CBAD 344 Test 1: Focused Study on
Strategic Business Practices
Liability - correct answer ✔✔The state of being legally responsible (liable) for something, such as a debt
or obligation
The Role of the Law in a Small Business - correct answer ✔✔functional fields of business are linked to
the law as are different managerial roles a small-business owner must perform
Primary source of law - correct answer ✔✔A document that establishes the law on a particular issue,
such as a constitution, a statute, an administrative rule, or a court decision.
Secondary source of law - correct answer ✔✔A publication that summarizes or interprets the law, such
as a legal encyclopedia, a legal treatise, or an article in a law review.
Constitutional Law - correct answer ✔✔-Found in text and cases arising from federal and state
constitutions
-U.S. Constitution is the supreme law of the land.
Statutory Law - correct answer ✔✔-Laws enacted by federal and state legislatures
-Uniform Laws
-The Uniform Commercial Code (UCC)
Administrative Law - correct answer ✔✔The body of law created by administrative agencies (in the form
of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.
Case law - correct answer ✔✔the rules of law announced in court decisions
Stare Decisis - correct answer ✔✔Practice of deciding new cases based on precedent
, Early English Courts - correct answer ✔✔-Established the common law—body of general legal principles
applied throughout the English empire
-King's courts used precedent to build the common law.
-King's courts started after Norman conquest of 1066.
Remedy - correct answer ✔✔means to enforce a right or compensate for injury to that right
Remedies in Equity - correct answer ✔✔Based on justice and fair dealing a chancery court does what is
right: specific performance, injunction, rescission.
-Plaintiffs (injured party initiating the lawsuit)
-Defendants (allegedly caused injury)
Remedies at law - correct answer ✔✔in king's courts, remedies were restricted to damages in either
money or property.
The Natural Law School - correct answer ✔✔-Oldest and most significant view of law
-Government and legal system should reflect universal moral and ethical principles; basis for natural
rights
-These principles are inherent in human nature, can be discovered through right reason.
Substantive law - correct answer ✔✔Law that defines, describes, regulates, and creates legal rights and
obligations.
Legal Positivism - correct answer ✔✔-Morality of a law is irrelevant
-Applies only to citizens of that nation or society
-No higher law than the nation's highest governing body or court
-Laws must be obeyed regardless of whether they are just or unjust
Procedural law - correct answer ✔✔Law that establishes the methods of enforcing the rights established
by substantive law.
Strategic Business Practices
Liability - correct answer ✔✔The state of being legally responsible (liable) for something, such as a debt
or obligation
The Role of the Law in a Small Business - correct answer ✔✔functional fields of business are linked to
the law as are different managerial roles a small-business owner must perform
Primary source of law - correct answer ✔✔A document that establishes the law on a particular issue,
such as a constitution, a statute, an administrative rule, or a court decision.
Secondary source of law - correct answer ✔✔A publication that summarizes or interprets the law, such
as a legal encyclopedia, a legal treatise, or an article in a law review.
Constitutional Law - correct answer ✔✔-Found in text and cases arising from federal and state
constitutions
-U.S. Constitution is the supreme law of the land.
Statutory Law - correct answer ✔✔-Laws enacted by federal and state legislatures
-Uniform Laws
-The Uniform Commercial Code (UCC)
Administrative Law - correct answer ✔✔The body of law created by administrative agencies (in the form
of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.
Case law - correct answer ✔✔the rules of law announced in court decisions
Stare Decisis - correct answer ✔✔Practice of deciding new cases based on precedent
, Early English Courts - correct answer ✔✔-Established the common law—body of general legal principles
applied throughout the English empire
-King's courts used precedent to build the common law.
-King's courts started after Norman conquest of 1066.
Remedy - correct answer ✔✔means to enforce a right or compensate for injury to that right
Remedies in Equity - correct answer ✔✔Based on justice and fair dealing a chancery court does what is
right: specific performance, injunction, rescission.
-Plaintiffs (injured party initiating the lawsuit)
-Defendants (allegedly caused injury)
Remedies at law - correct answer ✔✔in king's courts, remedies were restricted to damages in either
money or property.
The Natural Law School - correct answer ✔✔-Oldest and most significant view of law
-Government and legal system should reflect universal moral and ethical principles; basis for natural
rights
-These principles are inherent in human nature, can be discovered through right reason.
Substantive law - correct answer ✔✔Law that defines, describes, regulates, and creates legal rights and
obligations.
Legal Positivism - correct answer ✔✔-Morality of a law is irrelevant
-Applies only to citizens of that nation or society
-No higher law than the nation's highest governing body or court
-Laws must be obeyed regardless of whether they are just or unjust
Procedural law - correct answer ✔✔Law that establishes the methods of enforcing the rights established
by substantive law.
