14th Edition Roger E. Meiners
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,Chapter 01: Today’s Business Environment: Law and Ethics
Multiple Choice
1. Which of the following is an accepted definition of law?
a. a body of rules of action or conduct prescribed by controlling authority and having binding
legal force
b. a body of rules of action or conduct prescribed by society but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by international society
d. a body of rules of action or conduct prescribed by the Supreme Court and having binding legal
force
ANSWER: a
FEEDBACK: a. Correct. Law, in its generic sense, is a body of rules of action or
conduct prescribed by the controlling authority and having
binding legal force.
b. Incorrect. Law, in its generic sense, is a body of rules of action or
conduct prescribed by the controlling authority and having
binding legal force.
c. Incorrect. Law, in its generic sense, is a body of rules of action or
conduct prescribed by the controlling authority and having
binding legal force.
d. Incorrect. Law, in its generic sense, is a body of rules of action or
conduct prescribed by the controlling authority and having
binding legal force.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's; Analyze
DATE CREATED: 8/23/2021 9:10 AM
DATE MODIFIED: 9/11/2021 10:01 AM
2. Enforcement of law in a society is important because it:
a. provides some predictability and uniformity to the boundaries of acceptable conduct.
b. allows a government to maintain power over the people.
c. leads to higher literacy rates.
d. prevents large disparities in income across the various levels of a society.
ANSWER: a
FEEDBACK: a. Correct. Enforcement of the rules provides greater predictability
and uniformity to the boundaries of acceptable conduct in a
society.
b. Incorrect. Enforcement of the rules provides greater predictability
and uniformity to the boundaries of acceptable conduct in a
society.
c. Incorrect. Enforcement of the rules provides greater predictability
and uniformity to the boundaries of acceptable conduct in a
society.
d. Incorrect. Enforcement of the rules provides greater predictability
and uniformity to the boundaries of acceptable conduct in a
society.
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,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/8/2021 2:16 PM
DATE MODIFIED: 9/11/2021 10:01 AM
3. Which of the following statements is true?
a. Formal law is respected in all nations
b. The sale of marijuana is illegal worldwide
c. The sale of alcoholic beverages is legal worldwide
d. Law imposes structure on society by limiting activities that hurt the "public interest"
ANSWER: d
FEEDBACK: a. Incorrect. The legal system helps to define acceptable social
behavior. The law limits activities that damage the public interest.
b. Incorrect. The legal system helps to define acceptable social
behavior. The law limits activities that damage the public interest.
c. Incorrect. The legal system helps to define acceptable social
behavior. The law limits activities that damage the public interest.
d. Correct. The legal system helps to define acceptable social
behavior. The law limits activities that damage the public interest.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
4. Which of the following are reflected in some aspect of law?
a. Honesty and integrity are reflected by the enforceability of contracts.
b. Respect for other people and their property is reflected in tort and property law.
c. Some measures of acceptable behavior are reflected in criminal laws.
d. Honesty and integrity are reflected by the enforceability of contracts, respect for other people
and their property is reflected in tort and property law, and some measures of acceptable
behavior are reflected in criminal laws.
ANSWER: d
FEEDBACK: a. Incorrect. Integrity is reflected in the enforceability of contracts,
respect for other people and their property is reflected in tort and
property law, and some measures of acceptable behavior are
reflected in criminal laws.
Copyright Cengage Learning. Powered by Cognero. Page 2
, b. Incorrect. Integrity is reflected in the enforceability of contracts,
respect for other people and their property is reflected in tort and
property law, and some measures of acceptable behavior are
reflected in criminal laws.
c. Incorrect. Integrity is reflected in the enforceability of contracts,
respect for other people and their property is reflected in tort and
property law, and some measures of acceptable behavior are
reflected in criminal laws.
d. Correct. Integrity is reflected in the enforceability of contracts,
respect for other people and their property is reflected in tort and
property law, and some measures of acceptable behavior are
reflected in criminal laws.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.1 - Define business law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
5. Changes in laws regarding the consumption of alcohol or use of marijuana indicate that:
a. the legal system can bring about changes in "acceptable" behavior.
b. the legal system does not change with time.
c. the legal system is subject to the whims of Supreme Court Judges.
d. the legal system is subject to the will of the general public.
ANSWER: a
FEEDBACK: a. Correct. The legal system provides a way to bring about changes
in “acceptable” behavior.
b. Incorrect. The legal system provides a way to bring about
changes in “acceptable” behavior.
c. Incorrect. The legal system provides a way to bring about
changes in “acceptable” behavior.
d. Incorrect. The legal system provides a way to bring about
changes in “acceptable” behavior.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
Copyright Cengage Learning. Powered by Cognero. Page 3
,6. One example of the law working to effect social change in the U.S. is in the area of:
a. commercial paper.
b. negotiable instruments.
c. easements.
d. racial discrimination.
ANSWER: d
FEEDBACK: a. Incorrect. In the past, some states required businesses to
discriminate against Black employees and customers. After a
long struggle, those laws gradually disappeared.
b. Incorrect. In the past, some states required businesses to
discriminate against Black employees and customers. After a
long struggle, those laws gradually disappeared.
c. Incorrect. In the past, some states required businesses to
discriminate against Black employees and customers. After a
long struggle, those laws gradually disappeared.
d. Correct. In the past, some states required businesses to
discriminate against Black employees and customers. After a
long struggle, those laws gradually disappeared.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.1.6 - Identify how to remedy unethical behavior.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Law and the Key Functions of the Legal System
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
7. The United States Constitution:
a. is the oldest written constitution in force in a major nation.
b. created the four branches of government.
c. established the common law.
d. created the 50 states.
ANSWER: a
FEEDBACK: a. Correct. The U.S. Constitution is the oldest written constitution in
force in the world.
b. Incorrect. The U.S. Constitution is the oldest written constitution
in force in the world.
c. Incorrect. The U.S. Constitution is the oldest written constitution
in force in the world.
d. Incorrect. The U.S. Constitution is the oldest written constitution
in force in the world.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international
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, governing bodies that create law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Remember
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
8. Which of the following is true of a constitution?
a. It establishes and limits the powers of government.
b. It is applicable to all situations.
c. It is accepted by at least two-thirds of the citizens of a country.
d. It is acknowledged by the international community.
ANSWER: a
FEEDBACK: a. Correct. A constitution is the fundamental law of a nation. It
establishes and limits the powers of government.
b. Incorrect. A constitution is the fundamental law of a nation. It
establishes and limits the powers of government.
c. Incorrect. A constitution is the fundamental law of a nation. It
establishes and limits the powers of government.
d. Incorrect. A constitution is the fundamental law of a nation. It
establishes and limits the powers of government.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international
governing bodies that create law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Remember
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
9. Which of the following was created by the U.S. Constitution?
a. all specific rights of citizens
b. stare decisis
c. the executive branch of government
d. informal law
ANSWER: c
FEEDBACK: a. Incorrect. The Constitution creates the legislative, executive, and
judicial branches as the primary framework of the U.S.
government.
b. Incorrect. The Constitution creates the legislative, executive, and
judicial branches as the primary framework of the U.S.
government.
c. Correct. The Constitution creates the legislative, executive, and
Copyright Cengage Learning. Powered by Cognero. Page 5
, judicial branches as the primary framework of the U.S.
government.
d. Incorrect. The Constitution creates the legislative, executive, and
judicial branches as the primary framework of the U.S.
government.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international
governing bodies that create law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
10. Powers not granted to the federal government are retained by states or are left to the people according
to:
a. the Constitution.
b. the Supreme Court.
c. the common law.
d. Executive Order 153.
ANSWER: a
FEEDBACK: a. Correct. The U.S. Constitution allocates the powers of
government between the states and the federal government.
Powers not granted to the federal government are retained by
states or are left to the people
b. Incorrect. The U.S. Constitution allocates the powers of
government between the states and the federal government.
Powers not granted to the federal government are retained by
states or are left to the people
c. Incorrect. The U.S. Constitution allocates the powers of
government between the states and the federal government.
Powers not granted to the federal government are retained by
states or are left to the people
d. Incorrect. The U.S. Constitution allocates the powers of
government between the states and the federal government.
Powers not granted to the federal government are retained by
states or are left to the people
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international
governing bodies that create law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
Copyright Cengage Learning. Powered by Cognero. Page 6
,KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
11. The United States Constitution:
a. overrides only those state laws having to do with international treaties.
b. overrides any state or federal laws that go beyond what the Constitution permits.
c. overrides any state, but not any federal, laws that go beyond what the Constitution permits.
d. overrides any federal, but not any state, laws that go beyond what the Constitution permits.
ANSWER: b
FEEDBACK: a. Incorrect. As the highest legal authority, the U.S. Constitution
overrides any state or federal laws that go beyond what the
Constitution permits.
b. Correct. As the highest legal authority, the U.S. Constitution
overrides any state or federal laws that go beyond what the
Constitution permits.
c. Incorrect. As the highest legal authority, the U.S. Constitution
overrides any state or federal laws that go beyond what the
Constitution permits.
d. Incorrect. As the highest legal authority, the U.S. Constitution
overrides any state or federal laws that go beyond what the
Constitution permits.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.4.2 - Identify the state, federal, and international
governing bodies that create law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Analyze
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
12. Statutory law:
a. is a rule declared by the Supreme Court.
b. is also known as the fundamental law of the nation.
c. is a form of common law.
d. makes up much of the law that affects business behavior.
ANSWER: d
FEEDBACK: a. Incorrect. Statutes created by legislation make up much of the
law that affects business behavior.
b. Incorrect. Statutes created by legislation make up much of the
law that affects business behavior.
c. Incorrect. Statutes created by legislation make up much of the
law that affects business behavior.
d. Correct. Statutes created by legislation make up much of the law
that affects business behavior.
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, POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.2.6 - Explain the creation and development of statutory
law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Remember
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
13. Statutory law is:
a. the separation of powers at the federal level.
b. also known as the fundamental law of the nation.
c. a form of common law.
d. a law enacted by a legislative body.
ANSWER: d
FEEDBACK: a. Incorrect. Congress and state legislatures are the sources of
statutory law.
b. Incorrect. Congress and state legislatures are the sources of
statutory law.
c. Incorrect. Congress and state legislatures are the sources of
statutory law.
d. Correct. Congress and state legislatures are the sources of
statutory law.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:BLAW.MEIN.23.1.2.6 - Explain the creation and development of statutory
law.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - Universal - DISC: AICPA: BB-Legal
TOPICS: A-Head: Sources of Law in the United States
KEYWORDS: Bloom's: Remember
DATE CREATED: 6/24/2021 2:41 PM
DATE MODIFIED: 9/11/2021 10:01 AM
14. The U.S. Constitution created these branches of the federal government: (1) executive, (2) judicial,
and (3):
a. senatorial.
b. administrative.
c. constitutional.
d. legislative.
ANSWER: d
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