Page 1 of 675
2025/2026 ORIGINAL PDF DOWNLOAD TEST BANK
REGARDING BUSINESS LAW: A STORYTELLING
APPROACH STUDY GUIDE | COMPLETE 39 CHAPTERS
REVIEW (CH. 1–39)<| KEY CONCEPTS, CASE
SUMMARIES & EXAM PREP MANUAL >
COMPLETE TEST BANK
Business Law: A Storytelling Approach, 1st Edition
Michael Fricke
All Chapters (1-36)
CHAPTER 1: SOURCES OF LAW
CHAPTER 2: THE CONSTITUTION AND GOVERNMENTAL POWERS
CHAPTER 3: ALTERNATIVE DISPUTE RESOLUTION
CHAPTER 4: TORTS
CHAPTER 5: CONTRACT LAW FORMATION
CHAPTER 6: CONTRACT LAW PERFORMANCE AND BREACH
CHAPTER 7: THE UNIFORM COMMERCIAL CODE
CHAPTER 8: SALES AND LEASES
CHAPTER 9: NEGOTIABLE INSTRUMENTS
CHAPTER 10: BANKRUPTCY AND SECURED TRANSACTIONS
CHAPTER 11: AGENCY LAW
CHAPTER 12: PARTNERSHIPS AND LIMITED LIABILITY COMPANIES
CHAPTER 13: CORPORATIONS FORMATION AND STRUCTURE
CHAPTER 14: CORPORATE GOVERNANCE AND SECURITIES REGULATION
CHAPTER 15: EMPLOYMENT LAW
CHAPTER 16: EMPLOYMENT REGULATION HEALTH AND SAFETY
CHAPTER 17: ENVIRONMENTAL LAW
,Page 2 of 675
CHAPTER 18: PROPERTY LAW REAL AND PERSONAL PROPERTY
CHAPTER 19: INTELLECTUAL PROPERTY
CHAPTER 20: ETHICS IN BUSINESS
CHAPTER 21: INTERNATIONAL BUSINESS LAW
CHAPTER 22: CONSUMER PROTECTION
CHAPTER 23: ANTITRUST LAW
CHAPTER 24: TAXATION OF BUSINESS
CHAPTER 25: CRIMINAL LAW AND BUSINESS
CHAPTER 26: INSURANCE LAW
CHAPTER 27: CYBER LAW AND DATA PRIVACY
CHAPTER 28: FRANCHISING
CHAPTER 29: BUSINESS PLANNING AND STRATEGY
CHAPTER 30: LEGAL ISSUES IN REAL ESTATE
CHAPTER 31: FAMILY LAW AND BUSINESS
CHAPTER 32: LOCAL GOVERNMENT AND BUSINESS
CHAPTER 33: LEGAL RESEARCH AND WRITING
CHAPTER 34: ACCESS TO JUSTICE
CHAPTER 35: BUSINESS AND SOCIETY
CHAPTER 36: FUTURE OF BUSINESS LAW
➢ CHAPTER 1: SOURCES OF LAWS
1. Multiple individuals and entities create the laws that govern American businesses.
ANSWER: TRUE
RATIONALE: The United States has shared governance between federal and state authorities.
Courts also establish law through case law precedent, and administrative agencies create
regulations that have the force of law. Multiple sources contribute to the legal framework
governing businesses.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
,Page 3 of 675
SKILL: Comprehension
AACSB: Application of Knowledge
2. A state law that contradicts the U.S. Constitution is allowed to stand because states have
the right to regulate their own citizens.
ANSWER: FALSE
RATIONALE: The Constitution is the supreme Law of the Land under the Supremacy Clause
and overrides all lower laws and state regulations. Any state law that conflicts with the
Constitution is invalid.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
3. A federal treaty has the force of law throughout the states.
ANSWER: TRUE
RATIONALE: Federal treaties are fully binding on all states under the Supremacy Clause of the
U.S. Constitution. Treaties made by the federal government carry the same weight as federal
statutes.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
4. U.S. law is an example of a purely common law system.
ANSWER: FALSE
RATIONALE: The United States blends statutory law (enacted by legislatures) with common
law (judgemade law). While the U.S. inherited the common law tradition from England, it also
relies heavily on statutes, regulations, and constitutional law. It is not a purely common law
system.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
, Page 4 of 675
SKILL: Comprehension
AACSB: Application of Knowledge
5. The concept of judicial review allows the Supreme Court to provide a check on
congressional action, but not executive action.
ANSWER: FALSE
RATIONALE: Judicial review, established in Marbury v. Madison, allows courts to evaluate
both legislative and executive actions for constitutionality. The Supreme Court can strike down
actions by both Congress and the Executive Branch that violate the Constitution.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
6. The common law system relies on precedent, meaning courts are bound to follow
decisions made in prior similar cases.
ANSWER: TRUE
RATIONALE: The common law system is built upon the doctrine of stare decisis, which
requires courts to follow precedents established by prior court decisions. This creates consistency
and predictability in the law.
LEARNING OBJECTIVE: 1.2 Explain the role of precedent in the common law system.
SKILL: Comprehension
AACSB: Application of Knowledge
7. Statutes are laws created by administrative agencies.
ANSWER: FALSE
RATIONALE: Statutes are laws enacted by legislative bodies such as Congress or state
legislatures. Administrative agencies create regulations, which have the force of law but are not
statutes. Administrative law is a separate source of law.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
2025/2026 ORIGINAL PDF DOWNLOAD TEST BANK
REGARDING BUSINESS LAW: A STORYTELLING
APPROACH STUDY GUIDE | COMPLETE 39 CHAPTERS
REVIEW (CH. 1–39)<| KEY CONCEPTS, CASE
SUMMARIES & EXAM PREP MANUAL >
COMPLETE TEST BANK
Business Law: A Storytelling Approach, 1st Edition
Michael Fricke
All Chapters (1-36)
CHAPTER 1: SOURCES OF LAW
CHAPTER 2: THE CONSTITUTION AND GOVERNMENTAL POWERS
CHAPTER 3: ALTERNATIVE DISPUTE RESOLUTION
CHAPTER 4: TORTS
CHAPTER 5: CONTRACT LAW FORMATION
CHAPTER 6: CONTRACT LAW PERFORMANCE AND BREACH
CHAPTER 7: THE UNIFORM COMMERCIAL CODE
CHAPTER 8: SALES AND LEASES
CHAPTER 9: NEGOTIABLE INSTRUMENTS
CHAPTER 10: BANKRUPTCY AND SECURED TRANSACTIONS
CHAPTER 11: AGENCY LAW
CHAPTER 12: PARTNERSHIPS AND LIMITED LIABILITY COMPANIES
CHAPTER 13: CORPORATIONS FORMATION AND STRUCTURE
CHAPTER 14: CORPORATE GOVERNANCE AND SECURITIES REGULATION
CHAPTER 15: EMPLOYMENT LAW
CHAPTER 16: EMPLOYMENT REGULATION HEALTH AND SAFETY
CHAPTER 17: ENVIRONMENTAL LAW
,Page 2 of 675
CHAPTER 18: PROPERTY LAW REAL AND PERSONAL PROPERTY
CHAPTER 19: INTELLECTUAL PROPERTY
CHAPTER 20: ETHICS IN BUSINESS
CHAPTER 21: INTERNATIONAL BUSINESS LAW
CHAPTER 22: CONSUMER PROTECTION
CHAPTER 23: ANTITRUST LAW
CHAPTER 24: TAXATION OF BUSINESS
CHAPTER 25: CRIMINAL LAW AND BUSINESS
CHAPTER 26: INSURANCE LAW
CHAPTER 27: CYBER LAW AND DATA PRIVACY
CHAPTER 28: FRANCHISING
CHAPTER 29: BUSINESS PLANNING AND STRATEGY
CHAPTER 30: LEGAL ISSUES IN REAL ESTATE
CHAPTER 31: FAMILY LAW AND BUSINESS
CHAPTER 32: LOCAL GOVERNMENT AND BUSINESS
CHAPTER 33: LEGAL RESEARCH AND WRITING
CHAPTER 34: ACCESS TO JUSTICE
CHAPTER 35: BUSINESS AND SOCIETY
CHAPTER 36: FUTURE OF BUSINESS LAW
➢ CHAPTER 1: SOURCES OF LAWS
1. Multiple individuals and entities create the laws that govern American businesses.
ANSWER: TRUE
RATIONALE: The United States has shared governance between federal and state authorities.
Courts also establish law through case law precedent, and administrative agencies create
regulations that have the force of law. Multiple sources contribute to the legal framework
governing businesses.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
,Page 3 of 675
SKILL: Comprehension
AACSB: Application of Knowledge
2. A state law that contradicts the U.S. Constitution is allowed to stand because states have
the right to regulate their own citizens.
ANSWER: FALSE
RATIONALE: The Constitution is the supreme Law of the Land under the Supremacy Clause
and overrides all lower laws and state regulations. Any state law that conflicts with the
Constitution is invalid.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
3. A federal treaty has the force of law throughout the states.
ANSWER: TRUE
RATIONALE: Federal treaties are fully binding on all states under the Supremacy Clause of the
U.S. Constitution. Treaties made by the federal government carry the same weight as federal
statutes.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
4. U.S. law is an example of a purely common law system.
ANSWER: FALSE
RATIONALE: The United States blends statutory law (enacted by legislatures) with common
law (judgemade law). While the U.S. inherited the common law tradition from England, it also
relies heavily on statutes, regulations, and constitutional law. It is not a purely common law
system.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
, Page 4 of 675
SKILL: Comprehension
AACSB: Application of Knowledge
5. The concept of judicial review allows the Supreme Court to provide a check on
congressional action, but not executive action.
ANSWER: FALSE
RATIONALE: Judicial review, established in Marbury v. Madison, allows courts to evaluate
both legislative and executive actions for constitutionality. The Supreme Court can strike down
actions by both Congress and the Executive Branch that violate the Constitution.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
SKILL: Comprehension
AACSB: Application of Knowledge
6. The common law system relies on precedent, meaning courts are bound to follow
decisions made in prior similar cases.
ANSWER: TRUE
RATIONALE: The common law system is built upon the doctrine of stare decisis, which
requires courts to follow precedents established by prior court decisions. This creates consistency
and predictability in the law.
LEARNING OBJECTIVE: 1.2 Explain the role of precedent in the common law system.
SKILL: Comprehension
AACSB: Application of Knowledge
7. Statutes are laws created by administrative agencies.
ANSWER: FALSE
RATIONALE: Statutes are laws enacted by legislative bodies such as Congress or state
legislatures. Administrative agencies create regulations, which have the force of law but are not
statutes. Administrative law is a separate source of law.
LEARNING OBJECTIVE: 1.1 Identify the primary sources of law in the American legal system.
