LEB 323 EXAM 1 QUESTIONS AND
ANSWERS 100% PASS
Chapter 1
Necessity of the Law - ANS Economic - facilitates order and economic exchange, biggest
advantage developed economies have over developing economies is a functioning legal system,
need laws to protect makers of wealth
Social - enables people to live together in groups, creates trust and safety
4 Requisites of a legal system - ANS 1. Certainty - legal principles will remain stable for the
foreseeable future, well established principles will not be abruptly overturned
2. Flexibility - must be able to adapt to technological advancements and changing points of
view(creation of planes and the internet)
3. Knowability - obedience requires knowledge of the rules or reasonable means of acquiring it,
access to lawyers and the actual law
4. Reasonableness - rules must appear reasonable to the great majority of people if they are to
be obeyed for long (prohibition)
How to classify the law - ANS Subject matter - Constitutional, contract, corporate, criminal,
etc.
State vs. federal - most of our law is state law, lots of parallels across states
Common law vs. Statutory
Civil vs. Criminal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Common law - ANS all the rules and principles currently existing in any state, regardless of
their historical origin , that result from judicial decisions in those areas of law where legislatures
have not enacted statutes establishing definitive rules, case law/judge made law
Contracts, torts, and agency are dominated by common law rules
Statutory law - ANS state and federal statutes in effect at a given time, rules have been
adopted by legislative bodies rather than by the courts, federal constitutions, city ordinances,
treaties, etc., direct interpretation of the language
Corporation law, criminal law, and tax law are dominated by statutory rules
Civil law - ANS all those laws that spell out the rights and duties existing among individuals,
business firms, and government agencies, contract law, tort law, and sales law fall here, plaintiff
seeks to enforce private obligations or duties against the defendant, seeks damages or
injunction, must be proved by a preponderance of the evidence (more likely than not)
Criminal law - ANS statutes by which a state or federal government prohibits specified kinds
of conduct and which provide for imposition of fines or imprisonment, always brought by the
government, must be proved beyond reasonable doubt
Law and business startegy - ANS must be taken into account when making decisions
Avoidance - don't understand the law so stay out of the laws reach
Comply - understand the law, follow it as a necessary restraint to their actions
Prevention - deep level of functional and area specific knowledge, provide training to avoid risk
Value - fully understand big picture environment, use the law to produce value (licensing
revenue)
Transformation - sophisticated and broad knowledge of legal and regulatory mater that cut
across domains, take advantage of opportunities to transform the business
Law and Justice - ANS Most legal rules are just (fair and reasonable), never complete
agreement on what is just, not always possible to provide an adequate remedy to the good
person
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Law and ethics - ANS legal standards and ethical standards parallel one another more closely
than many people believe, ethical standards are sometimes higher than those imposed by the
law, sometimes the opposite is true, many laws are based on statutory and practical
requirements that have little or no relationship to ethical considerations, ethical beliefs
influence legal policy
Chapter 4 - ANS Chapter 4
Stare decisis - ANS inclination of the courts to generally follow precedent and stand by
existing decisions
Mandatory authority - ANS authority originating in courts above the trial court in the
appellate chain, the judge must follow it
Persuasive authority - ANS authority originating in trial courts of other states, judge may
choose to follow the ruling
Common Law - ANS Origin - created by the judicial branch through decisions in cases decided
by the courts
Form - Diffuse, rules found in fact patterns and decisions of prior cases
Scope - limited to actual cases
Effect of social and political forces - indirect, judges somewhat insulated from political pressures
Statutory Law - ANS Origin - created by the legislative branch through formal lawmaking
process
Form - official codified text
Scope - broad, subject only to constitutional limitations
Effect of social and political forces - direct, through the political process
Rational of statutory law - ANS 1. adopt measures having to do with the structure and day to
day operation of the government
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS 100% PASS
Chapter 1
Necessity of the Law - ANS Economic - facilitates order and economic exchange, biggest
advantage developed economies have over developing economies is a functioning legal system,
need laws to protect makers of wealth
Social - enables people to live together in groups, creates trust and safety
4 Requisites of a legal system - ANS 1. Certainty - legal principles will remain stable for the
foreseeable future, well established principles will not be abruptly overturned
2. Flexibility - must be able to adapt to technological advancements and changing points of
view(creation of planes and the internet)
3. Knowability - obedience requires knowledge of the rules or reasonable means of acquiring it,
access to lawyers and the actual law
4. Reasonableness - rules must appear reasonable to the great majority of people if they are to
be obeyed for long (prohibition)
How to classify the law - ANS Subject matter - Constitutional, contract, corporate, criminal,
etc.
State vs. federal - most of our law is state law, lots of parallels across states
Common law vs. Statutory
Civil vs. Criminal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Common law - ANS all the rules and principles currently existing in any state, regardless of
their historical origin , that result from judicial decisions in those areas of law where legislatures
have not enacted statutes establishing definitive rules, case law/judge made law
Contracts, torts, and agency are dominated by common law rules
Statutory law - ANS state and federal statutes in effect at a given time, rules have been
adopted by legislative bodies rather than by the courts, federal constitutions, city ordinances,
treaties, etc., direct interpretation of the language
Corporation law, criminal law, and tax law are dominated by statutory rules
Civil law - ANS all those laws that spell out the rights and duties existing among individuals,
business firms, and government agencies, contract law, tort law, and sales law fall here, plaintiff
seeks to enforce private obligations or duties against the defendant, seeks damages or
injunction, must be proved by a preponderance of the evidence (more likely than not)
Criminal law - ANS statutes by which a state or federal government prohibits specified kinds
of conduct and which provide for imposition of fines or imprisonment, always brought by the
government, must be proved beyond reasonable doubt
Law and business startegy - ANS must be taken into account when making decisions
Avoidance - don't understand the law so stay out of the laws reach
Comply - understand the law, follow it as a necessary restraint to their actions
Prevention - deep level of functional and area specific knowledge, provide training to avoid risk
Value - fully understand big picture environment, use the law to produce value (licensing
revenue)
Transformation - sophisticated and broad knowledge of legal and regulatory mater that cut
across domains, take advantage of opportunities to transform the business
Law and Justice - ANS Most legal rules are just (fair and reasonable), never complete
agreement on what is just, not always possible to provide an adequate remedy to the good
person
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Law and ethics - ANS legal standards and ethical standards parallel one another more closely
than many people believe, ethical standards are sometimes higher than those imposed by the
law, sometimes the opposite is true, many laws are based on statutory and practical
requirements that have little or no relationship to ethical considerations, ethical beliefs
influence legal policy
Chapter 4 - ANS Chapter 4
Stare decisis - ANS inclination of the courts to generally follow precedent and stand by
existing decisions
Mandatory authority - ANS authority originating in courts above the trial court in the
appellate chain, the judge must follow it
Persuasive authority - ANS authority originating in trial courts of other states, judge may
choose to follow the ruling
Common Law - ANS Origin - created by the judicial branch through decisions in cases decided
by the courts
Form - Diffuse, rules found in fact patterns and decisions of prior cases
Scope - limited to actual cases
Effect of social and political forces - indirect, judges somewhat insulated from political pressures
Statutory Law - ANS Origin - created by the legislative branch through formal lawmaking
process
Form - official codified text
Scope - broad, subject only to constitutional limitations
Effect of social and political forces - direct, through the political process
Rational of statutory law - ANS 1. adopt measures having to do with the structure and day to
day operation of the government
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
