Business Law Exam 1 (CH. 1,2,3,6,7)
Questions Correctly Answered.
law - CORRECT ANSWER A body of enforceable rules governing relationships among individuals and
between individuals and their society.
Primary sources of law - CORRECT ANSWER 1. The U.S. Constitution and the constitutions of the various
states.
2. Statutory law—including laws passed by Congress, state legislatures, or local governing bodies.
3. Regulations created by administrative agencies, such as the Food and Drug Administration.
4. Case law and common law doctrines.
Secondary sources of law - CORRECT ANSWER books and articles that summarize and clarify the primary
sources of law.
Examples include legal encyclopedias, treatises, articles in law reviews, and compilations of law, such as
the Restatements of the Law.
Courts often refer to secondary sources of law for guidance in interpreting and applying the primary
sources of law discussed here.
constitutional law - CORRECT ANSWER Law that is based on the U.S. Constitution and the constitutions
of the various states.
(supreme law of the land)
state constitutional law - CORRECT ANSWER Each state in the union has its own constitution. Unless it
conflicts with the U.S. Constitution or a federal law, a state constitution is supreme within the state's
borders.
statutory law - CORRECT ANSWER The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law).
When a legislature passes a statute, that statute ultimately is included in the federal code of laws or the
relevant state code of laws.
, ordinances - CORRECT ANSWER A law passed by a local governing unit, such as a municipality or a
county.
Ordinances commonly have to do with city or county land use (zoning ordinances), building and safety
codes, and other matters affecting the local community.
uniform law - CORRECT ANSWER A model law created by the National Conference of Commissioners on
Uniform State Laws and/or the American Law Institute for the states to consider adopting. If the state
adopts the law, it becomes statutory law in that state. Each state has the option of adopting or rejecting
all or part of a uniform law
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.
administrative agency - CORRECT ANSWER A federal, state, or local government agency established to
perform a specific function. Administrative agencies are authorized by legislative acts to make and
enforce rules to administer and enforce the acts.
executive agencies - CORRECT ANSWER An administrative agency within the executive branch of
government. At the federal level, executive agencies are those within the cabinet departments. (ex. FDA,
subject to authority of the president.)
case law and common law doctrines - CORRECT ANSWER Judge-made law, including interpretations of
constitutional provisions, of statutes enacted by legislatures, and of regulations created by
administrative agencies.
remedies - CORRECT ANSWER The relief given to an innocent party to enforce a right or compensate for
the violation of a right.
specific performance - CORRECT ANSWER involves ordering a party to perform an agreement as
promised.
injunction - CORRECT ANSWER is an order to a party to cease engaging in a specific activity or to undo
some wrong or injury.
Questions Correctly Answered.
law - CORRECT ANSWER A body of enforceable rules governing relationships among individuals and
between individuals and their society.
Primary sources of law - CORRECT ANSWER 1. The U.S. Constitution and the constitutions of the various
states.
2. Statutory law—including laws passed by Congress, state legislatures, or local governing bodies.
3. Regulations created by administrative agencies, such as the Food and Drug Administration.
4. Case law and common law doctrines.
Secondary sources of law - CORRECT ANSWER books and articles that summarize and clarify the primary
sources of law.
Examples include legal encyclopedias, treatises, articles in law reviews, and compilations of law, such as
the Restatements of the Law.
Courts often refer to secondary sources of law for guidance in interpreting and applying the primary
sources of law discussed here.
constitutional law - CORRECT ANSWER Law that is based on the U.S. Constitution and the constitutions
of the various states.
(supreme law of the land)
state constitutional law - CORRECT ANSWER Each state in the union has its own constitution. Unless it
conflicts with the U.S. Constitution or a federal law, a state constitution is supreme within the state's
borders.
statutory law - CORRECT ANSWER The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law).
When a legislature passes a statute, that statute ultimately is included in the federal code of laws or the
relevant state code of laws.
, ordinances - CORRECT ANSWER A law passed by a local governing unit, such as a municipality or a
county.
Ordinances commonly have to do with city or county land use (zoning ordinances), building and safety
codes, and other matters affecting the local community.
uniform law - CORRECT ANSWER A model law created by the National Conference of Commissioners on
Uniform State Laws and/or the American Law Institute for the states to consider adopting. If the state
adopts the law, it becomes statutory law in that state. Each state has the option of adopting or rejecting
all or part of a uniform law
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.
administrative agency - CORRECT ANSWER A federal, state, or local government agency established to
perform a specific function. Administrative agencies are authorized by legislative acts to make and
enforce rules to administer and enforce the acts.
executive agencies - CORRECT ANSWER An administrative agency within the executive branch of
government. At the federal level, executive agencies are those within the cabinet departments. (ex. FDA,
subject to authority of the president.)
case law and common law doctrines - CORRECT ANSWER Judge-made law, including interpretations of
constitutional provisions, of statutes enacted by legislatures, and of regulations created by
administrative agencies.
remedies - CORRECT ANSWER The relief given to an innocent party to enforce a right or compensate for
the violation of a right.
specific performance - CORRECT ANSWER involves ordering a party to perform an agreement as
promised.
injunction - CORRECT ANSWER is an order to a party to cease engaging in a specific activity or to undo
some wrong or injury.
