Test Bank for The Legal Environment of Business: Text and Cases, 12th Edition by Frank B. Cross and Roger LeRoy Miller | Complete Solution Guide A+.

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Chapter 1 ,o




Introduction to Law andLegal ,o ,o ,o ,
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Reasoning ,o




N.B.: TYPEindicates that a question is new, modified, or unchanged,
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asfollows.
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N A question new to this edition of the Test Bank.
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+ A question modified from the previous edition of the Test Bank.
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= A question included in the previous edition of the Test Bank.
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TRUE/FALSE QUESTIONS ,o




A1. The stability and predictability of the law is essential to business activities.
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ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic ,o ,o AICPA Critical Thinking ,o ,o




A2. Law is a body of enforceable rules governing relationships among
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individualsand between individuals and their society.
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ANSWER: T PAGE: 2 TYPE: =

NAT: AACSB Analytic ,o ,o AICPA Legal ,o




A3. A breach of a contract is a failure to perform it.
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ANSWER: T PAGE: 3 TYPE: N

NAT: AACSB Ethics ,o ,o AICPA Critical ,o




,o ThinkingA4. ,o Constitutional law ,o




includes only the U.S. Constitution.
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ANSWER: F PAGE: 4 TYPE: =

NAT: AACSB Analytic ,o ,o AICPA Legal ,o

, 2


A5. A state constitution is supreme within the state’s borders.
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ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic, o , o AICPA

,o LegalA6.,o Whether a ,o




law is constitutional depends on its source.
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ANSWER: F PAGE: 4 TYPE: =

NAT: AACSB Analytic
,o ,o AICPA Legal ,o




A7. Uniform laws apply in all states, including those in which the laws have
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notbeen adopted.
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ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic
,o ,o AICPA Legal ,o




A8. A state law that conflicts with the U.S. Constitution will be
deemedunconstitutional. ,o




ANSWER: T PAGE: 4 TYPE: =

NAT: AACSB Analytic, o , o AICPA

,o LegalA9.,o Statutory

,o law does not include county ordinances.
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ANSWER: F PAGE: 4 TYPE: =

NAT: AACSB Reflective
, o , o AICPA Legal , o




A10. No state has adopted the Uniform Commercial Code in its entirety.
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ANSWER: F PAGE: 5 TYPE: =

NAT: AACSB Reflective
, o , o AICPA Legal , o




A11. Common law is a term for law that is common throughout the world.
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ANSWER: F PAGE: 7 TYPE: =

NAT: AACSB Analytic
,o ,o AICPA Critical Thinking
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A12. Damages is a remedy at law.
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ANSWER: T PAGE: 7 TYPE: =

NAT: AACSB Analytic
,o ,o AICPA Legal ,o




A13. Remedies in equity include injunctions and decrees of specific performance.
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ANSWER: T PAGE: 7 TYPE: =

NAT: AACSB Analytic
,o ,o AICPA Legal ,o




A14. In most states, the courts no longer grant “equitable” remedies.
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ANSWER: F PAGE: 8 TYPE: =

NAT: AACSB Analytic
, o , o AICPA Legal ,o




A15. A defendant is a person against whom a lawsuit is brought.
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ANSWER: T PAGE: 8 TYPE: =

NAT: AACSB Analytic
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A16. Courtsdo not depart from precedents.
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ANSWER: F PAGE: 9 TYPE: =

NAT: AACSB Reflective
, o , o AICPA Critical Thinking
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A17. A judge’s function is to make the law.
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ANSWER: F PAGE: 13 TYPE: N

NAT: AACSB Analytic
,o ,o AICPA Legal ,o




A18. Criminal law focuses on duties that exist between persons.
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ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic
,o ,o AICPA Legal ,o

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A19. A reference to “28 U.S.C. Section 1332” means that a statute can be found in
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section1332 of title 28 of the United States Code.
,o ,o ,o ,o ,o ,o ,o ,o ,o ,o




ANSWER: T PAGE: 15 TYPE: =

NAT: AACSB Analytic
, o , o AICPA

, o ResearchA20. ,o Most state trial ,o ,o




,o court decisions are not published.
,o ,o ,o ,o




ANSWER: T PAGE: 16 TYPE: =

NAT: AACSB Analytic
, o , o AICPA Research , o




MULTIPLE CHOICE QUESTIONS ,o ,o




A1. The legislature of the state of Mississippi enacts a new statute that sets
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standardsfor the liability of businesses selling defective products. This statute
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applies
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a. only in Mississippi. ,o ,o




b. only in Mississippi and its border states.
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c. in all states.
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d. in all states but only to matters not covered by other states’ laws.
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ANSWER: A PAGE: 4 TYPE: N
NAT: AACSB Reflective
, o , o AICPA Critical Thinking , o , o




A2. Lewis is a state court judge. Like other judges, Lewis often refers
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tosecondary sources of law for guidance. These sources include
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a. official comments to statute. ,o ,o ,o




b. other states’ statutes. ,o ,o




c. state constitutions. ,o




d. the U.S. Constitution.
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