,TESTBANK for Business Law Today - The Essentials
Text & Summarized Cases , 13th Edition Roger
LeRoy Miller
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
1. 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
ANSWER: True
2. 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
3. The study of business law does not involve an ethical dimension.
a. True
b. False
ANSWER: False
4. 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
5. A constitution is a primary source of law.
a. True
b. False
ANSWER: True
6. A secondary source of law establishes the law on a particular issue.
a. True
b. False
ANSWER: False
7. 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
8. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
9. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states’ borders.
a. True
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Chapter 01: Legal and Constitutional Foundations of Business
b. False
ANSWER: False
10. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True
11. A federal statute applies only to those states that agree to apply it within their borders.
a. True
b. False
ANSWER: False
12. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
13. Congress or a state legislature establishes an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True
14. Independent regulatory agencies are not subject to the authority of the president.
a. True
b. False
ANSWER: False
15. Federal agency regulations do not take precedence over conflicting state regulations.
a. True
b. False
ANSWER: False
16. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
17. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
ANSWER: True
18. Courts give significant weight—deference—to an agency’s judgment, and interpretation of its rules.
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
a. True
b. False
ANSWER: True
19. The common law is a body of law developed from judicial decisions.
a. True
b. False
ANSWER: True
20. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
ANSWER: True
21. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established
within their jurisdictions.
a. True
b. False
ANSWER: False
22. 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
ANSWER: True
23. A controlling precedent is any legal authority or source of law that a court may look to for guidance but need not
follow when making its decision.
a. True
b. False
ANSWER: False
24. Because courts of law and equity have merged, the principles of equity are no longer applied.
a. True
b. False
ANSWER: False
25. Rescission is an equitable remedy.
a. True
b. False
ANSWER: True
26. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
27. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
28. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
29. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
30. The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of
the other branches.
a. True
b. False
ANSWER: True
31. The commerce clause has had no greater impact on business than any other provision in the Constitution.
a. True
b. False
ANSWER: False
32. When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
a. True
b. False
ANSWER: False
33. The Fifth Amendment allows persons to be deprived of property without due process of law.
a. True
b. False
ANSWER: False
34. A law that limits a fundamental right that may be held to violate substantive due process.
a. True
b. False
ANSWER: True
35. A law based on a suspect trait will not stand under the equal protection clause, even if it is necessary to promote a
compelling government interest.
a. True
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
b. False
ANSWER: False
36. Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With
respect to the firm’s managers, legal concepts can be useful for Power’s (choose all applicable answers)
a. accounting and finance manager.
b. human resources manager.
c. marketing manager.
d. customers.
ANSWER: a, b, c
37. A constitution sets forth a government’s
a. limits, but not powers.
b. limits and powers.
c. neither limits nor powers.
d. powers, but not limits.
ANSWER: b
38. The basis of all law in the United States is
a. the U.S. Constitution.
b. laws passed by Congress.
c. case law.
d. regulations created by administrative agencies.
ANSWER: a
39. The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
a. no one.
b. the federal government only.
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
40. The Uniform Commercial Code facilitates commerce
a. among the states.
b. between the states and the federal government.
c. in countries that were once colonies of Great Britain.
d. in international markets.
ANSWER: a
41. The ___________________________, for example, is an agency within the U.S. Department of Health and Human
Services.
a. Uniform Commercial Code
b. Internal Revenue Service
c. Securities and Exchange Commission
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
d. Food and Drug Administration
ANSWER: d
42. Legislative rulemaking under the Administrative Procedure Act (APA) typically involves all, but which one of the
following three steps:
a. a comment period.
b. notice of proposed rulemaking.
c. public hearing.
d. final rule.
ANSWER: c
43. Common law rules develop from
a. principles underlying judges’ decisions in actual controversies.
b. regulations issued by administrative agencies.
c. statutes enacted by Congress and the state legislatures.
d. uniform laws drafted by legal scholars.
ANSWER: a
44. Stare decisis is best defined as
a. a doctrine under which judges follow established precedents.
b. the authority to decide a specific dispute.
c. a judicial proceeding to redress a wrong.
d. a situation giving a person a right to initiate a judicial proceeding.
ANSWER: a
45. Each court has a jurisdiction. Jurisdiction is best defined as
a. a doctrine that follows established precedents.
b. the geographic area in which a court has the power to apply the law.
c. a judicial proceeding to redress a wrong.
d. a situation giving a person a right to initiate a judicial proceeding.
ANSWER: b
46. There are no precedents on which the court deciding the case Algorithm Corp. v. Beta Bytes, Inc., can base its
decision. The court can consider, among other things,
a. the opinions of the friends and relatives of the judge.
b. the results of a poll of those in the courtroom
c. government policy based on widely held social values.
d. a petition.
ANSWER: c
47. A ________________________ is a legal authority that a court may consult for guidance, but that is not binding on
the court.
a. legal authority
b. applicable statute
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
c. persuasive authority
d. reference authority
ANSWER: c
48. Jaime and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. Jaime asks a
court to order Kay to perform as promised. Ordering a party to perform what was promised is
a. an equitable remedy.
b. an unenforceable demand.
c. an action.
d. beyond the court’s authority.
ANSWER: a
49. In a suit against Karen, Luke obtains an injunction. This is
a. an order to do or to refrain from doing a certain act.
b. a departure from precedent.
c. a payment of money.
d. the cancellation of a contract.
ANSWER: a
50. ___________________ is law that has to do with wrongs committed against society for which society demands
redress.
a. Constitutional law
b. Statutory law
c. Bill of rights
d. Civil law
ANSWER: d
51. Under the U.S. Constitution, Congress has the power to regulate
a. every commercial enterprise in the United States.
b. only intrastate commercial enterprises.
c. only local commercial enterprises.
d. only non-commercial activities.
ANSWER: a
52. The term checks and balances refers to the system under which
a. a state must refrain from imposing unreasonable burdens on citizens of another state.
b. the powers of government are divided among its branches, each of which exercises a check on the actions of
the others.
c. any judicial decision with respect to property rights in one state, will be honored and enforced in all states.
d. the national government regulates interstate commerce.
ANSWER: b
53. Leah, a citizen of Maine, obtains a federal license to operate a commercial fishing boat in a certain area off the
Maine coast. The Maine state legislature enacts a law that bans all commercial fishing in that area. Most likely, the state
law violates
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, Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
a. no provision in the U.S. Constitution.
b. the commerce clause.
c. the due process clause.
d. the supremacy clause.
ANSWER: d
54. The state of Ohio can regulate building contractors, and building codes in the state under its
a. police powers.
b. system of checks and balances.
c. entitlement to full faith and credit.
d. commerce power.
ANSWER: a
55. Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states.
This grant implies that the regulation of such activities is not within the authority of
a. Congress.
b. the states.
c. the President.
d. the courts.
ANSWER: b
56. The Bill of Rights embodies
a. a series of protections for the individual against government action.
b. payment in the form of taxes by business entities to obtain certain rights.
c. the privileges and immunities of the citizens in the several states.
d. rights established under deeds, wills, contracts, and similar instruments.
ANSWER: a
57. Nick, the chief executive officer of On/Off, Inc., a website for short rants, claims that certain government actions
infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit
a. only federal power.
b. federal and state actions.
c. only individual liberty.
d. only state conduct.
ANSWER: b
58. These are protected by the First Amendment (choose all applicable answers)
a. an offensive political T-shirt.
b. a political bumper sticker.
c. a direct threat to a co-worker.
d. a restriction on someone’s religious beliefs by the government.
ANSWER: a, b, d
59. Mary creates a t-shirt design that expresses support for Nash, a presidential candidate, and distributes t-shirts to all of
Copyright Cengage Learning. Powered by Cognero. Page 8
Text & Summarized Cases , 13th Edition Roger
LeRoy Miller
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
1. 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
ANSWER: True
2. 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
3. The study of business law does not involve an ethical dimension.
a. True
b. False
ANSWER: False
4. 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
5. A constitution is a primary source of law.
a. True
b. False
ANSWER: True
6. A secondary source of law establishes the law on a particular issue.
a. True
b. False
ANSWER: False
7. 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
8. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
9. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states’ borders.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
b. False
ANSWER: False
10. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
ANSWER: True
11. A federal statute applies only to those states that agree to apply it within their borders.
a. True
b. False
ANSWER: False
12. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
ANSWER: False
13. Congress or a state legislature establishes an administrative agency to perform a specific function.
a. True
b. False
ANSWER: True
14. Independent regulatory agencies are not subject to the authority of the president.
a. True
b. False
ANSWER: False
15. Federal agency regulations do not take precedence over conflicting state regulations.
a. True
b. False
ANSWER: False
16. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
17. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
ANSWER: True
18. Courts give significant weight—deference—to an agency’s judgment, and interpretation of its rules.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
a. True
b. False
ANSWER: True
19. The common law is a body of law developed from judicial decisions.
a. True
b. False
ANSWER: True
20. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
ANSWER: True
21. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established
within their jurisdictions.
a. True
b. False
ANSWER: False
22. 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
ANSWER: True
23. A controlling precedent is any legal authority or source of law that a court may look to for guidance but need not
follow when making its decision.
a. True
b. False
ANSWER: False
24. Because courts of law and equity have merged, the principles of equity are no longer applied.
a. True
b. False
ANSWER: False
25. Rescission is an equitable remedy.
a. True
b. False
ANSWER: True
26. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
27. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
28. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
29. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
30. The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of
the other branches.
a. True
b. False
ANSWER: True
31. The commerce clause has had no greater impact on business than any other provision in the Constitution.
a. True
b. False
ANSWER: False
32. When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
a. True
b. False
ANSWER: False
33. The Fifth Amendment allows persons to be deprived of property without due process of law.
a. True
b. False
ANSWER: False
34. A law that limits a fundamental right that may be held to violate substantive due process.
a. True
b. False
ANSWER: True
35. A law based on a suspect trait will not stand under the equal protection clause, even if it is necessary to promote a
compelling government interest.
a. True
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,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
b. False
ANSWER: False
36. Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With
respect to the firm’s managers, legal concepts can be useful for Power’s (choose all applicable answers)
a. accounting and finance manager.
b. human resources manager.
c. marketing manager.
d. customers.
ANSWER: a, b, c
37. A constitution sets forth a government’s
a. limits, but not powers.
b. limits and powers.
c. neither limits nor powers.
d. powers, but not limits.
ANSWER: b
38. The basis of all law in the United States is
a. the U.S. Constitution.
b. laws passed by Congress.
c. case law.
d. regulations created by administrative agencies.
ANSWER: a
39. The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
a. no one.
b. the federal government only.
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
40. The Uniform Commercial Code facilitates commerce
a. among the states.
b. between the states and the federal government.
c. in countries that were once colonies of Great Britain.
d. in international markets.
ANSWER: a
41. The ___________________________, for example, is an agency within the U.S. Department of Health and Human
Services.
a. Uniform Commercial Code
b. Internal Revenue Service
c. Securities and Exchange Commission
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
d. Food and Drug Administration
ANSWER: d
42. Legislative rulemaking under the Administrative Procedure Act (APA) typically involves all, but which one of the
following three steps:
a. a comment period.
b. notice of proposed rulemaking.
c. public hearing.
d. final rule.
ANSWER: c
43. Common law rules develop from
a. principles underlying judges’ decisions in actual controversies.
b. regulations issued by administrative agencies.
c. statutes enacted by Congress and the state legislatures.
d. uniform laws drafted by legal scholars.
ANSWER: a
44. Stare decisis is best defined as
a. a doctrine under which judges follow established precedents.
b. the authority to decide a specific dispute.
c. a judicial proceeding to redress a wrong.
d. a situation giving a person a right to initiate a judicial proceeding.
ANSWER: a
45. Each court has a jurisdiction. Jurisdiction is best defined as
a. a doctrine that follows established precedents.
b. the geographic area in which a court has the power to apply the law.
c. a judicial proceeding to redress a wrong.
d. a situation giving a person a right to initiate a judicial proceeding.
ANSWER: b
46. There are no precedents on which the court deciding the case Algorithm Corp. v. Beta Bytes, Inc., can base its
decision. The court can consider, among other things,
a. the opinions of the friends and relatives of the judge.
b. the results of a poll of those in the courtroom
c. government policy based on widely held social values.
d. a petition.
ANSWER: c
47. A ________________________ is a legal authority that a court may consult for guidance, but that is not binding on
the court.
a. legal authority
b. applicable statute
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
c. persuasive authority
d. reference authority
ANSWER: c
48. Jaime and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. Jaime asks a
court to order Kay to perform as promised. Ordering a party to perform what was promised is
a. an equitable remedy.
b. an unenforceable demand.
c. an action.
d. beyond the court’s authority.
ANSWER: a
49. In a suit against Karen, Luke obtains an injunction. This is
a. an order to do or to refrain from doing a certain act.
b. a departure from precedent.
c. a payment of money.
d. the cancellation of a contract.
ANSWER: a
50. ___________________ is law that has to do with wrongs committed against society for which society demands
redress.
a. Constitutional law
b. Statutory law
c. Bill of rights
d. Civil law
ANSWER: d
51. Under the U.S. Constitution, Congress has the power to regulate
a. every commercial enterprise in the United States.
b. only intrastate commercial enterprises.
c. only local commercial enterprises.
d. only non-commercial activities.
ANSWER: a
52. The term checks and balances refers to the system under which
a. a state must refrain from imposing unreasonable burdens on citizens of another state.
b. the powers of government are divided among its branches, each of which exercises a check on the actions of
the others.
c. any judicial decision with respect to property rights in one state, will be honored and enforced in all states.
d. the national government regulates interstate commerce.
ANSWER: b
53. Leah, a citizen of Maine, obtains a federal license to operate a commercial fishing boat in a certain area off the
Maine coast. The Maine state legislature enacts a law that bans all commercial fishing in that area. Most likely, the state
law violates
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Legal and Constitutional Foundations of Business
a. no provision in the U.S. Constitution.
b. the commerce clause.
c. the due process clause.
d. the supremacy clause.
ANSWER: d
54. The state of Ohio can regulate building contractors, and building codes in the state under its
a. police powers.
b. system of checks and balances.
c. entitlement to full faith and credit.
d. commerce power.
ANSWER: a
55. Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states.
This grant implies that the regulation of such activities is not within the authority of
a. Congress.
b. the states.
c. the President.
d. the courts.
ANSWER: b
56. The Bill of Rights embodies
a. a series of protections for the individual against government action.
b. payment in the form of taxes by business entities to obtain certain rights.
c. the privileges and immunities of the citizens in the several states.
d. rights established under deeds, wills, contracts, and similar instruments.
ANSWER: a
57. Nick, the chief executive officer of On/Off, Inc., a website for short rants, claims that certain government actions
infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit
a. only federal power.
b. federal and state actions.
c. only individual liberty.
d. only state conduct.
ANSWER: b
58. These are protected by the First Amendment (choose all applicable answers)
a. an offensive political T-shirt.
b. a political bumper sticker.
c. a direct threat to a co-worker.
d. a restriction on someone’s religious beliefs by the government.
ANSWER: a, b, d
59. Mary creates a t-shirt design that expresses support for Nash, a presidential candidate, and distributes t-shirts to all of
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