Test Bank For
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25 Answers are at the End of Each Chapter
Chapter 1
Student name:__________
1) List the purposes of the law and discuss why these purposes are necessary for an ordered
society.
2) Define "stare decisis," discuss when it occurs in the legal system, and explain why stare
decisis is important to businesses and individuals.
3) Explain in what ways a treaty between a foreign country and the United States is similar
to a contract.
1
,4) Explain the function of administrative agencies and why they are necessary.List five
independent agencies and five executive agencies.
5) Judge Susie Justice, who is newly appointed to the bench, is presented with a question of
law involving a cat named Chester who scratched a neighbor's antique jalopy. The neighbor,
George, demands justice in the form of full payment from Chester's owner, Bill, and also
requests that Chester be shipped to the local animal shelter. Bill says that he should not have to
pay anything because Chester had never scratched before, that Chester should be allowed to stay
in the neighborhood, and that he should be reimbursed for his legal fees by George who is a
grump and never should have brought the lawsuit. Judge Justice is perplexed and wants to make
a good decision since she is new to the bench. Describe how the judge should go about reaching
a decision. Discuss in your answer the impact of cases from other jurisdictions assuming there is
no relevant law in Judge Justice's jurisdiction. Also, assuming there is relevant law in this
jurisdiction, discuss the applicable legal standard the judge should apply if she finds a relevant
statute that conflicts with earlier case law.
6) Describe contrasts between the cost-benefit school of jurisprudence and the identification
with the vulnerable school of jurisprudence.
2
,7) Which of the following is not one of the six functional areas of business that sits on a
foundation of business law?
A) management
B) production and transportation
C) marketing
D) accounting and finance
E) state and federal taxation
8) A commercial firm that seeks to merge with another firm must obey the laws of antitrust.
This is an example of:
A) business law
B) equity
C) ethics
D) The Uniform Contracts Code
E) The International Contracts Code
9) “Guaranteeing personal freedoms” is:
A) the exclusive purpose of the law.
B) one of the numerous purposes fulfilled by the law.
C) a purpose of criminal, but not civil, law.
D) a purpose of civil, but not criminal, law.
E) a cultural, but not legal, expectation.
10) Which of the following is one of the numerous purposes fulfilled by the law?
3
, A) Discouraging social justice
B) Limiting personal freedoms
C) Serving as a moral guide by indicating maximum expectations of citizens and
organizations
D) Providing order such that one can depend on a promise or an expectation of
obligations
E) Serving as a supplement to fighting
11) Which of the following is not one of the numerous purposes fulfilled by the law?
A) Providing order such that one can depend on a promise or an expectation of
obligations
B) Serving as an alternative to fighting
C) Facilitating change without requiring a rational consideration of options
D) Encouraging social justice
E) Serving as a moral guide by indicating minimal expectations of citizens and
organizations
12) Louisville, Kentucky is debating a new business ordinance that will address sidewalks in
its city. Members of the Louisville city council do not need to concern themselves with which of
the following issues?
A) Local taxes
B) Environmental standards
C) Federally-mandated restrictive covenants
D) Building codes
E) Local zoning
13) Which of the following is not a purpose of the law as set forth in the text?
4
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25 Answers are at the End of Each Chapter
Chapter 1
Student name:__________
1) List the purposes of the law and discuss why these purposes are necessary for an ordered
society.
2) Define "stare decisis," discuss when it occurs in the legal system, and explain why stare
decisis is important to businesses and individuals.
3) Explain in what ways a treaty between a foreign country and the United States is similar
to a contract.
1
,4) Explain the function of administrative agencies and why they are necessary.List five
independent agencies and five executive agencies.
5) Judge Susie Justice, who is newly appointed to the bench, is presented with a question of
law involving a cat named Chester who scratched a neighbor's antique jalopy. The neighbor,
George, demands justice in the form of full payment from Chester's owner, Bill, and also
requests that Chester be shipped to the local animal shelter. Bill says that he should not have to
pay anything because Chester had never scratched before, that Chester should be allowed to stay
in the neighborhood, and that he should be reimbursed for his legal fees by George who is a
grump and never should have brought the lawsuit. Judge Justice is perplexed and wants to make
a good decision since she is new to the bench. Describe how the judge should go about reaching
a decision. Discuss in your answer the impact of cases from other jurisdictions assuming there is
no relevant law in Judge Justice's jurisdiction. Also, assuming there is relevant law in this
jurisdiction, discuss the applicable legal standard the judge should apply if she finds a relevant
statute that conflicts with earlier case law.
6) Describe contrasts between the cost-benefit school of jurisprudence and the identification
with the vulnerable school of jurisprudence.
2
,7) Which of the following is not one of the six functional areas of business that sits on a
foundation of business law?
A) management
B) production and transportation
C) marketing
D) accounting and finance
E) state and federal taxation
8) A commercial firm that seeks to merge with another firm must obey the laws of antitrust.
This is an example of:
A) business law
B) equity
C) ethics
D) The Uniform Contracts Code
E) The International Contracts Code
9) “Guaranteeing personal freedoms” is:
A) the exclusive purpose of the law.
B) one of the numerous purposes fulfilled by the law.
C) a purpose of criminal, but not civil, law.
D) a purpose of civil, but not criminal, law.
E) a cultural, but not legal, expectation.
10) Which of the following is one of the numerous purposes fulfilled by the law?
3
, A) Discouraging social justice
B) Limiting personal freedoms
C) Serving as a moral guide by indicating maximum expectations of citizens and
organizations
D) Providing order such that one can depend on a promise or an expectation of
obligations
E) Serving as a supplement to fighting
11) Which of the following is not one of the numerous purposes fulfilled by the law?
A) Providing order such that one can depend on a promise or an expectation of
obligations
B) Serving as an alternative to fighting
C) Facilitating change without requiring a rational consideration of options
D) Encouraging social justice
E) Serving as a moral guide by indicating minimal expectations of citizens and
organizations
12) Louisville, Kentucky is debating a new business ordinance that will address sidewalks in
its city. Members of the Louisville city council do not need to concern themselves with which of
the following issues?
A) Local taxes
B) Environmental standards
C) Federally-mandated restrictive covenants
D) Building codes
E) Local zoning
13) Which of the following is not a purpose of the law as set forth in the text?
4
