Business Law, 9e (Cheeseman)
Chapter 1 Legal Environment of Business and Online Commerce
1) ________ is that which must be obeyed and followed by citizens subject to sanctions
or legal consequences.
A) Morality
B) Philosophy
C) Law
D) Religion
Answer: C
Diff: 1
Skill: Legal Concepts
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having
binding legal force
B) a study of fundamental problems, such as those connected with existence, knowledge,
and language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
D) a group of hypotheses employed to explain a phenomenon
Answer: A
Diff: 1
Skill: Legal Concepts
,LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
3) Businesses that are organized in the United States are subject to its laws, but not to the
laws of other countries in which they do business.
Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
,4) Which of the following would be considered an example of shaping moral standards,
as seen as a function of the law?
A) laws granting freedom of speech and religion
B) laws discouraging drug and alcohol abuse
C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
Answer: B
Diff: 2
Skill: Legal Concepts
LO: 1.2 Describe the functions of law.
AACSB: Analytical thinking
Classification: Concept
5) What function of the law is being served when passing laws that prohibit
discrimination at workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
Skill: Legal Concepts
LO: 1.2 Describe the functions of law.
AACSB: Analytical thinking
Classification: Concept
6) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The
, governor of Halizona sets up a committee to study the effects of past earthquakes on
Halfren and the possible methods that could be used to minimize damage and loss of life.
The committee found that a new technique of using steel reinforcements in building
columns would help reduce overall damages. The findings were put to a debate at the
local town hall, where it was accepted by a majority of the residents of Halfren. The state
government then passed a law making it mandatory to use the new steel-reinforced
columns while constructing new buildings in Halfren. Which of the following functions
of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
D) facilitating orderly change
Answer: D
Diff: 2
Skill: Factual Application
LO: 1.2 Describe the functions of law.
AACSB: Application of knowledge
Classification: Application
Chapter 1 Legal Environment of Business and Online Commerce
1) ________ is that which must be obeyed and followed by citizens subject to sanctions
or legal consequences.
A) Morality
B) Philosophy
C) Law
D) Religion
Answer: C
Diff: 1
Skill: Legal Concepts
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
2) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having
binding legal force
B) a study of fundamental problems, such as those connected with existence, knowledge,
and language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
D) a group of hypotheses employed to explain a phenomenon
Answer: A
Diff: 1
Skill: Legal Concepts
,LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
3) Businesses that are organized in the United States are subject to its laws, but not to the
laws of other countries in which they do business.
Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 1.1 Define law.
AACSB: Analytical thinking
Classification: Concept
,4) Which of the following would be considered an example of shaping moral standards,
as seen as a function of the law?
A) laws granting freedom of speech and religion
B) laws discouraging drug and alcohol abuse
C) laws providing rights to peaceful protest
D) laws preventing overthrow of a government
Answer: B
Diff: 2
Skill: Legal Concepts
LO: 1.2 Describe the functions of law.
AACSB: Analytical thinking
Classification: Concept
5) What function of the law is being served when passing laws that prohibit
discrimination at workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
Answer: D
Diff: 2
Skill: Legal Concepts
LO: 1.2 Describe the functions of law.
AACSB: Analytical thinking
Classification: Concept
6) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The
, governor of Halizona sets up a committee to study the effects of past earthquakes on
Halfren and the possible methods that could be used to minimize damage and loss of life.
The committee found that a new technique of using steel reinforcements in building
columns would help reduce overall damages. The findings were put to a debate at the
local town hall, where it was accepted by a majority of the residents of Halfren. The state
government then passed a law making it mandatory to use the new steel-reinforced
columns while constructing new buildings in Halfren. Which of the following functions
of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
D) facilitating orderly change
Answer: D
Diff: 2
Skill: Factual Application
LO: 1.2 Describe the functions of law.
AACSB: Application of knowledge
Classification: Application
