BLAW 341 Exam 1 Latest Questions &
Answers | MCQs with Rationales |
Business Law Study Guide
Questions 1–20: Legal Foundations and the Legal System
1. Which of the following best describes business law?
A. Rules governing only criminal conduct
B. Rules regulating relationships between businesses, individuals, and government
C. Rules applying exclusively to corporations
D. Rules governing international trade only
Answer: B
Rationale: Business law encompasses legal rules governing commercial
relationships among individuals, businesses, and governmental entities.
2. Which source of law is created by legislative bodies?
A. Case law
B. Statutory law
C. Common law
D. Administrative custom
Answer: B
,Rationale: Statutory law consists of laws enacted by legislative bodies such as Parliament
or Congress.
3. The doctrine of stare decisis means that courts generally:
A. Ignore previous decisions
B. Follow established judicial precedents
C. Always defer to juries
D. Create statutes
Answer: B
Rationale: Stare decisis requires courts to follow applicable precedents so that similar cases
are treated consistently.
4. Common law primarily developed from:
A. Decisions of courts
B. Executive orders
C. Constitutional amendments
D. Administrative regulations
Answer: A
Rationale: Common law developed largely through judicial decisions and precedents rather
than legislation.
,5. Which branch of government generally makes statutes?
A. Executive
B. Judicial
C. Legislative
D. Administrative
Answer: C
Rationale: The legislative branch is responsible for creating and passing statutes.
6. Which branch of government primarily interprets laws?
A. Legislative
B. Judicial
C. Executive
D. Electoral
Answer: B
Rationale: Courts within the judicial branch interpret and apply laws when
resolving disputes.
7. Administrative agencies primarily:
, A. Enact constitutional amendments
B. Enforce and administer specific areas of law
C. Conduct criminal trials
D. Replace legislatures
Answer: B
Rationale: Administrative agencies are established to implement, administer, and enforce
laws within particular areas of government responsibility.
8. A constitution is generally considered:
A. A private contract
B. The fundamental framework of government
C. A court judgment
D. A business license
Answer: B
Rationale: A constitution establishes the fundamental structure, powers, and limitations of
government.
9. Civil law generally involves disputes between:
A. Private parties
B. Criminal defendants and prosecutors only
Answers | MCQs with Rationales |
Business Law Study Guide
Questions 1–20: Legal Foundations and the Legal System
1. Which of the following best describes business law?
A. Rules governing only criminal conduct
B. Rules regulating relationships between businesses, individuals, and government
C. Rules applying exclusively to corporations
D. Rules governing international trade only
Answer: B
Rationale: Business law encompasses legal rules governing commercial
relationships among individuals, businesses, and governmental entities.
2. Which source of law is created by legislative bodies?
A. Case law
B. Statutory law
C. Common law
D. Administrative custom
Answer: B
,Rationale: Statutory law consists of laws enacted by legislative bodies such as Parliament
or Congress.
3. The doctrine of stare decisis means that courts generally:
A. Ignore previous decisions
B. Follow established judicial precedents
C. Always defer to juries
D. Create statutes
Answer: B
Rationale: Stare decisis requires courts to follow applicable precedents so that similar cases
are treated consistently.
4. Common law primarily developed from:
A. Decisions of courts
B. Executive orders
C. Constitutional amendments
D. Administrative regulations
Answer: A
Rationale: Common law developed largely through judicial decisions and precedents rather
than legislation.
,5. Which branch of government generally makes statutes?
A. Executive
B. Judicial
C. Legislative
D. Administrative
Answer: C
Rationale: The legislative branch is responsible for creating and passing statutes.
6. Which branch of government primarily interprets laws?
A. Legislative
B. Judicial
C. Executive
D. Electoral
Answer: B
Rationale: Courts within the judicial branch interpret and apply laws when
resolving disputes.
7. Administrative agencies primarily:
, A. Enact constitutional amendments
B. Enforce and administer specific areas of law
C. Conduct criminal trials
D. Replace legislatures
Answer: B
Rationale: Administrative agencies are established to implement, administer, and enforce
laws within particular areas of government responsibility.
8. A constitution is generally considered:
A. A private contract
B. The fundamental framework of government
C. A court judgment
D. A business license
Answer: B
Rationale: A constitution establishes the fundamental structure, powers, and limitations of
government.
9. Civil law generally involves disputes between:
A. Private parties
B. Criminal defendants and prosecutors only
