CORRELATION TABLE FOR APPENDIX A
Level 4
Level 1 Level 2 Level 3 Difficult
Question Moderate
Easy Moderate Analysis
Type
Knowledge Comprehension Synthesis
Application
Evaluation
1, 8, 9, 11, 14,
2, 3, 4, 5, 6, 7,
16, 19, 20, 22, 10, 15, 18, 38,
Multiple Choice 12, 13, 17, 21, 33
23, 24, 25, 30, 35
26, 27, 28, 29
31, 32, 34
36, 38, 39, 40,
37, 43, 47, 49, 41, 45, 48, 50,
True/False 42, 46, 54, 60 44, 53,
55, 56 51, 52, 57, 58,
59
61, 62, 63, 64, 65, 66, 67, 69,
Fill in the Blank ------------- -------------
68, 70, 74, 75 71, 72, 73
76, 77, 78, 79,
Essay ------------- ------------- -------------
80
Total Number of Test Questions: 80
(35 Multiple Choice; 25 True/False; 15 Fill in the Blank; 5 Essay)
,APPENDIX A
THE U.S. LEGAL SYSTEM
AND BUSINESS LAW
MULTIPLE CHOICE QUESTIONS
The U.S. Legal System
1. Of the following, which is a regulatory agency whose function is to protect society
from the potential abuses of businesses that trade in securities?
a) FDA
b) EPA
c) SEC (page A-1, Level 2, Moderate)
d) ETA
2. _____ is the principles, customs, and rules that govern the international relationships
between states, organizations, and persons.
a) Statutory law
b) International law (page A-1, Level 1, Easy)
c) Criminal law
d) Common law
Sources of Law
,3. The _____, including the Bill of Rights, is the foundation for U.S. laws.
a) Declaration of Independence
b) Emancipation Proclamation
c) Federalist Papers
d) U.S. Constitution (page A-1, Level 1, Easy)
4. Laws that originate through legislative action are called ____ laws.
a) administrative
b) common
c) international
d) statutory (page A-1, Level 1, Easy)
5. Laws that originate through customs and judicial precedents are called _____ laws.
a) administrative
b) international
c) common (page A-1, Level 1, Easy)
d) financial
6. One of the most important elements of statutory law that affects businesses is the
_____.
a) Codes of Ethics
b) Codes of Professional Conduct
c) Code of Business Conduct
d) Uniform Commercial Code (page A-2, Level 1, Easy)
7. The UCC has been adopted in its entirety in _____ states and the District of Columbia,
and about half of it has been adopted in Louisiana.
a) 25 states
b) 49 states (page A-2, Level 1, Easy)
, c) all states of the U.S.
d) all parts of North America
8. Administrative agencies can perform which of the following activities?
a) write common laws concerning deceptive trade practices
b) decide a permissive order for corporations suspected of breaking administrative
law
c) issue regulations linked to statutory laws (page A-2, Level 2, Moderate)
d) write statutory laws
9. A corporation found to be misbehaving may agree to a _____, which allows the
company to promise to stop doing something without actually admitting to any
illegal behavior.
a) stay order
b) consent order (page A-2, Level 2, Moderate)
c) restraining order
d) protective order
10. Michelle’s court case is being decided by the judge based upon the doctrine of stare
decisis. Which of the following types of law is being applied?
a) administrative law
b) common law (page A-2, Level 3, Moderate)
c) international law
d) statutory law
11. In all but _____ states, business cases are heard in standard trial courts.
a) four
b) five
c) six (page A-3, Level 2, Moderate)
d) seven
Level 4
Level 1 Level 2 Level 3 Difficult
Question Moderate
Easy Moderate Analysis
Type
Knowledge Comprehension Synthesis
Application
Evaluation
1, 8, 9, 11, 14,
2, 3, 4, 5, 6, 7,
16, 19, 20, 22, 10, 15, 18, 38,
Multiple Choice 12, 13, 17, 21, 33
23, 24, 25, 30, 35
26, 27, 28, 29
31, 32, 34
36, 38, 39, 40,
37, 43, 47, 49, 41, 45, 48, 50,
True/False 42, 46, 54, 60 44, 53,
55, 56 51, 52, 57, 58,
59
61, 62, 63, 64, 65, 66, 67, 69,
Fill in the Blank ------------- -------------
68, 70, 74, 75 71, 72, 73
76, 77, 78, 79,
Essay ------------- ------------- -------------
80
Total Number of Test Questions: 80
(35 Multiple Choice; 25 True/False; 15 Fill in the Blank; 5 Essay)
,APPENDIX A
THE U.S. LEGAL SYSTEM
AND BUSINESS LAW
MULTIPLE CHOICE QUESTIONS
The U.S. Legal System
1. Of the following, which is a regulatory agency whose function is to protect society
from the potential abuses of businesses that trade in securities?
a) FDA
b) EPA
c) SEC (page A-1, Level 2, Moderate)
d) ETA
2. _____ is the principles, customs, and rules that govern the international relationships
between states, organizations, and persons.
a) Statutory law
b) International law (page A-1, Level 1, Easy)
c) Criminal law
d) Common law
Sources of Law
,3. The _____, including the Bill of Rights, is the foundation for U.S. laws.
a) Declaration of Independence
b) Emancipation Proclamation
c) Federalist Papers
d) U.S. Constitution (page A-1, Level 1, Easy)
4. Laws that originate through legislative action are called ____ laws.
a) administrative
b) common
c) international
d) statutory (page A-1, Level 1, Easy)
5. Laws that originate through customs and judicial precedents are called _____ laws.
a) administrative
b) international
c) common (page A-1, Level 1, Easy)
d) financial
6. One of the most important elements of statutory law that affects businesses is the
_____.
a) Codes of Ethics
b) Codes of Professional Conduct
c) Code of Business Conduct
d) Uniform Commercial Code (page A-2, Level 1, Easy)
7. The UCC has been adopted in its entirety in _____ states and the District of Columbia,
and about half of it has been adopted in Louisiana.
a) 25 states
b) 49 states (page A-2, Level 1, Easy)
, c) all states of the U.S.
d) all parts of North America
8. Administrative agencies can perform which of the following activities?
a) write common laws concerning deceptive trade practices
b) decide a permissive order for corporations suspected of breaking administrative
law
c) issue regulations linked to statutory laws (page A-2, Level 2, Moderate)
d) write statutory laws
9. A corporation found to be misbehaving may agree to a _____, which allows the
company to promise to stop doing something without actually admitting to any
illegal behavior.
a) stay order
b) consent order (page A-2, Level 2, Moderate)
c) restraining order
d) protective order
10. Michelle’s court case is being decided by the judge based upon the doctrine of stare
decisis. Which of the following types of law is being applied?
a) administrative law
b) common law (page A-2, Level 3, Moderate)
c) international law
d) statutory law
11. In all but _____ states, business cases are heard in standard trial courts.
a) four
b) five
c) six (page A-3, Level 2, Moderate)
d) seven
