Business Law Exam 1 Auburn University Questions with Complete Answers, Rated A+

What is the most important function of the law to business? - facilitating planning The example of protecting the $1 Billion investment that car companies make per model is an example of the law doing what? - Facilitating Planning What did the UN decide is the reason underdeveloped countries have poverty? - They don't have laws that protect business investment. The example of Huego Shavez and why Venezuela is poor is an example of a lack of what? - Facilitating Planning _______ and ________ affect virtually all business regulations. - Laws and Regulations Sources of American law are: - Constitutional law, Statutory law, Administrative law, Case law and Common law Which source of American law derives from the law that our elected representatives make? - Statutory Law Which source of American Law derives from Federal Agencies and State and local agencies? - Administrative Law T/F: According to Mr. Cochran, the aim of American society is that we should all be equal? - False T/F Business people should let lawyers worry about the law? - False How much of the world operates under Common law? - 1/3 American common law is based largely on what? - English Common law William the Conqueror established one court called what? He did this because he was concerned about what? - Court of law He was concerned about the Aristocracy and did not want people forming private armies In the early English courts, there were two separate court systems in common law. These were called what? - Courts of law and Courts of Equity The merchants were not allowed to go to these courts because the Peasants hated them due to the fact that they were making money on matching buyers and sellers..... - Courts of Equity The third evolved Law of Court - Law Merchant __________ essentially created business law - Merchants Why was law merchant so effective? - They did not have to worry about politics This law is very fair and stable - Merchant Law By about 1600, the courts of _______ and courts of ______ absorbed the merchant law so that it became a part of _______ _______. - Equity, Law, and Common Law What developed in merchant law? - Contracts By 1896 in the U.S. we had combined all law, equitable, and law merchant courts. The only exception to this is that these two states have Chancery courts. - Delaware and Tennessee This is judge made law and means to "stand on previous cases". - Stare Decisis What term means that each decision and interpretation becomes a legal precedent? - Stare Decisis Ex: Baron Acton and Baron Botley owned 1000 acres of land that was separated by a river. After a storm, the river shifted 100 acres to the right into Baron Botley's land so that it now only has 900 acres. They are all forced into the court by the King. All the judge knew was to be fair. Acton said he always owned everything west of the stream and this ended up being the decision that was made. 50 years later, a similar case comes up and the judge rules just how he did before. From here on out, all judges follow this. This is an example of what? - Stare Decisis