EXAM #1 LEGAL ENVIRONMENT OF
BUSINESS 2026 PRACTICE QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE A+ EXAM PREP
public policy - CORRECT ANSWER-the course of action the government
takes in response to an issue or problem
citation - CORRECT ANSWER-(law) the act of citing (as of spoken words
or written passages or legal precedents etc.)
legal realism - CORRECT ANSWER-Based on the idea that law is just one
of many institutions in society and that it is shaped by social forces and
needs
opinion - CORRECT ANSWER-the reason for a court's judgment (as
opposed to the decision itself)
independent regulatory agency - CORRECT ANSWER-a government
agency responsible for some sector of the economy, making and enforcing
rules to protect the public interest. It also judges disputes over these rules.
analogy - CORRECT ANSWER-A similarity or comparison between two
different cases or the relationship between them. Can explain
, something unfamiliar by associating it with or pointing out its sim Law -
CORRECT ANSWER-A body of enforcable rules governing relationships
between individuals and between individuals and society
Functions of a Law - CORRECT ANSWER-Protection, Social Order, &
Social Justice
Substantive Law - CORRECT ANSWER-Sets out rights and duties
Procedural Law - CORRECT ANSWER-Sets the substantive law into action
Constitution - CORRECT ANSWER-Covers US and all states, all other laws
based off of this....
Administrative Law - CORRECT ANSWER-The government grants rule
making authority to agencies to carry out their purpose
Statues - CORRECT ANSWER-Are written laws created by legislation
bodies
Precedent - CORRECT ANSWER-Not mandatory, court should follow a
prior case when deciding a similar case
Stare Decisis - CORRECT ANSWER-Mandatory; Court must follow a prior
case when deciding a present case if
BUSINESS 2026 PRACTICE QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE A+ EXAM PREP
public policy - CORRECT ANSWER-the course of action the government
takes in response to an issue or problem
citation - CORRECT ANSWER-(law) the act of citing (as of spoken words
or written passages or legal precedents etc.)
legal realism - CORRECT ANSWER-Based on the idea that law is just one
of many institutions in society and that it is shaped by social forces and
needs
opinion - CORRECT ANSWER-the reason for a court's judgment (as
opposed to the decision itself)
independent regulatory agency - CORRECT ANSWER-a government
agency responsible for some sector of the economy, making and enforcing
rules to protect the public interest. It also judges disputes over these rules.
analogy - CORRECT ANSWER-A similarity or comparison between two
different cases or the relationship between them. Can explain
, something unfamiliar by associating it with or pointing out its sim Law -
CORRECT ANSWER-A body of enforcable rules governing relationships
between individuals and between individuals and society
Functions of a Law - CORRECT ANSWER-Protection, Social Order, &
Social Justice
Substantive Law - CORRECT ANSWER-Sets out rights and duties
Procedural Law - CORRECT ANSWER-Sets the substantive law into action
Constitution - CORRECT ANSWER-Covers US and all states, all other laws
based off of this....
Administrative Law - CORRECT ANSWER-The government grants rule
making authority to agencies to carry out their purpose
Statues - CORRECT ANSWER-Are written laws created by legislation
bodies
Precedent - CORRECT ANSWER-Not mandatory, court should follow a
prior case when deciding a similar case
Stare Decisis - CORRECT ANSWER-Mandatory; Court must follow a prior
case when deciding a present case if
