Test Bank for Business Law: Text and Cases, 12th Edition | Kenneth W. Clarkson, Roger LeRoy Miller & Frank B. Cross | Complete Chapter Questions & Answers | 2026 Updated Study Guide

2 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS


ANSWER: F PAGE: 4 TYPE: =
Chapter 1 NAT: AACSB Analytic AICPA Legal



Introduction to Law and
Legal Reasoning

N.B.: TYPE indicates that a question is new, modified, or unchanged, as
follows.

N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.


TRUE/FALSE QUESTIONS

A1. The stability and predictability of the law is essential to business activities.

ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking

A2. Law is a body of enforceable rules governing relationships among
individuals and between individuals and their society.

ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal

A3. A breach of a contract is a failure to perform it.

ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking

A4. Constitutional law includes only the U.S. Constitution.

1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.

, CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 3 4 TEST BANK A—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS


A5. A state constitution is supreme within the state’s borders. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A13. Remedies in equity include injunctions and decrees of specific performance.

A6. Whether a law is constitutional depends on its source. ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A14. In most states, the courts no longer grant “equitable” remedies.

A7. Uniform laws apply in all states, including those in which the laws have not ANSWER: F PAGE: 8 TYPE: =
been adopted. NAT: AACSB Analytic AICPA Legal

ANSWER: F PAGE: 4 TYPE: = A15. A defendant is a person against whom a lawsuit is brought.
NAT: AACSB Analytic AICPA Legal
ANSWER: T PAGE: 8 TYPE: =
A8. A state law that conflicts with the U.S. Constitution will be deemed NAT: AACSB Analytic AICPA Legal
unconstitutional.
A16. Courts do not depart from precedents.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A9. Statutory law does not include county ordinances.
A17. A judge’s function is to make the law.
ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
A18. Criminal law focuses on duties that exist between persons.
ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal ANSWER: F PAGE: 14 TYPE: =
NAT: AACSB Analytic AICPA Legal
A11. Common law is a term for law that is common throughout the world.
A19. A reference to “28 U.S.C. Section 1332” means that a statute can be found
ANSWER: F PAGE: 7 TYPE: = in section 1332 of title 28 of the United States Code.
NAT: AACSB Analytic AICPA Critical Thinking
ANSWER: T PAGE: 15 TYPE: =
A12. Damages is a remedy at law. NAT: AACSB Analytic AICPA Research


© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. posted to a publicly accessible website, in whole or in part.