BLAW 341 EXAM 1 QUESTIONS WITH
VERIFIED ANSWERS. A+ GRADE
2025/2026.
Liability - ANS 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 - ANS 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 - ANS -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.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Secondary source of law - ANS 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 - ANS The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - ANS 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 - ANS A regulation enacted by a city or county legislative body that becomes part
of that state's statutory law.
Uniform laws - ANS 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 - ANS The body of law created by administrative agencies in order to
carry out their duties and responsibilities.
Administrative agency - ANS 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) - ANS 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 - ANS The procedure used by administrative agencies in fulfilling their
three basic functions: rulemaking, enforcement, and adjudication (resolve judicially).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Legislative Rules (under APA) - ANS 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 - ANS 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) - ANS 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) - ANS 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) - ANS 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) -
ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
VERIFIED ANSWERS. A+ GRADE
2025/2026.
Liability - ANS 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 - ANS 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 - ANS -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.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Secondary source of law - ANS 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 - ANS The body of law derived from the U.S. Constitution and the
constitutions of the various states.
Statutory law - ANS 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 - ANS A regulation enacted by a city or county legislative body that becomes part
of that state's statutory law.
Uniform laws - ANS 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 - ANS The body of law created by administrative agencies in order to
carry out their duties and responsibilities.
Administrative agency - ANS 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) - ANS 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 - ANS The procedure used by administrative agencies in fulfilling their
three basic functions: rulemaking, enforcement, and adjudication (resolve judicially).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Legislative Rules (under APA) - ANS 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 - ANS 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) - ANS 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) - ANS 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) - ANS 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) -
ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
