgia state legislature.
d. ordinances created by the Jackson County Board and the city council
of Peach City, Georgia.
ANSWER: B PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A5. The Securities Exchange Commission is an administrative agency. The
chief purpose of such agencies is to
a. act as liaisons between federal and state governments.
b. impose uniform laws on the states.
c. perform specific government functions.
d. standardize laws for the executive and judicial branches.
ANSWER: C PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A6. In a suit against Corbin, Donatella obtains damages. This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
ANSWER: C PAGE: 7 TYPE: N
NAT: AACSB Reflective AICPA Legal
A7. In an action against Elin, Frank obtains a remedy. This is
a. an administrative agency’s enforcement of its rule.
b. a principle of the law derived from earlier court cases.
c. a statute enacted by a state legislature or Congress.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
ANSWER: F PAGE: 4 TYPE: =
Chapter 1 NAT: AACSB Analytic AICPA Legal
Introduction to Law and
Legal Reasoning
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
A1. The stability and predictability of the law is essential to business activities.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among
individuals and between individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking
A4. Constitutional law includes only the U.S. Constitution.
1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 3 4 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A5. A state constitution is supreme within the state’s borders. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A13. Remedies in equity include injunctions and decrees of specific performance.
A6. Whether a law is constitutional depends on its source. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A14. In most states, the courts no longer grant “equitable” remedies.
A7. Uniform laws apply in all states, including those in which the laws have not ANSWER: F PAGE: 8 TYPE: =
been adopted. NAT: AACSB Analytic AICPA Legal
ANSWER: F PAGE: 4 TYPE: = A15. A defendant is a person against whom a lawsuit is brought.
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 8 TYPE: =
A8. A state law that conflicts with the U.S. Constitution will be deemed NAT: AACSB Analytic AICPA Legal
unconstitutional.
A16. Courts do not depart from precedents.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A9. Statutory law does not include county ordinances.
A17. A judge’s function is to make the law.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
A18. Criminal law focuses on duties that exist between persons.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic AICPA Legal
A11. Common law is a term for law that is common throughout the world.
A19. A reference to “28 U.S.C. Section 1332” means that a statute can be found
ANSWER: F PAGE: 7 TYPE: = in section 1332 of title 28 of the United States Code.
NAT: AACSB Analytic AICPA Critical Thinking
ANSWER: T PAGE: 15 TYPE: =
A12. Damages is a remedy at law. NAT: AACSB Analytic AICPA Research
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 5 6 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A20. Most state trial court decisions are not published. ANSWER: A PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
ANSWER: T PAGE: 16 TYPE: =
NAT: AACSB Analytic AICPA Research
MULTIPLE CHOICE QUESTIONS
A1. The legislature of the state of Mississippi enacts a new statute that sets
standards for the liability of businesses selling defective products. This
statute applies
a. only in Mississippi.
b. only in Mississippi and its border states.
c. in all states.
d. in all states but only to matters not covered by other states’ laws.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Critical Thinking
A2. Lewis is a state court judge. Like other judges, Lewis often refers to
secondary sources of law for guidance. These sources include
a. official comments to statute.
b. other states’ statutes.
c. state constitutions.
d. the U.S. Constitution.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Legal
A3. Hawaii enacts a state law that violates the U.S. Constitution. This law can
be enforced by
a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 7 8 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
A4. The Federal Trade Commission is a government agency that issues rules, d. the legal means to recover a right or to redress a wrong.
orders, and decisions. The Georgia state legislature enacts statutes. The
Jackson County Board and the Peach City Council enacts ordinances. ANSWER: D PAGE: 7 TYPE: =
Administrative law includes NAT: AACSB Reflective AICPA Legal
a. all law that affects a business’s operation.
b. the rules, orders, and decisions of the Federal Trade Commission.
c. statutes enacted by the Georgia state legislature.
d. ordinances created by the Jackson County Board and the city council
of Peach City, Georgia.
ANSWER: B PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A5. The Securities Exchange Commission is an administrative agency. The
chief purpose of such agencies is to
a. act as liaisons between federal and state governments.
b. impose uniform laws on the states.
c. perform specific government functions.
d. standardize laws for the executive and judicial branches.
ANSWER: C PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A6. In a suit against Corbin, Donatella obtains damages. This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
ANSWER: C PAGE: 7 TYPE: N
NAT: AACSB Reflective AICPA Legal
A7. In an action against Elin, Frank obtains a remedy. This is
a. an administrative agency’s enforcement of its rule.
b. a principle of the law derived from earlier court cases.
c. a statute enacted by a state legislature or Congress.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.
