Review Questions All Solved Correct
2025-2026 Updated.
Precedent (Ch. 1) - Answer Judicial decisions often include interpretations of statues and
administrative regulations, as well as the reasoning they used to arrive at a decision.
Such reasons relies heavily on precedent, past decisions in similar cases that guide later
decisions thereby providing greater stability and predictability to the law.
Stare Decisis - Answer When courts rely on precedent, they are obeying the principle of stare
decisis ("standing by their decisions"), in which rulings made in higher courts become binding
precedent for lower courts. 9
When an issue is brought before a state court, the court will determine whether the state
supreme court has made a decision on a similar issue, which creates a binding precedent or
pattern of law the lower court must follow.
Business Ethics (ch. 2) - Answer The application of ethics to the special problems and
opportunities experience by business people.
Business ethics builds on business law - Answer The law both affects and is affected by
evolving ethical patterns.
but business law provides only a floor for business ethics, telling the business leaders the
minimally acceptable course of action.
In personam jurisdiction (ch. 3) - Answer The power of a court to render a decision affecting
a person's legal rights.
Subject-matter jurisdiction - Answer The power of a court to render a decision in a particular
type of case.
The three forms of Subject-matter jurisdiction are state, exclusive federal, and concurrent.
, Benefits of ADR - Answer why might a business prefer to resolve a dispute through ADR
rather than litigation?
First, ADR methods are generally faster and cheaper than litigation.
Due Process (ch. 5) - Answer For business people and corporations, the 5th amendments
due process clause provides extensive protection.
this clause states that government cannot deprive a person of life, liberty or property without
due process of law.
Due process clause guarantees two types of due process: procedural and substantive - Answer
Procedural due process - requires that the govt use fair procedures when taking the life, liberty,
or property of an individual or corporation.
Substantive due process - refers to the basic fairness of laws that may deprive an individual of
life or liberty.
Pretrial Criminal Procedure (ch. 7) - Answer Ordinarily to obtain the necessary arrest
warrant, the agent must demonstrate that there is probable cause, or likelihood, that a suspect
committed or is planning to commit a crime.
Damages available in Tort Cases (ch. 8) - Answer Because the primary objective of tort law is
to compensate victims, the primary type of damages is compensatory damages.
Damages available in tort cases: Nominal, punitive - Answer Nominal Damages- small
amount of money given to recognize that a defendant did indeed commit a tort in a case where
the plaintiff suffered no compensable damages.
Punitive damages- awarded both to punish conduct that is extremely outrageous and to deter
similar activity by the defendant and others.
Elements of negligence (ch. 9) - Answer Negligence- behavior that creates an unreasonable
risk of harm to others