Test Bank for
The Legal Environment of Business, 14th Edition by Roger E. Meiners
Chapter 1-22
Chapter 1
Multiple Choice
1. Which of the following is an accepted definition of law?
a. a body of rules of action or conduct prescribed by controlling authority and having binding legal force
b. a body of rules of action or conduct prescribed by society but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by international society
d. a body of rules of action or conduct prescribed by the Supreme Court and having binding legal force
ANSWER: a
FEEDBACK: a. Correct. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
b. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
c. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
d. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's; Analyze
DATE CREATED: 8/23/2021 9:10 AM
DATE MODIFIED: 9/11/2021 10:01 AM
2. Enforcement of law in a society is important because it:
a. provides some predictability and uniformity to the boundaries of acceptable conduct.
b. allows a government to maintain power over the people.
c. leads to higher literacy rates.
d. prevents large disparities in income across the various levels of a society.
ANSWER: a
FEEDBACK: a. Correct. Enforcement of the rules provides greater predictability and uniformity to
the boundaries of acceptable conduct in a society.
b. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
c. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
d. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
Copyright Cengage Learning. Powered by Cognero. Page 1
,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/8/2021 2:16 PM
DATE MODIFIED: 9/11/2021 10:01 AM
3. Which of the following statements is true?
a. Formal law is respected in all nations
b. The sale of marijuana is illegal worldwide
c. The sale of alcoholic beverages is legal worldwide
d. Law imposes structure on society by limiting activities that hurt the "public interest"
ANSWER: d
FEEDBACK: a. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
b. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
c. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
d. Correct. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
4. Which of the following are reflected in some aspect of law?
a. Honesty and integrity are reflected by the enforceability of contracts.
b. Respect for other people and their property is reflected in tort and property law.
c. Some measures of acceptable behavior are reflected in criminal laws.
d. Honesty and integrity are reflected by the enforceability of contracts, respect for other people and their
property is reflected in tort and property law, and some measures of acceptable behavior are reflected in
criminal laws.
ANSWER: d
FEEDBACK: a. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
Copyright Cengage Learning. Powered by Cognero. Page 2
, b. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
c. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
d. Correct. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
5. Changes in laws regarding the consumption of alcohol or use of marijuana indicate that:
a. the legal system can bring about changes in "acceptable" behavior.
b. the legal system does not change with time.
c. the legal system is subject to the whims of Supreme Court Judges.
d. the legal system is subject to the will of the general public.
ANSWER: a
FEEDBACK: a. Correct. The legal system provides a way to bring about changes in ―acceptable‖
behavior.
b. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
c. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
d. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
6. One example of the law working to effect social change in the U.S. is in the area of:
Copyright Cengage Learning. Powered by Cognero. Page 3
, a. commercial paper.
b. negotiable instruments.
c. easements.
d. racial discrimination.
ANSWER: d
FEEDBACK: a. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
b. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
c. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
d. Correct. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
7. The United States Constitution:
a. is the oldest written constitution in force in a major nation.
b. created the four branches of government.
c. established the common law.
d. created the 50 states.
ANSWER: a
FEEDBACK: a. Correct. The U.S. Constitution is the oldest written constitution in force in the
world.
b. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
c. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
d. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international governing bodies that
Copyright Cengage Learning. Powered by Cognero. Page 4
The Legal Environment of Business, 14th Edition by Roger E. Meiners
Chapter 1-22
Chapter 1
Multiple Choice
1. Which of the following is an accepted definition of law?
a. a body of rules of action or conduct prescribed by controlling authority and having binding legal force
b. a body of rules of action or conduct prescribed by society but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by international society
d. a body of rules of action or conduct prescribed by the Supreme Court and having binding legal force
ANSWER: a
FEEDBACK: a. Correct. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
b. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
c. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
d. Incorrect. Law, in its generic sense, is a body of rules of action or conduct
prescribed by the controlling authority and having binding legal force.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's; Analyze
DATE CREATED: 8/23/2021 9:10 AM
DATE MODIFIED: 9/11/2021 10:01 AM
2. Enforcement of law in a society is important because it:
a. provides some predictability and uniformity to the boundaries of acceptable conduct.
b. allows a government to maintain power over the people.
c. leads to higher literacy rates.
d. prevents large disparities in income across the various levels of a society.
ANSWER: a
FEEDBACK: a. Correct. Enforcement of the rules provides greater predictability and uniformity to
the boundaries of acceptable conduct in a society.
b. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
c. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
d. Incorrect. Enforcement of the rules provides greater predictability and uniformity
to the boundaries of acceptable conduct in a society.
Copyright Cengage Learning. Powered by Cognero. Page 1
,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/8/2021 2:16 PM
DATE MODIFIED: 9/11/2021 10:01 AM
3. Which of the following statements is true?
a. Formal law is respected in all nations
b. The sale of marijuana is illegal worldwide
c. The sale of alcoholic beverages is legal worldwide
d. Law imposes structure on society by limiting activities that hurt the "public interest"
ANSWER: d
FEEDBACK: a. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
b. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
c. Incorrect. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
d. Correct. The legal system helps to define acceptable social behavior. The law
limits activities that damage the public interest.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
4. Which of the following are reflected in some aspect of law?
a. Honesty and integrity are reflected by the enforceability of contracts.
b. Respect for other people and their property is reflected in tort and property law.
c. Some measures of acceptable behavior are reflected in criminal laws.
d. Honesty and integrity are reflected by the enforceability of contracts, respect for other people and their
property is reflected in tort and property law, and some measures of acceptable behavior are reflected in
criminal laws.
ANSWER: d
FEEDBACK: a. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
Copyright Cengage Learning. Powered by Cognero. Page 2
, b. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
c. Incorrect. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
d. Correct. Integrity is reflected in the enforceability of contracts, respect for other
people and their property is reflected in tort and property law, and some
measures of acceptable behavior are reflected in criminal laws.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
5. Changes in laws regarding the consumption of alcohol or use of marijuana indicate that:
a. the legal system can bring about changes in "acceptable" behavior.
b. the legal system does not change with time.
c. the legal system is subject to the whims of Supreme Court Judges.
d. the legal system is subject to the will of the general public.
ANSWER: a
FEEDBACK: a. Correct. The legal system provides a way to bring about changes in ―acceptable‖
behavior.
b. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
c. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
d. Incorrect. The legal system provides a way to bring about changes in
―acceptable‖ behavior.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
6. One example of the law working to effect social change in the U.S. is in the area of:
Copyright Cengage Learning. Powered by Cognero. Page 3
, a. commercial paper.
b. negotiable instruments.
c. easements.
d. racial discrimination.
ANSWER: d
FEEDBACK: a. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
b. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
c. Incorrect. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
d. Correct. In the past, some states required businesses to discriminate against
Black employees and customers. After a long struggle, those laws gradually
disappeared.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
7. The United States Constitution:
a. is the oldest written constitution in force in a major nation.
b. created the four branches of government.
c. established the common law.
d. created the 50 states.
ANSWER: a
FEEDBACK: a. Correct. The U.S. Constitution is the oldest written constitution in force in the
world.
b. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
c. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
d. Incorrect. The U.S. Constitution is the oldest written constitution in force in the
world.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international governing bodies that
Copyright Cengage Learning. Powered by Cognero. Page 4
