Legal and Regulatory Environment of Business –
Test Bank (19th Edition, Pagnattaro et al., USA)
– Complete Chapter-by-Chapter Answer Guide
1
, ANSWERS ARE BELOW EACH CHAPTER
Student:
1. Law And "Rule Of Law" Are Synonymous
Terms. True False
2. The First Known Written Set Of Laws Was The Code Of
Hammurabi. True False
3. Rule-Of-Law Nations Adopt Laws Supporting The Private Market Because It Is In
Everyone's Interest, Including The Lawmakers'.
True False
4. Common Property, Applies To Public Resources Owned By The Government (Or "State")
Like Roads, Public Buildings, Public Lands, And Monuments.
True False
5. Contract Law Compensates Owners Whose Resources Are Wrongfully Harmed By The
Actions Of Others. True False
6. The Secret To Economic Prosperity And The Wealth Of Nations Lies In The Foundation Of
Property Law And The Legal System To Implement It Under The Rule Of Law.
True False
7. Jurisprudence Is The Rule
Of Law. True False
8. Natural Law Theory Asserts That Law Contains Universal Moral
Principles. True False
9. Sociological Jurisprudence Emphasizes That Contemporary Law Should Focus On Legal
Principles That Have Withstood The Test Of Time In A Nation.
True False
10. Jurisprudence Refers To The General Body Of Law Interpretations By Judges As Different
From Legislation Passed By Legislators.
True False
11. Legal Realism Is The Idea That Courts Should Understand The Meaning Of The
Constitution Relative To The Times In Which They Interpret It.
True False
12. The United Kingdom, The United States, Canada, Jamaica, India, Nigeria, New Zealand, And A
Few Other Countries—All Colonized By England—Follow The Common Law.
True False
13. Civil Law Arose In The Eleventh And Twelfth Centuries As The English Monarch
Appointed Royal Judges To Ride Circuits Around The English Countryside And To
Resolve Disputes In The Name Of The King (Or Queen).
True False
14. Louisiana Is The Only State In The U.S. That Follows A Partial Civil Law System Due To
Louisiana's Historical Ties With France, A Civil Law Nation.
True False
15. Common Law Relies More On Legislation Than Judicial Decisions To Determine
What The Law Is. True False
,16. In Administrative Law, A Government Official Represents Society, Or "The People," And
The Official Is Responsible For Seeking Justice To Achieve The Ends Of Society.
True False
17. Although Property Law Is Categorized As One Kind Of Private Law; In Our Legal System, It Is
At The Heart Of Both Public And Private Law.
True False
18. Contract Law Often But Not Always Requires Actual Injury To The
Owner's Resources. True False
19. Legislation Passed By The Congress Is Called A Statute
Or An Act. TrueFalse
20. The Second Amendment To The Constitution Holds That "No State Shall . . . Deprive Any
Person Of Life, Liberty Or Property Without Due Process Of Law."
True False
21. Disadvantages Of Case Law Do Not Destroy The Benefits Of Certainty, Predictability, And
Stability Provided By Case Law And Stare Decisis.
True False
22. Judges In Future Cases Are Not So Likely To Follow The Dicta In Prior Cases As They
Are The Holdings. True False
23. Conflicting Precedents When Applying The Principle Of Stare Decisis Do Not Create
Confidence In The Certainty Of Law.
True False
24. With Reference To The Hierarchy Of Sources Of Law, Case Law Prevails Over
Local Ordinances. True False
25. The Fourteenth Amendment To The Constitution Recognizes That The Law Is Enforced By
Taking A Person's Life, Freedom, Or The Resources That He Or She Owns.
True False
26. Whether It's Stated In The Contract Or Not, When A Breach Of Contract Occurs, The Injured
Party Will Usually Recover Her Attorney Fees As Part Of Her Compensatory Damages.
True False
27. The Single Largest Number Of Lawsuits Today, Especially In The Federal Courts, Involves One
Business Suing Another Business For Tortious Conduct.
True False
28. Tort Law Helps Protect Property Boundaries By Providing Compensation When Someone
Wrongfully Crosses Such Boundaries.
True False
29. In Addition To Compensatory Damages, Breach-Of-Contract Cases May Award Punitive
Damages, When The Breaching Party Knew Or Had Reason To Know That Special
Circumstances Existed That Would Cause The Other Party To Suffer Additional Losses If The
Contract Were Breached.
True False
30. Drake Verbally Lashes Out At His Neighbor One Evening Following A Drunken Party. He
Also Beats Him Up When Drake Tries To Back Away From The Argument. He Is Said To
Have Committed A Strict Liability Tort. True False
31. Corporate Governance Can Fail Even When Corporate Managers Do
Nothing Illegal. True False
, 32. Article 6 Of The Treaty On European Union, Called The Maastricht Treaty, Says The EU
Is "Founded" On:
A. Specific Performance.
B. Private Markets.
C. Stare Decisis.
D. Rule Of Law.
E. Property.
33. Economic Growth Depends "In Particular On The Rule Of Law" Which Is A "Lodestar For All
Countries." Why?
A. Rule-Of-Law Nations Adopt Laws Supporting The Private Market Because It Is In
Everyone's Interest, Including The Lawmakers'.
B. It Distinguishes Lawmakers As Being Above The Rule Of Law.
C. It Allows Special Interest Groups To Benefit At The Expense Of Others.
D. It Adopts Laws Supporting The Growth Of The Public Markets Over Private Markets
Increasing Economic Growth Of Nations.
E. It Removes The Power Of The Courts And Creates An Autocratic Regime Where Businesses
Can Freely Invest And Economic Growth Is High.
34. Property Is An Ownership Fence Which Applies To Resources Like Land That More
Than One Individual Owns Jointly.
A. Private
B. Civil
C. Public
D. Common
E. Tort
35. A Property Based Legal System:
A. Is Unimportant In Western Legal Systems.
B. Protects And Assists The Wealthy Over The Poor.
C. Applies Only To Common Property Or Resources Like Land That More Than One Individual
Owns Jointly.
D. Does Not Allow For The Transfer Of Private Resources.
E. Allows People To Exclude Others From Interfering With What Their Efforts Produce.
36. Can Be Thought Of As The Central Concept Underlying Western Legal Systems.
A. Rule Of Law
B. Property
C. Tort Law
D. Ethics
E. Stare Decisis
37. Contract Law:
A. Enables An Owner To Exchange Resources, Especially At A Future Date.
B. Compensates Owners Whose Resources Are Wrongfully Harmed By The Actions Of Others.
C. Punishes Those Who Harm An Owner's Resources In Particular Ways.
D. Identifies How Individuals Can Own And Use Private Resources In Groups.
E. Protects Ownership And Sets Limits On Private Resource Use.
38. Law Both Protects Ownership And Sets Limits On Private Resource Use.
A. Tort
B. Antitrust
C. Securities
D. Regulatory
E. Contract
Test Bank (19th Edition, Pagnattaro et al., USA)
– Complete Chapter-by-Chapter Answer Guide
1
, ANSWERS ARE BELOW EACH CHAPTER
Student:
1. Law And "Rule Of Law" Are Synonymous
Terms. True False
2. The First Known Written Set Of Laws Was The Code Of
Hammurabi. True False
3. Rule-Of-Law Nations Adopt Laws Supporting The Private Market Because It Is In
Everyone's Interest, Including The Lawmakers'.
True False
4. Common Property, Applies To Public Resources Owned By The Government (Or "State")
Like Roads, Public Buildings, Public Lands, And Monuments.
True False
5. Contract Law Compensates Owners Whose Resources Are Wrongfully Harmed By The
Actions Of Others. True False
6. The Secret To Economic Prosperity And The Wealth Of Nations Lies In The Foundation Of
Property Law And The Legal System To Implement It Under The Rule Of Law.
True False
7. Jurisprudence Is The Rule
Of Law. True False
8. Natural Law Theory Asserts That Law Contains Universal Moral
Principles. True False
9. Sociological Jurisprudence Emphasizes That Contemporary Law Should Focus On Legal
Principles That Have Withstood The Test Of Time In A Nation.
True False
10. Jurisprudence Refers To The General Body Of Law Interpretations By Judges As Different
From Legislation Passed By Legislators.
True False
11. Legal Realism Is The Idea That Courts Should Understand The Meaning Of The
Constitution Relative To The Times In Which They Interpret It.
True False
12. The United Kingdom, The United States, Canada, Jamaica, India, Nigeria, New Zealand, And A
Few Other Countries—All Colonized By England—Follow The Common Law.
True False
13. Civil Law Arose In The Eleventh And Twelfth Centuries As The English Monarch
Appointed Royal Judges To Ride Circuits Around The English Countryside And To
Resolve Disputes In The Name Of The King (Or Queen).
True False
14. Louisiana Is The Only State In The U.S. That Follows A Partial Civil Law System Due To
Louisiana's Historical Ties With France, A Civil Law Nation.
True False
15. Common Law Relies More On Legislation Than Judicial Decisions To Determine
What The Law Is. True False
,16. In Administrative Law, A Government Official Represents Society, Or "The People," And
The Official Is Responsible For Seeking Justice To Achieve The Ends Of Society.
True False
17. Although Property Law Is Categorized As One Kind Of Private Law; In Our Legal System, It Is
At The Heart Of Both Public And Private Law.
True False
18. Contract Law Often But Not Always Requires Actual Injury To The
Owner's Resources. True False
19. Legislation Passed By The Congress Is Called A Statute
Or An Act. TrueFalse
20. The Second Amendment To The Constitution Holds That "No State Shall . . . Deprive Any
Person Of Life, Liberty Or Property Without Due Process Of Law."
True False
21. Disadvantages Of Case Law Do Not Destroy The Benefits Of Certainty, Predictability, And
Stability Provided By Case Law And Stare Decisis.
True False
22. Judges In Future Cases Are Not So Likely To Follow The Dicta In Prior Cases As They
Are The Holdings. True False
23. Conflicting Precedents When Applying The Principle Of Stare Decisis Do Not Create
Confidence In The Certainty Of Law.
True False
24. With Reference To The Hierarchy Of Sources Of Law, Case Law Prevails Over
Local Ordinances. True False
25. The Fourteenth Amendment To The Constitution Recognizes That The Law Is Enforced By
Taking A Person's Life, Freedom, Or The Resources That He Or She Owns.
True False
26. Whether It's Stated In The Contract Or Not, When A Breach Of Contract Occurs, The Injured
Party Will Usually Recover Her Attorney Fees As Part Of Her Compensatory Damages.
True False
27. The Single Largest Number Of Lawsuits Today, Especially In The Federal Courts, Involves One
Business Suing Another Business For Tortious Conduct.
True False
28. Tort Law Helps Protect Property Boundaries By Providing Compensation When Someone
Wrongfully Crosses Such Boundaries.
True False
29. In Addition To Compensatory Damages, Breach-Of-Contract Cases May Award Punitive
Damages, When The Breaching Party Knew Or Had Reason To Know That Special
Circumstances Existed That Would Cause The Other Party To Suffer Additional Losses If The
Contract Were Breached.
True False
30. Drake Verbally Lashes Out At His Neighbor One Evening Following A Drunken Party. He
Also Beats Him Up When Drake Tries To Back Away From The Argument. He Is Said To
Have Committed A Strict Liability Tort. True False
31. Corporate Governance Can Fail Even When Corporate Managers Do
Nothing Illegal. True False
, 32. Article 6 Of The Treaty On European Union, Called The Maastricht Treaty, Says The EU
Is "Founded" On:
A. Specific Performance.
B. Private Markets.
C. Stare Decisis.
D. Rule Of Law.
E. Property.
33. Economic Growth Depends "In Particular On The Rule Of Law" Which Is A "Lodestar For All
Countries." Why?
A. Rule-Of-Law Nations Adopt Laws Supporting The Private Market Because It Is In
Everyone's Interest, Including The Lawmakers'.
B. It Distinguishes Lawmakers As Being Above The Rule Of Law.
C. It Allows Special Interest Groups To Benefit At The Expense Of Others.
D. It Adopts Laws Supporting The Growth Of The Public Markets Over Private Markets
Increasing Economic Growth Of Nations.
E. It Removes The Power Of The Courts And Creates An Autocratic Regime Where Businesses
Can Freely Invest And Economic Growth Is High.
34. Property Is An Ownership Fence Which Applies To Resources Like Land That More
Than One Individual Owns Jointly.
A. Private
B. Civil
C. Public
D. Common
E. Tort
35. A Property Based Legal System:
A. Is Unimportant In Western Legal Systems.
B. Protects And Assists The Wealthy Over The Poor.
C. Applies Only To Common Property Or Resources Like Land That More Than One Individual
Owns Jointly.
D. Does Not Allow For The Transfer Of Private Resources.
E. Allows People To Exclude Others From Interfering With What Their Efforts Produce.
36. Can Be Thought Of As The Central Concept Underlying Western Legal Systems.
A. Rule Of Law
B. Property
C. Tort Law
D. Ethics
E. Stare Decisis
37. Contract Law:
A. Enables An Owner To Exchange Resources, Especially At A Future Date.
B. Compensates Owners Whose Resources Are Wrongfully Harmed By The Actions Of Others.
C. Punishes Those Who Harm An Owner's Resources In Particular Ways.
D. Identifies How Individuals Can Own And Use Private Resources In Groups.
E. Protects Ownership And Sets Limits On Private Resource Use.
38. Law Both Protects Ownership And Sets Limits On Private Resource Use.
A. Tort
B. Antitrust
C. Securities
D. Regulatory
E. Contract
