Business Law 17th Edition Langvardt
Test Bank
Business Law, 17e (Langvardt)
Chapter 1 The Nature of Law
1) The U.S. Constitution recognizes the states' power to make law in certain areas.
Answer: TRUE
Explanation: The U.S. Constitution structures the relationship between the federal government
and the states around the system of federalism, which recognizes the states' power to make law in
certain areas.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Uniform acts are model statutes drafted by private bodies of lawyers and scholars; they become
law only after a legislature enacts them.
Answer: TRUE
Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars
and do not become law until a legislature enacts them.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Common law exists only at the state level and only state courts can apply it.
Answer: FALSE
Explanation: Although common law generally exists only at the state level, both state courts and
federal courts are involved in applying it.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
PRIMEXAM.COM
,AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) The Restatements are binding laws and are promulgated by the American Law Institute.
Answer: FALSE
Explanation: The Restatements are promulgated by the American Law Institute, not the courts;
hence, they are not considered binding laws.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) According to the U.S. Constitution, treaties made by the president with foreign governments
and approved by two-thirds of the U.S. Senate validate inconsistent state and federal laws.
Answer: FALSE
Explanation: According to the U.S. Constitution, treaties made by the president with foreign
governments and approved by two-thirds of the U.S. Senate become "the supreme Law of the
Land." Treaties invalidate inconsistent state and federal laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) The same behavior will sometimes violate both civil law and criminal law, and in such a case, a
person may be held both civilly and criminally liable for the same act.
Answer: TRUE
Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same
behavior will sometimes violate both. For instance, if A commits an intentional act of physical
violence on B, A may face both a criminal prosecution by the state and B's civil suit for damages.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
,7) A state statute making murder a crime is an example of a substantive law, criminal law, and
public law.
Answer: TRUE
Explanation: Substantive law sets the rights and duties of people as they act in society. Criminal
law is the law under which the government prosecutes someone for committing a crime. Public
law concerns the powers of government and private parties (which includes criminal law). Hence,
a state's murder statute is an example of all three types of laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) Though a natural law defense is not recognized in court, judges may take natural law-oriented
views into account when interpreting the law.
Answer: TRUE
Explanation: While interpreting the law, judges may take natural law-oriented views into
account. Typically, when judges are influenced by natural law ideas, they may be more likely to
read constitutional provisions more broadly in order to strike down positive laws they regard as
unjust.
Difficulty: 2 Medium
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Understand
AACSB: Ethics; Analytical Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
, 9) American legal realists regard the law in the books as less important than the law in action and
define law as the behavior of public officials (mainly judges) as they deal with matters before the
legal system.
Answer: TRUE
Explanation: American legal realism defines law as the behavior of public officials (mainly
judges) as they deal with matters before the legal system. Because the actions of such decision
makers really affect people's lives, the realists believe, this behavior is what deserves to be called
law.
Difficulty: 1 Easy
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) The critical legal studies movement regards law as the product of political calculation and
longstanding class biases on the part of lawmakers.
Answer: TRUE
Explanation: The critical legal studies (CLS) movement regards law as inevitably the product of
political calculation and longstanding class biases on the part of lawmakers, including judges.
Articles published by CLS adherents provide controversial assessments and critiques of legal
rules.
Difficulty: 1 Easy
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) The doctrine of stare decisis states that like cases should be decided alike.
Answer: TRUE
Explanation: The standard for choosing and applying prior cases to decide present cases is the
doctrine of stare decisis which states that like cases should be decided alike.
Difficulty: 1 Easy
Topic: Legal Reasoning
Learning Objective: 01-05 Describe the respective roles of adhering to precedent (stare decisis)
and distinguishing precedent in case law reasoning.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
Test Bank
Business Law, 17e (Langvardt)
Chapter 1 The Nature of Law
1) The U.S. Constitution recognizes the states' power to make law in certain areas.
Answer: TRUE
Explanation: The U.S. Constitution structures the relationship between the federal government
and the states around the system of federalism, which recognizes the states' power to make law in
certain areas.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Uniform acts are model statutes drafted by private bodies of lawyers and scholars; they become
law only after a legislature enacts them.
Answer: TRUE
Explanation: Uniform acts are model statutes drafted by private bodies of lawyers and scholars
and do not become law until a legislature enacts them.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Common law exists only at the state level and only state courts can apply it.
Answer: FALSE
Explanation: Although common law generally exists only at the state level, both state courts and
federal courts are involved in applying it.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
PRIMEXAM.COM
,AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) The Restatements are binding laws and are promulgated by the American Law Institute.
Answer: FALSE
Explanation: The Restatements are promulgated by the American Law Institute, not the courts;
hence, they are not considered binding laws.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) According to the U.S. Constitution, treaties made by the president with foreign governments
and approved by two-thirds of the U.S. Senate validate inconsistent state and federal laws.
Answer: FALSE
Explanation: According to the U.S. Constitution, treaties made by the president with foreign
governments and approved by two-thirds of the U.S. Senate become "the supreme Law of the
Land." Treaties invalidate inconsistent state and federal laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-01 Identify the respective makers of the different types of law
(constitutions, statutes, common law, and administrative regulations and decisions).
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) The same behavior will sometimes violate both civil law and criminal law, and in such a case, a
person may be held both civilly and criminally liable for the same act.
Answer: TRUE
Explanation: Even though the civil law and the criminal law are distinct bodies of law, the same
behavior will sometimes violate both. For instance, if A commits an intentional act of physical
violence on B, A may face both a criminal prosecution by the state and B's civil suit for damages.
Difficulty: 1 Easy
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
,7) A state statute making murder a crime is an example of a substantive law, criminal law, and
public law.
Answer: TRUE
Explanation: Substantive law sets the rights and duties of people as they act in society. Criminal
law is the law under which the government prosecutes someone for committing a crime. Public
law concerns the powers of government and private parties (which includes criminal law). Hence,
a state's murder statute is an example of all three types of laws.
Difficulty: 2 Medium
Topic: Types and Classifications of Law
Learning Objective: 01-03 Explain the basic differences between the criminal law and civil law
classifications.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) Though a natural law defense is not recognized in court, judges may take natural law-oriented
views into account when interpreting the law.
Answer: TRUE
Explanation: While interpreting the law, judges may take natural law-oriented views into
account. Typically, when judges are influenced by natural law ideas, they may be more likely to
read constitutional provisions more broadly in order to strike down positive laws they regard as
unjust.
Difficulty: 2 Medium
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Understand
AACSB: Ethics; Analytical Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
, 9) American legal realists regard the law in the books as less important than the law in action and
define law as the behavior of public officials (mainly judges) as they deal with matters before the
legal system.
Answer: TRUE
Explanation: American legal realism defines law as the behavior of public officials (mainly
judges) as they deal with matters before the legal system. Because the actions of such decision
makers really affect people's lives, the realists believe, this behavior is what deserves to be called
law.
Difficulty: 1 Easy
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) The critical legal studies movement regards law as the product of political calculation and
longstanding class biases on the part of lawmakers.
Answer: TRUE
Explanation: The critical legal studies (CLS) movement regards law as inevitably the product of
political calculation and longstanding class biases on the part of lawmakers, including judges.
Articles published by CLS adherents provide controversial assessments and critiques of legal
rules.
Difficulty: 1 Easy
Topic: Jurisprudence
Learning Objective: 01-04 Describe key ways in which the major schools of jurisprudence differ
from each other.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) The doctrine of stare decisis states that like cases should be decided alike.
Answer: TRUE
Explanation: The standard for choosing and applying prior cases to decide present cases is the
doctrine of stare decisis which states that like cases should be decided alike.
Difficulty: 1 Easy
Topic: Legal Reasoning
Learning Objective: 01-05 Describe the respective roles of adhering to precedent (stare decisis)
and distinguishing precedent in case law reasoning.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
PRIMEXAM.COM
