, TESTBANK FOR
Business Law Today - The Essentials 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 - Legal and Constitutional Foundations of Business
True / False
1. 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
2. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
3. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
4. 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
5. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False
6. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
7. Common law is a body of law developed from judges’ decisions in legal controversies.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
8. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
9. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
10. 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
11. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
12. Courts will NOT grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
13. 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
14. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
15. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
16. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
17. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
18. The Constitution provides that the national government has the implied power to undertake actions necessary to carry
out its expressly designated powers.
a. True
b. False
ANSWER: True
19. State regulatory powers are often referred to as “police powers.”
a. True
b. False
ANSWER: True
20. The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of
the other branches.
a. True
b. False
ANSWER: True
21. The branches of government are the executive, legislative, and congressional.
a. True
b. False
ANSWER: False
22. State governments do not have any authority to regulate interstate commerce.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
23. The dormant commerce clause comes into play when state regulations affect interstate commerce.
a. True
b. False
ANSWER: True
24. Preemption occurs when Congress chooses to act exclusively on a subject over which the federal government shares
power with the states.
a. True
b. False
ANSWER: True
25. The right to a speedy trial is guaranteed by the Fifth Amendment.
a. True
b. False
ANSWER: False
26. The rights secured by the Bill of Rights are absolute.
a. True
b. False
ANSWER: False
27. Nonverbal expression of belief is NOT a constitutionally protected form of expression.
a. True
b. False
ANSWER: False
28. If a restriction imposed by the government is content neutral, then a court will not allow it.
a. True
b. False
ANSWER: False
29. The free exercise clause can apply to private employers as well as government employers.
a. True
b. False
ANSWER: False
30. When religious practices work against public policy, the government can act.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
31. The Fifth Amendment is the only amendment that forbids persons to be deprived of property without due process
of law.
a. True
b. False
ANSWER: False
32. Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral
decision maker.
a. True
b. False
ANSWER: False
33. Procedural due process focuses on the content of legislation.
a. True
b. False
ANSWER: False
34. A law that limits a fundamental right may be held to violate substantive due process.
a. True
b. False
ANSWER: True
35. A case involving gender discrimination will receive less strict scrutiny than a case involving race discrimination.
a. True
b. False
ANSWER: True
Multiple Choice
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 - Legal and Constitutional Foundations of Business
37. 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
38. 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
39. 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
40. The Internal Revenue Service (IRS), an administrative agency, issues an interpretive rule regarding tax deductions.
Wei, a taxpayer, is unsure if this interpretive rule applies to her, so she consults with Mike, a C.P.A., for guidance.
Mike tells her that this interpretive rule, like all interpretive rules, is
a. legally binding.
b. legally binding but only binding on IRS employees.
c. not legally binding but indicates how the IRS plans to interpret and enforce its statutory authority.
d. not legally binding and may be ignored because it does not indicate how the IRS plans to interpret and enforce
its statutory authority.
ANSWER: c
41. The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. No
settlement is reached. The EPA may now
a. issue a formal complaint.
b. require a local county attorney to prosecute Fish Farm Inc. criminally.
c. take the matter to the U.S. Supreme Court.
d. immediately impose sanctions.
ANSWER: a
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,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
42. Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care
will be required to appear at a hearing presided over by a(n)
a. federal appellate court judge.
b. federal district court judge.
c. administrative law judge.
d. state supreme court justice.
ANSWER: c
43. Each court has a jurisdiction. Jurisdiction is best defined as
a. a doctrine that follows established precedents.
b. the geographic area in which a court has the power to apply the law.
c. a judicial proceeding to redress a wrong.
d. the right to sue another person.
ANSWER: b
44. There are no precedents on which the court deciding the case Algorithm Corp. v. Beta Bytes, Inc., can base its
decision. Which of the following may the court consider?
a. the opinions of friends and relatives of the judge
b. the results of a poll of those in the courtroom
c. social values and customs
d. the desire of the defendant to avoid jail time.
ANSWER: c
45. In Beto v. Car Dealership, the Kentucky State Supreme Court held that Jack, a minor, could cancel his contract for
the purchase of his car, if Jack desired to do so. Now, Kentucky Circuit Court, a trial court, is deciding Dora v. Even
Steven Autos, Inc., a case with similar facts, with Dora, a minor, asking the court to allow her to cancel her contract
regarding the purchase of her car. Under the doctrine of stare decisis, the Kentucky Circuit Court is likely to
a. allow Dora to cancel her contract, if she would like to do so.
b. not follow the decision of the Beto case.
c. order Dora to cancel her contract, even if she does not want to do so.
d. require both Jack and Dora to fulfill their contracts.
ANSWER: a
46. In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the
precedent
a. is incorrect or inapplicable.
b. violates the judge’s personal values.
c. would lead to unintended consequences.
d. would not bring about the result the judge prefers.
ANSWER: a
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, Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
47. A legal authority that a court may consult for guidance but that is not binding on the court is known as
a. legal treatise.
b. applicable statute.
c. persuasive authority.
d. reference authority.
ANSWER: c
48. Federico and Gwen are involved in a court proceeding. This is
a. an action.
b. stare decisis.
c. a precedent.
d. a remedy.
ANSWER: a
49. In a suit against Kaitlyn, Luke obtains an injunction, which is
a. an order to do or refrain from doing a certain act.
b. a departure from precedent.
c. a payment of damages or money.
d. the cancellation of a contract.
ANSWER: a
50. Which of the following addresses wrongs committed against society for which society demands redress?
a. civil law
b. procedural law
c. stare decisis
d. criminal law
ANSWER: d
51. In a civil case, the objective is to
a. arbitrate the dispute.
b. fine one of the parties.
c. punish a wrongdoer.
d. obtain a remedy to compensate the injured party.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 8
Business Law Today - The Essentials 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 - Legal and Constitutional Foundations of Business
True / False
1. 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
2. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
3. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
4. 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
5. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False
6. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
7. Common law is a body of law developed from judges’ decisions in legal controversies.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
8. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
9. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
10. 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
11. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
12. Courts will NOT grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
13. 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
14. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
15. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
16. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
17. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
18. The Constitution provides that the national government has the implied power to undertake actions necessary to carry
out its expressly designated powers.
a. True
b. False
ANSWER: True
19. State regulatory powers are often referred to as “police powers.”
a. True
b. False
ANSWER: True
20. The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of
the other branches.
a. True
b. False
ANSWER: True
21. The branches of government are the executive, legislative, and congressional.
a. True
b. False
ANSWER: False
22. State governments do not have any authority to regulate interstate commerce.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
23. The dormant commerce clause comes into play when state regulations affect interstate commerce.
a. True
b. False
ANSWER: True
24. Preemption occurs when Congress chooses to act exclusively on a subject over which the federal government shares
power with the states.
a. True
b. False
ANSWER: True
25. The right to a speedy trial is guaranteed by the Fifth Amendment.
a. True
b. False
ANSWER: False
26. The rights secured by the Bill of Rights are absolute.
a. True
b. False
ANSWER: False
27. Nonverbal expression of belief is NOT a constitutionally protected form of expression.
a. True
b. False
ANSWER: False
28. If a restriction imposed by the government is content neutral, then a court will not allow it.
a. True
b. False
ANSWER: False
29. The free exercise clause can apply to private employers as well as government employers.
a. True
b. False
ANSWER: False
30. When religious practices work against public policy, the government can act.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
31. The Fifth Amendment is the only amendment that forbids persons to be deprived of property without due process
of law.
a. True
b. False
ANSWER: False
32. Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral
decision maker.
a. True
b. False
ANSWER: False
33. Procedural due process focuses on the content of legislation.
a. True
b. False
ANSWER: False
34. A law that limits a fundamental right may be held to violate substantive due process.
a. True
b. False
ANSWER: True
35. A case involving gender discrimination will receive less strict scrutiny than a case involving race discrimination.
a. True
b. False
ANSWER: True
Multiple Choice
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 - Legal and Constitutional Foundations of Business
37. 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
38. 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
39. 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
40. The Internal Revenue Service (IRS), an administrative agency, issues an interpretive rule regarding tax deductions.
Wei, a taxpayer, is unsure if this interpretive rule applies to her, so she consults with Mike, a C.P.A., for guidance.
Mike tells her that this interpretive rule, like all interpretive rules, is
a. legally binding.
b. legally binding but only binding on IRS employees.
c. not legally binding but indicates how the IRS plans to interpret and enforce its statutory authority.
d. not legally binding and may be ignored because it does not indicate how the IRS plans to interpret and enforce
its statutory authority.
ANSWER: c
41. The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. No
settlement is reached. The EPA may now
a. issue a formal complaint.
b. require a local county attorney to prosecute Fish Farm Inc. criminally.
c. take the matter to the U.S. Supreme Court.
d. immediately impose sanctions.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
42. Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care
will be required to appear at a hearing presided over by a(n)
a. federal appellate court judge.
b. federal district court judge.
c. administrative law judge.
d. state supreme court justice.
ANSWER: c
43. Each court has a jurisdiction. Jurisdiction is best defined as
a. a doctrine that follows established precedents.
b. the geographic area in which a court has the power to apply the law.
c. a judicial proceeding to redress a wrong.
d. the right to sue another person.
ANSWER: b
44. There are no precedents on which the court deciding the case Algorithm Corp. v. Beta Bytes, Inc., can base its
decision. Which of the following may the court consider?
a. the opinions of friends and relatives of the judge
b. the results of a poll of those in the courtroom
c. social values and customs
d. the desire of the defendant to avoid jail time.
ANSWER: c
45. In Beto v. Car Dealership, the Kentucky State Supreme Court held that Jack, a minor, could cancel his contract for
the purchase of his car, if Jack desired to do so. Now, Kentucky Circuit Court, a trial court, is deciding Dora v. Even
Steven Autos, Inc., a case with similar facts, with Dora, a minor, asking the court to allow her to cancel her contract
regarding the purchase of her car. Under the doctrine of stare decisis, the Kentucky Circuit Court is likely to
a. allow Dora to cancel her contract, if she would like to do so.
b. not follow the decision of the Beto case.
c. order Dora to cancel her contract, even if she does not want to do so.
d. require both Jack and Dora to fulfill their contracts.
ANSWER: a
46. In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the
precedent
a. is incorrect or inapplicable.
b. violates the judge’s personal values.
c. would lead to unintended consequences.
d. would not bring about the result the judge prefers.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 1 - Legal and Constitutional Foundations of Business
47. A legal authority that a court may consult for guidance but that is not binding on the court is known as
a. legal treatise.
b. applicable statute.
c. persuasive authority.
d. reference authority.
ANSWER: c
48. Federico and Gwen are involved in a court proceeding. This is
a. an action.
b. stare decisis.
c. a precedent.
d. a remedy.
ANSWER: a
49. In a suit against Kaitlyn, Luke obtains an injunction, which is
a. an order to do or refrain from doing a certain act.
b. a departure from precedent.
c. a payment of damages or money.
d. the cancellation of a contract.
ANSWER: a
50. Which of the following addresses wrongs committed against society for which society demands redress?
a. civil law
b. procedural law
c. stare decisis
d. criminal law
ANSWER: d
51. In a civil case, the objective is to
a. arbitrate the dispute.
b. fine one of the parties.
c. punish a wrongdoer.
d. obtain a remedy to compensate the injured party.
ANSWER: d
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