BLAW 341 EXAM 1 QUESTIONS & ANSWERS
liability - (ANSWER)The state of being legally responsible (liable) for something, such as a
debt or obligation
Areas of the Law that May Affect Business Decision Making - (ANSWER)Contracts, sales
and e-commerce, negotiating instruments, intellectual property, professional liability,
product liability, torts, agency, business organizations, environmental laws, courts and
court procedures.
Primary source of law - (ANSWER)-Constitutional Law
-Statutory Law
-Administrative Law
-Case Law
-Executive Orders
A source that establishes the law on a particular issue, such as a constitution, a statute, an
administrative rule, or a court decision.
ex. The U.S. Constitution and state constitutions, Statutory law, regulations created by
administrative agencies, and case law.
Secondary source of law - (ANSWER)A publication that summarizes or interprets the law,
such as a legal encyclopedia, a legal treatise, or an article in a law review.
Constitutional law - (ANSWER)The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - (ANSWER)The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law). Includes local ordinances. No federal
statute may violate the Constitution, and no state statute or local ordinance may violate
the U.S. Constitution or state constitution.
ex. statutes passed by Congress or by state legislatures.
,BLAW 341 EXAM 1 QUESTIONS & ANSWERS
Ordinance - (ANSWER)A regulation enacted by a city or county legislative body that
becomes part of that state's statutory law.
Uniform laws - (ANSWER)Not law UNLESS AND UNTIL ADOPTED by legislature. Model
laws developed by the National Conference of Commissioners on Uniform State Laws for
the states to consider enacting into statute.
ex. The Uniform Commercial Code (UCC)
Administrative law - (ANSWER)The body of law created by administrative agencies in
order to carry out their duties and responsibilities.
Administrative agency - (ANSWER)a federal, state, or local government agency
established to perform a specific function. Include both federal agencies (ex. FDA) and
state and local agencies (state pollution-control agency).
Enabling legislation (agency creation) - (ANSWER)A statute enacted by Congress that
authorizes the creation of an administrative agency and specifies the name, composition,
purpose, and powers of the agency being created.
Administrative process - (ANSWER)The procedure used by administrative agencies in
fulfilling their three basic functions: rulemaking, enforcement, and adjudication (resolve
judicially).
Legislative Rules (under APA) - (ANSWER)1. Notice of the proposed rulemaking. Must be
published in the Federal Register.
2. A comment period. The agency must allow ample time for interested parties to
comment in writing on the proposed rule.
3. The final rule. Once the agency has drafted the final rule, it is published in the Federal
Register.
, BLAW 341 EXAM 1 QUESTIONS & ANSWERS
Case Law - (ANSWER)The rules of law announced in court decisions. Case law interprets
statutes, regulations, and constitutional provisions, and governs all areas not covered by
statutory or administrative law.
Stare Decisis (precedent) - (ANSWER)To stand on decided cases. Practice of deciding new
cases based on precedent. A higher court's decision based on certain facts of law and law
is a binding authority on lower within the SAME jurisdiction. Aids legal stability.
1. A court should not overturn its own precedents unless there is a strong reason to do so.
2. Decisions made by a higher court are binding on lower courts.
Binding authority (controlling precedents) - (ANSWER)Any source of law that a court must
follow when deciding a case. Binding authorities include constitutions, statutes, and
regulations. United Supreme Court case decisions, no matter how old, remain controlling
until they are overruled by a subsequent decision of the Supreme Court, by a constitutional
amendment, or by congressional legislation.
Departures from Precedent (rare): Brown v. Board of Education (1954) - (ANSWER)The U.S.
Supreme Court overturned precedent when it held that 'separate but equal' facilities were
unconstitutional.
Departures from Precedent (rare): Dobbs v. Jackson Women's Health Organization (2022)
- (ANSWER)The U.S. Supreme Court overturned precedent of Roe v. Wade (1973) when it
held the right to an abortion is not a fundamental right guaranteed protection under the
U.S. Constitution.
Common law (Precedent to US Law) - (ANSWER)The body of law developed from custom
or judicial decisions in English and U.S. courts, not attributable to a legislature.
Persuasive authority (cases of first impression) - (ANSWER)A legal authority that a court
may consult for guidance but that is not binding on the court.
liability - (ANSWER)The state of being legally responsible (liable) for something, such as a
debt or obligation
Areas of the Law that May Affect Business Decision Making - (ANSWER)Contracts, sales
and e-commerce, negotiating instruments, intellectual property, professional liability,
product liability, torts, agency, business organizations, environmental laws, courts and
court procedures.
Primary source of law - (ANSWER)-Constitutional Law
-Statutory Law
-Administrative Law
-Case Law
-Executive Orders
A source that establishes the law on a particular issue, such as a constitution, a statute, an
administrative rule, or a court decision.
ex. The U.S. Constitution and state constitutions, Statutory law, regulations created by
administrative agencies, and case law.
Secondary source of law - (ANSWER)A publication that summarizes or interprets the law,
such as a legal encyclopedia, a legal treatise, or an article in a law review.
Constitutional law - (ANSWER)The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - (ANSWER)The body of law enacted by legislative bodies (as opposed to
constitutional law, administrative law, or case law). Includes local ordinances. No federal
statute may violate the Constitution, and no state statute or local ordinance may violate
the U.S. Constitution or state constitution.
ex. statutes passed by Congress or by state legislatures.
,BLAW 341 EXAM 1 QUESTIONS & ANSWERS
Ordinance - (ANSWER)A regulation enacted by a city or county legislative body that
becomes part of that state's statutory law.
Uniform laws - (ANSWER)Not law UNLESS AND UNTIL ADOPTED by legislature. Model
laws developed by the National Conference of Commissioners on Uniform State Laws for
the states to consider enacting into statute.
ex. The Uniform Commercial Code (UCC)
Administrative law - (ANSWER)The body of law created by administrative agencies in
order to carry out their duties and responsibilities.
Administrative agency - (ANSWER)a federal, state, or local government agency
established to perform a specific function. Include both federal agencies (ex. FDA) and
state and local agencies (state pollution-control agency).
Enabling legislation (agency creation) - (ANSWER)A statute enacted by Congress that
authorizes the creation of an administrative agency and specifies the name, composition,
purpose, and powers of the agency being created.
Administrative process - (ANSWER)The procedure used by administrative agencies in
fulfilling their three basic functions: rulemaking, enforcement, and adjudication (resolve
judicially).
Legislative Rules (under APA) - (ANSWER)1. Notice of the proposed rulemaking. Must be
published in the Federal Register.
2. A comment period. The agency must allow ample time for interested parties to
comment in writing on the proposed rule.
3. The final rule. Once the agency has drafted the final rule, it is published in the Federal
Register.
, BLAW 341 EXAM 1 QUESTIONS & ANSWERS
Case Law - (ANSWER)The rules of law announced in court decisions. Case law interprets
statutes, regulations, and constitutional provisions, and governs all areas not covered by
statutory or administrative law.
Stare Decisis (precedent) - (ANSWER)To stand on decided cases. Practice of deciding new
cases based on precedent. A higher court's decision based on certain facts of law and law
is a binding authority on lower within the SAME jurisdiction. Aids legal stability.
1. A court should not overturn its own precedents unless there is a strong reason to do so.
2. Decisions made by a higher court are binding on lower courts.
Binding authority (controlling precedents) - (ANSWER)Any source of law that a court must
follow when deciding a case. Binding authorities include constitutions, statutes, and
regulations. United Supreme Court case decisions, no matter how old, remain controlling
until they are overruled by a subsequent decision of the Supreme Court, by a constitutional
amendment, or by congressional legislation.
Departures from Precedent (rare): Brown v. Board of Education (1954) - (ANSWER)The U.S.
Supreme Court overturned precedent when it held that 'separate but equal' facilities were
unconstitutional.
Departures from Precedent (rare): Dobbs v. Jackson Women's Health Organization (2022)
- (ANSWER)The U.S. Supreme Court overturned precedent of Roe v. Wade (1973) when it
held the right to an abortion is not a fundamental right guaranteed protection under the
U.S. Constitution.
Common law (Precedent to US Law) - (ANSWER)The body of law developed from custom
or judicial decisions in English and U.S. courts, not attributable to a legislature.
Persuasive authority (cases of first impression) - (ANSWER)A legal authority that a court
may consult for guidance but that is not binding on the court.
