Legal and Ethical Final Exam – 2026 – Study and Practice Guide
Which of the following is an important purpose of the law in a business context?
a. Provides reliability
b. Promotes good-faith among merchants
c. Protects individual rights
d. Both (a) and (b). - correct answer ✔✔ d. Both (a) and (b)
BigCo is planning an acquisition of the assets of SmallCo and plans to hire SmallCo's
management team. Which of the following areas of the law may have an impact on its
acquisition planning?
a. Tax law
b. Contracts
c. Employment law
d. All of the above - correct answer ✔✔ d. All of the above
Which of the following source of law is created by a legislative body?
a. Constitutional
b. Common law
c. Statutory
d. Administrative - correct answer ✔✔ c. Statutory
The notion of applying the law of previous cases to current cases with substantially similar facts
is called ________.
a. Application
b. Precedent
c. Breach
,d. Comparison - correct answer ✔✔ b. Precedent
If a party has suffered damages as a result of another's conduct, but the money damages are
not adequate to compensate the injured party, a court may provide ______ relief.
a. Equitable
b. Legal
c. Jury
d. Preliminary - correct answer ✔✔ a. Equitable
"Judicial review" refers to:
a. The case or controversy requirement of Article III of the Constitution.
b. The overall system of checks and balances among the three branches of government.
c. The three standards of review used by courts when applying constitutional law.
d. The power of courts to invalidate laws inconsistent with the Constitution.
e. The power of the executive branch to veto Supreme Court decisions. - correct answer ✔✔ d.
The power of courts to invalidate laws inconsistent with the Constitution.
In which of the following cases is a court most likely to apply "rational basis" review?
a. A case involving an economic regulation.
b. A case involving the right to vote.
c. A case involving speech rights.
d. A case involving a suspect classification such as race or national origin.
e. A case involving a classification based on gender. - correct answer ✔✔ a. A case involving an
economic regulation.
Regarding the right to "equal protection", which of the following statements is true?
a. Laws must treat persons who are similarly situated equally.
, b. Laws may never make classifications, even when there is a compelling state interest.
c. Laws must treat everyone exactly the same.
d. Laws that invade a person's privacy are unconstitutional.
e. Laws that are too broad or overly vague are unconstitutional. - correct answer ✔✔ a. Laws
must treat persons who are similarly situated equally.
Article I of the Constitution confers on the Congress the power to regulate interstate commerce.
Which of the following statements about the Commerce Clause is true?
I. The commerce power is an enumerated power of Congress.
II. Congress's commerce power is generally interpreted by the courts very narrowly.
III. Congress's commerce power limits the power of state governments to regulate commerce
locally.
a. I only
b. II only
c. I, II, and III
d. I and II
e. I and III - correct answer ✔✔ e. I and III
Which of the following statements regarding "commercial speech" like advertising is true?
a. Commercial speech has absolute First Amendment protection like political speech, since the
Constitution states that Congress shall make no law abridging the freedom of speech.
b. Commercial speech has full First Amendment protection (subject to strict scrutiny).
c. Commercial speech has partial First Amendment protection (subject to rational basis review).
d. Commercial speech has partial first Amendment protection (subject to intermediate-level
scrutiny).
e. Commercial speech has no First Amendment protection. - correct answer ✔✔ c. Commercial
speech has partial First Amendment protection (subject to rational basis review).
Which of the following is an important purpose of the law in a business context?
a. Provides reliability
b. Promotes good-faith among merchants
c. Protects individual rights
d. Both (a) and (b). - correct answer ✔✔ d. Both (a) and (b)
BigCo is planning an acquisition of the assets of SmallCo and plans to hire SmallCo's
management team. Which of the following areas of the law may have an impact on its
acquisition planning?
a. Tax law
b. Contracts
c. Employment law
d. All of the above - correct answer ✔✔ d. All of the above
Which of the following source of law is created by a legislative body?
a. Constitutional
b. Common law
c. Statutory
d. Administrative - correct answer ✔✔ c. Statutory
The notion of applying the law of previous cases to current cases with substantially similar facts
is called ________.
a. Application
b. Precedent
c. Breach
,d. Comparison - correct answer ✔✔ b. Precedent
If a party has suffered damages as a result of another's conduct, but the money damages are
not adequate to compensate the injured party, a court may provide ______ relief.
a. Equitable
b. Legal
c. Jury
d. Preliminary - correct answer ✔✔ a. Equitable
"Judicial review" refers to:
a. The case or controversy requirement of Article III of the Constitution.
b. The overall system of checks and balances among the three branches of government.
c. The three standards of review used by courts when applying constitutional law.
d. The power of courts to invalidate laws inconsistent with the Constitution.
e. The power of the executive branch to veto Supreme Court decisions. - correct answer ✔✔ d.
The power of courts to invalidate laws inconsistent with the Constitution.
In which of the following cases is a court most likely to apply "rational basis" review?
a. A case involving an economic regulation.
b. A case involving the right to vote.
c. A case involving speech rights.
d. A case involving a suspect classification such as race or national origin.
e. A case involving a classification based on gender. - correct answer ✔✔ a. A case involving an
economic regulation.
Regarding the right to "equal protection", which of the following statements is true?
a. Laws must treat persons who are similarly situated equally.
, b. Laws may never make classifications, even when there is a compelling state interest.
c. Laws must treat everyone exactly the same.
d. Laws that invade a person's privacy are unconstitutional.
e. Laws that are too broad or overly vague are unconstitutional. - correct answer ✔✔ a. Laws
must treat persons who are similarly situated equally.
Article I of the Constitution confers on the Congress the power to regulate interstate commerce.
Which of the following statements about the Commerce Clause is true?
I. The commerce power is an enumerated power of Congress.
II. Congress's commerce power is generally interpreted by the courts very narrowly.
III. Congress's commerce power limits the power of state governments to regulate commerce
locally.
a. I only
b. II only
c. I, II, and III
d. I and II
e. I and III - correct answer ✔✔ e. I and III
Which of the following statements regarding "commercial speech" like advertising is true?
a. Commercial speech has absolute First Amendment protection like political speech, since the
Constitution states that Congress shall make no law abridging the freedom of speech.
b. Commercial speech has full First Amendment protection (subject to strict scrutiny).
c. Commercial speech has partial First Amendment protection (subject to rational basis review).
d. Commercial speech has partial first Amendment protection (subject to intermediate-level
scrutiny).
e. Commercial speech has no First Amendment protection. - correct answer ✔✔ c. Commercial
speech has partial First Amendment protection (subject to rational basis review).
