BUSINESS LAW FINAL MULTIPLE CHOICE EXAM QUESTIONS AND ANSWERS RATED PASS WITH AN A+
GRADE 2025/2026
The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society
outlaws it altogether. This kind of case involves:
a. Procedural law.
b. Private law.
c. Civil law.
d. Criminal law. - CORRECT ANSWERSCriminal law
Common law refers to:
a. law that is the same or similar in all the states.
b. law made when judges decide cases and then follow those decisions in later cases.
c. law made by legislatures in the form of statutes.
d. the legal systems of France, Germany, and Italy. - CORRECT ANSWERSlaw made when judges decide
cases and then follow those decisions in later cases.
The three branches of government in the United States are: - CORRECT ANSWERSexecutive, legislative,
judicial
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco Foods, Inc., that
when a substance in food causes injury to a consumer of the food, it is not a bar to recovery against the
seller that the substance was natural to the food. If, in a 2008 case involving a consumer's injury caused
by a fish bone in a bowl of fish chowder, the court followed the decision in Goodman v. Wenco Foods,
Inc., the court's action in the second case is an example
a. stare decisis.
b. statutory law.
c. public law.
d. criminal law. - CORRECT ANSWERSstare decisis
Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of
fraud with securities. The Securities Exchange Act of 1934 was passed a year later. This law created the
Securities and Exchange Commission (SEC) as an independent regulatory entity whose function is to
administer the two laws. The SEC has generated rules and regulations to administer these acts. These
rules and regulations are:
,a. statutes.
b. administrative law.
c. executive orders.
d. common law. - CORRECT ANSWERSadministrative law
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United
States declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which
theory of jurisprudence was he applying?
a. Legal Positivism.
b. Natural Law.
c. Legal Realism.
d. Common Law. - CORRECT ANSWERSnatural law
The federal judicial branch of the U.S. government:
a. interprets statutes.
b. passes statutes.
c. issues executive orders.
d. creates administrative agencies. - CORRECT ANSWERSinterprets statutes
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties. - CORRECT ANSWERSdeclare an act of Congress unconstitutional
President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive
power was:
a. an illegal usurption of legislative powers which belong to the Congress.
b. a valid use of power, known as an executive order.
c. a valid use of power creating a treaty.
,d. an illegal usurption of the regulatory powers of administrative agencies. - CORRECT ANSWERSa valid
use of power, known as an executive order.
Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle under the influence
of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city's keg ordinance. - CORRECT
ANSWERSGretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory
note. The trial ended before it began, with the trial judge granting a motion for summary judgment in
favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has remanded the case. This means:
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
c. Neither party wins because the case is being thrown out.
d. We don't know who wins yet because the case is being returned to the trial court for additional steps.
- CORRECT ANSWERSWe don't know who wins yet because the case is being returned to the trial court
for additional steps.
Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware. Tony is a
resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy does not do
business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue Mega Toy Store:
a. he may file the lawsuit in an Arizona state court.
b. he may file the lawsuit in a federal district court in Arizona.
c. he must file the lawsuit in a federal district court because the federal courts would have diversity
jurisdiction in this case.
d. Either a or b. - CORRECT ANSWERSEither a or b.
Federal jurisdiction based upon a "federal question" includes cases based on:
a. the United States Constitution.
b. a federal statute.
, c. a federal treaty.
d. All of the above. - CORRECT ANSWERSAll of the above.
Roxanne was injured when she fell in a hole while walking across her landlord's parking lot. She and her
lawyer hope they can settle the claim. Which of the following statements about settlements is correct?
a. A case can be settled provided it has not been filed with the court.
b. A case can be settled provided that discovery has not commenced.
c. A case can be settled provided the jury has not heard any testimony.
d. A case can be settled at any time. - CORRECT ANSWERSA case can be settled at any time.
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of the above; the burden of proof is on the defendant. - CORRECT ANSWERSby a preponderance
of the evidence.
When an appellate court hears a case, it may:
a. affirm the decision.
b. reverse the decision.
c. modify the decision.
d. All the above are correct. - CORRECT ANSWERSAll the above are correct.
Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by the defendant.
The judge viewed the documents alone and decided that they should be made available to the plaintiff.
The judge made:
a. an in camera inspection.
b. a motion to compel answers to interrogatories.
c. a request for admission.
d. a request for the production of documents. - CORRECT ANSWERSan in camera inspection.
GRADE 2025/2026
The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society
outlaws it altogether. This kind of case involves:
a. Procedural law.
b. Private law.
c. Civil law.
d. Criminal law. - CORRECT ANSWERSCriminal law
Common law refers to:
a. law that is the same or similar in all the states.
b. law made when judges decide cases and then follow those decisions in later cases.
c. law made by legislatures in the form of statutes.
d. the legal systems of France, Germany, and Italy. - CORRECT ANSWERSlaw made when judges decide
cases and then follow those decisions in later cases.
The three branches of government in the United States are: - CORRECT ANSWERSexecutive, legislative,
judicial
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco Foods, Inc., that
when a substance in food causes injury to a consumer of the food, it is not a bar to recovery against the
seller that the substance was natural to the food. If, in a 2008 case involving a consumer's injury caused
by a fish bone in a bowl of fish chowder, the court followed the decision in Goodman v. Wenco Foods,
Inc., the court's action in the second case is an example
a. stare decisis.
b. statutory law.
c. public law.
d. criminal law. - CORRECT ANSWERSstare decisis
Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of
fraud with securities. The Securities Exchange Act of 1934 was passed a year later. This law created the
Securities and Exchange Commission (SEC) as an independent regulatory entity whose function is to
administer the two laws. The SEC has generated rules and regulations to administer these acts. These
rules and regulations are:
,a. statutes.
b. administrative law.
c. executive orders.
d. common law. - CORRECT ANSWERSadministrative law
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United
States declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which
theory of jurisprudence was he applying?
a. Legal Positivism.
b. Natural Law.
c. Legal Realism.
d. Common Law. - CORRECT ANSWERSnatural law
The federal judicial branch of the U.S. government:
a. interprets statutes.
b. passes statutes.
c. issues executive orders.
d. creates administrative agencies. - CORRECT ANSWERSinterprets statutes
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties. - CORRECT ANSWERSdeclare an act of Congress unconstitutional
President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive
power was:
a. an illegal usurption of legislative powers which belong to the Congress.
b. a valid use of power, known as an executive order.
c. a valid use of power creating a treaty.
,d. an illegal usurption of the regulatory powers of administrative agencies. - CORRECT ANSWERSa valid
use of power, known as an executive order.
Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle under the influence
of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city's keg ordinance. - CORRECT
ANSWERSGretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory
note. The trial ended before it began, with the trial judge granting a motion for summary judgment in
favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has remanded the case. This means:
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
c. Neither party wins because the case is being thrown out.
d. We don't know who wins yet because the case is being returned to the trial court for additional steps.
- CORRECT ANSWERSWe don't know who wins yet because the case is being returned to the trial court
for additional steps.
Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware. Tony is a
resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy does not do
business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue Mega Toy Store:
a. he may file the lawsuit in an Arizona state court.
b. he may file the lawsuit in a federal district court in Arizona.
c. he must file the lawsuit in a federal district court because the federal courts would have diversity
jurisdiction in this case.
d. Either a or b. - CORRECT ANSWERSEither a or b.
Federal jurisdiction based upon a "federal question" includes cases based on:
a. the United States Constitution.
b. a federal statute.
, c. a federal treaty.
d. All of the above. - CORRECT ANSWERSAll of the above.
Roxanne was injured when she fell in a hole while walking across her landlord's parking lot. She and her
lawyer hope they can settle the claim. Which of the following statements about settlements is correct?
a. A case can be settled provided it has not been filed with the court.
b. A case can be settled provided that discovery has not commenced.
c. A case can be settled provided the jury has not heard any testimony.
d. A case can be settled at any time. - CORRECT ANSWERSA case can be settled at any time.
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of the above; the burden of proof is on the defendant. - CORRECT ANSWERSby a preponderance
of the evidence.
When an appellate court hears a case, it may:
a. affirm the decision.
b. reverse the decision.
c. modify the decision.
d. All the above are correct. - CORRECT ANSWERSAll the above are correct.
Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by the defendant.
The judge viewed the documents alone and decided that they should be made available to the plaintiff.
The judge made:
a. an in camera inspection.
b. a motion to compel answers to interrogatories.
c. a request for admission.
d. a request for the production of documents. - CORRECT ANSWERSan in camera inspection.
