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Test Bank for Business Law, 17th Edition

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Test Bank for Business Law, 17th Edition Business Law, 17e (Langvardt) Chapter 1 The Nature of Law 1) The U.S. Constitution recognizes the states' power to make law in certain areas. Answer: TRUE Explanation: The U.S. Constitution structures the relationship between the federal government and the states around the system of federalism, which recognizes the states' power to make law in certain areas. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) Uniform acts are model statutes drafted by private bodies of lawyers and scholars; they become law only after a legislature enacts them. Answer: TRUE Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars and do not become law until a legislature enacts them. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 3) Common law exists only at the state level and only state courts can apply it. Answer: FALSE Explanation: Although common law generally exists only at the state level, both state courts and federal courts are involved in applying it. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3 4) The Restatements are binding laws and are promulgated by the American Law Institute. Answer: FALSE Explanation: The Restatements are promulgated by the American Law Institute, not the courts; hence, they are not considered binding laws. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 5) According to the U.S. Constitution, treaties made by the president with foreign governments and approved by two-thirds of the U.S. Senate validate inconsistent state and federal laws. Answer: FALSE Explanation: According to the U.S. Constitution, treaties made by the president with foreign governments and approved by two-thirds of the U.S. Senate become "the supreme Law of the Land." Treaties invalidate inconsistent state and federal laws. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-01 Identify the respective makers of the different types of law (constitutions, statutes, common law, and administrative regulations and decisions). Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6) The same behavior will sometimes violate both civil law and criminal law, and in such a case, a person may be held both civilly and criminally liable for the same act. Answer: TRUE Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same behavior will sometimes violate both. For instance, if A commits an intentional act of physical violence on B, A may face both a criminal prosecution by the state and B's civil suit for damages. Difficulty: 1 Easy Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 4 7) A state statute making murder a crime is an example of a substantive law, criminal law, and public law. Answer: TRUE Explanation: Substantive law sets the rights and duties of people as they act in society. Criminal law is the law under which the government prosecutes someone for committing a crime. Public law concerns the powers of government and private parties (which includes criminal law). Hence, a state's murder statute is an example of all three types of laws. Difficulty: 2 Medium Topic: Types and Classifications of Law Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law classifications. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8) Though a natural law defense is not recognized in court, judges may take natural law-oriented views into account when interpreting the law. Answer: TRUE Explanation: While interpreting the law, judges may take natural law-oriented views into account. Typically, when judges are influenced by natural law ideas, they may be more likely to read constitutional provisions more broadly in order to strike down positive laws they regard as unjust. Difficulty: 2 Medium Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Understand AACSB: Ethics; Analytical Thinking Accessibility: Keyboard Navigation 5 9) American legal realists regard the law in the books as less important than the law in action and define law as the behavior of public officials (mainly judges) as they deal with matters before the legal system. Answer: TRUE Explanation: American legal realism defines law as the behavior of public officials (mainly judges) as they deal with matters before the legal system. Because the actions of such decision makers really affect people's lives, the realists believe, this behavior is what deserves to be called law. Difficulty: 1 Easy Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) The critical legal studies movement regards law as the product of political calculation and longstanding class biases on the part of lawmakers. Answer: TRUE Explanation: The critical legal studies (CLS) movement regards law as inevitably the product of political calculation and longstanding class biases on the part of lawmakers, including judges. Articles published by CLS adherents provide controversial assessments and critiques of legal rules. Difficulty: 1 Easy Topic: Jurisprudence Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ from each other. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

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Test Bank for Business Law, 17th Edition, Arlen Langvardt,
A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory,
Joshua Perry, L. Thomas Bowers, Jane Mallor, ISBN10:
1259917118, ISBN13: 9781259917110




1

,Business Law, 17e (Langvardt)
Chapter 1 The Nature of Law

1) The U.S. Constitution recognizes the states' power to make law in certain areas.

Answer: TRUE
Explanation: The U.S. Constitution structures the relationship between the federal government
and the states around the system of federalism, which recognizes the states' power to make law in
certain areas.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

2) Uniform acts are model statutes drafted by private bodies of lawyers and scholars; they become
law only after a legislature enacts them.

Answer: TRUE
Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars
and do not become law until a legislature enacts them.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

3) Common law exists only at the state level and only state courts can apply it.

Answer: FALSE
Explanation: Although common law generally exists only at the state level, both state courts and
federal courts are involved in applying it.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation



2

,4) The Restatements are binding laws and are promulgated by the American Law Institute.

Answer: FALSE
Explanation: The Restatements are promulgated by the American Law Institute, not the courts;
hence, they are not considered binding laws.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

5) According to the U.S. Constitution, treaties made by the president with foreign governments
and approved by two-thirds of the U.S. Senate validate inconsistent state and federal laws.

Answer: FALSE
Explanation: According to the U.S. Constitution, treaties made by the president with foreign
governments and approved by two-thirds of the U.S. Senate become "the supreme Law of the
Land." Treaties invalidate inconsistent state and federal laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

6) The same behavior will sometimes violate both civil law and criminal law, and in such a case, a
person may be held both civilly and criminally liable for the same act.

Answer: TRUE
Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same
behavior will sometimes violate both. For instance, if A commits an intentional act of physical
violence on B, A may face both a criminal prosecution by the state and B's civil suit for damages.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation




3

, 7) A state statute making murder a crime is an example of a substantive law, criminal law, and
public law.

Answer: TRUE
Explanation: Substantive law sets the rights and duties of people as they act in society. Criminal
law is the law under which the government prosecutes someone for committing a crime. Public
law concerns the powers of government and private parties (which includes criminal law). Hence,
a state's murder statute is an example of all three types of laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

8) Though a natural law defense is not recognized in court, judges may take natural law-oriented
views into account when interpreting the law.

Answer: TRUE
Explanation: While interpreting the law, judges may take natural law-oriented views into
account. Typically, when judges are influenced by natural law ideas, they may be more likely to
read constitutional provisions more broadly in order to strike down positive laws they regard as
unjust.
Difficulty: 2 Medium
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Understand
AACSB: Ethics; Analytical Thinking
Accessibility: Keyboard Navigation




4

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