Business Law Exam #1 – 2026 – Study Guide and Practice
Material
why do legal systems evolve? - ANS✔✔ to encourage and promote stability and order
define law - ANS✔✔ a body of enforceable rules which govern relationships among and
between individuals and society
define substantive law - ANS✔✔ create rights, duties, and privileges consistent with public
policy at the time of enactment
examples of substantive law - ANS✔✔ legislative acts and judicial pronouncements
define procedural laws - ANS✔✔ allow institutions to control their internal functions
examples of public law - ANS✔✔ Constitutional law, Administrative law, and Criminal law
define public law - ANS✔✔ involves cases or controversies involving a legislative body as a party
or as the administrator of a legal process
examples of private law - ANS✔✔ Contracts, Torts, Property
define private law - ANS✔✔ the injured party seeks to recover for an injury from the party
causing the injury
define common law - ANS✔✔ came from England. rules and analytical methods used by judges
became law
, define civil law - ANS✔✔ civil law countries have codified their laws
US and State Constitutions - ANS✔✔ the basis of the legal system. they represent supreme law
other legislative acts must... - ANS✔✔ be consistent with the Constitution or be rendered void
constitutions prevail over statutes - ANS✔✔ statutes prevail over judicial decisions
vertical division of powers - ANS✔✔ the federal government has limited authority to interfere in
state matters
horizontal division of powers - ANS✔✔ the branches of government have separate functions
and may exercise checks and balances over the other branches
define judicial review - ANS✔✔ the power of the judiciary to review the actions of the other
branches and to set them aside if in violation of the Constitution
What does legislation include? - ANS✔✔ acts and orders of legislative bodies: Congress, state
legislatures, city councils
criminal and taxing laws are... - ANS✔✔ narrowly construed
remedial statues are... - ANS✔✔ broadly construed
uniform state laws - ANS✔✔ enacted by the federal government or proposed by the NCCUSL
Material
why do legal systems evolve? - ANS✔✔ to encourage and promote stability and order
define law - ANS✔✔ a body of enforceable rules which govern relationships among and
between individuals and society
define substantive law - ANS✔✔ create rights, duties, and privileges consistent with public
policy at the time of enactment
examples of substantive law - ANS✔✔ legislative acts and judicial pronouncements
define procedural laws - ANS✔✔ allow institutions to control their internal functions
examples of public law - ANS✔✔ Constitutional law, Administrative law, and Criminal law
define public law - ANS✔✔ involves cases or controversies involving a legislative body as a party
or as the administrator of a legal process
examples of private law - ANS✔✔ Contracts, Torts, Property
define private law - ANS✔✔ the injured party seeks to recover for an injury from the party
causing the injury
define common law - ANS✔✔ came from England. rules and analytical methods used by judges
became law
, define civil law - ANS✔✔ civil law countries have codified their laws
US and State Constitutions - ANS✔✔ the basis of the legal system. they represent supreme law
other legislative acts must... - ANS✔✔ be consistent with the Constitution or be rendered void
constitutions prevail over statutes - ANS✔✔ statutes prevail over judicial decisions
vertical division of powers - ANS✔✔ the federal government has limited authority to interfere in
state matters
horizontal division of powers - ANS✔✔ the branches of government have separate functions
and may exercise checks and balances over the other branches
define judicial review - ANS✔✔ the power of the judiciary to review the actions of the other
branches and to set them aside if in violation of the Constitution
What does legislation include? - ANS✔✔ acts and orders of legislative bodies: Congress, state
legislatures, city councils
criminal and taxing laws are... - ANS✔✔ narrowly construed
remedial statues are... - ANS✔✔ broadly construed
uniform state laws - ANS✔✔ enacted by the federal government or proposed by the NCCUSL
