COB 318 JMU COLLIER EXAM 1 CH. 1, 2, 3, 4 & 11 | COB 318 EXAM 1 STUDY
GUIDE, PRACTICE QUESTIONS & ANSWERS 2026/2027
Law - correct answer ✔✔Consists of enforceable rules governing relationships among individuals and
between individuals and their society.
LAWS - correct answer ✔✔What establishes rights, duties, and privileges that are consistent with the
values & beliefs of a society or its ruling group?
Liability - correct answer ✔✔The state of being legally responsible for something......
Links between business law and six functional fields of business. - correct answer ✔✔What are all the
following?
-Corp Management
-Production & Transportation
-Marketing
-Research & Development
-Accounting/Finance
-HR Management
most general - correct answer ✔✔In a small business, the owner is the ________ ____________ of
managers.
1. Constitutions
2. Statutes
3. Administrative
Regs & Decisions
4. Case Law & Common Law - correct answer ✔✔4 Primary Sources of Law.......
Constitutional - correct answer ✔✔___________________ law refers to the precedents and authority
set by previous court rulings, judicial decisions and admin legal findings or rulings.
United States Constitution - correct answer ✔✔What is the "supreme law of the land"?
Statutory - correct answer ✔✔All of the following are part of ________________ law?
-Laws enacted by federal and state legislatures
-Local ordinances enacted by cities
-Uniform statutes/codes
Administrative - correct answer ✔✔All of the following are part of ________________ law?
-Federal administrative agency regulations on businesses and decisions resolving disputes
-State administrative agency regulations
,Case Law - correct answer ✔✔What law pertains to this?
-Courts hearing real disputes, and making decisions about who wins while interpreting statutes and
observing precedents.
Common Law Doctrines - correct answer ✔✔What law is this?
-While making a decision, the court may follow or create new legal principles.
-Governs all areas of law not covered by statutes or admin law.
- Known as the "gap-filler"
Common Law Tradition - correct answer ✔✔The _____________ _______ _________________
-provided order in lieu of chaos
-Served as an alternative to violence
-Used precedent to establish and build common law, the body of general legal principles applied
throughout England.
-Stare decisis
Stare Decisis - correct answer ✔✔Translation: "To stand by things decided"
- To apply precedent
Precedent - correct answer ✔✔To apply ______________ means to decide a decision by:
-Higher court OR
-Earlier decision by same court OR
-Earlier court on same level as this court
When courts should depart from precedent (ONLY IF) - correct answer ✔✔-Prior decision no longer
matches our values because society has changed.
-Court concludes that the prior decision is fundamentally flawed.
Precedent - correct answer ✔✔Lawyers love when no _______________ exists.
Schools of Thought... - correct answer ✔✔1. Natural Law School
2. Legal Positivism School
3. Historical School
4. Legal Realism School
Natural Law School - correct answer ✔✔What school of thought is this?
-Higher law than man-made-law: universal
-System of moral and ethical principles
-Dates back to Aristotle and Ancient Greeks
-Natural Rights
Legal Positivism School - correct answer ✔✔What school of thought is this?
-Positive
-No higher law than nation's positive law.
-Law must be followed whether good or bad.
Historical School - correct answer ✔✔What school of thought is this?
-Emphasizes evolutionary process of law by concentrating on origin and history of legal systems.
, -Laws that have withstood the test of time are best laws and should be followed.
Legal Realism School - correct answer ✔✔What school of thought is this?
-Law just one of many institutions in society shaped by social forces and needs.
-Judges should also take human and economic factors into account when deciding cases.
A document that establishes the law on a particular issue. - correct answer ✔✔Primary Sources of Law?
A publication that summarizes or interprets the law. - correct answer ✔✔Secondary Sources of Law?
Citation - correct answer ✔✔A reference to a publication in which a legal authority-such as a statute or a
court decision-or other source can be found.
Ordinances - correct answer ✔✔A regulation enacted by a city or county legislative body that becomes
part of that state's statutory law.
Uniform Laws - correct answer ✔✔A model law developed by the National Conference of
Commissioners on Uniform State Laws for the states to consider enacting into statute.
Binding Authority - correct answer ✔✔Any source of law that a court must follow when deciding a case.
Substantive Law - correct answer ✔✔What law is this?
-Defines/regulates rights and duties.
Procedural Law - correct answer ✔✔What law is this?
-Methods/procedures used in enforcing duties and protecting rights.
Civil Law - correct answer ✔✔Defines private and public rights and duties.
Criminal Law - correct answer ✔✔Defines and punishes wrongful actions committed against society.
National Law - correct answer ✔✔Pertains to particular nation.
International Law - correct answer ✔✔Body of written and unwritten laws, as well as treaties, observed
by nations when dealing with each other and as a group.
Remedy - correct answer ✔✔The means given to a party to enforce a right or to compensate for the
violation of a right.
Plaintiff
Defendant - correct answer ✔✔CRITICAL: The _________________ asks the court to grant specific
remedies against the ____________________
Remedies at Law - correct answer ✔✔Enforcing a right or compensating for physical/monetary injury or
infringement of a right with award of money or property.
Remedies at Equity - correct answer ✔✔Based on fair dealing, doing what is right in a particular set of
circumstances, a court
GUIDE, PRACTICE QUESTIONS & ANSWERS 2026/2027
Law - correct answer ✔✔Consists of enforceable rules governing relationships among individuals and
between individuals and their society.
LAWS - correct answer ✔✔What establishes rights, duties, and privileges that are consistent with the
values & beliefs of a society or its ruling group?
Liability - correct answer ✔✔The state of being legally responsible for something......
Links between business law and six functional fields of business. - correct answer ✔✔What are all the
following?
-Corp Management
-Production & Transportation
-Marketing
-Research & Development
-Accounting/Finance
-HR Management
most general - correct answer ✔✔In a small business, the owner is the ________ ____________ of
managers.
1. Constitutions
2. Statutes
3. Administrative
Regs & Decisions
4. Case Law & Common Law - correct answer ✔✔4 Primary Sources of Law.......
Constitutional - correct answer ✔✔___________________ law refers to the precedents and authority
set by previous court rulings, judicial decisions and admin legal findings or rulings.
United States Constitution - correct answer ✔✔What is the "supreme law of the land"?
Statutory - correct answer ✔✔All of the following are part of ________________ law?
-Laws enacted by federal and state legislatures
-Local ordinances enacted by cities
-Uniform statutes/codes
Administrative - correct answer ✔✔All of the following are part of ________________ law?
-Federal administrative agency regulations on businesses and decisions resolving disputes
-State administrative agency regulations
,Case Law - correct answer ✔✔What law pertains to this?
-Courts hearing real disputes, and making decisions about who wins while interpreting statutes and
observing precedents.
Common Law Doctrines - correct answer ✔✔What law is this?
-While making a decision, the court may follow or create new legal principles.
-Governs all areas of law not covered by statutes or admin law.
- Known as the "gap-filler"
Common Law Tradition - correct answer ✔✔The _____________ _______ _________________
-provided order in lieu of chaos
-Served as an alternative to violence
-Used precedent to establish and build common law, the body of general legal principles applied
throughout England.
-Stare decisis
Stare Decisis - correct answer ✔✔Translation: "To stand by things decided"
- To apply precedent
Precedent - correct answer ✔✔To apply ______________ means to decide a decision by:
-Higher court OR
-Earlier decision by same court OR
-Earlier court on same level as this court
When courts should depart from precedent (ONLY IF) - correct answer ✔✔-Prior decision no longer
matches our values because society has changed.
-Court concludes that the prior decision is fundamentally flawed.
Precedent - correct answer ✔✔Lawyers love when no _______________ exists.
Schools of Thought... - correct answer ✔✔1. Natural Law School
2. Legal Positivism School
3. Historical School
4. Legal Realism School
Natural Law School - correct answer ✔✔What school of thought is this?
-Higher law than man-made-law: universal
-System of moral and ethical principles
-Dates back to Aristotle and Ancient Greeks
-Natural Rights
Legal Positivism School - correct answer ✔✔What school of thought is this?
-Positive
-No higher law than nation's positive law.
-Law must be followed whether good or bad.
Historical School - correct answer ✔✔What school of thought is this?
-Emphasizes evolutionary process of law by concentrating on origin and history of legal systems.
, -Laws that have withstood the test of time are best laws and should be followed.
Legal Realism School - correct answer ✔✔What school of thought is this?
-Law just one of many institutions in society shaped by social forces and needs.
-Judges should also take human and economic factors into account when deciding cases.
A document that establishes the law on a particular issue. - correct answer ✔✔Primary Sources of Law?
A publication that summarizes or interprets the law. - correct answer ✔✔Secondary Sources of Law?
Citation - correct answer ✔✔A reference to a publication in which a legal authority-such as a statute or a
court decision-or other source can be found.
Ordinances - correct answer ✔✔A regulation enacted by a city or county legislative body that becomes
part of that state's statutory law.
Uniform Laws - correct answer ✔✔A model law developed by the National Conference of
Commissioners on Uniform State Laws for the states to consider enacting into statute.
Binding Authority - correct answer ✔✔Any source of law that a court must follow when deciding a case.
Substantive Law - correct answer ✔✔What law is this?
-Defines/regulates rights and duties.
Procedural Law - correct answer ✔✔What law is this?
-Methods/procedures used in enforcing duties and protecting rights.
Civil Law - correct answer ✔✔Defines private and public rights and duties.
Criminal Law - correct answer ✔✔Defines and punishes wrongful actions committed against society.
National Law - correct answer ✔✔Pertains to particular nation.
International Law - correct answer ✔✔Body of written and unwritten laws, as well as treaties, observed
by nations when dealing with each other and as a group.
Remedy - correct answer ✔✔The means given to a party to enforce a right or to compensate for the
violation of a right.
Plaintiff
Defendant - correct answer ✔✔CRITICAL: The _________________ asks the court to grant specific
remedies against the ____________________
Remedies at Law - correct answer ✔✔Enforcing a right or compensating for physical/monetary injury or
infringement of a right with award of money or property.
Remedies at Equity - correct answer ✔✔Based on fair dealing, doing what is right in a particular set of
circumstances, a court
