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Chapter 01: Law and Legal Reasoning
True / False
1. In the United States, the law consists of written laws and court decisions.
a. True
b. False
ANSWER: True
2. 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
3. Because laws may change, the ability to analyze and evaluate the legal ramifications of situations as they
arise is not a lasting skill.
a. True
b. False
ANSWER: False
4. The study of business law does not involve an ethical dimension.
a. True
b. False
ANSWER: False
5. 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
6. A constitution is a primary source of law.
a. True
b. False
ANSWER: True
7. A statute is a secondary source of law.
a. True
b. False
ANSWER: False
8. A secondary source of law establishes the law on a particular issue.
a. True
b. False
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Chapter 01: Law and Legal Reasoning
ANSWER: False
9. Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of
law.
a. True
b. False
ANSWER: True
10. 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
11. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False
ANSWER: True
12. Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state.
a. True
b. False
ANSWER: True
13. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
ANSWER: False
14. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True
15. A federal statute applies only to those states that agree to apply it within their borders.
a. True
b. False
ANSWER: False
16. Congress or a state legislature establishes an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True
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