Introductory Business Law Exam 2026
Questions and Answers
law - Correct answer-a representation of a set of rules or principles established by
government or other controlling body that members of society must follow and
obey
legal system - Correct answer-a system of established laws
civil law (code law) - Correct answer-a legal system which has a single
comprehensive code as the core of its law
common law (case law) - Correct answer-judge-made law, whereby judges make
decisions on a case-by-case basis, and those decisions generate a body of rules and
principles
precedent - Correct answer-previous decisions that set an example or guide for
future cases
stare decisis - Correct answer-the notion that judges must make decisions based on
precedent
Congress - Correct answer-the legislative branch of the US
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,Supreme Court - Correct answer-the highest federal court in the US
judicial review - Correct answer-the doctrine by which a higher court can overturn
a decision made by a lower court
checks and balances - Correct answer-the system whereby each branch of the US
government has specific power and authority so that they balance (or check) the
power exercised by other branches
Bill of Rights - Correct answer-the first ten amendments to the US Constitution;
meant to protect citizens from government intrusion
Necessary and Proper Clause - Correct answer-a clause in the US Constitution that
gives power to Congress to make laws that are deemed "necessary" for the
upholding of the Constitution
Supremacy Clause - Correct answer-a clause in the US Constitution that
establishes that federal law supersedes all state laws
uniform laws - Correct answer-an effort to harmonize all state law by unifying
legislation on a given topic
Uniform Commercial Code ("UCC") - Correct answer-an organization that seeks to
establish uniform laws for various aspects of commercial law
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,commercial speech - Correct answer-speech regarding commercial or economic
activities
strict scrutiny - Correct answer-a form of judicial review that requires a law to
further "a compelling government interest" and that the law must serve a narrow
purpose
Due Process Clause - Correct answer-a clause in the US Constitution that protects
a person from being "deprived of life, liberty or property without *due process*"
discriminatory laws - Correct answer-laws that differentiate between people
suspect classification - Correct answer-a classification of groups meeting certain
criteria suggesting they are the subject of discrimination
quasi-suspect classification - Correct answer-a suspect classification involves
gender and legitimacy
intermediate scrutiny - Correct answer-a test used to determine a law's
constitutionality; the law must be substantially tailored to meet an important
government interest
rational basis test - Correct answer-a test, referring to the lowest levels of scrutiny;
requires that laws must be rationally related to a legitimate government interest
criminal law - Correct answer-law that addresses crimes and punishment of crimes
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, civil law - Correct answer-law that regulates the relationships between parties
federal district court - Correct answer-the federal trial court in the US
federal circuit court of appeals (federal court of appeals) - Correct answer-the
federal appeals court in the US
writ of certiorari - Correct answer-a formal appeals petition to bring a case before
the Supreme Court
original jurisdiction - Correct answer-the power of a trials court to hear a case for
the first time
appellate jurisdiction - Correct answer-the power of an appeals court to review
decisions of a lower court
remand - Correct answer-an action by an appellate court to send a case back to a
lower court for a new trial
de novo - Correct answer-a supreme court's power of interpreting legal rules, while
not deferring to a lower court
Federal Rules of Civil Procedures ("Federal Rules") - Correct answer-governing
procedures for filing a civil suit in federal court
standing - Correct answer-the legal right to bring a suit
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Questions and Answers
law - Correct answer-a representation of a set of rules or principles established by
government or other controlling body that members of society must follow and
obey
legal system - Correct answer-a system of established laws
civil law (code law) - Correct answer-a legal system which has a single
comprehensive code as the core of its law
common law (case law) - Correct answer-judge-made law, whereby judges make
decisions on a case-by-case basis, and those decisions generate a body of rules and
principles
precedent - Correct answer-previous decisions that set an example or guide for
future cases
stare decisis - Correct answer-the notion that judges must make decisions based on
precedent
Congress - Correct answer-the legislative branch of the US
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,Supreme Court - Correct answer-the highest federal court in the US
judicial review - Correct answer-the doctrine by which a higher court can overturn
a decision made by a lower court
checks and balances - Correct answer-the system whereby each branch of the US
government has specific power and authority so that they balance (or check) the
power exercised by other branches
Bill of Rights - Correct answer-the first ten amendments to the US Constitution;
meant to protect citizens from government intrusion
Necessary and Proper Clause - Correct answer-a clause in the US Constitution that
gives power to Congress to make laws that are deemed "necessary" for the
upholding of the Constitution
Supremacy Clause - Correct answer-a clause in the US Constitution that
establishes that federal law supersedes all state laws
uniform laws - Correct answer-an effort to harmonize all state law by unifying
legislation on a given topic
Uniform Commercial Code ("UCC") - Correct answer-an organization that seeks to
establish uniform laws for various aspects of commercial law
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,commercial speech - Correct answer-speech regarding commercial or economic
activities
strict scrutiny - Correct answer-a form of judicial review that requires a law to
further "a compelling government interest" and that the law must serve a narrow
purpose
Due Process Clause - Correct answer-a clause in the US Constitution that protects
a person from being "deprived of life, liberty or property without *due process*"
discriminatory laws - Correct answer-laws that differentiate between people
suspect classification - Correct answer-a classification of groups meeting certain
criteria suggesting they are the subject of discrimination
quasi-suspect classification - Correct answer-a suspect classification involves
gender and legitimacy
intermediate scrutiny - Correct answer-a test used to determine a law's
constitutionality; the law must be substantially tailored to meet an important
government interest
rational basis test - Correct answer-a test, referring to the lowest levels of scrutiny;
requires that laws must be rationally related to a legitimate government interest
criminal law - Correct answer-law that addresses crimes and punishment of crimes
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, civil law - Correct answer-law that regulates the relationships between parties
federal district court - Correct answer-the federal trial court in the US
federal circuit court of appeals (federal court of appeals) - Correct answer-the
federal appeals court in the US
writ of certiorari - Correct answer-a formal appeals petition to bring a case before
the Supreme Court
original jurisdiction - Correct answer-the power of a trials court to hear a case for
the first time
appellate jurisdiction - Correct answer-the power of an appeals court to review
decisions of a lower court
remand - Correct answer-an action by an appellate court to send a case back to a
lower court for a new trial
de novo - Correct answer-a supreme court's power of interpreting legal rules, while
not deferring to a lower court
Federal Rules of Civil Procedures ("Federal Rules") - Correct answer-governing
procedures for filing a civil suit in federal court
standing - Correct answer-the legal right to bring a suit
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
