BUSINESS LAW EXAM 1 2026
QUESTIONS AND VERIFIED
CORRECT ANSWERS GRADED A+
Constitutions
establish governmental structure, specific rights and duties
Statutes
written laws enacted by legislatures
Common/case law
made and applied by judges at the state level as judges decide cases according to the doctrine of
precedent or stare decisis
Stare decisis
Let the decision stand; decisions are based on precedents from previous cases
equity
is applied by state level judiciary to achieve justice when common law rules would produce
unfair results
injunction
,court forbids a party to do some act or orders a party to perform an act
specific performance
a party is ordered to perform according to the terms of her contract
reformation
the court rewrites the contract's terms to reflect the parties' real intentions
recission
the cancellation of a contract; goes back to policy inception with all premiums paid minus and
payments; usually do to fraud, concealment or material misrepresentation
administrative regulations and decisions
made by state and federal agencies that were created by statute and hold delegated (granted)
power
treaty
made by other nations, by the US pres on behalf of the US, approved by the senate
ordinance
made by subunits of state governments (e.g., counties, cities) for local issues, such as zoning
, executive order
issued by the pres or a state governor under limited powers
federal supremecy
a rule of priority for conflicts between laws stating that the U.S. Constitution is the supreme law
federal supremecy
Federal law defeats state law
State constitution defeats state legislation
Statute defeats administrative regulation
Statute or regulation defeats common law
criminal law
establishes duties to society
Government charges and prosecutes defendant, who will be found guilty or innocent
A convicted defendant will be imprisoned or fined
civil law
establishes duties and obligations between private parties
Plaintiff sues defendant for monetary damages or equitable relief
A defendant will be held liable or not liable for the plaintiff's injury
substantive law
QUESTIONS AND VERIFIED
CORRECT ANSWERS GRADED A+
Constitutions
establish governmental structure, specific rights and duties
Statutes
written laws enacted by legislatures
Common/case law
made and applied by judges at the state level as judges decide cases according to the doctrine of
precedent or stare decisis
Stare decisis
Let the decision stand; decisions are based on precedents from previous cases
equity
is applied by state level judiciary to achieve justice when common law rules would produce
unfair results
injunction
,court forbids a party to do some act or orders a party to perform an act
specific performance
a party is ordered to perform according to the terms of her contract
reformation
the court rewrites the contract's terms to reflect the parties' real intentions
recission
the cancellation of a contract; goes back to policy inception with all premiums paid minus and
payments; usually do to fraud, concealment or material misrepresentation
administrative regulations and decisions
made by state and federal agencies that were created by statute and hold delegated (granted)
power
treaty
made by other nations, by the US pres on behalf of the US, approved by the senate
ordinance
made by subunits of state governments (e.g., counties, cities) for local issues, such as zoning
, executive order
issued by the pres or a state governor under limited powers
federal supremecy
a rule of priority for conflicts between laws stating that the U.S. Constitution is the supreme law
federal supremecy
Federal law defeats state law
State constitution defeats state legislation
Statute defeats administrative regulation
Statute or regulation defeats common law
criminal law
establishes duties to society
Government charges and prosecutes defendant, who will be found guilty or innocent
A convicted defendant will be imprisoned or fined
civil law
establishes duties and obligations between private parties
Plaintiff sues defendant for monetary damages or equitable relief
A defendant will be held liable or not liable for the plaintiff's injury
substantive law
