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TEST BANK
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Henry R. Cheeseman
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Comprehensive Test Bank for Instructors and
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Students
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© Henry R. Cheeseman
All rights reserved. Reproduction or distribution without permission is prohibited.
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©STUDYSTREAM
, Business Law, 10e (Cheeseman)
Chapter 1 Legal Heritage and the Digital Age
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1) ________ is that which must be obeyed and followed by citizens subject to sanctions or legal
consequences.
A) Morality
B) Philosophy
C) Law
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D) Religion
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
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Classification: Concept
2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having binding
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legal force
B) a study of fundamental problems, such as those connected with existence, knowledge, and
language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
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D) a group of hypotheses employed to explain a phenomenon
Answer: A
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
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Classification: Concept
3) Which of the following would be considered an example of shaping moral standards, as seen
as a function of the law?
A) laws granting freedom of speech and religion
B) laws discouraging drug and alcohol abuse
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C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
Answer: B
Diff: 2
LO: 1.1 Define law.
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AACSB: Analytical thinking
Classification: Concept
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Copyright © 2019 Pearson Education, Inc.
, 4) What function of the law is being served when passing laws that prohibit discrimination at
workplaces?
A) keeping the peace
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B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
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LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
5) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of
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Halizona sets up a committee to study the effects of past earthquakes on Halfren and the possible
methods that could be used to minimize damage and loss of life. The committee found that a new
technique of using steel reinforcements in building columns would help reduce overall damages.
The findings were put to a debate at the local town hall, where it was accepted by a majority of
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the residents of Halfren. The state government then passed a law making it mandatory to use the
new steel-reinforced columns while constructing new buildings in Halfren. Which of the
following functions of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
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D) facilitating orderly change
Answer: D
Diff: 2
LO: 1.1 Define law.
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AACSB: Application of knowledge
Classification: Application
6) What function of the law is being served when passing laws that protect the U.S. government
from the risk of being forcefully overthrown?
A) maintaining the status quo
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B) shaping moral standards
C) facilitating orderly change
D) promoting social justice
Answer: A
Diff: 2
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LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
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Copyright © 2019 Pearson Education, Inc.
, 7) By allowing the U.S. citizens to practice any religion of their choice, what essential function
of the law does the U.S. Constitution serve?
A) facilitating orderly change
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B) maintaining the status quo
C) maximizing individual freedom
D) facilitating planning
Answer: C
Diff: 1
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LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
8) Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He
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sued the car manufacturer for installing faulty airbags. But in the course of the case being heard
in court, the car company and Mark decided to settle the lawsuit out of court. What important
function of the law was served in this case?
A) promoting social justice
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B) maximizing individual freedom
C) providing a basis for compromise
D) maintaining the status quo
Answer: C
Diff: 2
LO: 1.1 Define law.
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AACSB: Application of knowledge
Classification: Application
9) The Supreme Court case decision on the case of Brown v. Board of Education was important
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because it exhibited ________.
A) the use of the affirmative action policy
B) the flexibility of the law
C) the state's supremacy over federal rulings
D) the importance of following precedent
Answer: B
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Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
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10) Businesses that are organized in the United States are subject to its laws, but not to the laws
of other countries in which they do business.
Answer: FALSE
Diff: 1
LO: 1.1 Define law.
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AACSB: Analytical thinking
Classification: Concept
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Copyright © 2019 Pearson Education, Inc.