MIE 305 Exam 1 Questions and Answers
Question 1
Law
Correct Answer
a body of enforceable rules governing relationships among individuals and between individuals and their society
-establish rights, duties, and privileges that are consistent w/ the values & beliefs of a society or its ruling group
Question 2
role of law in small business
Correct Answer
1. Business organization (type of entity, how much personal liability?)
2. Taxation (how it will be taxed, how to reduce taxes)
3. Intellectual property (any patents that need to be protected? what steps should the firm take)
4. Administrative law (what types of gov regulations apply to business/how to comply)
5. Employment (employee manual? explicitly inform employees of their rights?)
6. Contracts, Sales, and Leases (will the firm be entering into contracts with others?)
7. Accounting (do the financial statements need to be verified for accuracy?)
8. Finances (appropriate and legal ways to raise additional capital)
Page 1 of 49
,Question 3
Liability
Correct Answer
the state of being legally responsible (liable) for something, such as debt or obligation
Question 4
Breach
Correct Answer
failure to perform a legal obligation
Question 5
Sources that establish American Law
Correct Answer
The constitution, statues or laws passed by congress or state legislatures, regulations created by admin agencies, case
law
Question 6
Primary Sources of American Law
Correct Answer
a document that establishes the law on a particular issue, such as a constitution, a statue, an administrative rule, or a
court decision
Page 2 of 49
,Question 7
Secondary Source of American Law
Correct Answer
a publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law
review
Question 8
Constitutional Law
Correct Answer
The body of law derived from the U.S. constitution and the constitutions of various states
Question 9
Statutory Law
Correct Answer
The body of law enacted by legislative bodies (as opposed to constitutional law, admin law, or case law)
Question 10
Citation
Correct Answer
a reference to a publication in which a legal authority--such as a statue or a court decision-- or other source can be
found
Page 3 of 49
, Question 11
ordinance
Correct Answer
a regulation enacted by a city or county legislative body that becomes part of that state's statutory law
Question 12
Uniform Law
Correct Answer
a model law developed by the National conference of Commissioners on Uniform State Laws for the states to consider
enacting into statue
Question 13
Admin Law
Correct Answer
consists of the rules, orders, and decisions of administrative agencies
Question 14
Case Law
Correct Answer
the rules of law announced in court decisions. case law interprets statues, regulations, constitutional provisions, and other
case law
Page 4 of 49
Question 1
Law
Correct Answer
a body of enforceable rules governing relationships among individuals and between individuals and their society
-establish rights, duties, and privileges that are consistent w/ the values & beliefs of a society or its ruling group
Question 2
role of law in small business
Correct Answer
1. Business organization (type of entity, how much personal liability?)
2. Taxation (how it will be taxed, how to reduce taxes)
3. Intellectual property (any patents that need to be protected? what steps should the firm take)
4. Administrative law (what types of gov regulations apply to business/how to comply)
5. Employment (employee manual? explicitly inform employees of their rights?)
6. Contracts, Sales, and Leases (will the firm be entering into contracts with others?)
7. Accounting (do the financial statements need to be verified for accuracy?)
8. Finances (appropriate and legal ways to raise additional capital)
Page 1 of 49
,Question 3
Liability
Correct Answer
the state of being legally responsible (liable) for something, such as debt or obligation
Question 4
Breach
Correct Answer
failure to perform a legal obligation
Question 5
Sources that establish American Law
Correct Answer
The constitution, statues or laws passed by congress or state legislatures, regulations created by admin agencies, case
law
Question 6
Primary Sources of American Law
Correct Answer
a document that establishes the law on a particular issue, such as a constitution, a statue, an administrative rule, or a
court decision
Page 2 of 49
,Question 7
Secondary Source of American Law
Correct Answer
a publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law
review
Question 8
Constitutional Law
Correct Answer
The body of law derived from the U.S. constitution and the constitutions of various states
Question 9
Statutory Law
Correct Answer
The body of law enacted by legislative bodies (as opposed to constitutional law, admin law, or case law)
Question 10
Citation
Correct Answer
a reference to a publication in which a legal authority--such as a statue or a court decision-- or other source can be
found
Page 3 of 49
, Question 11
ordinance
Correct Answer
a regulation enacted by a city or county legislative body that becomes part of that state's statutory law
Question 12
Uniform Law
Correct Answer
a model law developed by the National conference of Commissioners on Uniform State Laws for the states to consider
enacting into statue
Question 13
Admin Law
Correct Answer
consists of the rules, orders, and decisions of administrative agencies
Question 14
Case Law
Correct Answer
the rules of law announced in court decisions. case law interprets statues, regulations, constitutional provisions, and other
case law
Page 4 of 49
