9.BUSINESS LAW EXAM PREPARATION QUESTIONS AND ANSWERS’
Business law - correct answer a set of established rules governing commercial relationships,
including the enforcement of rights
Law - correct answer the set of rules and principles guiding conduct in society
Breach of contract - correct answer failure to comply with a contractual promise
Age of majority - correct answer the age at which a person becomes an adult for legal
purposes.
Contract law - correct answer rules that make agreements binding and, therefore, facilitate
planning and the enforcement of expectations
Litigation - correct answer the process involved when one person sues another
Mediation - correct answer a process through which the parties to a dispute endeavour to
reach a resolution with the assistance of a neutral person
Arbitration - correct answer a process through which a neutral party makes a decision (usually
binding) that resolves a dispute
Liability - correct answer legal responsibility for the even or loss that has occurred
Legal risk management plan - correct answer a comprehensive action plan for dealing with the
legal risks involved in operating a business
Business ethics - correct answer moral principles and values that seek to determine right anhod
wrong in the business world
, What is the function of law - correct answer defines general rules of commerce
Protects business ideas and permit business people to select their desired degree of
participation and exposure to risk in business ventures
Seeks to ensure that losses are borne by those who are responsible for them
Facilitates planning by ensuring compliance with commitments
How does the law protect members of society - correct answer it sets rules with penalties in
order to encourage compliance
It seeks to hold those who break the law accountable for their misconduct
How does law facilitate business activity - correct answer by providing rules governing the
marketplace.
In what ways does the law facilitate certainty in the marketplace - correct answer the law of
contract provides a way for parties to enter into binding agreements thereby creating a
measure of security and certainty in their business operations
Does that nature of the business relationship affect the enforcement of legal rights - correct
answer it is the business relationship that determines whether strict leal rights will be insisted
up
How does the law resolve disputes - correct answer solutions to a legal dispute exist at various
levels of formality. The first logical step is for the parties to try to come to a resolution between
themselves and produce, if necessary, a formalized settlement agreement.
Does dispute resolution always involve going to court - correct answer the legal system offers
mediation and arbitration as ways of avoiding litigation
In what way is knowledge of the law a business asset - correct answer by informing yourself of
the laws governing your operations as well as the consequences for failing to abide by them
Business law - correct answer a set of established rules governing commercial relationships,
including the enforcement of rights
Law - correct answer the set of rules and principles guiding conduct in society
Breach of contract - correct answer failure to comply with a contractual promise
Age of majority - correct answer the age at which a person becomes an adult for legal
purposes.
Contract law - correct answer rules that make agreements binding and, therefore, facilitate
planning and the enforcement of expectations
Litigation - correct answer the process involved when one person sues another
Mediation - correct answer a process through which the parties to a dispute endeavour to
reach a resolution with the assistance of a neutral person
Arbitration - correct answer a process through which a neutral party makes a decision (usually
binding) that resolves a dispute
Liability - correct answer legal responsibility for the even or loss that has occurred
Legal risk management plan - correct answer a comprehensive action plan for dealing with the
legal risks involved in operating a business
Business ethics - correct answer moral principles and values that seek to determine right anhod
wrong in the business world
, What is the function of law - correct answer defines general rules of commerce
Protects business ideas and permit business people to select their desired degree of
participation and exposure to risk in business ventures
Seeks to ensure that losses are borne by those who are responsible for them
Facilitates planning by ensuring compliance with commitments
How does the law protect members of society - correct answer it sets rules with penalties in
order to encourage compliance
It seeks to hold those who break the law accountable for their misconduct
How does law facilitate business activity - correct answer by providing rules governing the
marketplace.
In what ways does the law facilitate certainty in the marketplace - correct answer the law of
contract provides a way for parties to enter into binding agreements thereby creating a
measure of security and certainty in their business operations
Does that nature of the business relationship affect the enforcement of legal rights - correct
answer it is the business relationship that determines whether strict leal rights will be insisted
up
How does the law resolve disputes - correct answer solutions to a legal dispute exist at various
levels of formality. The first logical step is for the parties to try to come to a resolution between
themselves and produce, if necessary, a formalized settlement agreement.
Does dispute resolution always involve going to court - correct answer the legal system offers
mediation and arbitration as ways of avoiding litigation
In what way is knowledge of the law a business asset - correct answer by informing yourself of
the laws governing your operations as well as the consequences for failing to abide by them
