MGMT 209 Exam 1 questions with correct answers

Two major roles of law in the business world CORRECT ANSWER 1. Dispute Resolution Role 2. Regulation (Regulatory) Role Dispute Resolution role CORRECT ANSWER - Settles differences between two or more parties - Mainly covered in a Business Law class Regulation (Regulatory) role CORRECT ANSWER - Government interferes with private business - Directs and standardizes business activities (Government becomes an active third party) Definition of Law CORRECT ANSWER Law is a collection of rules and regulations that determines how the government will treat its citizens, how its citizens will treat the government, how its citizens treat each other, and the enforcement of these laws Enforcement leads to: CORRECT ANSWER 1) Stability 2) Predictability 3) Uniformity (hopefully) Sources of Law CORRECT ANSWER 1. Constitutional 2. Statutory or Legislative