,TESTBANK for Business Law Today, Comprehensive,
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: Law and Legal Reasoning
1. In the United States, the law consists of written laws and court decisions.
a. True
b. False
ANSWER: True
2. 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
3. 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
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 is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
9. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
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 passes a statute, does that law become part of the relevant state code of laws.
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 to all states.
a. True
b. False
ANSWER: True
16. The UCC is a uniform law that most states have adopted to govern commercial transactions
a. True
b. False
ANSWER: False
17. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
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,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
b. False
ANSWER: True
18. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
ANSWER: False
19. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False
ANSWER: True
20. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
ANSWER: True
21. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
22. 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
23. 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
ANSWER: True
24. Common law is a body of law developed from judge’s decisions in legal controversies.
a. True
b. False
ANSWER: True
25. Case law governs all areas of business not covered by statutory or administrative law.
a. True
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,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
b. False
ANSWER: True
26. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
27. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
28. 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
29. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False
ANSWER: False
30. There is one right answer to every legal question.
a. True
b. False
ANSWER: False
31. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
32. Courts will not grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
33. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
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,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
ANSWER: True
34. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
35. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
36. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
37. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
38. 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
a. accounting and finance manager.
b. human resources manager.
c. marketing manager.
d. silent partner.
ANSWER: d
39. An example of a primary source of law would be:
a. legal encyclopedias.
b. official comments to statutes.
c. Constitutional law.
d. legal treatises.
ANSWER: c
40. Secondary sources of law include
a. state constitutions.
b. law review articles.
c. laws passed by local governing bodies.
d. regulations created by administrative agencies.
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
ANSWER: b
41. A constitution sets forth the government’s general organization’s:
a. limits, but not powers.
b. limits and powers.
c. lack of limits or powers.
d. powers, but not limits.
ANSWER: b
42. 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
43. 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
ANSWER: c
44. Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as:
a. statutory law.
b. the basis of all law in the United States.
c. the supreme law of the land.
d. uniform law.
ANSWER: a
45. On a challenge to a provision in a state constitution, that conflicts with a provision in the U.S. Constitution:
a. neither provision will be enforced.
b. both provisions will be enforced.
c. the state provision will be enforced only within the borders of that state.
d. the federal provision will be enforced.
ANSWER: d
46. 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.
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,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
47. The Uniform Commercial Code provides a set of rules governing
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
48. The Uniform Commercial Code provides a set of rules governing:
a. commercial transactions.
b. state legislative adoptions.
c. congressional procedures.
d. administrative processes.
ANSWER: a
49. Administrative law includes
a. all laws that affect business operations.
b. the rules, orders, and decisions of a government agency.
c. model laws developed by the National Conference of Commissioners.
d. laws enacted by a legislative body.
ANSWER: b
50. 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
d. Food and Drug Administration
ANSWER: d
51. The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the
authority of:
a. no government official or entity.
b. the President.
c. Congress.
d. the U.S. Attorney General.
ANSWER: b
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, Name: Class: Date:
Chapter 01: Law and Legal Reasoning
52. A main function of an administrative agency is ________________.
a. overruling previous cases
b. rulemaking
c. hearing cases
d. enforcing the law
ANSWER: b
53. Legislative rulemaking under the 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
54. Administrative agencies also issue ______________________ that are not legally binding, but simply indicate how an
agency plans to interpret and enforce its statutory authority.
a. statutes
b. codes
c. interpretive rules
d. case law.
ANSWER: c
55. 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.
ANSWER: a
56. Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care
will be required to appear at a hearing presided over by:
a. a federal appellate court judge.
b. a federal district court judge.
c. an administrative law judge.
d. a U.S. Marshal.
ANSWER: c
57. Common law rules develop from:
a. principles underlying judges’ decisions in actual controversies.
b. regulations issued by administrative agencies.
Copyright Cengage Learning. Powered by Cognero. Page 8
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: Law and Legal Reasoning
1. In the United States, the law consists of written laws and court decisions.
a. True
b. False
ANSWER: True
2. 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
3. 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
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 is one that clarifies a source of primary law.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
9. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
ANSWER: False
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 passes a statute, does that law become part of the relevant state code of laws.
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 to all states.
a. True
b. False
ANSWER: True
16. The UCC is a uniform law that most states have adopted to govern commercial transactions
a. True
b. False
ANSWER: False
17. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
b. False
ANSWER: True
18. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
ANSWER: False
19. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False
ANSWER: True
20. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
ANSWER: True
21. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
ANSWER: False
22. 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
23. 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
ANSWER: True
24. Common law is a body of law developed from judge’s decisions in legal controversies.
a. True
b. False
ANSWER: True
25. Case law governs all areas of business not covered by statutory or administrative law.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
b. False
ANSWER: True
26. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
ANSWER: False
27. Controlling precedents are binding authorities.
a. True
b. False
ANSWER: True
28. 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
29. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False
ANSWER: False
30. There is one right answer to every legal question.
a. True
b. False
ANSWER: False
31. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
ANSWER: True
32. Courts will not grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
ANSWER: False
33. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
ANSWER: True
34. In a criminal case, the object is to obtain a remedy.
a. True
b. False
ANSWER: False
35. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
ANSWER: False
36. The basis of a civil law system is a written code of laws.
a. True
b. False
ANSWER: True
37. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
ANSWER: True
38. 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
a. accounting and finance manager.
b. human resources manager.
c. marketing manager.
d. silent partner.
ANSWER: d
39. An example of a primary source of law would be:
a. legal encyclopedias.
b. official comments to statutes.
c. Constitutional law.
d. legal treatises.
ANSWER: c
40. Secondary sources of law include
a. state constitutions.
b. law review articles.
c. laws passed by local governing bodies.
d. regulations created by administrative agencies.
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
ANSWER: b
41. A constitution sets forth the government’s general organization’s:
a. limits, but not powers.
b. limits and powers.
c. lack of limits or powers.
d. powers, but not limits.
ANSWER: b
42. 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
43. 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
ANSWER: c
44. Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as:
a. statutory law.
b. the basis of all law in the United States.
c. the supreme law of the land.
d. uniform law.
ANSWER: a
45. On a challenge to a provision in a state constitution, that conflicts with a provision in the U.S. Constitution:
a. neither provision will be enforced.
b. both provisions will be enforced.
c. the state provision will be enforced only within the borders of that state.
d. the federal provision will be enforced.
ANSWER: d
46. 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.
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Law and Legal Reasoning
c. the state of Montana only.
d. the United States Supreme Court only.
ANSWER: a
47. The Uniform Commercial Code provides a set of rules governing
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
48. The Uniform Commercial Code provides a set of rules governing:
a. commercial transactions.
b. state legislative adoptions.
c. congressional procedures.
d. administrative processes.
ANSWER: a
49. Administrative law includes
a. all laws that affect business operations.
b. the rules, orders, and decisions of a government agency.
c. model laws developed by the National Conference of Commissioners.
d. laws enacted by a legislative body.
ANSWER: b
50. 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
d. Food and Drug Administration
ANSWER: d
51. The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the
authority of:
a. no government official or entity.
b. the President.
c. Congress.
d. the U.S. Attorney General.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Law and Legal Reasoning
52. A main function of an administrative agency is ________________.
a. overruling previous cases
b. rulemaking
c. hearing cases
d. enforcing the law
ANSWER: b
53. Legislative rulemaking under the 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
54. Administrative agencies also issue ______________________ that are not legally binding, but simply indicate how an
agency plans to interpret and enforce its statutory authority.
a. statutes
b. codes
c. interpretive rules
d. case law.
ANSWER: c
55. 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.
ANSWER: a
56. Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care
will be required to appear at a hearing presided over by:
a. a federal appellate court judge.
b. a federal district court judge.
c. an administrative law judge.
d. a U.S. Marshal.
ANSWER: c
57. Common law rules develop from:
a. principles underlying judges’ decisions in actual controversies.
b. regulations issued by administrative agencies.
Copyright Cengage Learning. Powered by Cognero. Page 8
