LENB Exam 1 Questions and Answers Already Passed Rated A+
Business Law - Answers The enforceable rules of conduct that govern the actions of buyers and sellers in
market exchanges.
Commercial - Answers For the purpose of making a profit
Constitutions job - Answers Every state has a constitution
1 - Establishes form of government (federalism) split between three branches
2 - Gives government it's power (collect taxes, spend money)
3 - Limits the government's power (can't infringe upon certain rights).
Supreme law of the land in the US - Answers The US Constitution (overrides every other law, it's an
authoritative text)
Law - Answers Rules of conduct in any organized society that are enforced by the governing authority of
the community (law as a source of authority)
Law can be divided into - Answers National/international, Federal/state, Public/private, Civil/criminal
Private Law - Answers Involves disputes between private individuals/groups.
- If a business person owns a computer equipment store and is delinquent in paying rent to the landlord.
Public Law - Answers Involves disputes between private individuals/group and their government.
- Computer store dumping e-waste behind its building.
Purposes of the law - Answers - providing order such that one can depend on a promise/expectation of
obligations
- serving as an alternative to fighting
- facilitating a sense that change is possible, only after a rational consideration of options
- encouraging social justice
- guaranteeing personal freedoms
- serving as a moral guide by indicating minimal expectations of citizens and organizations
Civil Law - Answers Involves rights and responsibilities found in relationships between persons and their
government
- also involves remedies available when someone's rights are violated
,Criminal Law - Answers Applies to situations in which someone commits an act against the public as a
whole
- prosecuted by state/federal government rather than individuals
Constitutions - Answers US Constitution and state constitutions establish fundamental principles and
rules that govern the US and individual states
Constitutional Law - Answers The general limits and powers of a government as interpreted from its
written constitution
Statutory Law - Answers The assignment of rules and regulations put forth by legislatures
- These acts can. be found in the US Code (congress/state)
Ordinances - Answers City and county governments pass these statutory laws
Uniform Laws - Answers A model law developed by the National Conference of Commissioners on
Uniform State Laws for the states to consider enacting into statute.
- without uniform laws, people would be deterred from doing business. Not everything is uniform
US vs. Smith - Answers Guy wanted to open a gun store, was convicted of a felony in Canada, didn't hold
up because Supreme Court said the law meant 'in US court'.
- most statutes passed by legislator, courts tell us what they mean
Model/Uniform Laws - Answers Laws created to account for the variability of laws among states. Serve
to standardize the otherwise different interstate laws.
Case Law (Common Law) - Answers Collection of legal interpretations made by judges/courts. Are
considered to be law unless otherwise revoked by statutory law.
- Because statutory laws are interpretive, different laws are perceived differently in different business
locations
Precedent - Answers The use of past decisions to guide future decisions
- Pilot acting crazy for failing his tests, suing for defamation, Supreme Court found there was precedent.
Can Precedent change? - Answers They are often changed, courts make new rulings regarding different
things.
- McDonalds woman burned from hot drink, company found negligible for not having a large enough
caution sign, now every retailer has a ton of warning labels for hot beverages.
Case law relies on - Answers Precedent
, Stare Decisis - Answers Standing by the decision
- a principle stating that rulings made in higher courts are binding precedent for lower courts
- creates greater predictability for businesses/individuals.
Restatements of the Law - Answers Summaries of common law rules in a particular area of the law that
have been enacted in most states.
- don't carry the weight of law but can be used to guide interpretations of specific cases.
Stare Decisis Rules - Answers 1) When courts rely on precedent, they follow past rulings when making
future rulings (gives predictability)
2) Rulings in higher courts are binding precedent for lower courts
Courts may not follow stare decisis if - Answers - judges view facts of current case differently
- issue hasn't been decided yet so there's no precedent to follow
Cases that used stare decisis - Answers - Plessy v. Ferguson (equal protection clause - equal but
separate)
- Brown v. Board of Education (society, judges changed - separate but equal not constitutional)
- Regents of the University of California v. Bakke (18 spots reserved for minorities, upheld brown v
board, California couldn't do that)
Laws provide what for businesses - Answers Provide dependability and predictability that protects
businesses
Public Laws - Answers Every criminal law is a public law issue
Not every public law issue is a criminal law issue
Administrative Agencies - Answers The federal government, state and local governments have
administrative agencies whose task it is to perform a specific governmental function
Administrative Law - Answers The collection of rules and decisions made by all these administrative
agencies
Treaties - Answers A binding agreement between two states/international organizations
- In the US, generally negotiated by executive branch, and to be binding must be approved by 2/3rds of
the Senate.
Treaties are similar to a contract in two ways - Answers 1. Both are attempts by parties to determine
rights and obligations of themselves.
Business Law - Answers The enforceable rules of conduct that govern the actions of buyers and sellers in
market exchanges.
Commercial - Answers For the purpose of making a profit
Constitutions job - Answers Every state has a constitution
1 - Establishes form of government (federalism) split between three branches
2 - Gives government it's power (collect taxes, spend money)
3 - Limits the government's power (can't infringe upon certain rights).
Supreme law of the land in the US - Answers The US Constitution (overrides every other law, it's an
authoritative text)
Law - Answers Rules of conduct in any organized society that are enforced by the governing authority of
the community (law as a source of authority)
Law can be divided into - Answers National/international, Federal/state, Public/private, Civil/criminal
Private Law - Answers Involves disputes between private individuals/groups.
- If a business person owns a computer equipment store and is delinquent in paying rent to the landlord.
Public Law - Answers Involves disputes between private individuals/group and their government.
- Computer store dumping e-waste behind its building.
Purposes of the law - Answers - providing order such that one can depend on a promise/expectation of
obligations
- serving as an alternative to fighting
- facilitating a sense that change is possible, only after a rational consideration of options
- encouraging social justice
- guaranteeing personal freedoms
- serving as a moral guide by indicating minimal expectations of citizens and organizations
Civil Law - Answers Involves rights and responsibilities found in relationships between persons and their
government
- also involves remedies available when someone's rights are violated
,Criminal Law - Answers Applies to situations in which someone commits an act against the public as a
whole
- prosecuted by state/federal government rather than individuals
Constitutions - Answers US Constitution and state constitutions establish fundamental principles and
rules that govern the US and individual states
Constitutional Law - Answers The general limits and powers of a government as interpreted from its
written constitution
Statutory Law - Answers The assignment of rules and regulations put forth by legislatures
- These acts can. be found in the US Code (congress/state)
Ordinances - Answers City and county governments pass these statutory laws
Uniform Laws - Answers A model law developed by the National Conference of Commissioners on
Uniform State Laws for the states to consider enacting into statute.
- without uniform laws, people would be deterred from doing business. Not everything is uniform
US vs. Smith - Answers Guy wanted to open a gun store, was convicted of a felony in Canada, didn't hold
up because Supreme Court said the law meant 'in US court'.
- most statutes passed by legislator, courts tell us what they mean
Model/Uniform Laws - Answers Laws created to account for the variability of laws among states. Serve
to standardize the otherwise different interstate laws.
Case Law (Common Law) - Answers Collection of legal interpretations made by judges/courts. Are
considered to be law unless otherwise revoked by statutory law.
- Because statutory laws are interpretive, different laws are perceived differently in different business
locations
Precedent - Answers The use of past decisions to guide future decisions
- Pilot acting crazy for failing his tests, suing for defamation, Supreme Court found there was precedent.
Can Precedent change? - Answers They are often changed, courts make new rulings regarding different
things.
- McDonalds woman burned from hot drink, company found negligible for not having a large enough
caution sign, now every retailer has a ton of warning labels for hot beverages.
Case law relies on - Answers Precedent
, Stare Decisis - Answers Standing by the decision
- a principle stating that rulings made in higher courts are binding precedent for lower courts
- creates greater predictability for businesses/individuals.
Restatements of the Law - Answers Summaries of common law rules in a particular area of the law that
have been enacted in most states.
- don't carry the weight of law but can be used to guide interpretations of specific cases.
Stare Decisis Rules - Answers 1) When courts rely on precedent, they follow past rulings when making
future rulings (gives predictability)
2) Rulings in higher courts are binding precedent for lower courts
Courts may not follow stare decisis if - Answers - judges view facts of current case differently
- issue hasn't been decided yet so there's no precedent to follow
Cases that used stare decisis - Answers - Plessy v. Ferguson (equal protection clause - equal but
separate)
- Brown v. Board of Education (society, judges changed - separate but equal not constitutional)
- Regents of the University of California v. Bakke (18 spots reserved for minorities, upheld brown v
board, California couldn't do that)
Laws provide what for businesses - Answers Provide dependability and predictability that protects
businesses
Public Laws - Answers Every criminal law is a public law issue
Not every public law issue is a criminal law issue
Administrative Agencies - Answers The federal government, state and local governments have
administrative agencies whose task it is to perform a specific governmental function
Administrative Law - Answers The collection of rules and decisions made by all these administrative
agencies
Treaties - Answers A binding agreement between two states/international organizations
- In the US, generally negotiated by executive branch, and to be binding must be approved by 2/3rds of
the Senate.
Treaties are similar to a contract in two ways - Answers 1. Both are attempts by parties to determine
rights and obligations of themselves.
