Business Law & Ethics Exam Questions with Correct Answers

Definition of law Correct Answer a body of rules of action or conduct prescribed by the controlling authority and having legal binding force Public law Correct Answer law imposed on individuals by some authorized governing body; codified law; statutes Private law Correct Answer law developed between two individuals, between individuals and entities, or between two entities (voluntary) Adhesion contracts Correct Answer contracts written by one side and offered as a take it or leave it Ex: car rental agreements, employee contracts Criminal law Correct Answer a wrong against society, prescribes individual behaviors to comply with societal standards, fines and imprisonment Civil law Correct Answer wrong against another person/persons, exists to settle affairs between individuals/entities, monetary compensation , regulating harms and carrying damage remedies Substantive law Correct Answer laws that give rules, rights, and responsibilities, what we can/can't do Procedural law Correct Answer provide the means for enforcing substantive rights, process of enforcing the rules in courts, trials, depositions Common law Correct Answer how the courts use the judicial decisions of the past in making their judgments to provide the consistency and constancy of the law, developed during middle ages, stare decisis Stare decisis Correct Answer Let the decision stand; decisions are based on precedents from previous cases Statutory law Correct Answer laws written up, passed, and codified/set in stone by some governmental body, the formalization/written representation of common law Equity Correct Answer body of law that attempts to do justice when the law does not provide a remedy, when the remedy is inadequate, or when the application of the law is terribly unfair