Test Questions and All Correct Answers
2025-2026 Updated.
Chapter 01 - Answer Chapter 01
Law - Answer Collection of rules that govern societies relations; they reflect values and
beliefs which are enforceable
Liability - Answer Responsibility for a debt/obligation
Primary VS Secondary Law - Answer Primary: Establishes law and it's creation
Secondary: Source that summarizes/analyzes law
Four Sources of (Primary) American Law - Answer 1. Constitution
2. Statutory
3. Administrative
4. Case/Common Doctrine
U.S. Constitution is supreme law of the land (T/F); Can it be taken-over by another source of
law? - Answer True; no it's supreme law of the land and any law that conflicts will be
deemed unconstitutional
Each state has it's own constitution? When is it supreme law of the state? - Answer Yes
Doesn't conflict with US or Federal constitution and applies within the states borders
3 Types of Constitutional Laws - Answer 1. US
2. Federal
3. State
Local form of Statutory Law - Answer Ordinance
,Commerce Clause - Answer Create standardization with commerce between states
Can the commerce clause apply to commerce within the state - Answer No, only commerce
between states
Statutory Law is enacted by what body? - Answer Legislative
If a statutory law is passed by congress, who does it apply to? Can it conflict with the
constitution? - Answer All 50 states and can't conflict with US Constitution
State Statute - Answer Only applies to state and can't conflict with state constitution or US
constitution or federal constitution
Ordinance - Answer Applies to town it was applied in and can't conflict with US constitution
Uniform Law Commission (National Conference of Commissioners) - Answer Independent
organization to address standardization by making uniform laws (model statutes)
Do states need to adopt the model statute? - Answer No; it's only a model
When does a Model Statute become a state statute? - Answer When the state's legislature
passes it
Note: It can be partially adopted
Administrative Law - Answer Rules, Orders and Decisions created by administrative agencies
at any level (Federal, State or Local) to carry out
How are agencies created? - Answer Created by legislatures to do certain tasks through
enabling legislation
Enabling Legislation - Answer Specifies the agency's name, composition, purpose and
powers
, Rule Making - Answer Amend/Create A Regulation
Enforcement/Investigation - Answer Subpoena Powers and Enforces it's own rules
Adjudication - Answer Conduct mini-trial by Admin Judge
Two Agency Rules - Answer 1. Legislative Rules
2. Interpretive Rules
Legislative Agency Rule - Answer Rule with same weight as a congressionally enacted statute
Legislative Agency Rules must comply with? Why? - Answer Administrative Procedure Act to
prevent overreach of powers
Interpretive Agency Rules - Answer Non Binding rule showing how it will interpret and
enforce their rule
is APA compliance required for Interpretive rules? - Answer No
State Admin Law - Answer Secretary of state: Agency used by businesses to establish a
business, Department of revenue, etc.
Federal Admin Law Agency Examples - Answer FTC, USPTO, etc
Case Law/Common Law - Answer Rules, doctrines, principles established by judges in cases
Case Law and Common Laws apply to what areas? - Answer Areas not covered by statutory
or administrative law (fills gaps)
Are Higher court decisions are binding on lower courts. - Answer Yes (Precedent)