Test Bank for Business Law Today, Standard Edition, Text & Summarized Cases 14th Edition By Roger LeRoy Miller (All Chapters 1-36

,Name: Class: Date:

Chapter 1 - Law and Legal Reasoning
1. In the United States, the law consists of written laws.
a. True
b. False
ANSWER: False

2. All laws establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling
group.
a. True
b. False
ANSWER: True

3. The legal rules that control the actions of a business reflect past and current thinking about how similar businesses
should and should not act.
a. True
b. False
ANSWER: True

4. Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific
area of the law.
a. True
b. False
ANSWER: False

5. A constitution is a primary source of law.
a. True
b. False
ANSWER: True

6. A statute is a secondary source of law.
a. True
b. False
ANSWER: False

7. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True

8. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False

9. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
a. True
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Chapter 1 - Law and Legal Reasoning
b. False
ANSWER: False

10. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False
ANSWER: True

11. Only if a state legislature passes a statute does that law become part of the relevant state code of laws.
a. True
b. False
ANSWER: True

12. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False

13. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True

14. A federal statute applies to all states.
a. True
b. False
ANSWER: True

15. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False

16. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True

17. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
ANSWER: False

18. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
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Chapter 1 - Law and Legal Reasoning
b. False
ANSWER: True

19. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
ANSWER: True

20. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False

21. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
ANSWER: True

22. If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may NOT
be binding.
a. True
b. False
ANSWER: True

23. Common law is a body of law developed from judges’ decisions in legal controversies.
a. True
b. False
ANSWER: True

24. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
ANSWER: True

25. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False

26. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
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