Florida International University
Legal Environment of Business
BUL 4310: Legal Environment of Business - Practice Mock Exam with Complete Solutions
,Section 1/4 30 Marks total
Section 1: Multiple Choice Questions
Select the best possible answer for each question. Each question is worth 2 marks.
Question 1 2 marks
A state court judge is deciding a case involving a dispute over a contract. The judge finds that there is no
existing statute that covers the specific issue but discovers a previous court decision from a higher court in the
same state addressing a similar fact pattern. Under the doctrine of stare decisis, what is the judge’s obligation?
⃝ A The judge must ignore the previous decision as it is not a statutory law.
√
B The judge is obligated to follow the precedent unless there is a compelling reason to overturn
it.
⃝ C The judge must refer the case to the state legislature for a new statute.
⃝ D The judge should apply natural law and ignore the previous written decision.
Model answer:
According to the common law doctrine of stare decisis, judges are obligated to follow precedents
established in prior decisions within their jurisdiction. Higher court decisions are binding on lower courts
unless a com-pelling reason exists to deviate.
Question 2 2 marks
Which legal philosophy is based on the belief that the legal system should reflect universal moral and ethical
principles inherent in human nature?
⃝ A Legal Positivism
⃝ B Legal Realism
√
C Natural Law
⃝ D Historical School
Model answer:
The Natural Law school of thought holds that a higher, universal law applies to all human beings and that
written laws must reflect these inherent moral principles to be legitimate.
, Question 3 2 marks
A court’s jurisdiction over a specific piece of property located within its boundaries is known as:
⃝ A In personam jurisdiction
√
B In rem jurisdiction
⃝ C Subject matter jurisdiction
⃝ D Long arm jurisdiction
Model answer:
In rem jurisdiction refers specifically to a court’s power over property involved in a legal dispute,
regardless of the owner’s personal location.
Question 4 2 marks
During the pretrial phase, a defendant’s attorney wants to ask the plaintiff a series of written questions that
must be answered under oath. This discovery tool is called:
⃝ A A deposition
⃝ B A summons
√
C Interrogatories
⃝ D A motion for summary judgment
Model answer:
Interrogatories are written questions directed to a party in a lawsuit (plaintiff or defendant) that require written
answers signed under oath.
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Legal Environment of Business
BUL 4310: Legal Environment of Business - Practice Mock Exam with Complete Solutions
,Section 1/4 30 Marks total
Section 1: Multiple Choice Questions
Select the best possible answer for each question. Each question is worth 2 marks.
Question 1 2 marks
A state court judge is deciding a case involving a dispute over a contract. The judge finds that there is no
existing statute that covers the specific issue but discovers a previous court decision from a higher court in the
same state addressing a similar fact pattern. Under the doctrine of stare decisis, what is the judge’s obligation?
⃝ A The judge must ignore the previous decision as it is not a statutory law.
√
B The judge is obligated to follow the precedent unless there is a compelling reason to overturn
it.
⃝ C The judge must refer the case to the state legislature for a new statute.
⃝ D The judge should apply natural law and ignore the previous written decision.
Model answer:
According to the common law doctrine of stare decisis, judges are obligated to follow precedents
established in prior decisions within their jurisdiction. Higher court decisions are binding on lower courts
unless a com-pelling reason exists to deviate.
Question 2 2 marks
Which legal philosophy is based on the belief that the legal system should reflect universal moral and ethical
principles inherent in human nature?
⃝ A Legal Positivism
⃝ B Legal Realism
√
C Natural Law
⃝ D Historical School
Model answer:
The Natural Law school of thought holds that a higher, universal law applies to all human beings and that
written laws must reflect these inherent moral principles to be legitimate.
, Question 3 2 marks
A court’s jurisdiction over a specific piece of property located within its boundaries is known as:
⃝ A In personam jurisdiction
√
B In rem jurisdiction
⃝ C Subject matter jurisdiction
⃝ D Long arm jurisdiction
Model answer:
In rem jurisdiction refers specifically to a court’s power over property involved in a legal dispute,
regardless of the owner’s personal location.
Question 4 2 marks
During the pretrial phase, a defendant’s attorney wants to ask the plaintiff a series of written questions that
must be answered under oath. This discovery tool is called:
⃝ A A deposition
⃝ B A summons
√
C Interrogatories
⃝ D A motion for summary judgment
Model answer:
Interrogatories are written questions directed to a party in a lawsuit (plaintiff or defendant) that require written
answers signed under oath.
21/43
