Becc Mod 2 Exam Study Guide: Business Law, Ethics, and the Legal
Environment
Chapter 1: Introduction to Law and the Legal System
1. What is the primary difference between law and ethics?
ANSWER ✓ Law consists of enforceable rules governing relationships between
individuals and society. Ethics are moral principles that guide behavior, which are not
always enforceable by the government.
2. What is the body of law created by judicial decisions?
ANSWER ✓ Common Law.
3. What is the doctrine that requires judges to follow the precedents established in
prior cases?
ANSWER ✓ Stare Decisis.
4. What is the primary purpose of the Constitution of the United States?
ANSWER ✓ To establish the framework of the federal government and its powers, and
to protect individual rights from government infringement.
5. Statutes are laws created by which branch of government?
ANSWER ✓ The Legislative Branch (Congress at the federal level; state legislatures at the
state level).
6. What is the term for a law enacted by a local government, such as a city or
county?
ANSWER ✓ An Ordinance.
7. The U.S. Supreme Court is the primary authority for interpreting what?
ANSWER ✓ The U.S. Constitution.
8. What is the highest form of law in the United States?
, ANSWER ✓ The U.S. Constitution.
9. What is the primary source of law that governs disputes between private
parties?
ANSWER ✓ Civil Law.
10. What is the difference between criminal law and civil law?
ANSWER ✓ Criminal law involves offenses against society as a whole, prosecuted by the
government, with penalties of fines or imprisonment. Civil law involves disputes
between private parties, with remedies typically being monetary damages or equitable
relief.
Chapter 2: Courts and Alternative Dispute Resolution (ADR)
11. What is the authority of a court to hear and decide a case?
ANSWER ✓ Jurisdiction.
12. What are the two primary types of jurisdiction a court must have to hear a
case?
ANSWER ✓ Subject Matter Jurisdiction and Personal Jurisdiction.
13. What is the first major pleading in a lawsuit, filed by the plaintiff?
ANSWER ✓ The Complaint.
14. What is the pleading in which the defendant responds to the plaintiff's
complaint?
ANSWER ✓ The Answer.
15. What is the process of gathering evidence from the opposing party before trial
called?
ANSWER ✓ Discovery.
16. What is a deposition in the discovery process?
ANSWER ✓ Out-of-court sworn testimony of a witness recorded for use in court.
Environment
Chapter 1: Introduction to Law and the Legal System
1. What is the primary difference between law and ethics?
ANSWER ✓ Law consists of enforceable rules governing relationships between
individuals and society. Ethics are moral principles that guide behavior, which are not
always enforceable by the government.
2. What is the body of law created by judicial decisions?
ANSWER ✓ Common Law.
3. What is the doctrine that requires judges to follow the precedents established in
prior cases?
ANSWER ✓ Stare Decisis.
4. What is the primary purpose of the Constitution of the United States?
ANSWER ✓ To establish the framework of the federal government and its powers, and
to protect individual rights from government infringement.
5. Statutes are laws created by which branch of government?
ANSWER ✓ The Legislative Branch (Congress at the federal level; state legislatures at the
state level).
6. What is the term for a law enacted by a local government, such as a city or
county?
ANSWER ✓ An Ordinance.
7. The U.S. Supreme Court is the primary authority for interpreting what?
ANSWER ✓ The U.S. Constitution.
8. What is the highest form of law in the United States?
, ANSWER ✓ The U.S. Constitution.
9. What is the primary source of law that governs disputes between private
parties?
ANSWER ✓ Civil Law.
10. What is the difference between criminal law and civil law?
ANSWER ✓ Criminal law involves offenses against society as a whole, prosecuted by the
government, with penalties of fines or imprisonment. Civil law involves disputes
between private parties, with remedies typically being monetary damages or equitable
relief.
Chapter 2: Courts and Alternative Dispute Resolution (ADR)
11. What is the authority of a court to hear and decide a case?
ANSWER ✓ Jurisdiction.
12. What are the two primary types of jurisdiction a court must have to hear a
case?
ANSWER ✓ Subject Matter Jurisdiction and Personal Jurisdiction.
13. What is the first major pleading in a lawsuit, filed by the plaintiff?
ANSWER ✓ The Complaint.
14. What is the pleading in which the defendant responds to the plaintiff's
complaint?
ANSWER ✓ The Answer.
15. What is the process of gathering evidence from the opposing party before trial
called?
ANSWER ✓ Discovery.
16. What is a deposition in the discovery process?
ANSWER ✓ Out-of-court sworn testimony of a witness recorded for use in court.
