Business Law Exam 1 (Chapters 1-5 and Ethics)
Questions and Correct Answers.
Business Law - ANS Consists of the enforceable rules of conduct that govern
relationships
Purposes of Law - ANS -Providing order such that one can depend on a promise or an
expectation of obligations
-Serving as an alternative to fighting
-Facilitating a sense that change is possible
-Encouraging social justice
-Guaranteeing personal freedoms
-Serving as a moral guide by indicating minimal expectations of citizens and
organizations
Classifications of Law - ANS -Private Law
-Public Law
-Civil Law
-Criminal Law
Private Law - ANS -Involves disputes between private individuals or groups
Ex: Individuals sickened by salmonella in Con-Agra peanut butter sue for damages
Public Law - ANS -Involves disputes between private individuals or groups and their
government
Ex: Food and Drug Administration brings an action against Con-Agra for selling tainted
food in violation of the Food and Drug Act
Civil Law - ANS -Involves the rights and responsibilities involved in relationships
between persons and between persons and their government
Ex: One business sues for breach of a contract to pay for work performed for another
business
, Criminal Law - ANS -Involves incidents in which someone commits an act against the
public as a whole
Ex: An accountant materially falsifies a financial statement provided in a securities filing
to the securities and exchange commission
Sources of Law - ANS -Constitutional Law
-Statutory Law
-Case Law/Common Law
-Administrative Law
-Treaty
Constitutional Law - ANS Refers to the general limits and powers of governments as
stated in their written constitution
Statutory Law - ANS Assortment of statues, or rules and regulations put forth by
legislatures
Case Law/Common Law - ANS Collection of legal interpretations made by judges
Administrative Law - ANS Collection of rules and decisions made by all of these
agencies
Treaty - ANS Binding agreement between 2 states or international organizations
Precedent - ANS Past decisions in similar cases that guide later decisions
Schools of Jurisprudence - ANS -Natural Law
-Legal Positivism
-Identification with the Vulnerable
Natural Law - ANS Describes certain ethical laws and principles believed to be morally
right and above the laws devised by humans
Legal Positivism - ANS Proper role as obedience to duty authorized law
Identification with the Vulnerable - ANS Pursuing change on the grounds that some
higher law or body of principles connects all of us in the human community
Questions and Correct Answers.
Business Law - ANS Consists of the enforceable rules of conduct that govern
relationships
Purposes of Law - ANS -Providing order such that one can depend on a promise or an
expectation of obligations
-Serving as an alternative to fighting
-Facilitating a sense that change is possible
-Encouraging social justice
-Guaranteeing personal freedoms
-Serving as a moral guide by indicating minimal expectations of citizens and
organizations
Classifications of Law - ANS -Private Law
-Public Law
-Civil Law
-Criminal Law
Private Law - ANS -Involves disputes between private individuals or groups
Ex: Individuals sickened by salmonella in Con-Agra peanut butter sue for damages
Public Law - ANS -Involves disputes between private individuals or groups and their
government
Ex: Food and Drug Administration brings an action against Con-Agra for selling tainted
food in violation of the Food and Drug Act
Civil Law - ANS -Involves the rights and responsibilities involved in relationships
between persons and between persons and their government
Ex: One business sues for breach of a contract to pay for work performed for another
business
, Criminal Law - ANS -Involves incidents in which someone commits an act against the
public as a whole
Ex: An accountant materially falsifies a financial statement provided in a securities filing
to the securities and exchange commission
Sources of Law - ANS -Constitutional Law
-Statutory Law
-Case Law/Common Law
-Administrative Law
-Treaty
Constitutional Law - ANS Refers to the general limits and powers of governments as
stated in their written constitution
Statutory Law - ANS Assortment of statues, or rules and regulations put forth by
legislatures
Case Law/Common Law - ANS Collection of legal interpretations made by judges
Administrative Law - ANS Collection of rules and decisions made by all of these
agencies
Treaty - ANS Binding agreement between 2 states or international organizations
Precedent - ANS Past decisions in similar cases that guide later decisions
Schools of Jurisprudence - ANS -Natural Law
-Legal Positivism
-Identification with the Vulnerable
Natural Law - ANS Describes certain ethical laws and principles believed to be morally
right and above the laws devised by humans
Legal Positivism - ANS Proper role as obedience to duty authorized law
Identification with the Vulnerable - ANS Pursuing change on the grounds that some
higher law or body of principles connects all of us in the human community
