BLAW 341 Exam 1 Questions with Verified Answers
liability - Answers 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 - Answers 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 - Answers -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 - Answers 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 - Answers The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - Answers 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.
Ordinance - Answers A regulation enacted by a city or county legislative body that becomes part
of that state's statutory law.
Uniform laws - Answers 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 - Answers The body of law created by administrative agencies in order to
,carry out their duties and responsibilities.
Administrative agency - Answers 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) - Answers 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 - Answers The procedure used by administrative agencies in fulfilling
their three basic functions: rulemaking, enforcement, and adjudication (resolve judicially).
Legislative Rules (under APA) - Answers 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.
Case Law - Answers 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) - Answers 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) - Answers 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) - Answers 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) -
Answers 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) - Answers 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) - Answers A legal authority that a court may
consult for guidance but that is not binding on the court.
Legal reasoning - Answers The process of reasoning by which judges harmonize their opinions
with judicial opinions in previous cases.
Remedy - Answers The means given to a party to enforce a right or to compensate for the
violation of a right.
Remedies at law - Answers -Designed to compensate the individual for actual loss
-Award restricted to "damages" (payment) in either money or property.
Remedies in equity - Answers -Designed to "make a person whole" where monetary or property
damages are inadequate.
-Equitable remedies are based on justice and fair dealing.
Types of Remedies in Equity - Answers 1. Specific performance: Court order commanding a
party to DO what they promised.
2. Injunction: Court order commanding a party to do or refrain from a certain act.
3. Rescission: Cancellation of a contract
Substantive Law (classifications of Law) - Answers Laws that define and regulate rights and
duties.
Procedural Law - Answers Laws that establish methods for enforcing and protecting rights.
Cyberlaw - Answers An informal term used to refer to all laws governing electronic
communications and transactions, particularly those conducted via the internet.
Civil Law - Answers Primary Objective: Compensate injured PARTY
Addresses private rights and duties between persons and/or between persons and government.
-Private party sues another private party (most common) OR
-Government sues private party OR
-More rare: Private party sues government (often government cannot be sued)
Criminal Law - Answers Primary Objective: Punishment and Deterrence
Addresses public wrongs against society.
liability - Answers 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 - Answers 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 - Answers -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 - Answers 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 - Answers The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - Answers 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.
Ordinance - Answers A regulation enacted by a city or county legislative body that becomes part
of that state's statutory law.
Uniform laws - Answers 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 - Answers The body of law created by administrative agencies in order to
,carry out their duties and responsibilities.
Administrative agency - Answers 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) - Answers 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 - Answers The procedure used by administrative agencies in fulfilling
their three basic functions: rulemaking, enforcement, and adjudication (resolve judicially).
Legislative Rules (under APA) - Answers 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.
Case Law - Answers 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) - Answers 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) - Answers 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) - Answers 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) -
Answers 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) - Answers 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) - Answers A legal authority that a court may
consult for guidance but that is not binding on the court.
Legal reasoning - Answers The process of reasoning by which judges harmonize their opinions
with judicial opinions in previous cases.
Remedy - Answers The means given to a party to enforce a right or to compensate for the
violation of a right.
Remedies at law - Answers -Designed to compensate the individual for actual loss
-Award restricted to "damages" (payment) in either money or property.
Remedies in equity - Answers -Designed to "make a person whole" where monetary or property
damages are inadequate.
-Equitable remedies are based on justice and fair dealing.
Types of Remedies in Equity - Answers 1. Specific performance: Court order commanding a
party to DO what they promised.
2. Injunction: Court order commanding a party to do or refrain from a certain act.
3. Rescission: Cancellation of a contract
Substantive Law (classifications of Law) - Answers Laws that define and regulate rights and
duties.
Procedural Law - Answers Laws that establish methods for enforcing and protecting rights.
Cyberlaw - Answers An informal term used to refer to all laws governing electronic
communications and transactions, particularly those conducted via the internet.
Civil Law - Answers Primary Objective: Compensate injured PARTY
Addresses private rights and duties between persons and/or between persons and government.
-Private party sues another private party (most common) OR
-Government sues private party OR
-More rare: Private party sues government (often government cannot be sued)
Criminal Law - Answers Primary Objective: Punishment and Deterrence
Addresses public wrongs against society.
