,Dynamic Business Law: The Essentials, 4e (Kubasek)
Chapter 1 An Introduction to the Fundamentals of Dynamic Business Law
1) Business law consists of the enforceable rules of conduct that govern commercial
relationships.
Answer: TRUE
Explanation: Business law consists of the enforceable rules of conduct that govern commercial
relationships. In other words, buyers and sellers interact in market exchanges within the rules
that indicate the boundaries of legal business behavior. Constitutions, legislatures, regulatory
bodies, and courts spell out what market participants may or may not legally do.
Difficulty: 2 Medium
Topic: An Introduction to the Fundamentals of Dynamic Business Law
Learning Objective: 01-01 What is business law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Many market transactions occur without legal guidelines.
Answer: FALSE
Explanation: There is simply no market transaction that occurs outside legal guidelines.
Difficulty: 2 Medium
Topic: An Introduction to the Fundamentals of Dynamic Business Law
Learning Objective: 01-01 What is business law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Law is rules of conduct in any organized society that are enforced by the governing authority
of the community.
Answer: TRUE
Explanation: Law is rules of conduct in any organized society that are enforced by the governing
authority of the community.
Difficulty: 1 Easy
Topic: Law and Its Purposes
Learning Objective: 01-03 What are the purposes of law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright © 2019 McGraw-Hill
,4) The respect we give to the law as a source of authority is in part a recognition of the fact that
in the absence of law, we would rely solely on the goodwill and dependability of one another.
Answer: TRUE
Explanation: The respect we give to the law as a source of authority is in part a recognition of
the fact that in the absence of law, we would rely solely on the goodwill and dependability of one
another. Most of us greatly prefer the law to that option.
Difficulty: 2 Medium
Topic: Law and Its Purposes
Learning Objective: 01-03 What are the purposes of law?
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) Crimes are prosecuted not by individuals but by the state or federal government.
Answer: TRUE
Explanation: Criminal law applies to situations in which someone commits an act against the
public as a unit. These crimes are prosecuted not by individuals but by the state or federal
government.
Difficulty: 1 Easy
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Private law involves disputes between private individuals or groups and their government.
Answer: FALSE
Explanation: Public law involves disputes between private individuals or groups and their
government.
Difficulty: 2 Medium
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright © 2019 McGraw-Hill
, 7) If a pet store dumps waste from its business behind its building, it is a violation of a public
law.
Answer: TRUE
Explanation: If a business violates a law, the resulting dispute focuses on public law. Public law
involves disputes between private individuals or groups and their government.
Difficulty: 3 Hard
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) The U.S. Constitution is the foundation for approximately one-half of all laws in the United
States.
Answer: FALSE
Explanation: The U.S. Constitution is the supreme law of the land; the foundation for all laws in
the United States.
Difficulty: 2 Medium
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The legislative branch of government creates statutory law.
Answer: TRUE
Explanation: Legislative actions, called statutes, are an important source of law. The assortment
of rules and regulations put forth by legislatures is statutory law.
Difficulty: 2 Medium
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) An alternative name for case law is statutory law.
Answer: FALSE
Explanation: An alternative name for case law is common law.
Difficulty: 1 Easy
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Remember
AACSB: Analytical Thinking
3
Copyright © 2019 McGraw-Hill
Chapter 1 An Introduction to the Fundamentals of Dynamic Business Law
1) Business law consists of the enforceable rules of conduct that govern commercial
relationships.
Answer: TRUE
Explanation: Business law consists of the enforceable rules of conduct that govern commercial
relationships. In other words, buyers and sellers interact in market exchanges within the rules
that indicate the boundaries of legal business behavior. Constitutions, legislatures, regulatory
bodies, and courts spell out what market participants may or may not legally do.
Difficulty: 2 Medium
Topic: An Introduction to the Fundamentals of Dynamic Business Law
Learning Objective: 01-01 What is business law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Many market transactions occur without legal guidelines.
Answer: FALSE
Explanation: There is simply no market transaction that occurs outside legal guidelines.
Difficulty: 2 Medium
Topic: An Introduction to the Fundamentals of Dynamic Business Law
Learning Objective: 01-01 What is business law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Law is rules of conduct in any organized society that are enforced by the governing authority
of the community.
Answer: TRUE
Explanation: Law is rules of conduct in any organized society that are enforced by the governing
authority of the community.
Difficulty: 1 Easy
Topic: Law and Its Purposes
Learning Objective: 01-03 What are the purposes of law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright © 2019 McGraw-Hill
,4) The respect we give to the law as a source of authority is in part a recognition of the fact that
in the absence of law, we would rely solely on the goodwill and dependability of one another.
Answer: TRUE
Explanation: The respect we give to the law as a source of authority is in part a recognition of
the fact that in the absence of law, we would rely solely on the goodwill and dependability of one
another. Most of us greatly prefer the law to that option.
Difficulty: 2 Medium
Topic: Law and Its Purposes
Learning Objective: 01-03 What are the purposes of law?
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) Crimes are prosecuted not by individuals but by the state or federal government.
Answer: TRUE
Explanation: Criminal law applies to situations in which someone commits an act against the
public as a unit. These crimes are prosecuted not by individuals but by the state or federal
government.
Difficulty: 1 Easy
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Private law involves disputes between private individuals or groups and their government.
Answer: FALSE
Explanation: Public law involves disputes between private individuals or groups and their
government.
Difficulty: 2 Medium
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright © 2019 McGraw-Hill
, 7) If a pet store dumps waste from its business behind its building, it is a violation of a public
law.
Answer: TRUE
Explanation: If a business violates a law, the resulting dispute focuses on public law. Public law
involves disputes between private individuals or groups and their government.
Difficulty: 3 Hard
Topic: Classification of the Law
Learning Objective: 01-04 What are alternative ways to classify the law?
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) The U.S. Constitution is the foundation for approximately one-half of all laws in the United
States.
Answer: FALSE
Explanation: The U.S. Constitution is the supreme law of the land; the foundation for all laws in
the United States.
Difficulty: 2 Medium
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The legislative branch of government creates statutory law.
Answer: TRUE
Explanation: Legislative actions, called statutes, are an important source of law. The assortment
of rules and regulations put forth by legislatures is statutory law.
Difficulty: 2 Medium
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) An alternative name for case law is statutory law.
Answer: FALSE
Explanation: An alternative name for case law is common law.
Difficulty: 1 Easy
Topic: Sources of Business Law
Learning Objective: 01-05 What are the sources of the law?
Bloom's: Remember
AACSB: Analytical Thinking
3
Copyright © 2019 McGraw-Hill
