Test Bank Dynamic Business Law, 5th Edition

Test Bank Dynamic Business Law, 5th Edition Dynamic Business Law, 5e (Kubasek) Chapter 1 An Introduction to Dynamic Business Law 1) Business law consists of the enforceable rules of conduct that govern commercial relationships. Answer: TRUE Explanation: Business law consists of the enforceable rules of conduct that govern commercial relationships. Difficulty: 1 Easy Topic: An Introduction to Dynamic Business Law Learning Objective: 01-01 Define business law. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) Contracts, employment decisions and payments to suppliers are protected by business law. Answer: TRUE Explanation: Business behavior must follow legal guidelines. All contracts, employment decisions, and payments to a supplier are constrained and protected by business law. Difficulty: 1 Easy Topic: Law and Its Purposes Learning Objective: 01-02 Relate the functional areas of business to the relevant areas of business law. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation 3) There are many purposes of the law. One such purpose is serving as a moral guide by indicating minimal expectations of citizens and organizations. Answer: TRUE Explanation: Serving as a moral guide by indicating minimal expectations of citizens and organizations is one purpose of the law. Difficulty: 1 Easy Topic: Law and Its Purposes Learning Objective: 01-03 Recall the purposes of law. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3 4) Public law controls both disputes between private individuals and their government and disputes involving only private individuals. Answer: FALSE Explanation: Public law controls disputes between private individuals or groups and their government. Private law controls disputes between private individuals or groups. Difficulty: 2 Medium Topic: Classification of the Law Learning Objective: 01-04 Distinguish among types of law. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 5) Criminal law lays out the rights and responsibilities implied in relationships between persons. Answer: FALSE Explanation: Civil law lays out the rights and responsibilities implied in relationships between persons. Difficulty: 2 Medium Topic: Classification of the Law Learning Objective: 01-04 Distinguish among types of law. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) Only civil law regulates the behavior of individuals. Answer: FALSE Explanation: Both criminal and civil law regulate the behavior of individuals. Difficulty: 2 Medium Topic: Classification of the Law Learning Objective: 01-04 Distinguish among types of law. Bloom's: Understand AACSB: Technology Accessibility: Keyboard Navigation 4 7) Statutory law is the supreme law of the land and the foundation for all laws in the United States. Answer: FALSE Explanation: The U.S. Constitution is the supreme law of the land, and the foundation for all laws in the United States. Difficulty: 2 Medium Topic: Sources of Business Law Learning Objective: 01-05 Differentiate between sources of the law. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8) Another name for case law is common law. Answer: TRUE Explanation: Case law, also called common law, is the collection of legal interpretations made by judges. Difficulty: 1 Easy Topic: Sources of Business Law Learning Objective: 01-05 Differentiate between sources of the law. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 9) Case law interpretations are law, unless they are revoked later by new statutory law. Answer: TRUE Explanation: Case law interpretations are law unless revoked later by new statutory law. Difficulty: 1 Easy Topic: Sources of Business Law Learning Objective: 01-05 Differentiate between sources of the law. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 5 10) When courts overturn precedent and create new precedent, they are obeying the principle of stare decisis. Answer: FALSE Explanation: Courts obey the principle of stare decisis when they rely on precedent. The principle of "stare decisis" refers to "standing by their decision." Because of stare decisis, rulings made in higher courts become binding precedent for lower courts. The Supreme Court can overturn precedent and create a new one, as it did in Brown v. Board of Education when it did not follow the precedent established by Plessy v. Ferguson. Difficulty: 3 Hard Topic: Sources of Business Law Learning Objective: 01-05 Differentiate between sources of the law. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation