Test Bank For
Dynamic Business Law, 6th Edition By Nancy Kubasek
Chapter 1-52
Ansewrs are at the End of Each Chapter
Chapter 01:
Student name:__________
1) Business law consists of the enforceable rules of conduct that govern commercial
relationships.
⊚ true
⊚ false
2) Contracts, employment decisions, and payments to suppliers are protected by business law.
⊚ true
⊚ false
3) Public law controls both disputes between private individuals and their government and
disputes involving only private individuals.
⊚ true
⊚ false
4) Criminal law lays out the rights and responsibilities implied in relationships between persons.
⊚ true
⊚ false
5) Only civil law regulates the behavior of individuals.
⊚ true
⊚ false
6) Case law interpretations are law, unless they are revoked later by new statutory law.
⊚ true
⊚ false
,7) The decision of a state supreme court is binding on a lower court that is located in the same
state.
⊚ true
⊚ false
8) Model or uniform laws are sources of law that are binding on courts.
⊚ true
⊚ false
9) Constitutions and statutes always cover all of the detailed rules that affect business and
government relations.
⊚ true
⊚ false
10) "Legal positivism" is also known as "natural law."
⊚ true
⊚ false
11) Miko comes to Jamal's law office to ask him about the law in regard to dogs running at large
in her neighborhood. Jamal tells Miko that he will research the issue and get back to her.
Where should Jamal look first in order to locate applicable law?
A) Restatements
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
,12) The president issued an executive order requiring that every citizen purchase a head of
broccoli to eat once a week in order to maintain health. The executive order was challenged
and the case went to the U.S. Supreme Court. The Supreme Court declared the executive
order could not be enforced because it was an abuse of the president’s power. What is the
primary source of law the Supreme Court would interpret to determine if the executive order
was enforceable?
A) The Constitution
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
13) In 1995, the ________ was created to replace GATT.
A) United Nations
B) World Trade Organization
C) North American Free Trade Agreement
D) Nation to Nation Trading Organization
E) Nation’s Status on Trade
14) When you read a case, you should:
A) Find the facts, look for the issue, critically think about the issue, and determine if
your reasoning matches the reasoning of the judge.
B) Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning
of the judge in light of the facts of the case.
C) Consider the truth of the facts of the case, identify legal questions raised, review the
decision of the judge, and determine if the judge’s decision was justified by the rule
of law.
D) Find the facts, look for the issue, identify the judge’s reason and conclusion, locate
the rules of law that govern the reasoning, and apply critical thinking to the judge’s
reasoning.
E) Identify the facts, apply critical thinking skills to determine the truths of the facts, and
identify how the judge interpreted the facts in the case.
, 15) Which areas of business law would a human resources manager find most relevant?
A) Contracts, employment and labor law, and employment discrimination
B) Contracts only
C) Contracts and labor law, but not employment discrimination
D) Employment and labor law, but not contracts
E) Human resource managers hold administrative positions and are not concerned with
areas of business law
16) Gardenia Abraham is a newly hired Production Manager for Stoneworks, Incorporated,
which manufactures wind turbines. As a new manager, Stoneworks sends Gardenia to
training so she can familiarize herself with laws that might impact her work. What laws
would most likely impact a production manager?
A) White collar crime, contracts, antitrust laws
B) Tort law, contracts, environmental law and consumer law
C) Antitrust law, contracts, intellectual property law
D) Property law, negotiable instruments, contracts
E) Consumer law, international law, employment law
17) Antonio and Veronica are arguing over who makes new federal law. Which of the following
entities is responsible for making new federal law?
A) State legislatures
B) Congress
C) Judges
D) The federal courts
E) The executive branch
18) If someone has failed to live up to a promise made to a business organization, the business
organization should:
A) Seek a legal remedy within the courts
B) Ask the lawmakers to impose a punishment upon the violator
C) Publicly shame the violator for breaking his promise
D) Turn to the executive branch to impose legal penalties
E) Ask lawmakers and the executive branch to impose consequences
Dynamic Business Law, 6th Edition By Nancy Kubasek
Chapter 1-52
Ansewrs are at the End of Each Chapter
Chapter 01:
Student name:__________
1) Business law consists of the enforceable rules of conduct that govern commercial
relationships.
⊚ true
⊚ false
2) Contracts, employment decisions, and payments to suppliers are protected by business law.
⊚ true
⊚ false
3) Public law controls both disputes between private individuals and their government and
disputes involving only private individuals.
⊚ true
⊚ false
4) Criminal law lays out the rights and responsibilities implied in relationships between persons.
⊚ true
⊚ false
5) Only civil law regulates the behavior of individuals.
⊚ true
⊚ false
6) Case law interpretations are law, unless they are revoked later by new statutory law.
⊚ true
⊚ false
,7) The decision of a state supreme court is binding on a lower court that is located in the same
state.
⊚ true
⊚ false
8) Model or uniform laws are sources of law that are binding on courts.
⊚ true
⊚ false
9) Constitutions and statutes always cover all of the detailed rules that affect business and
government relations.
⊚ true
⊚ false
10) "Legal positivism" is also known as "natural law."
⊚ true
⊚ false
11) Miko comes to Jamal's law office to ask him about the law in regard to dogs running at large
in her neighborhood. Jamal tells Miko that he will research the issue and get back to her.
Where should Jamal look first in order to locate applicable law?
A) Restatements
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
,12) The president issued an executive order requiring that every citizen purchase a head of
broccoli to eat once a week in order to maintain health. The executive order was challenged
and the case went to the U.S. Supreme Court. The Supreme Court declared the executive
order could not be enforced because it was an abuse of the president’s power. What is the
primary source of law the Supreme Court would interpret to determine if the executive order
was enforceable?
A) The Constitution
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
13) In 1995, the ________ was created to replace GATT.
A) United Nations
B) World Trade Organization
C) North American Free Trade Agreement
D) Nation to Nation Trading Organization
E) Nation’s Status on Trade
14) When you read a case, you should:
A) Find the facts, look for the issue, critically think about the issue, and determine if
your reasoning matches the reasoning of the judge.
B) Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning
of the judge in light of the facts of the case.
C) Consider the truth of the facts of the case, identify legal questions raised, review the
decision of the judge, and determine if the judge’s decision was justified by the rule
of law.
D) Find the facts, look for the issue, identify the judge’s reason and conclusion, locate
the rules of law that govern the reasoning, and apply critical thinking to the judge’s
reasoning.
E) Identify the facts, apply critical thinking skills to determine the truths of the facts, and
identify how the judge interpreted the facts in the case.
, 15) Which areas of business law would a human resources manager find most relevant?
A) Contracts, employment and labor law, and employment discrimination
B) Contracts only
C) Contracts and labor law, but not employment discrimination
D) Employment and labor law, but not contracts
E) Human resource managers hold administrative positions and are not concerned with
areas of business law
16) Gardenia Abraham is a newly hired Production Manager for Stoneworks, Incorporated,
which manufactures wind turbines. As a new manager, Stoneworks sends Gardenia to
training so she can familiarize herself with laws that might impact her work. What laws
would most likely impact a production manager?
A) White collar crime, contracts, antitrust laws
B) Tort law, contracts, environmental law and consumer law
C) Antitrust law, contracts, intellectual property law
D) Property law, negotiable instruments, contracts
E) Consumer law, international law, employment law
17) Antonio and Veronica are arguing over who makes new federal law. Which of the following
entities is responsible for making new federal law?
A) State legislatures
B) Congress
C) Judges
D) The federal courts
E) The executive branch
18) If someone has failed to live up to a promise made to a business organization, the business
organization should:
A) Seek a legal remedy within the courts
B) Ask the lawmakers to impose a punishment upon the violator
C) Publicly shame the violator for breaking his promise
D) Turn to the executive branch to impose legal penalties
E) Ask lawmakers and the executive branch to impose consequences
