Test Bank For Business Law Today, Standard Edition, 13th Edition by Roger LeRoy Miller00

TEST BANK
Business Law Today, Standard Edition, 13th Edition by Roger LeRoy Miller
Chap 01_13e_Standard

Indicate whether the statement is true or false.
1. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False

2. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False

3. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False

4. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False

5. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False

6. The study of business law does not involve an ethical dimension.
a. True
b. False

7. 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

8. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False

9. 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

10. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False




Page 1

,Chap 01_13e_Standard

11. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False

12. Controlling precedents are binding authorities.
a. True
b. False

13. In the United States, the law consists of written laws and court decisions.
a. True
b. False

14. Courts will not grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False

15. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False

16. There is one right answer to every legal question.
a. True
b. False

17. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False

18. An administrative legislative rule is not legally binding on businesses.
a. True
b. False

19. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False

20. A federal statute applies to all states.
a. True
b. False

21. 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




Page 2

,Chap 01_13e_Standard

22. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False

23. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False

24. 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

25. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
b. False

26. A statute is a secondary source of law.
a. True
b. False

27. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False

28. Only if a state legislature passes a statute, does that law become part of the relevant state code of laws.
a. True
b. False

29. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
a. True
b. False

30. Common law is a body of law developed from judge’s decisions in legal controversies.
a. True
b. False

31. A constitution is a primary source of law.
a. True
b. False

32. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False


Page 3

, Chap 01_13e_Standard

33. In a criminal case, the object is to obtain a remedy.
a. True
b. False

34. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False

35. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False

36. The basis of a civil law system is a written code of laws.
a. True
b. False

37. If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may
not be binding.
a. True
b. False

Indicate the answer choice that best completes the statement or answers the question.
38. A precedent is:
a. the chief executive officer of the United States and their authority.
b. a court decision that is used as an example for deciding subsequent cases with similar facts.
c. a lawsuit in which a number of persons join together for ease of filing.
d. the fundamental procedure by which the government exercises its authority.

39. The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no
settlement is reached, the EPA can:
a. issue a formal complaint.
b. do nothing.
c. take the matter to the U.S. Supreme Court.
d. immediately impose sanctions.

40. The __________________________ to the U.S. Constitution reserves to the states, all powers not granted to
the federal government.
a. 1st amendment
b. 14th amendment
c. 10th amendment
d. bill of rights




Page 4