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Exam (elaborations)

TEST BANK — Business Law, 10th Edition — Henry R. Cheeseman — ISBN 9780136828075

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The Test Bank for Business Law, 10th Edition by Henry R. Cheeseman provides a full set of assessment items perfectly aligned with the textbook’s official Table of Contents. It includes multiple-choice, true/false, matching, short-answer, and scenario-based questions designed to assess knowledge of foundational legal principles, case law, statutory interpretations, and emerging issues in business law. Instructors can use these items to create quizzes, chapter tests, midterms, finals, or case-based discussion assignments that map exactly to each chapter’s learning objectives. The content corresponds to every chapter in sequence: Chapter 1: Legal Heritage and the Information Age, Chapter 2: Courts and Jurisdiction, Chapter 3: Judicial, Alternative, and E-Dispute Resolution, Chapter 4: Constitutional Law for Business and E-Commerce, Chapter 5: Intentional Torts and Negligence, Chapter 6: Product and Strict Liability, Chapter 7: Intellectual Property and Information Technology, Chapter 8: Criminal Law and Cybercrime, Chapter 9: Nature of Traditional and E-Contracts, Chapter 10: Agreement, Chapter 11: Consideration and Promissory Estoppel, Chapter 12: Capacity and Legality, Chapter 13: Genuineness of Assent and Undue Influence, Chapter 14: Statute of Frauds and Equitable Exceptions, Chapter 15: Third-Party Rights and Discharge, Chapter 16: Breach of Contract and Remedies, Chapter 17: Digital Law and E-Commerce, Chapter 18: Formation of Sales and Lease Contracts, Chapter 19: Title to Goods and Risk of Loss, Chapter 20: Remedies for Breach of Sales and Lease Contracts, Chapter 21: Warranties, Chapter 22: Creation of Negotiable Instruments, Chapter 23: Holder in Due Course and Transferability, Chapter 24: Liability, Defenses, and Discharge, Chapter 25: Banking System and Electronic Financial Transactions, Chapter 26: Credit, Real Property Financing, and Debtors’ Rights, Chapter 27: Secured Transactions, Chapter 28: Bankruptcy and Reorganization, Chapter 29: Agency Formation and Termination, Chapter 30: Liability of Principals, Agents, and Independent Contractors, Chapter 31: Employment, Worker Protection, and Immigration Law, Chapter 32: Labor Law, Chapter 33: Equal Opportunity in Employment, Chapter 34: Entrepreneurship, Sole Proprietorships, and General Partnerships, Chapter 35: Limited Partnerships and Special Partnerships, Chapter 36: Limited Liability Companies and Limited Liability Partnerships, Chapter 37: Corporate Formation and Financing, Chapter 38: Corporate Governance and The Sarbanes-Oxley Act, Chapter 39: Corporate Acquisitions and Multinational Corporations, Chapter 40: Franchise and Special Forms of Business, Chapter 41: Securities Law and Investor Protection, Chapter 42: Ethics and Social Responsibility of Business, Chapter 43: Administrative Law and Regulatory Agencies, Chapter 44: Consumer Protection and Product Safety, Chapter 45: Environmental Protection, Chapter 46: Antitrust Law and Unfair Trade Practices, Chapter 47: Personal Property and Bailment, Chapter 48: Real Property, Chapter 49: Landlord-Tenant Law and Land Use Regulation, Chapter 50: Insurance, Chapter 51: Accountants’ Duties and Liability, Chapter 52: Wills, Trusts, and Estates, Chapter 53: Family Law, Chapter 54: International and World Trade Law, and Appendix A: Constitution of the United States of America.

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Institution
Business Law, 10th Edition
Course
Business Law, 10th Edition











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Institution
Business Law, 10th Edition
Course
Business Law, 10th Edition

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Uploaded on
November 4, 2025
Number of pages
1156
Written in
2025/2026
Type
Exam (elaborations)
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Business Law – 10th Edition
ST

TEST BANK
UV
IA
_A
Henry R. Cheeseman
PP

Comprehensive Test Bank for Instructors and
RO

Students
VE
© 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
ST
1) ________ is that which must be obeyed and followed by citizens subject to sanctions or legal
consequences.
A) Morality
B) Philosophy
C) Law
UV
D) Religion
Answer: C
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
IA
Classification: Concept

2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having binding
_A
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
PP
D) a group of hypotheses employed to explain a phenomenon
Answer: A
Diff: 1
LO: 1.1 Define law.
AACSB: Analytical thinking
RO
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
VE
C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
Answer: B
Diff: 2
LO: 1.1 Define law.
D?
AACSB: Analytical thinking
Classification: Concept
??

1
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
ST
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
UV
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
IA
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
_A
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
PP
D) facilitating orderly change
Answer: D
Diff: 2
LO: 1.1 Define law.
RO
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
VE
B) shaping moral standards
C) facilitating orderly change
D) promoting social justice
Answer: A
Diff: 2
D?
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
??

2
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
ST
B) maintaining the status quo
C) maximizing individual freedom
D) facilitating planning
Answer: C
Diff: 1
UV
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
IA
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
_A
B) maximizing individual freedom
C) providing a basis for compromise
D) maintaining the status quo
Answer: C
Diff: 2
LO: 1.1 Define law.
PP
AACSB: Application of knowledge
Classification: Application

9) The Supreme Court case decision on the case of Brown v. Board of Education was important
RO
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
VE
Diff: 2
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
D?
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.
??
AACSB: Analytical thinking
Classification: Concept



3
Copyright © 2019 Pearson Education, Inc.

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