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