Business Law, 10e (Cheeseman)
Chapter 1 Legal Heritage and the Digital Age
1) ________ is that which must be obeyed and followed by citizens subject to sanctions or legal
consequences.
A) Morality
B) Philosophy
C) Law
D) Religion
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having binding
legal force
@
B) a study of fundamental problems, such as those connected with existence, knowledge, and
language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
D) a group of hypotheses employed to explain a phenomenon
Te
Answer: A
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
st
Classification: Concept
3) Which of the following would be considered an example of shaping moral standards, as seen
ba
as a function of the law?
A) laws granting freedom of speech and religion
B) laws discouraging drug and alcohol abuse
C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
nk
Answer: B
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
sm
Classification: Concept
af
1
ia
Copyright © 2019 Pearson Education, Inc.
,4) What function of the law is being served when passing laws that prohibit discrimination at
workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
5) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of
Halizona sets up a committee to study the effects of past earthquakes on Halfren and the possible
methods that could be used to minimize damage and loss of life. The committee found that a new
technique of using steel reinforcements in building columns would help reduce overall damages.
The findings were put to a debate at the local town hall, where it was accepted by a majority of
the residents of Halfren. The state government then passed a law making it mandatory to use the
@
new steel-reinforced columns while constructing new buildings in Halfren. Which of the
following functions of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
Te
D) facilitating orderly change
Answer: D
Diff: 2
LO: 1.1 Define law.
st
AACSB: Application of knowledge
Classification: Application
6) What function of the law is being served when passing laws that protect the U.S. government
ba
from the risk of being forcefully overthrown?
A) maintaining the status quo
B) shaping moral standards
C) facilitating orderly change
nk
D) promoting social justice
Answer: A
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
sm
Classification: Concept
af
2
ia
Copyright © 2019 Pearson Education, Inc.
,7) By allowing the U.S. citizens to practice any religion of their choice, what essential function
of the law does the U.S. Constitution serve?
A) facilitating orderly change
B) maintaining the status quo
C) maximizing individual freedom
D) facilitating planning
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
8) Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He
sued the car manufacturer for installing faulty airbags. But in the course of the case being heard
in court, the car company and Mark decided to settle the lawsuit out of court. What important
function of the law was served in this case?
A) promoting social justice
B) maximizing individual freedom
@
C) providing a basis for compromise
D) maintaining the status quo
Answer: C
Diff: 2
LO: 1.1 Define law.
Te
AACSB: Application of knowledge
Classification: Application
9) The Supreme Court case decision on the case of Brown v. Board of Education was important
st
because it exhibited ________.
A) the use of the affirmative action policy
B) the flexibility of the law
C) the state's supremacy over federal rulings
ba
D) the importance of following precedent
Answer: B
Diff: 2
LO: 1.1 Define law.
nk
AACSB: Analytical thinking
Classification: Concept
10) Businesses that are organized in the United States are subject to its laws, but not to the laws
of other countries in which they do business.
sm
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
af
3
ia
Copyright © 2019 Pearson Education, Inc.
, 11) Laws in the United States are not set to evolve with changes in social norms.
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
12) Laws should not attempt to shape society's moral standards.
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
13) The American system of law is set up to be one of the fairest and most democratic systems
ever developed. When our system of law fails, it is often because of human failure — abuses of
discretion, mistakes by judges and juries, and unequal application of law.
Answer: TRUE
@
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
Te
14) What characteristic of the American legal system was most clearly illustrated by the U.S.
Supreme Court's opinion in Brown v. Board of Education? Explain your answer.
Answer: The U.S. Supreme Court illustrated flexibility of the law in deciding Brown v. Board of
Education in 1954. The Court in Brown v. Board of Education overturned an 1896 U.S. Supreme
st
Court decision, Plessy v. Ferguson, in which the Court had held the separate but equal doctrine
to be constitutional. In reversing its 1896 decision, the Court in 1954 found that the separate but
equal doctrine violated the Equal Protection Clause of the Fourteenth Amendment to the U.S.
Constitution. Although the decision was controversial in 1954, requiring both court orders and
ba
military action to enforce it, the Supreme Court was unanimous in its determination that society
had evolved to prohibit separate facilities for schoolchildren of different races.
Diff: 2
LO: 1.1 Define law.
nk
AACSB: Analytical thinking
Classification: Concept
sm
af
4
ia
Copyright © 2019 Pearson Education, Inc.
Chapter 1 Legal Heritage and the Digital Age
1) ________ is that which must be obeyed and followed by citizens subject to sanctions or legal
consequences.
A) Morality
B) Philosophy
C) Law
D) Religion
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having binding
legal force
@
B) a study of fundamental problems, such as those connected with existence, knowledge, and
language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
D) a group of hypotheses employed to explain a phenomenon
Te
Answer: A
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
st
Classification: Concept
3) Which of the following would be considered an example of shaping moral standards, as seen
ba
as a function of the law?
A) laws granting freedom of speech and religion
B) laws discouraging drug and alcohol abuse
C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
nk
Answer: B
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
sm
Classification: Concept
af
1
ia
Copyright © 2019 Pearson Education, Inc.
,4) What function of the law is being served when passing laws that prohibit discrimination at
workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
5) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of
Halizona sets up a committee to study the effects of past earthquakes on Halfren and the possible
methods that could be used to minimize damage and loss of life. The committee found that a new
technique of using steel reinforcements in building columns would help reduce overall damages.
The findings were put to a debate at the local town hall, where it was accepted by a majority of
the residents of Halfren. The state government then passed a law making it mandatory to use the
@
new steel-reinforced columns while constructing new buildings in Halfren. Which of the
following functions of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
Te
D) facilitating orderly change
Answer: D
Diff: 2
LO: 1.1 Define law.
st
AACSB: Application of knowledge
Classification: Application
6) What function of the law is being served when passing laws that protect the U.S. government
ba
from the risk of being forcefully overthrown?
A) maintaining the status quo
B) shaping moral standards
C) facilitating orderly change
nk
D) promoting social justice
Answer: A
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
sm
Classification: Concept
af
2
ia
Copyright © 2019 Pearson Education, Inc.
,7) By allowing the U.S. citizens to practice any religion of their choice, what essential function
of the law does the U.S. Constitution serve?
A) facilitating orderly change
B) maintaining the status quo
C) maximizing individual freedom
D) facilitating planning
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
8) Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He
sued the car manufacturer for installing faulty airbags. But in the course of the case being heard
in court, the car company and Mark decided to settle the lawsuit out of court. What important
function of the law was served in this case?
A) promoting social justice
B) maximizing individual freedom
@
C) providing a basis for compromise
D) maintaining the status quo
Answer: C
Diff: 2
LO: 1.1 Define law.
Te
AACSB: Application of knowledge
Classification: Application
9) The Supreme Court case decision on the case of Brown v. Board of Education was important
st
because it exhibited ________.
A) the use of the affirmative action policy
B) the flexibility of the law
C) the state's supremacy over federal rulings
ba
D) the importance of following precedent
Answer: B
Diff: 2
LO: 1.1 Define law.
nk
AACSB: Analytical thinking
Classification: Concept
10) Businesses that are organized in the United States are subject to its laws, but not to the laws
of other countries in which they do business.
sm
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
af
3
ia
Copyright © 2019 Pearson Education, Inc.
, 11) Laws in the United States are not set to evolve with changes in social norms.
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
12) Laws should not attempt to shape society's moral standards.
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
13) The American system of law is set up to be one of the fairest and most democratic systems
ever developed. When our system of law fails, it is often because of human failure — abuses of
discretion, mistakes by judges and juries, and unequal application of law.
Answer: TRUE
@
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
Te
14) What characteristic of the American legal system was most clearly illustrated by the U.S.
Supreme Court's opinion in Brown v. Board of Education? Explain your answer.
Answer: The U.S. Supreme Court illustrated flexibility of the law in deciding Brown v. Board of
Education in 1954. The Court in Brown v. Board of Education overturned an 1896 U.S. Supreme
st
Court decision, Plessy v. Ferguson, in which the Court had held the separate but equal doctrine
to be constitutional. In reversing its 1896 decision, the Court in 1954 found that the separate but
equal doctrine violated the Equal Protection Clause of the Fourteenth Amendment to the U.S.
Constitution. Although the decision was controversial in 1954, requiring both court orders and
ba
military action to enforce it, the Supreme Court was unanimous in its determination that society
had evolved to prohibit separate facilities for schoolchildren of different races.
Diff: 2
LO: 1.1 Define law.
nk
AACSB: Analytical thinking
Classification: Concept
sm
af
4
ia
Copyright © 2019 Pearson Education, Inc.
