Business Law Exam 1 (ch. 1,2,3,6,7)Questions and Answers Updated 2026

Business Law Exam 1
(ch. 1,2,3,6,7)Questions
and Answers Updated
2026
lawB-
BAnswerBABbodyBofBenforceableBrulesBgoverningBrelationshipsBamongBindividualsBand
BbetweenBindividualsBandBtheirBsociety.



PrimaryBsourcesBofBlawB-
BAnswerB1.BTheBU.S.BConstitutionBandBtheBconstitutionsBofBtheBvariousBstates.

2.BStatutoryBlaw—
includingBlawsBpassedBbyBCongress,BstateBlegislatures,BorBlocalBgoverningBbodies.

3.BRegulationsBcreatedBbyBadministrativeBagencies,BsuchBasBtheBFoodBandBDrugBAdmi
nistration.

4.BCaseBlawBandBcommonBlawBdoctrines.



SecondaryBsourcesBofBlawB-
BAnswerBbooksBandBarticlesBthatBsummarizeBandBclarifyBtheBprimaryBsourcesBofBlaw.

BExamplesBincludeBlegalBencyclopedias,Btreatises,BarticlesBinBlawBreviews,BandBcompila
tionsBofBlaw,BsuchBasBtheBRestatementsBofBtheBLaw.

CourtsBoftenBreferBtoBsecondaryBsourcesBofBlawBforBguidanceBinBinterpretingBandBap
plyingBtheBprimaryBsourcesBofBlawBdiscussedBhere.



constitutionalBlawB-
BAnswerBLawBthatBisBbasedBonBtheBU.S.BConstitutionBandBtheBconstitutionsBofBtheBv
ariousBstates.

(supremeBlawBofBtheBland)

, stateBconstitutionalBlawB-
BAnswerBEachBstateBinBtheBunionBhasBitsBownBconstitution.BUnlessBitBconflictsBwithBt
heBU.S.BConstitutionBorBaBfederalBlaw,BaBstateBconstitutionBisBsupremeBwithinBtheBst
ate'sBborders.



statutoryBlawB-
BAnswerBTheBbodyBofBlawBenactedBbyBlegislativeBbodiesB(asBopposedBtoBconstitution
alBlaw,BadministrativeBlaw,BorBcaseBlaw).

WhenBaBlegislatureBpassesBaBstatute,BthatBstatuteBultimatelyBisBincludedBinBtheBfeder
alBcodeBofBlawsBorBtheBrelevantBstateBcodeBofBlaws.



ordinancesB-
BAnswerBABlawBpassedBbyBaBlocalBgoverningBunit,BsuchBasBaBmunicipalityBorBaBcoun
ty.B

OrdinancesBcommonlyBhaveBtoBdoBwithBcityBorBcountyBlandBuseB(zoningBordinances),
BbuildingBandBsafetyBcodes,BandBotherBmattersBaffectingBtheBlocalBcommunity.



uniformBlawB-
BAnswerBABmodelBlawBcreatedBbyBtheBNationalBConferenceBofBCommissionersBonBUn
iformBStateBLawsBand/orBtheBAmericanBLawBInstituteBforBtheBstatesBtoBconsiderBadop
ting.BIfBtheBstateBadoptsBtheBlaw,BitBbecomesBstatutoryBlawBinBthatBstate.BEachBstate
BhasBtheBoptionBofBadoptingBorBrejectingBallBorBpartBofBaBuniformBlaw



administrativeBlawB-
BAnswerBTheBbodyBofBlawBcreatedBbyBadministrativeBagenciesB(inBtheBformBofBrules,
Bregulations,Borders,BandBdecisions)BinBorderBtoBcarryBoutBtheirBdutiesBandBresponsib
ilities.



administrativeBagencyB-
BAnswerBABfederal,Bstate,BorBlocalBgovernmentBagencyBestablishedBtoBperformBaBspe
cificBfunction.BAdministrativeBagenciesBareBauthorizedBbyBlegislativeBactsBtoBmakeBand
BenforceBrulesBtoBadministerBandBenforceBtheBacts.