CLA1501 COMMERCIAL LAW IA TEST BANK
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VERIFIED SOLUTIONS 2026
◉What are the two main divisions of law? Answer: Private law and
public law.
◉What does private law govern? Answer: The rules that govern the
relationships between citizens in their dealings with each other.
◉What does public law involve? Answer: Rules regulating the
relationship between a state and its citizens.
◉What is commercial law also known as? Answer: Mercantile law.
◉Why is commercial law difficult to categorize as either public or
private law? Answer: It includes elements that overlap both categories,
such as contracts of sale (private) and tax law (public).
◉Name three examples of private law. Answer: Contracts of sale, lease
agreements, and companies.
, ◉What is an example of public law? Answer: Tax law or labour law.
◉What is international investment law (IIL)? Answer: A specialized
area of commercial law regulating relationships between citizens of
foreign states who invest in a host country.
◉Is international investment law considered private law? Answer: Yes,
it concerns investment law but also involves the relationship between a
state and private citizens, making it also relevant to public law.
◉What is a right in legal terms? Answer: Any claim or interest which a
legal subject has regarding a specific legal object, protected by law.
◉What is a legal subject? Answer: Any person or entity that may
acquire and exercise rights and duties and is subject to the law.
◉What are natural persons? Answer: Humans of all ages who have
natural legal personality acquired at birth.
◉What are juristic persons? Answer: Entities such as companies,
universities, municipalities, and the state that hold rights and duties but
do not have natural personality.
COMPREHENSIVE EXAM PREP WITH 100%
VERIFIED SOLUTIONS 2026
◉What are the two main divisions of law? Answer: Private law and
public law.
◉What does private law govern? Answer: The rules that govern the
relationships between citizens in their dealings with each other.
◉What does public law involve? Answer: Rules regulating the
relationship between a state and its citizens.
◉What is commercial law also known as? Answer: Mercantile law.
◉Why is commercial law difficult to categorize as either public or
private law? Answer: It includes elements that overlap both categories,
such as contracts of sale (private) and tax law (public).
◉Name three examples of private law. Answer: Contracts of sale, lease
agreements, and companies.
, ◉What is an example of public law? Answer: Tax law or labour law.
◉What is international investment law (IIL)? Answer: A specialized
area of commercial law regulating relationships between citizens of
foreign states who invest in a host country.
◉Is international investment law considered private law? Answer: Yes,
it concerns investment law but also involves the relationship between a
state and private citizens, making it also relevant to public law.
◉What is a right in legal terms? Answer: Any claim or interest which a
legal subject has regarding a specific legal object, protected by law.
◉What is a legal subject? Answer: Any person or entity that may
acquire and exercise rights and duties and is subject to the law.
◉What are natural persons? Answer: Humans of all ages who have
natural legal personality acquired at birth.
◉What are juristic persons? Answer: Entities such as companies,
universities, municipalities, and the state that hold rights and duties but
do not have natural personality.
