LAW 2221 Exam 1 – Business Law – 2026 – Study and Practice Guide
Law and economic freedom - correct answer ✔✔ when property they acquire without the use
of force, fraud or theft is protected and they're free to use exchange
Law creates stability and predictability - correct answer ✔✔ enables us to rely on contracts,
remedies for injuries to persons, property and other rights and interest, allows for future
planning
Sources of law - correct answer ✔✔ constitutional, statutory, common law, administrative law,
secondary sources
Article 1 - correct answer ✔✔ legislative, congress
Article 2 - correct answer ✔✔ executive, president
Article 3 - correct answer ✔✔ judicial, supreme court
Federalism - correct answer ✔✔ relationship between federal and states
Statutes - correct answer ✔✔ -U.S. code :congress
-state code: state legislature
Ordinances - correct answer ✔✔ city council
Common Law - correct answer ✔✔ A legal system based on custom and court rulings
Code law - correct answer ✔✔ a written set of laws that apply to everyone under a government
, Stare decisis - correct answer ✔✔ to stand by things decided
Precedent - correct answer ✔✔ applying legal principles from old cases to similar cases in the
future
Role of judges in statutory interpretation - correct answer ✔✔ judges must clarify the meaning
of statues because the ambiguilty and vagueness of words using different tools to figure out
meaning
Administrative agencies are created by who - correct answer ✔✔ congress, the Dept of Labor
passes regulations based on its mission
Enabling Statutes - correct answer ✔✔ a statue that permits what was previously prohibited or
creates new power
Secondary sources - correct answer ✔✔ not binding by authority but persuasive uniform law
Secondary sources examples - correct answer ✔✔ restatements and model codes
Restatements - correct answer ✔✔ addresses to court and aim at clear formulations of common
law and its statuatory elements
Model Codes - correct answer ✔✔ are addresses to legislature with a view toward legislative
enactment
Criminal law - correct answer ✔✔ regulate crimes committed against government
Law and economic freedom - correct answer ✔✔ when property they acquire without the use
of force, fraud or theft is protected and they're free to use exchange
Law creates stability and predictability - correct answer ✔✔ enables us to rely on contracts,
remedies for injuries to persons, property and other rights and interest, allows for future
planning
Sources of law - correct answer ✔✔ constitutional, statutory, common law, administrative law,
secondary sources
Article 1 - correct answer ✔✔ legislative, congress
Article 2 - correct answer ✔✔ executive, president
Article 3 - correct answer ✔✔ judicial, supreme court
Federalism - correct answer ✔✔ relationship between federal and states
Statutes - correct answer ✔✔ -U.S. code :congress
-state code: state legislature
Ordinances - correct answer ✔✔ city council
Common Law - correct answer ✔✔ A legal system based on custom and court rulings
Code law - correct answer ✔✔ a written set of laws that apply to everyone under a government
, Stare decisis - correct answer ✔✔ to stand by things decided
Precedent - correct answer ✔✔ applying legal principles from old cases to similar cases in the
future
Role of judges in statutory interpretation - correct answer ✔✔ judges must clarify the meaning
of statues because the ambiguilty and vagueness of words using different tools to figure out
meaning
Administrative agencies are created by who - correct answer ✔✔ congress, the Dept of Labor
passes regulations based on its mission
Enabling Statutes - correct answer ✔✔ a statue that permits what was previously prohibited or
creates new power
Secondary sources - correct answer ✔✔ not binding by authority but persuasive uniform law
Secondary sources examples - correct answer ✔✔ restatements and model codes
Restatements - correct answer ✔✔ addresses to court and aim at clear formulations of common
law and its statuatory elements
Model Codes - correct answer ✔✔ are addresses to legislature with a view toward legislative
enactment
Criminal law - correct answer ✔✔ regulate crimes committed against government
