Law and Business Administration Test Questions with Correct Answers Latest Update 2025
Why Have Laws? - Answers - protects people and property
- empowers and restricts government
- creates legal liability to influence behaviour
What is the relationship between law and business ethics? - Answers - do not always coincide
- some businesses may adopt CSR by considering decision impacts on all stakeholders
How do businesses manage legal risks? - Answers With a legal risk management plan:
- identify potential legal risks
- assess and prioritize each risk based on likelihood and magnitude
- develop strategy to address each risk from both proactive and reactive perspectives
- implement the plan
- regularely review and update the plan
Or use management strategies:
avoid, reduce, transfer, or absorb the risk
What is the difference between procedural and substantive law? - Answers Substantive law
- Rules that govern rights and obligations
Procedural law
- Rules that determine the enforcement of rights andobligations
How does the theory of precedent balance the needs of certainty and flexibility? - Answers Use of
precedent creates tension between
- Accommodating changes in society's values
- Certainty, consistency, and predictability
What are court costs and who pays? - Answers - Each side is responsible for own legal costs
- Instead it refers to legal fees and disbursementsthat a party incurs in processing his claim ordefence
, What are alternative methods for resolving disputes? - Answers Mediation: Independent third party
assists partiesin reaching a settlement
Arbitration: Ruling by independent third party is abinding resolution
ADR is
- Cheaper and faster than litigation
- Confidential
- May help preserve future relationship
- Parties choose adjudicator/mediator
What is the basis for tort liability? - Answers Principles of duty and care, and ensures there is a legal
liability owed to individual if there was any harm or damages caused
Development of Tort Law - Answers - compensates victims for wrongful acts of others
- rules determine situatiuons that create a right to compensation
- criminal law punishes crimes but does not compensate victims
What are Intentional torts? - Answers - the act was done intentionally
- not necessarily with the intention of causing harm
- e.g, assault and battery, nuisance, defamation, etc.
What constitutes negligence? - Answers - careless action which causes injury to person or property
- a plaintiff in negligence action must prove on balance of probability that:
defendent owed a duty of care
defendant breached required standard of care
Define plaintiff - Answers a person who brings a case against another in a court of law
Define tort - Answers Is a wrongful act that results in injury to one person by another.
What remedies are provided for tort victims? - Answers - typical remedy is damages:
either general or special
Why Have Laws? - Answers - protects people and property
- empowers and restricts government
- creates legal liability to influence behaviour
What is the relationship between law and business ethics? - Answers - do not always coincide
- some businesses may adopt CSR by considering decision impacts on all stakeholders
How do businesses manage legal risks? - Answers With a legal risk management plan:
- identify potential legal risks
- assess and prioritize each risk based on likelihood and magnitude
- develop strategy to address each risk from both proactive and reactive perspectives
- implement the plan
- regularely review and update the plan
Or use management strategies:
avoid, reduce, transfer, or absorb the risk
What is the difference between procedural and substantive law? - Answers Substantive law
- Rules that govern rights and obligations
Procedural law
- Rules that determine the enforcement of rights andobligations
How does the theory of precedent balance the needs of certainty and flexibility? - Answers Use of
precedent creates tension between
- Accommodating changes in society's values
- Certainty, consistency, and predictability
What are court costs and who pays? - Answers - Each side is responsible for own legal costs
- Instead it refers to legal fees and disbursementsthat a party incurs in processing his claim ordefence
, What are alternative methods for resolving disputes? - Answers Mediation: Independent third party
assists partiesin reaching a settlement
Arbitration: Ruling by independent third party is abinding resolution
ADR is
- Cheaper and faster than litigation
- Confidential
- May help preserve future relationship
- Parties choose adjudicator/mediator
What is the basis for tort liability? - Answers Principles of duty and care, and ensures there is a legal
liability owed to individual if there was any harm or damages caused
Development of Tort Law - Answers - compensates victims for wrongful acts of others
- rules determine situatiuons that create a right to compensation
- criminal law punishes crimes but does not compensate victims
What are Intentional torts? - Answers - the act was done intentionally
- not necessarily with the intention of causing harm
- e.g, assault and battery, nuisance, defamation, etc.
What constitutes negligence? - Answers - careless action which causes injury to person or property
- a plaintiff in negligence action must prove on balance of probability that:
defendent owed a duty of care
defendant breached required standard of care
Define plaintiff - Answers a person who brings a case against another in a court of law
Define tort - Answers Is a wrongful act that results in injury to one person by another.
What remedies are provided for tort victims? - Answers - typical remedy is damages:
either general or special
