, TESTBANK FOR
Business Law Today - Standard Edition Text & Summarized Cases 14th
Edition Miller
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
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If you believe you have purchased the wrong file, don’t worry. Contact us anytime and we
will gladly replace it with the correct version.
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
1. In the United States, the law consists of written laws.
a. True
b. False
ANSWER: False
2. All laws establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling
group.
a. True
b. False
ANSWER: True
3. The legal rules that control the actions of a business reflect past and current thinking about how similar businesses
should and should not act.
a. True
b. False
ANSWER: True
4. Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific
area of the law.
a. True
b. False
ANSWER: False
5. A constitution is a primary source of law.
a. True
b. False
ANSWER: True
6. A statute is a secondary source of law.
a. True
b. False
ANSWER: False
7. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
8. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
9. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
a. True
b. False
ANSWER: False
10. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False
ANSWER: True
11. Only if a state legislature passes a statute does that law become part of the relevant state code of laws.
a. True
b. False
ANSWER: True
12. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False
13. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True
14. A federal statute applies to all states.
a. True
b. False
ANSWER: True
15. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
16. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True
17. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
ANSWER: False
18. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False
ANSWER: True
19. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
ANSWER: True
20. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
21. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
ANSWER: True
22. If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may NOT
be binding.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
23. Common law is a body of law developed from judges’ decisions in legal controversies.
a. True
b. False
ANSWER: True
24. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
ANSWER: True
25. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
26. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
27. A court might look at fairness, social values and customs, and public policy in deciding a case if there is no precedent.
a. True
b. False
ANSWER: True
28. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False
ANSWER: False
29. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
30. Courts will NOT grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
31. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
ANSWER: True
32. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
33. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
34. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
35. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
36. Power is a business engaged in the business of producing, refining, and distributing energy resources. Like many
businesses, Power must make hiring and firing decisions, make decisions regarding financing, as well as find ways to
improve its manufacturing processes. Belle is a new Human Resources manager at Power, and she contacts Renee,
the general counsel of Power and asks if a specific government regulation regarding employment issues that would
increase the expenses of Power applies to Power as a business. Renee will likely advise Belle that the regulation will
likely
a. not apply because laws and government regulations do not apply to solely business activities.
b. apply, but only because laws and government regulations relating to employment issues apply to business
activities.
c. not apply because businesses may opt out of laws and government regulations and Power will likely exercise
that right.
d. apply because laws and government regulations affect almost all business activities.
ANSWER: d
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
37. An example of a primary source of law would be
a. legal encyclopedias.
b. official comments to statutes.
c. Constitutional law.
d. legal treatises.
ANSWER: c
38. Secondary sources of law include
a. state constitutions.
b. law review articles.
c. laws passed by local governing bodies.
d. regulations created by administrative agencies.
ANSWER: b
39. A constitution sets forth the government’s general organization and its
a. case law.
b. statutory law.
c. limits and powers.
d. precedential powers.
ANSWER: c
40. The basis of all law in the United States is
a. the U.S. Constitution.
b. laws passed by Congress.
c. case law.
d. regulations created by administrative agencies.
ANSWER: a
41. What part of the U.S. Constitution reserves to the states all powers not granted to the federal government?
a. First Amendment
b. Fourteenth Amendment
c. Tenth Amendment
d. Bill of Rights
ANSWER: c
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,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
42. Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as
a. statutory law.
b. stare decisis.
c. the supreme law of the land.
d. uniform law.
ANSWER: a
43. On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
a. neither provision will be enforced.
b. both provisions will be enforced.
c. the state provision will be enforced only within the borders of that state.
d. the federal provision will be enforced.
ANSWER: d
44. The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by:
a. no one.
b. the federal government only.
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
45. The Uniform Commercial Code provides a set of rules governing interactions
a. among the states.
b. between the states and the federal government.
c. in countries that were once colonies of Great Britain.
d. in international markets.
ANSWER: a
46. The Uniform Commercial Code provides a set of rules governing
a. commercial transactions.
b. state legislative adoptions.
c. congressional procedures.
d. administrative processes.
ANSWER: a
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, Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
47. Administrative law includes
a. all laws that affect business operations.
b. the rules, orders, and decisions of a government agency.
c. model laws developed by the National Conference of Commissioners.
d. laws enacted by a legislative body.
ANSWER: b
48. Which of the following is an agency in the United States?
a. Uniform Commercial Code
b. Kentucky General Assembly
c. Master’s of Business Administration Program at Harvard University
d. Food and Drug Administration
ANSWER: d
49. An executive agency is subject to the authority of
a. its director only.
b. the President.
c. Congress.
d. the U.S. Attorney General.
ANSWER: b
50. A main function of an administrative agency is
a. overruling previous cases.
b. rulemaking.
c. hearing cases.
d. passing its enabling statute.
ANSWER: b
51. Legislative rulemaking under the APA typically involves all but which one of the following three steps?
a. A comment period
b. Notice of proposed rulemaking
c. Public hearing
d. Final rule
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 8
Business Law Today - Standard Edition Text & Summarized Cases 14th
Edition Miller
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
Purchase Guarantee
If you believe you have purchased the wrong file, don’t worry. Contact us anytime and we
will gladly replace it with the correct version.
Contact Email:
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
1. In the United States, the law consists of written laws.
a. True
b. False
ANSWER: False
2. All laws establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling
group.
a. True
b. False
ANSWER: True
3. The legal rules that control the actions of a business reflect past and current thinking about how similar businesses
should and should not act.
a. True
b. False
ANSWER: True
4. Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific
area of the law.
a. True
b. False
ANSWER: False
5. A constitution is a primary source of law.
a. True
b. False
ANSWER: True
6. A statute is a secondary source of law.
a. True
b. False
ANSWER: False
7. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
8. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
9. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
a. True
b. False
ANSWER: False
10. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False
ANSWER: True
11. Only if a state legislature passes a statute does that law become part of the relevant state code of laws.
a. True
b. False
ANSWER: True
12. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False
13. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True
14. A federal statute applies to all states.
a. True
b. False
ANSWER: True
15. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
16. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True
17. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
ANSWER: False
18. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False
ANSWER: True
19. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
ANSWER: True
20. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
21. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
ANSWER: True
22. If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may NOT
be binding.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
23. Common law is a body of law developed from judges’ decisions in legal controversies.
a. True
b. False
ANSWER: True
24. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
ANSWER: True
25. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
26. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
27. A court might look at fairness, social values and customs, and public policy in deciding a case if there is no precedent.
a. True
b. False
ANSWER: True
28. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False
ANSWER: False
29. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
30. Courts will NOT grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
31. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
ANSWER: True
32. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
33. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
34. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
35. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
36. Power is a business engaged in the business of producing, refining, and distributing energy resources. Like many
businesses, Power must make hiring and firing decisions, make decisions regarding financing, as well as find ways to
improve its manufacturing processes. Belle is a new Human Resources manager at Power, and she contacts Renee,
the general counsel of Power and asks if a specific government regulation regarding employment issues that would
increase the expenses of Power applies to Power as a business. Renee will likely advise Belle that the regulation will
likely
a. not apply because laws and government regulations do not apply to solely business activities.
b. apply, but only because laws and government regulations relating to employment issues apply to business
activities.
c. not apply because businesses may opt out of laws and government regulations and Power will likely exercise
that right.
d. apply because laws and government regulations affect almost all business activities.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
37. An example of a primary source of law would be
a. legal encyclopedias.
b. official comments to statutes.
c. Constitutional law.
d. legal treatises.
ANSWER: c
38. Secondary sources of law include
a. state constitutions.
b. law review articles.
c. laws passed by local governing bodies.
d. regulations created by administrative agencies.
ANSWER: b
39. A constitution sets forth the government’s general organization and its
a. case law.
b. statutory law.
c. limits and powers.
d. precedential powers.
ANSWER: c
40. The basis of all law in the United States is
a. the U.S. Constitution.
b. laws passed by Congress.
c. case law.
d. regulations created by administrative agencies.
ANSWER: a
41. What part of the U.S. Constitution reserves to the states all powers not granted to the federal government?
a. First Amendment
b. Fourteenth Amendment
c. Tenth Amendment
d. Bill of Rights
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
42. Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as
a. statutory law.
b. stare decisis.
c. the supreme law of the land.
d. uniform law.
ANSWER: a
43. On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
a. neither provision will be enforced.
b. both provisions will be enforced.
c. the state provision will be enforced only within the borders of that state.
d. the federal provision will be enforced.
ANSWER: d
44. The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by:
a. no one.
b. the federal government only.
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
45. The Uniform Commercial Code provides a set of rules governing interactions
a. among the states.
b. between the states and the federal government.
c. in countries that were once colonies of Great Britain.
d. in international markets.
ANSWER: a
46. The Uniform Commercial Code provides a set of rules governing
a. commercial transactions.
b. state legislative adoptions.
c. congressional procedures.
d. administrative processes.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 1 - Law and Legal Reasoning
47. Administrative law includes
a. all laws that affect business operations.
b. the rules, orders, and decisions of a government agency.
c. model laws developed by the National Conference of Commissioners.
d. laws enacted by a legislative body.
ANSWER: b
48. Which of the following is an agency in the United States?
a. Uniform Commercial Code
b. Kentucky General Assembly
c. Master’s of Business Administration Program at Harvard University
d. Food and Drug Administration
ANSWER: d
49. An executive agency is subject to the authority of
a. its director only.
b. the President.
c. Congress.
d. the U.S. Attorney General.
ANSWER: b
50. A main function of an administrative agency is
a. overruling previous cases.
b. rulemaking.
c. hearing cases.
d. passing its enabling statute.
ANSWER: b
51. Legislative rulemaking under the APA typically involves all but which one of the following three steps?
a. A comment period
b. Notice of proposed rulemaking
c. Public hearing
d. Final rule
ANSWER: c
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