,Test Bank The Legal Environment of Business, 11th Edition
Chapter 1. Law and Legal Reasoning.
Chapter 1. Law and Legal Reasoning.
1. 01: In the United States, the law consists of written laws and c
In the United States, the law consists of written laws and court
decisions.
*a. True
b. False
2. 02: The legal rules that control a businessâ™s actions reflect
The legal rules that control a business’s actions reflect past and
current thinking about how similar businesses should and should not
act.
*a. True
b. False
3. 03: Because laws may change, the ability to analyze and evaluate
Because laws may change, the ability to analyze and evaluate the legal
ramifications of situations as they arise is not a lasting skill.
a. True
*b. False
4. 04: The study of business law does not involve an ethical dimens
The study of business law does not involve an ethical dimension.
a. True
*b. False
5. 05: Compartmentalizing the law into discrete topics indicates th
Compartmentalizing the law into discrete topics indicates that each
business transaction is subject to only one specific area of the law.
a. True
*b. False
6. 06: A constitution is a primary source of law.
A constitution is a primary source of law.
*a. True
b. False
7. 07: A statute is a secondary source of law.
A statute is a secondary source of law.
a. True
*b. False
1
,Test Bank The Legal Environment of Business, 11th Edition
Chapter 1. Law and Legal Reasoning.
8. 08: A secondary source of law establishes the law on a particula
A secondary source of law establishes the law on a particular issue.
a. True
*b. False
9. 09: Courts often refer to secondary sources of law for guidance
Courts often refer to secondary sources of law for guidance in
interpreting and applying a primary source of law.
*a. True
b. False
10. 10: Even if it conflicts with the U.S. Constitution, a state con
Even if it conflicts with the U.S. Constitution, a state constitution
is supreme within that states’ borders.
a. True
*b. False
11. 11: The U.S. Constitution is the basis of all law in the United
The U.S. Constitution is the basis of all law in the United States.
*a. True
b. False
12. 12: Only if a state legislature adopts a uniform law does that l
Only if a state legislature adopts a uniform law does that law become
part of the statutory law of that state.
*a. True
b. False
13. 13: A citation is a regulation enacted by a city or county legis
A citation is a regulation enacted by a city or county legislative
body.
a. True
*b. False
14. 14: A local ordinance commonly has to do with a matter concernin
A local ordinance commonly has to do with a matter concerning only a
local governing unit.
*a. True
b. False
2
, Test Bank The Legal Environment of Business, 11th Edition
Chapter 1. Law and Legal Reasoning.
15. 15: A federal statute applies only to those states that agree to
A federal statute applies only to those states that agree to apply it
within their borders.
a. True
*b. False
16. 16: Congress or a state legislature establishes an administrativ
Congress or a state legislature establishes an administrative agency to
perform a specific function.
*a. True
b. False
17. 17: Independent regulatory agencies are not subject to the autho
Independent regulatory agencies are not subject to the authority of the
president.
a. True
*b. False
18. 18: Rules issued by administrative agencies affect almost every
Rules issued by administrative agencies affect almost every aspect of a
business’s operations.
*a. True
b. False
19. 19: Federal agency regulations do not take precedence over confl
Federal agency regulations do not take precedence over conflicting
state regulations.
a. True
*b. False
20. 20: Administrative law plays a relatively insignificant role in
Administrative law plays a relatively insignificant role in the
regulatory environment of business.
a. True
*b. False
21. 21: The doctrines and principles announced in court decisions go
The doctrines and principles announced in court decisions govern all
areas not covered by statutory or administrative law.
3
Chapter 1. Law and Legal Reasoning.
Chapter 1. Law and Legal Reasoning.
1. 01: In the United States, the law consists of written laws and c
In the United States, the law consists of written laws and court
decisions.
*a. True
b. False
2. 02: The legal rules that control a businessâ™s actions reflect
The legal rules that control a business’s actions reflect past and
current thinking about how similar businesses should and should not
act.
*a. True
b. False
3. 03: Because laws may change, the ability to analyze and evaluate
Because laws may change, the ability to analyze and evaluate the legal
ramifications of situations as they arise is not a lasting skill.
a. True
*b. False
4. 04: The study of business law does not involve an ethical dimens
The study of business law does not involve an ethical dimension.
a. True
*b. False
5. 05: Compartmentalizing the law into discrete topics indicates th
Compartmentalizing the law into discrete topics indicates that each
business transaction is subject to only one specific area of the law.
a. True
*b. False
6. 06: A constitution is a primary source of law.
A constitution is a primary source of law.
*a. True
b. False
7. 07: A statute is a secondary source of law.
A statute is a secondary source of law.
a. True
*b. False
1
,Test Bank The Legal Environment of Business, 11th Edition
Chapter 1. Law and Legal Reasoning.
8. 08: A secondary source of law establishes the law on a particula
A secondary source of law establishes the law on a particular issue.
a. True
*b. False
9. 09: Courts often refer to secondary sources of law for guidance
Courts often refer to secondary sources of law for guidance in
interpreting and applying a primary source of law.
*a. True
b. False
10. 10: Even if it conflicts with the U.S. Constitution, a state con
Even if it conflicts with the U.S. Constitution, a state constitution
is supreme within that states’ borders.
a. True
*b. False
11. 11: The U.S. Constitution is the basis of all law in the United
The U.S. Constitution is the basis of all law in the United States.
*a. True
b. False
12. 12: Only if a state legislature adopts a uniform law does that l
Only if a state legislature adopts a uniform law does that law become
part of the statutory law of that state.
*a. True
b. False
13. 13: A citation is a regulation enacted by a city or county legis
A citation is a regulation enacted by a city or county legislative
body.
a. True
*b. False
14. 14: A local ordinance commonly has to do with a matter concernin
A local ordinance commonly has to do with a matter concerning only a
local governing unit.
*a. True
b. False
2
, Test Bank The Legal Environment of Business, 11th Edition
Chapter 1. Law and Legal Reasoning.
15. 15: A federal statute applies only to those states that agree to
A federal statute applies only to those states that agree to apply it
within their borders.
a. True
*b. False
16. 16: Congress or a state legislature establishes an administrativ
Congress or a state legislature establishes an administrative agency to
perform a specific function.
*a. True
b. False
17. 17: Independent regulatory agencies are not subject to the autho
Independent regulatory agencies are not subject to the authority of the
president.
a. True
*b. False
18. 18: Rules issued by administrative agencies affect almost every
Rules issued by administrative agencies affect almost every aspect of a
business’s operations.
*a. True
b. False
19. 19: Federal agency regulations do not take precedence over confl
Federal agency regulations do not take precedence over conflicting
state regulations.
a. True
*b. False
20. 20: Administrative law plays a relatively insignificant role in
Administrative law plays a relatively insignificant role in the
regulatory environment of business.
a. True
*b. False
21. 21: The doctrines and principles announced in court decisions go
The doctrines and principles announced in court decisions govern all
areas not covered by statutory or administrative law.
3
