Business Law Test 1 – Business Law – 2026 – Practice
Questions and Study Guide
Three branches of Government - correct answer ✔✔ Legislative, Executive Judicial
Legislative Branch - correct answer ✔✔ the branch of the United States government that has
the power of legislating, The legislative branch creates the laws. There are two houses in it. One
is the Senators. There are two senators per state. There is also a House of representatives. The
amount of people per state depends on how big the population is.
Executive Branch - correct answer ✔✔ the division of the federal government that includes the
president and the administrative departments; enforces the nation's laws
Judicial Branch - correct answer ✔✔ the branch of the United States government responsible
for the administration of justice
Parties to a lawsuit - correct answer ✔✔ Plaintiff/petitioner, Defendant/Respondent, appellant,
appellee
Appelle - correct answer ✔✔ a party against whom a case is appealed from a lower court to a
higher court
Appellant - correct answer ✔✔ The party who appeals a decision from a lower to a higher
court.
Schools of legal thought - correct answer ✔✔ Natural Law, Positivist Law, Historical School, Legal
Realism, Sociological School
, Natural Law - correct answer ✔✔ a rule or body of rules of conduct inherent in human nature
and essential to or binding upon human society
Positivist Law - correct answer ✔✔ Those who believe that law reflects society and the way that
people want society to operate. Internal formalization of society's standards. Rights different
from society to society.
Historical Law - correct answer ✔✔ Emphasizes the evolutionary process of law by
concentrating on the origin and history of the legal system
Legal Realism - correct answer ✔✔ Based on the idea that law is just one of many institutions in
society and that it is shaped by social forces and needs
Sociological School of Jurisprudence - correct answer ✔✔ A school of legal thought that views
the law as a tool for promoting justice in society.
Preemption - correct answer ✔✔ The right of a federal law or regulation to preclude
enforcement of a state or local law or regulation.
Common Law - correct answer ✔✔ Judge-made law that originated in England from decisions
shaped according to prevailing custom. Decisions were applied to similar situations and
gradually became common to the nation.
Precedent - correct answer ✔✔ a principle or rule established in a legal case that a court or
other judicial body may apply when deciding subsequent cases with similar issues or facts cases
with similar issues or facts
Stare Decisis - correct answer ✔✔ An informal rule of judicial decision making in which judges
try to follow precedent in deciding cases. That is, a court case today should be settled in
accordance with prior decisions on similar cases.
Questions and Study Guide
Three branches of Government - correct answer ✔✔ Legislative, Executive Judicial
Legislative Branch - correct answer ✔✔ the branch of the United States government that has
the power of legislating, The legislative branch creates the laws. There are two houses in it. One
is the Senators. There are two senators per state. There is also a House of representatives. The
amount of people per state depends on how big the population is.
Executive Branch - correct answer ✔✔ the division of the federal government that includes the
president and the administrative departments; enforces the nation's laws
Judicial Branch - correct answer ✔✔ the branch of the United States government responsible
for the administration of justice
Parties to a lawsuit - correct answer ✔✔ Plaintiff/petitioner, Defendant/Respondent, appellant,
appellee
Appelle - correct answer ✔✔ a party against whom a case is appealed from a lower court to a
higher court
Appellant - correct answer ✔✔ The party who appeals a decision from a lower to a higher
court.
Schools of legal thought - correct answer ✔✔ Natural Law, Positivist Law, Historical School, Legal
Realism, Sociological School
, Natural Law - correct answer ✔✔ a rule or body of rules of conduct inherent in human nature
and essential to or binding upon human society
Positivist Law - correct answer ✔✔ Those who believe that law reflects society and the way that
people want society to operate. Internal formalization of society's standards. Rights different
from society to society.
Historical Law - correct answer ✔✔ Emphasizes the evolutionary process of law by
concentrating on the origin and history of the legal system
Legal Realism - correct answer ✔✔ Based on the idea that law is just one of many institutions in
society and that it is shaped by social forces and needs
Sociological School of Jurisprudence - correct answer ✔✔ A school of legal thought that views
the law as a tool for promoting justice in society.
Preemption - correct answer ✔✔ The right of a federal law or regulation to preclude
enforcement of a state or local law or regulation.
Common Law - correct answer ✔✔ Judge-made law that originated in England from decisions
shaped according to prevailing custom. Decisions were applied to similar situations and
gradually became common to the nation.
Precedent - correct answer ✔✔ a principle or rule established in a legal case that a court or
other judicial body may apply when deciding subsequent cases with similar issues or facts cases
with similar issues or facts
Stare Decisis - correct answer ✔✔ An informal rule of judicial decision making in which judges
try to follow precedent in deciding cases. That is, a court case today should be settled in
accordance with prior decisions on similar cases.
