Test Bank
Business Law: Text and Cases, 15th Edition by Clarkson & Miller
Chapter 1
Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as
follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among
individuals and between individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking
A4. Constitutional law includes only the U.S. Constitution.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A5. A state constitution is supreme within the state‘s borders.
11
,12
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A6. Whether a law is constitutional depends on its source.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A7. Uniform laws apply in all states, including those in which the laws have not
been adopted.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A8. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A9. Statutory law does not include county ordinances.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A11. Common law is a term for law that is common throughout the world.
ANSWER: F PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A12. Damages is a remedy at law.
ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A13. Remedies in equity include injunctions and decrees of specific performance.
, 13
ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A14. In most states, the courts no longer grant ―equitable‖ remedies.
ANSWER: F PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A15. A defendant is a person against whom a lawsuit is brought.
ANSWER: T PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A16. Courts do not depart from precedents.
ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A17. A judge‘s function is to make the law.
ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A18. Criminal law focuses on duties that exist between persons.
ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic AICPA Legal
A19. A reference to ―28 U.S.C. Section 1332‖ means that a statute can be found
in section 1332 of title 28 of the United States Code.
ANSWER: T PAGE: 15 TYPE: =
NAT: AACSB Analytic AICPA Research
A20. Most state trial court decisions are not published.
ANSWER: T PAGE: 16 TYPE: =
NAT: AACSB Analytic AICPA Research
MULTIPLE CHOICE QUESTIONS
, 14
A1. The legislature of the state of Mississippi enacts a new statute that sets
standards for the liability of businesses selling defective products. This
statute applies
a. only in Mississippi.
b. only in Mississippi and its border states.
c. in all states.
d. in all states but only to matters not covered by other states‘ laws.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Critical Thinking
A2. Lewis is a state court judge. Like other judges, Lewis often refers to
secondary sources of law for guidance. These sources include
a. official comments to statute.
b. other states‘ statutes.
c. state constitutions.
d. the U.S. Constitution.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Legal
A3. Hawaii enacts a state law that violates the U.S. Constitution. This law can
be enforced by
a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
ANSWER: A PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
Business Law: Text and Cases, 15th Edition by Clarkson & Miller
Chapter 1
Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as
follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among
individuals and between individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking
A4. Constitutional law includes only the U.S. Constitution.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A5. A state constitution is supreme within the state‘s borders.
11
,12
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A6. Whether a law is constitutional depends on its source.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A7. Uniform laws apply in all states, including those in which the laws have not
been adopted.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A8. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A9. Statutory law does not include county ordinances.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A11. Common law is a term for law that is common throughout the world.
ANSWER: F PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A12. Damages is a remedy at law.
ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A13. Remedies in equity include injunctions and decrees of specific performance.
, 13
ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A14. In most states, the courts no longer grant ―equitable‖ remedies.
ANSWER: F PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A15. A defendant is a person against whom a lawsuit is brought.
ANSWER: T PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A16. Courts do not depart from precedents.
ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A17. A judge‘s function is to make the law.
ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A18. Criminal law focuses on duties that exist between persons.
ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic AICPA Legal
A19. A reference to ―28 U.S.C. Section 1332‖ means that a statute can be found
in section 1332 of title 28 of the United States Code.
ANSWER: T PAGE: 15 TYPE: =
NAT: AACSB Analytic AICPA Research
A20. Most state trial court decisions are not published.
ANSWER: T PAGE: 16 TYPE: =
NAT: AACSB Analytic AICPA Research
MULTIPLE CHOICE QUESTIONS
, 14
A1. The legislature of the state of Mississippi enacts a new statute that sets
standards for the liability of businesses selling defective products. This
statute applies
a. only in Mississippi.
b. only in Mississippi and its border states.
c. in all states.
d. in all states but only to matters not covered by other states‘ laws.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Critical Thinking
A2. Lewis is a state court judge. Like other judges, Lewis often refers to
secondary sources of law for guidance. These sources include
a. official comments to statute.
b. other states‘ statutes.
c. state constitutions.
d. the U.S. Constitution.
ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective AICPA Legal
A3. Hawaii enacts a state law that violates the U.S. Constitution. This law can
be enforced by
a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
ANSWER: A PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
