Business Law Exam 1 – Chapters 1–19 – 2026 – Sample
Questions and Study Guide
(T/F) 1
Common law is a type of law that only applies to "common" transactions involving less than
$100. - correct answer ✔✔ False
(T/F) Law consists of suggestions and policies that society uses to advise individuals in their
relationships. - correct answer ✔✔ False
(T/F)The right to privacy against an unreasonable search of one's home is guaranteed by the
Fourth Amendment to the United States Constitution. - correct answer ✔✔ True
(T/F)Generally, a right can exist without a duty. - correct answer ✔✔ False
(T/F) All of our laws are found in the United States Constitution. - correct answer ✔✔ False
(T/F) The EEOC is an example of a law drafted by the National Conference of Commissioners on
Uniform State Laws (NCCUSL). - correct answer ✔✔ False
A ________ is a decision by a court that becomes the law in future cases that involve the same
legal problem.
a. warrant
b. regulation
c. statute
d. precedent - correct answer ✔✔ (d) Precedent
,The Uniform Commercial Code was written by:
a. the Congress.
b. the President.
c. a national association of legal experts.
d. the Supreme Court. - correct answer ✔✔ (c) a national association of legal experts.
(The U.C.C. was drafted by the National Conference of Commissioners on Uniform State Laws,
composed of legal experts from every state. The UCC has been adopted, in whole or in part, by
almost all the states.)
Courts have ruled that an employee's e-mail created using their employer's computer is:
a. not private.
b. private under all circumstances.
c. private only if the employee so designates at the beginning of the message.
d. not private unless the employer is being sued. - correct answer ✔✔ (a) not private
(Generally, an employee has no expectation of privacy when using an employer's computer or
equipment)
________ law creates, defines, and regulates right and liabilities.
a. Substantive
b. Private
c. Case
d. Statutory - correct answer ✔✔ (a) Substantive (Substantive law creates, defines, and
regulates rights and liabilities.)
(T/F)Interrogatories are written questions asked by a lawyer during discovery. - correct answer
✔✔ True
, (T/F) A mistrial occurs when the jury awards the plaintiffs a verdict with no damages. - correct
answer ✔✔ False
(T/F) Jurisdiction refers to the proper place for a trial. - correct answer ✔✔ False
(T/F)A writ of certiorari is issued when the Supreme Court takes a case. - correct answer ✔✔
False
(A writ of certiorari is an order by the U.S. Supreme Court granting a right of review by the court
of a lower court decision)
(T/F)Arbitration is the settlement of a dispute through the use of a messenger who carries to
each side of the dispute the issues and offers in the case. - correct answer ✔✔ False, this would
be "Mediation"
________ is the power given to courts to hear certain types of cases.
a. Jurisdiction
b. Mediation
c. Arbitration
d. Summary judgment - correct answer ✔✔ (a) Jurisdiction
(Jurisdiction is the power of a court to decide a case.)
The ________ initiates a lawsuit by filing a(n) ________.
a. defendant, answer
b. movant, motion to proceed
c. plaintiff, complaint
d. none of the above. - correct answer ✔✔ (c) plaintiff, complaint
(The plaintiff initiates the lawsuit by filing a complaint.)
Questions and Study Guide
(T/F) 1
Common law is a type of law that only applies to "common" transactions involving less than
$100. - correct answer ✔✔ False
(T/F) Law consists of suggestions and policies that society uses to advise individuals in their
relationships. - correct answer ✔✔ False
(T/F)The right to privacy against an unreasonable search of one's home is guaranteed by the
Fourth Amendment to the United States Constitution. - correct answer ✔✔ True
(T/F)Generally, a right can exist without a duty. - correct answer ✔✔ False
(T/F) All of our laws are found in the United States Constitution. - correct answer ✔✔ False
(T/F) The EEOC is an example of a law drafted by the National Conference of Commissioners on
Uniform State Laws (NCCUSL). - correct answer ✔✔ False
A ________ is a decision by a court that becomes the law in future cases that involve the same
legal problem.
a. warrant
b. regulation
c. statute
d. precedent - correct answer ✔✔ (d) Precedent
,The Uniform Commercial Code was written by:
a. the Congress.
b. the President.
c. a national association of legal experts.
d. the Supreme Court. - correct answer ✔✔ (c) a national association of legal experts.
(The U.C.C. was drafted by the National Conference of Commissioners on Uniform State Laws,
composed of legal experts from every state. The UCC has been adopted, in whole or in part, by
almost all the states.)
Courts have ruled that an employee's e-mail created using their employer's computer is:
a. not private.
b. private under all circumstances.
c. private only if the employee so designates at the beginning of the message.
d. not private unless the employer is being sued. - correct answer ✔✔ (a) not private
(Generally, an employee has no expectation of privacy when using an employer's computer or
equipment)
________ law creates, defines, and regulates right and liabilities.
a. Substantive
b. Private
c. Case
d. Statutory - correct answer ✔✔ (a) Substantive (Substantive law creates, defines, and
regulates rights and liabilities.)
(T/F)Interrogatories are written questions asked by a lawyer during discovery. - correct answer
✔✔ True
, (T/F) A mistrial occurs when the jury awards the plaintiffs a verdict with no damages. - correct
answer ✔✔ False
(T/F) Jurisdiction refers to the proper place for a trial. - correct answer ✔✔ False
(T/F)A writ of certiorari is issued when the Supreme Court takes a case. - correct answer ✔✔
False
(A writ of certiorari is an order by the U.S. Supreme Court granting a right of review by the court
of a lower court decision)
(T/F)Arbitration is the settlement of a dispute through the use of a messenger who carries to
each side of the dispute the issues and offers in the case. - correct answer ✔✔ False, this would
be "Mediation"
________ is the power given to courts to hear certain types of cases.
a. Jurisdiction
b. Mediation
c. Arbitration
d. Summary judgment - correct answer ✔✔ (a) Jurisdiction
(Jurisdiction is the power of a court to decide a case.)
The ________ initiates a lawsuit by filing a(n) ________.
a. defendant, answer
b. movant, motion to proceed
c. plaintiff, complaint
d. none of the above. - correct answer ✔✔ (c) plaintiff, complaint
(The plaintiff initiates the lawsuit by filing a complaint.)
