TEST BANK Business Law and the Legal Environment 9th Standard Edition
Chapter 1. Introduction to Law
Indicate whether the statement is true or false.
1. DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent Handyman
Hardware, Inc. from using the domain name, "DoorWay.com." A jury will decide whether DoorWay is entitled to
this remedy.
a. True
b. False
2. Under the natural law theory of jurisprudence, an unjust law is no law at all.
a. True
b. False
3. Lawyers originated in Anglo-Saxon courts, where they were used to mediate disputes.
a. True
b. False
4. Congress passed a law imposing penalties for displaying "indecent" material online where children could see it.
If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S.
Constitution, the statute is void.
a. True
b. False
5. Congress can create a statute on any topic at all.
a. True
b. False
6. Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in criminal court.
a. True
b. False
7. A rule that establishes maximum length of work shifts for air traffic controllers demonstrates an agency imposing
a regulation.
a. True
b. False
8. If the president vetoes a bill, it can still become law if both the House and the Senate approve it with a 51 percent
majority.
a. True
b. False
9. Common law is a body of cases decided by legislatures.
a. True
b. False
Page 1
, 10. In Anglo-Saxon society, men were put into groups of ten, known as a “tithing,” and were individually held
responsible for any injury caused by any member of the group. This is the forerunner of the idea of business
partnerships.
a. True
b. False
11. In the case of Panavision Int'l. v. Toeppen, the Ninth Circuit Court of Appeals affirmed the district court's
decision. This means that the Ninth Circuit Court of Appeals approved the district court's decision and upheld the
outcome in the case.
a. True
b. False
12. In order to determine if the case she was hearing broke the law, Judge Jane referred to prior rulings on the same
subject. In other words, the judge is relying on precedent to make her decision.
a. True
b. False
13. In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a
duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona, plaintiff brings a
lawsuit against an Arizona university’s fraternity for providing alcohol to members under the legal drinking age,
the Hernandez v. Arizona Board of Regents case will serve as precedent.
a. True
b. False
14. The case called Kuehn v. Pub Zone would reveal that Kuehn is the plaintiff, since the plaintiff is always listed
first.
a. True
b. False
15. The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
16. Which of the following is NOT a primary source of contemporary law?
a. common law
b. natural law
c. statutes
d. treaties
17. Congress can override the Supreme Court by which of the following?
a. amending the Constitution
b. federalism
c. separation of power
d. checks and balances
Page 2
,18. The doctrine of stare decisis
a. makes the legal process more expensive.
b. is an equitable remedy.
c. makes the law more predictable.
d. is unimportant to the common law.
19. In the House of Representatives, a state's voting power is based on its
a. relative wealth.
b. date of entry into the Union.
c. physical size.
d. population.
20. Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States
declared war on Mexico. If Henry David Thoreau's neighbor agreed that war was unjust but paid his taxes
because the law required him to pay the tax, the neighbor would be applying the jurisprudence theory of
a. legal positivism.
b. natural law.
c. legal realism.
d. common law.
21. Which is an example of a statute?
a. President Joe Biden issues an executive order banning the use of federal funds for abortion.
b. A North Dakota judge issues an injunction prohibiting a man from contacting his ex-wife.
c. The Ohio legislature passes a law requiring all bicycle riders to wear a helmet.
d. The Federal Communications Commission instructs all radio stations to refrain from broadcasting
"indecent" programming during daylight hours.
22. Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with
securities. The Securities Exchange Act of 1934 was passed a year later. This law created the Securities and
Exchange Commission (SEC) as an independent regulatory entity whose function is to administer the two laws.
The SEC has generated rules and regulations to administer these acts. These rules and regulations are
a. statutes.
b. administrative law.
c. executive orders.
d. common law.
23. Which of the following is a correct description of legal realism?
a. There is no duty to follow unjust laws.
b. The law should advance morality.
c. The law is what the sovereign says it is.
d. Who enforces and by what process is the law enforced.
Page 3
, 24. The Supreme Court can be overridden by which of the following?
a. the Senate
b. executive authority
c. a constitutional amendment
d. statutes
25. The United States Supreme Court has the power to
a. appoint judges to serve on the Supreme Court.
b. void laws passed by Congress.
c. issue executive orders.
d. ratify treaties.
26. Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory note. The
trial ended before it began, with the trial judge granting a motion for summary judgment in favor of Curtis. Ulhoff
has appealed, and the Supreme Court of Iowa has remanded the case. This means
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
c. neither party wins because the case is being thrown out.
d. we do not know who wins yet because the case is being returned to the trial court for additional steps.
27. Which school of jurisprudence is based on the philosophy that what matters is not what is written as law, but who
enforces the law and by what process?
a. legal positivism
b. natural law
c. legal realism
d. sovereign selection
28. Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop Internet Entertainment
Group, LTD from using the domain name, "candyland.com." Internet Entertainment Group had established a
sexually explicit site at the domain name. This injunction would have to be issued by
a. a jury.
b. a judge.
c. an executive order.
d. a lawyer.
29. If the title of an appellate court case appears as Jones v. Smith,
a. then it is correct to say that Jones is the plaintiff and Smith is the defendant.
b. it means that Smith won the trial court decision.
c. you cannot determine which party is the plaintiff, because when a defendant loses a trial and files an
appeal, some courts (but not all) reverse the names of the parties.
d. the trial judge was Jones and the appellate judge is Smith.
Page 4
Chapter 1. Introduction to Law
Indicate whether the statement is true or false.
1. DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent Handyman
Hardware, Inc. from using the domain name, "DoorWay.com." A jury will decide whether DoorWay is entitled to
this remedy.
a. True
b. False
2. Under the natural law theory of jurisprudence, an unjust law is no law at all.
a. True
b. False
3. Lawyers originated in Anglo-Saxon courts, where they were used to mediate disputes.
a. True
b. False
4. Congress passed a law imposing penalties for displaying "indecent" material online where children could see it.
If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S.
Constitution, the statute is void.
a. True
b. False
5. Congress can create a statute on any topic at all.
a. True
b. False
6. Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in criminal court.
a. True
b. False
7. A rule that establishes maximum length of work shifts for air traffic controllers demonstrates an agency imposing
a regulation.
a. True
b. False
8. If the president vetoes a bill, it can still become law if both the House and the Senate approve it with a 51 percent
majority.
a. True
b. False
9. Common law is a body of cases decided by legislatures.
a. True
b. False
Page 1
, 10. In Anglo-Saxon society, men were put into groups of ten, known as a “tithing,” and were individually held
responsible for any injury caused by any member of the group. This is the forerunner of the idea of business
partnerships.
a. True
b. False
11. In the case of Panavision Int'l. v. Toeppen, the Ninth Circuit Court of Appeals affirmed the district court's
decision. This means that the Ninth Circuit Court of Appeals approved the district court's decision and upheld the
outcome in the case.
a. True
b. False
12. In order to determine if the case she was hearing broke the law, Judge Jane referred to prior rulings on the same
subject. In other words, the judge is relying on precedent to make her decision.
a. True
b. False
13. In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a
duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona, plaintiff brings a
lawsuit against an Arizona university’s fraternity for providing alcohol to members under the legal drinking age,
the Hernandez v. Arizona Board of Regents case will serve as precedent.
a. True
b. False
14. The case called Kuehn v. Pub Zone would reveal that Kuehn is the plaintiff, since the plaintiff is always listed
first.
a. True
b. False
15. The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
16. Which of the following is NOT a primary source of contemporary law?
a. common law
b. natural law
c. statutes
d. treaties
17. Congress can override the Supreme Court by which of the following?
a. amending the Constitution
b. federalism
c. separation of power
d. checks and balances
Page 2
,18. The doctrine of stare decisis
a. makes the legal process more expensive.
b. is an equitable remedy.
c. makes the law more predictable.
d. is unimportant to the common law.
19. In the House of Representatives, a state's voting power is based on its
a. relative wealth.
b. date of entry into the Union.
c. physical size.
d. population.
20. Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States
declared war on Mexico. If Henry David Thoreau's neighbor agreed that war was unjust but paid his taxes
because the law required him to pay the tax, the neighbor would be applying the jurisprudence theory of
a. legal positivism.
b. natural law.
c. legal realism.
d. common law.
21. Which is an example of a statute?
a. President Joe Biden issues an executive order banning the use of federal funds for abortion.
b. A North Dakota judge issues an injunction prohibiting a man from contacting his ex-wife.
c. The Ohio legislature passes a law requiring all bicycle riders to wear a helmet.
d. The Federal Communications Commission instructs all radio stations to refrain from broadcasting
"indecent" programming during daylight hours.
22. Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with
securities. The Securities Exchange Act of 1934 was passed a year later. This law created the Securities and
Exchange Commission (SEC) as an independent regulatory entity whose function is to administer the two laws.
The SEC has generated rules and regulations to administer these acts. These rules and regulations are
a. statutes.
b. administrative law.
c. executive orders.
d. common law.
23. Which of the following is a correct description of legal realism?
a. There is no duty to follow unjust laws.
b. The law should advance morality.
c. The law is what the sovereign says it is.
d. Who enforces and by what process is the law enforced.
Page 3
, 24. The Supreme Court can be overridden by which of the following?
a. the Senate
b. executive authority
c. a constitutional amendment
d. statutes
25. The United States Supreme Court has the power to
a. appoint judges to serve on the Supreme Court.
b. void laws passed by Congress.
c. issue executive orders.
d. ratify treaties.
26. Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory note. The
trial ended before it began, with the trial judge granting a motion for summary judgment in favor of Curtis. Ulhoff
has appealed, and the Supreme Court of Iowa has remanded the case. This means
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
c. neither party wins because the case is being thrown out.
d. we do not know who wins yet because the case is being returned to the trial court for additional steps.
27. Which school of jurisprudence is based on the philosophy that what matters is not what is written as law, but who
enforces the law and by what process?
a. legal positivism
b. natural law
c. legal realism
d. sovereign selection
28. Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop Internet Entertainment
Group, LTD from using the domain name, "candyland.com." Internet Entertainment Group had established a
sexually explicit site at the domain name. This injunction would have to be issued by
a. a jury.
b. a judge.
c. an executive order.
d. a lawyer.
29. If the title of an appellate court case appears as Jones v. Smith,
a. then it is correct to say that Jones is the plaintiff and Smith is the defendant.
b. it means that Smith won the trial court decision.
c. you cannot determine which party is the plaintiff, because when a defendant loses a trial and files an
appeal, some courts (but not all) reverse the names of the parties.
d. the trial judge was Jones and the appellate judge is Smith.
Page 4
