Test Bank - Dynamic Business Law: The
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Essentials 5th Edition
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by Nancy K. Kubasek, M. Neil Browne,
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dDaniel J. Herron, Lucien Dhooge & Linda
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Barkacs d
Chapter 1-25 Answers are at the End of Each Chapter
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Page | 1
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,Chapter 1 d
1) List the purposes of the law and discuss why these purposes are necessary for an ordered society.
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2) Define "stare decisis," discuss when it occurs in the legal system, and explain why stare decisis is important
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to businesses and individuals.
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3) Explain in what ways a treaty between a foreign country and the United States is similar to a contract.
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4) Explain the function of administrative agencies and why they are necessary.List five independent agencies
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and five executive agencies.
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5) Judge Susie Justice, who is newly appointed to the bench, is presented with a question of law involving a cat
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named Chester who scratched a neighbor's antique jalopy. The neighbor, George, demands justice in the form of
d d d d d d d d d d d d d d d d d
full payment from Chester's owner, Bill, and also requests that Chester be shipped to the local animal shelter. Bill
d d d d d d d d d d d d d d d d d d d
says that he should not have to pay anything because Chester had never scratched before, that Chester should be
d d d d d d d d d d d d d d d d d d d
allowed to stay in the neighborhood, and that he should be reimbursed for his legal fees by George who is a grump
d d d d d d d d d d d d d d d d d d d d d d
and never should have brought the lawsuit. Judge Justice is perplexed and wants to make a good decision since
d d d d d d d d d d d d d d d d d d d
she is new to the bench. Describe how the judge should go about reaching a decision. Discuss in your answer the
d d d d d d d d d d d d d d d d d d d d d
impact of cases from other jurisdictions assuming there is no relevant law in Judge Justice's jurisdiction. Also,
d d d d d d d d d d d d d d d d d
assuming there is relevant law in this jurisdiction, discuss the applicable legal standard the judge should apply if
d d d d d d d d d d d d d d d d d d
she finds a relevant statute that conflicts with earlier case law.
d d d d d d d d d d d
6) Describe contrasts between the cost-benefit school of jurisprudence and the identification with the
d d d d d d d d d d d d
vulnerable school of jurisprudence.
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7) Which of the following is not one of the six functional areas of business that sits on a foundation of business law?
d d d d d d d d d d d d d d d d d d d d d
A) management
B) production and transportation d d
C) marketing
D) accounting and finance d d
E) state and federal taxation d d d
8) A commercial firm that seeks to merge with another firm must obey the laws of antitrust. This is an example of:
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A) business law d
B) equity
C) ethics
Page | 2 d d
,D) The Uniform Contracts Code
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E) The International Contracts Code
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9) “Guaranteeing personal freedoms” is: d d d
A) the exclusive purpose of the law.
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B) one of the numerous purposes fulfilled by the law.
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C) a purpose of criminal, but not civil, law.
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D) a purpose of civil, but not criminal, law.
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E) a cultural, but not legal, expectation.
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10) Which of the following is one of the numerous purposes fulfilled by the law?
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A) Discouraging social justice d d
B) Limiting personal freedoms d d
C) Serving as a moral guide by indicating maximum expectations of citizens and organizations
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D) Providing order such that one can depend on a promise or an expectation of obligations
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E) Serving as a supplement to fighting
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11) Which of the following is not one of the numerous purposes fulfilled by the law?
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A) Providing order such that one can depend on a promise or an expectation of obligations
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B) Serving as an alternative to fighting
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C) Facilitating change without requiring a rational consideration of options
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D) Encouraging social justice d d
E) Serving as a moral guide by indicating minimal expectations of citizens and organizations
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12) Louisville, Kentucky is debating a new business ordinance that will address sidewalks in its city. Members
d d d d d d d d d d d d d d d
of the Louisville city council do not need to concern themselves with which of the following issues?
d d d d d d d d d d d d d d d d d
A) Local taxes d
B) Environmental standards d
C) Federally-mandated restrictive covenants d d
D) Building codes d
E) Local zoning d
Page | 3 d d
, 13) Which of the following is not a purpose of the law as set forth in the text?
d d d d d d d d d d d d d d d d
A) Encouraging taxation d
B) Serving as a moral guide by indicating minimal expectations of citizens and organizations
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C) Encouraging social justice d d
D) Guaranteeing personal freedoms d d
E) Providing order such that one can depend on a promise or an expectation of obligations
d d d d d d d d d d d d d d
14) When classifying law, which of the following is not a way in which law is classified?
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A) National vs. international d d
B) Philosophical vs. ethical d d
C) Civil vs. criminal
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D) Private vs. public d d
E) Federal vs. state d d
15) If Dalynda caused Tonya to breach a contract with a customer because she did not ship the promised
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goods, which type of law is applicable?
d d d d d d d
A) Civil law d
B) Public law d
C) Governmental law d
D) Criminal Law d
E) Ethical law d
16) When Austin, Texas decides to implement a new tax code that will impose a new tax on business owners
d d d d d d d d d d d d d d d d d d
within its city limits, which law is applicable?
d d d d d d d d
A) Private law d
B) Public law d
C) Federal law d
D) Criminal law d
E) State law d
Page | 4
d d
d d d d d d
Essentials 5th Edition
d d d
by Nancy K. Kubasek, M. Neil Browne,
d d d d d d
dDaniel J. Herron, Lucien Dhooge & Linda
d d d d d d
Barkacs d
Chapter 1-25 Answers are at the End of Each Chapter
d d d d d d d d d
Page | 1
d d
,Chapter 1 d
1) List the purposes of the law and discuss why these purposes are necessary for an ordered society.
d d d d d d d d d d d d d d d d
2) Define "stare decisis," discuss when it occurs in the legal system, and explain why stare decisis is important
d d d d d d d d d d d d d d d d d
to businesses and individuals.
d d d d
3) Explain in what ways a treaty between a foreign country and the United States is similar to a contract.
d d d d d d d d d d d d d d d d d d
4) Explain the function of administrative agencies and why they are necessary.List five independent agencies
d d d d d d d d d d d d d
and five executive agencies.
d d d d
5) Judge Susie Justice, who is newly appointed to the bench, is presented with a question of law involving a cat
d d d d d d d d d d d d d d d d d d d
named Chester who scratched a neighbor's antique jalopy. The neighbor, George, demands justice in the form of
d d d d d d d d d d d d d d d d d
full payment from Chester's owner, Bill, and also requests that Chester be shipped to the local animal shelter. Bill
d d d d d d d d d d d d d d d d d d d
says that he should not have to pay anything because Chester had never scratched before, that Chester should be
d d d d d d d d d d d d d d d d d d d
allowed to stay in the neighborhood, and that he should be reimbursed for his legal fees by George who is a grump
d d d d d d d d d d d d d d d d d d d d d d
and never should have brought the lawsuit. Judge Justice is perplexed and wants to make a good decision since
d d d d d d d d d d d d d d d d d d d
she is new to the bench. Describe how the judge should go about reaching a decision. Discuss in your answer the
d d d d d d d d d d d d d d d d d d d d d
impact of cases from other jurisdictions assuming there is no relevant law in Judge Justice's jurisdiction. Also,
d d d d d d d d d d d d d d d d d
assuming there is relevant law in this jurisdiction, discuss the applicable legal standard the judge should apply if
d d d d d d d d d d d d d d d d d d
she finds a relevant statute that conflicts with earlier case law.
d d d d d d d d d d d
6) Describe contrasts between the cost-benefit school of jurisprudence and the identification with the
d d d d d d d d d d d d
vulnerable school of jurisprudence.
d d d d
7) Which of the following is not one of the six functional areas of business that sits on a foundation of business law?
d d d d d d d d d d d d d d d d d d d d d
A) management
B) production and transportation d d
C) marketing
D) accounting and finance d d
E) state and federal taxation d d d
8) A commercial firm that seeks to merge with another firm must obey the laws of antitrust. This is an example of:
d d d d d d d d d d d d d d d d d d d d
A) business law d
B) equity
C) ethics
Page | 2 d d
,D) The Uniform Contracts Code
d d d
E) The International Contracts Code
d d d
9) “Guaranteeing personal freedoms” is: d d d
A) the exclusive purpose of the law.
d d d d d
B) one of the numerous purposes fulfilled by the law.
d d d d d d d d
C) a purpose of criminal, but not civil, law.
d d d d d d d
D) a purpose of civil, but not criminal, law.
d d d d d d d
E) a cultural, but not legal, expectation.
d d d d d
10) Which of the following is one of the numerous purposes fulfilled by the law?
d d d d d d d d d d d d d
A) Discouraging social justice d d
B) Limiting personal freedoms d d
C) Serving as a moral guide by indicating maximum expectations of citizens and organizations
d d d d d d d d d d d d
D) Providing order such that one can depend on a promise or an expectation of obligations
d d d d d d d d d d d d d d
E) Serving as a supplement to fighting
d d d d d
11) Which of the following is not one of the numerous purposes fulfilled by the law?
d d d d d d d d d d d d d d
A) Providing order such that one can depend on a promise or an expectation of obligations
d d d d d d d d d d d d d d
B) Serving as an alternative to fighting
d d d d d
C) Facilitating change without requiring a rational consideration of options
d d d d d d d d
D) Encouraging social justice d d
E) Serving as a moral guide by indicating minimal expectations of citizens and organizations
d d d d d d d d d d d d
12) Louisville, Kentucky is debating a new business ordinance that will address sidewalks in its city. Members
d d d d d d d d d d d d d d d
of the Louisville city council do not need to concern themselves with which of the following issues?
d d d d d d d d d d d d d d d d d
A) Local taxes d
B) Environmental standards d
C) Federally-mandated restrictive covenants d d
D) Building codes d
E) Local zoning d
Page | 3 d d
, 13) Which of the following is not a purpose of the law as set forth in the text?
d d d d d d d d d d d d d d d d
A) Encouraging taxation d
B) Serving as a moral guide by indicating minimal expectations of citizens and organizations
d d d d d d d d d d d d
C) Encouraging social justice d d
D) Guaranteeing personal freedoms d d
E) Providing order such that one can depend on a promise or an expectation of obligations
d d d d d d d d d d d d d d
14) When classifying law, which of the following is not a way in which law is classified?
d d d d d d d d d d d d d d d
A) National vs. international d d
B) Philosophical vs. ethical d d
C) Civil vs. criminal
d d
D) Private vs. public d d
E) Federal vs. state d d
15) If Dalynda caused Tonya to breach a contract with a customer because she did not ship the promised
d d d d d d d d d d d d d d d d d
goods, which type of law is applicable?
d d d d d d d
A) Civil law d
B) Public law d
C) Governmental law d
D) Criminal Law d
E) Ethical law d
16) When Austin, Texas decides to implement a new tax code that will impose a new tax on business owners
d d d d d d d d d d d d d d d d d d
within its city limits, which law is applicable?
d d d d d d d d
A) Private law d
B) Public law d
C) Federal law d
D) Criminal law d
E) State law d
Page | 4
d d
