BLAW 243 - Exam 1 || QUESTIONS WITH 100%
VERIFIED ANSWERS!!
Law correct answers enforceable rules governing relationships among individuals and
between individuals and their society
United States rules consist of... correct answers written laws and court decisions created by
modern legislative and judicial bodies
Societies have different kinds of laws but all have in common: correct answers establish
rights, duties, and privileges that are consistent with values and beliefs of a society or its
ruling group
How does law interact with business? correct answers laws and government regulations affect
all business activities
Businesspersons need... correct answers critical thinking/legal reasoning skills to determine
the best courses of action (pressured to make ethical decisions)
Business people identify ___1___, avoid __2__, apply __3__, maintain __4__, and choose
the __5__. correct answers 1) legal issues
2) liability
3) laws
4) ethics
5) best course of action
Case Example 1.1: Facebook - Law and Business correct answers Mark Zuckerberg first
launched Facebook, others claimed he stole their ideas of a social networking site. They filed
a lawsuit against him alleging theft of intellectual property misrepresentations and violations
of partnership law. Facebook paid $65 million to settle those claims.
6 functional fields of business correct answers 1. Corporate management
2. Production and transportation
3. Marketing
4. Research and development
5. Accounting and finance
6. Human resource management
Primary Sources of Law (ESTABLISH LAW) correct answers - The US Constitution and the
constitutions of the various states
- Statutory Law: including laws passed by Congress, state legislatures, and local governing
bodies
- Regulations created by administrative agencies, such as the Food and Drug Administration
- Case Law and Common Law doctrines (court decisions)
Secondary Sources of Law (INTERPRET LAW) correct answers Books and articles that
summarize and clarify the primary sources of law
+Courts often use secondary sources for guidance in interpreting primary sources
,+Examples: legal encyclopedias, official comments to statutes, compilations
Four primary sources of law correct answers 1. Constitutional law
2. Statutory law
3. Administrative law
4. Case law and common law doctrines
Constitutional Law correct answers The government exercises its authority based on the
interpretation of constitutions - federal and state. (basis of all law in the US, supreme law)
+if a law violates a constitution, it is labeled as unconstitutional and is challenged and not
enforced
Statutory Law correct answers Law enacted by legislature at any level of government such as
federal, state, and local governments (includes ordinances)
Ordinances correct answers regulations passed by municipal or county governing units to
deal with matters not covered by federal or state law
+Examples: zoning ordinances, building and safety codes
Applicability of statutes correct answers -Federal statute applies to all states
-State statute only applies within state borders and vary state to state
-no federal statute or state statute can violate the US Constitution
Case Example 1.2: Immigration - Ordinances correct answers Tension between federal, state,
and local laws over sanctuary cities. Cities that limit their cooperation with federal
immigration authorities. Typically law enforcement are supposed to detain individuals for
deportation, but cities across the US have adopted local ordinances that don't follow this.
Police in these cities either don't report who they come in contact with or do not detain them.
Uniform Law (NOT A LAW UNTIL ADOPTED BY LEGISLATION) correct answers A
model law developed by the National Conference of Commissioners on Uniform State Laws
for the states to consider enacting into statute (unofficial legislative proposal)
+used to promote consistency among the 50 states
+each state has the option of adopting or rejecting
+state legislatures can adopt parts of a uniform law or rewrite a section
The Uniform Commercial Code correct answers UCC facilitates trading among states by
providing uniform in the US with flexible rules governing commercial transactions
+One of the most important statutes in business law (adopted by all 50 states)
,Administrative Law correct answers The body of law created by administrative agencies
(federal or state) in order to carry out their duties and responsibilities.
Administrative Process correct answers The procedure used by administrative agencies in the
administration of law.
Administrative Agency correct answers A federal, state, or local government agency created
and authorized by legislation to administer and enforce specific laws.
Question: Carol, owner of a land development corporation, has just learned that the office of
environmental protection is considering adopting more stringent testing measures to verify
the presence or absence of protected species on undeveloped land. Will carol have an
opportunity to view the proposed regulations and voice an opinion prior to official adoption
of the regulations? correct answers Yes
Functions of Administrative Law correct answers 1) Rulemaking
2) Enforcement and Investigation
3) Adjudication
Legislative rules correct answers An administrative agency rule that carries the same weight
as a congressionally enacted statute
Notice-and-Comment Rulemaking (legislative rules) correct answers 1) Notice of proposed
rulemaking - notice must be published in Federal Register
2) Comment period - time for interested parties to comment on the proposed rule
3) Final rule - once drafted, final rule is published in Federal Register
Case Example 1.4: Safety in the workplace - Legislative Rules correct answers Occupational
Safety and Health Act authorized the Occupational Safety and Health Administration to
develop and issue rules governing safety in the workplace. OSHA wants to form rules
regarding safety in the steel industry. If the agency fails to follow the rulemaking procedures
the resulting rule may not be binding
Interpretive rules correct answers Administrative agency rules that simply declare policies or
explain the agency's positions and do not establish any legal rights or obligations
Case Example 1.5: Equal Employment - Interpretive Rules correct answers The Equal
Employment Opportunity Commission periodically issues interpretive rules indicating how it
plans to interpret the provisions of certain statutes such as American Disabilities Act. These
informal rules provide enforcement guidelines for agency officials
Enforcement and Investigation correct answers -Agencies often enforce their own rules
-In conducting investigations regarding rule violations, agencies can have subpoena power
(request for individuals and organizations to hand over specified books, papers, electronic
records)
-And may take action against the accused
, -On sight inspections, most issues are resolved through negotiation but if not, the agency
issues a formal complaint and proceeds to adjudication
Adjudication correct answers A proceeding in which an *administrative law judge* hears and
decides on issues that arise when an administrative agency charges a person or a firm with an
agency violation
Administrative Law Judge correct answers One who presides over an administrative agency
hearing and has the power to administer oaths, take testimony, rule on questions of evidence,
and make determinations of fact.
+ALJ can either fine the party or prohibit them from carrying out specific activities
Federal Agencies correct answers Organizations that deal with and oversee the
implementation of laws in a specific area of interest for the federal government.
+exist within cabinet departments of executive branch
+President can appoint and remove officers
+Enabling Legislation: authorizes the creation of an administrative agency and specifies the
name, composition, purpose, and powers of the agency being created
+rules of law include interpretations of constitutional provision, statutes, and regulations
Case Example 1.3: FTC - Federal Agency correct answers The Federal Trade Commission
was created by the Federal Trade Commission Act. This act prohibits unfair trade practices
and describes procedures the agency must follow to charge a person or organization with
violations. Can investigate violations, obtain reports of business practices, publish findings.
Case Law and Common Law Doctrines correct answers The rules of law announced in court
decisions (no publication of common law until the early 14th century)
Case Law correct answers the doctrines and principles announced in cases, governs all areas
not covered by statutory law or administrative law and is part of our common law tradition
Common Law correct answers a body of legal rules that have been made by judges as they
issue rulings on cases (as opposed to rules and laws made by the legislature or in official
statutes).
+Example: rule made by a judge that states that people have the duty to read contracts
Precedent correct answers Court decision that stands as an example to be followed in future,
similar cases
Stare Decisis correct answers "Let the decision stand"; decisions are based on precedents
from previous cases (in similar cases, the same decision should be made)
+efficiency in courts - use previous cases as a guide
+aids legal stability - higher courts have law binding authority on lower courts (must follow
the precedent)
VERIFIED ANSWERS!!
Law correct answers enforceable rules governing relationships among individuals and
between individuals and their society
United States rules consist of... correct answers written laws and court decisions created by
modern legislative and judicial bodies
Societies have different kinds of laws but all have in common: correct answers establish
rights, duties, and privileges that are consistent with values and beliefs of a society or its
ruling group
How does law interact with business? correct answers laws and government regulations affect
all business activities
Businesspersons need... correct answers critical thinking/legal reasoning skills to determine
the best courses of action (pressured to make ethical decisions)
Business people identify ___1___, avoid __2__, apply __3__, maintain __4__, and choose
the __5__. correct answers 1) legal issues
2) liability
3) laws
4) ethics
5) best course of action
Case Example 1.1: Facebook - Law and Business correct answers Mark Zuckerberg first
launched Facebook, others claimed he stole their ideas of a social networking site. They filed
a lawsuit against him alleging theft of intellectual property misrepresentations and violations
of partnership law. Facebook paid $65 million to settle those claims.
6 functional fields of business correct answers 1. Corporate management
2. Production and transportation
3. Marketing
4. Research and development
5. Accounting and finance
6. Human resource management
Primary Sources of Law (ESTABLISH LAW) correct answers - The US Constitution and the
constitutions of the various states
- Statutory Law: including laws passed by Congress, state legislatures, and local governing
bodies
- Regulations created by administrative agencies, such as the Food and Drug Administration
- Case Law and Common Law doctrines (court decisions)
Secondary Sources of Law (INTERPRET LAW) correct answers Books and articles that
summarize and clarify the primary sources of law
+Courts often use secondary sources for guidance in interpreting primary sources
,+Examples: legal encyclopedias, official comments to statutes, compilations
Four primary sources of law correct answers 1. Constitutional law
2. Statutory law
3. Administrative law
4. Case law and common law doctrines
Constitutional Law correct answers The government exercises its authority based on the
interpretation of constitutions - federal and state. (basis of all law in the US, supreme law)
+if a law violates a constitution, it is labeled as unconstitutional and is challenged and not
enforced
Statutory Law correct answers Law enacted by legislature at any level of government such as
federal, state, and local governments (includes ordinances)
Ordinances correct answers regulations passed by municipal or county governing units to
deal with matters not covered by federal or state law
+Examples: zoning ordinances, building and safety codes
Applicability of statutes correct answers -Federal statute applies to all states
-State statute only applies within state borders and vary state to state
-no federal statute or state statute can violate the US Constitution
Case Example 1.2: Immigration - Ordinances correct answers Tension between federal, state,
and local laws over sanctuary cities. Cities that limit their cooperation with federal
immigration authorities. Typically law enforcement are supposed to detain individuals for
deportation, but cities across the US have adopted local ordinances that don't follow this.
Police in these cities either don't report who they come in contact with or do not detain them.
Uniform Law (NOT A LAW UNTIL ADOPTED BY LEGISLATION) correct answers A
model law developed by the National Conference of Commissioners on Uniform State Laws
for the states to consider enacting into statute (unofficial legislative proposal)
+used to promote consistency among the 50 states
+each state has the option of adopting or rejecting
+state legislatures can adopt parts of a uniform law or rewrite a section
The Uniform Commercial Code correct answers UCC facilitates trading among states by
providing uniform in the US with flexible rules governing commercial transactions
+One of the most important statutes in business law (adopted by all 50 states)
,Administrative Law correct answers The body of law created by administrative agencies
(federal or state) in order to carry out their duties and responsibilities.
Administrative Process correct answers The procedure used by administrative agencies in the
administration of law.
Administrative Agency correct answers A federal, state, or local government agency created
and authorized by legislation to administer and enforce specific laws.
Question: Carol, owner of a land development corporation, has just learned that the office of
environmental protection is considering adopting more stringent testing measures to verify
the presence or absence of protected species on undeveloped land. Will carol have an
opportunity to view the proposed regulations and voice an opinion prior to official adoption
of the regulations? correct answers Yes
Functions of Administrative Law correct answers 1) Rulemaking
2) Enforcement and Investigation
3) Adjudication
Legislative rules correct answers An administrative agency rule that carries the same weight
as a congressionally enacted statute
Notice-and-Comment Rulemaking (legislative rules) correct answers 1) Notice of proposed
rulemaking - notice must be published in Federal Register
2) Comment period - time for interested parties to comment on the proposed rule
3) Final rule - once drafted, final rule is published in Federal Register
Case Example 1.4: Safety in the workplace - Legislative Rules correct answers Occupational
Safety and Health Act authorized the Occupational Safety and Health Administration to
develop and issue rules governing safety in the workplace. OSHA wants to form rules
regarding safety in the steel industry. If the agency fails to follow the rulemaking procedures
the resulting rule may not be binding
Interpretive rules correct answers Administrative agency rules that simply declare policies or
explain the agency's positions and do not establish any legal rights or obligations
Case Example 1.5: Equal Employment - Interpretive Rules correct answers The Equal
Employment Opportunity Commission periodically issues interpretive rules indicating how it
plans to interpret the provisions of certain statutes such as American Disabilities Act. These
informal rules provide enforcement guidelines for agency officials
Enforcement and Investigation correct answers -Agencies often enforce their own rules
-In conducting investigations regarding rule violations, agencies can have subpoena power
(request for individuals and organizations to hand over specified books, papers, electronic
records)
-And may take action against the accused
, -On sight inspections, most issues are resolved through negotiation but if not, the agency
issues a formal complaint and proceeds to adjudication
Adjudication correct answers A proceeding in which an *administrative law judge* hears and
decides on issues that arise when an administrative agency charges a person or a firm with an
agency violation
Administrative Law Judge correct answers One who presides over an administrative agency
hearing and has the power to administer oaths, take testimony, rule on questions of evidence,
and make determinations of fact.
+ALJ can either fine the party or prohibit them from carrying out specific activities
Federal Agencies correct answers Organizations that deal with and oversee the
implementation of laws in a specific area of interest for the federal government.
+exist within cabinet departments of executive branch
+President can appoint and remove officers
+Enabling Legislation: authorizes the creation of an administrative agency and specifies the
name, composition, purpose, and powers of the agency being created
+rules of law include interpretations of constitutional provision, statutes, and regulations
Case Example 1.3: FTC - Federal Agency correct answers The Federal Trade Commission
was created by the Federal Trade Commission Act. This act prohibits unfair trade practices
and describes procedures the agency must follow to charge a person or organization with
violations. Can investigate violations, obtain reports of business practices, publish findings.
Case Law and Common Law Doctrines correct answers The rules of law announced in court
decisions (no publication of common law until the early 14th century)
Case Law correct answers the doctrines and principles announced in cases, governs all areas
not covered by statutory law or administrative law and is part of our common law tradition
Common Law correct answers a body of legal rules that have been made by judges as they
issue rulings on cases (as opposed to rules and laws made by the legislature or in official
statutes).
+Example: rule made by a judge that states that people have the duty to read contracts
Precedent correct answers Court decision that stands as an example to be followed in future,
similar cases
Stare Decisis correct answers "Let the decision stand"; decisions are based on precedents
from previous cases (in similar cases, the same decision should be made)
+efficiency in courts - use previous cases as a guide
+aids legal stability - higher courts have law binding authority on lower courts (must follow
the precedent)
