TEST BANK for Business Law: Text and
Cases 16th Edition by Kenneth Clarkson,
Roger Miller
ALL CHAPTERS 1-52 WITH APPENDICES
COVERED| VERIFIED EXAM QUESTIONS AND
CORRECT ANSWERS
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, Chapter 1: Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
CORRECT ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among individuals and between individuals and their
society.
CORRECT ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
CORRECT ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
CORRECT ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
CORRECT ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
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,6. Whether a law is constitutional depends on its source.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A7. Uniform laws apply in all states, including those in which the laws have not been adopted.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A8. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
CORRECT ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
9. Statutory law does not include county ordinances.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
CORRECT ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A11. Common law is a term for law that is common throughout the world.
CORRECT ANSWER: F
A12. Damages is a remedy at law.
CORRECT ANSWER: T PAGE: 7 TYPE: =
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, A13. Remedies in equity include injunctions and decrees of specific performance.
CORRECT ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A14. In most states, the courts no longer grant ―equitable‖ remedies.
CORRECT ANSWER: F PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A15. A defendant is a person against whom a lawsuit is brought.
CORRECT ANSWER: T PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A16. Courts do not depart from precedents.
CORRECT ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A17. A judge‘s function is to make the law.
CORRECT ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A18. Criminal law focuses on duties that exist between persons.
CORRECT ANSWER: F
A19. A reference to ―28 U.S.C. Section 1332‖ means that a statute can be found in section 1332 of title 28 of the
United States Code.
CORRECT ANSWER: T PAGE: 15 TYPE: =
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NAT: AACSB Analytic AICPA Research
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Cases 16th Edition by Kenneth Clarkson,
Roger Miller
ALL CHAPTERS 1-52 WITH APPENDICES
COVERED| VERIFIED EXAM QUESTIONS AND
CORRECT ANSWERS
Ar
ch
Do
1
c
, Chapter 1: Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
CORRECT ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among individuals and between individuals and their
society.
CORRECT ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform it.
CORRECT ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
CORRECT ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
CORRECT ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
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,6. Whether a law is constitutional depends on its source.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A7. Uniform laws apply in all states, including those in which the laws have not been adopted.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal
A8. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
CORRECT ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
9. Statutory law does not include county ordinances.
CORRECT ANSWER: F PAGE: 4 TYPE: =
NAT: AACSB Reflective AICPA Legal
A10. No state has adopted the Uniform Commercial Code in its entirety.
CORRECT ANSWER: F PAGE: 5 TYPE: =
NAT: AACSB Reflective AICPA Legal
A11. Common law is a term for law that is common throughout the world.
CORRECT ANSWER: F
A12. Damages is a remedy at law.
CORRECT ANSWER: T PAGE: 7 TYPE: =
Ar
NAT: AACSB Analytic AICPA Legal
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, A13. Remedies in equity include injunctions and decrees of specific performance.
CORRECT ANSWER: T PAGE: 7 TYPE: =
NAT: AACSB Analytic AICPA Legal
A14. In most states, the courts no longer grant ―equitable‖ remedies.
CORRECT ANSWER: F PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A15. A defendant is a person against whom a lawsuit is brought.
CORRECT ANSWER: T PAGE: 8 TYPE: =
NAT: AACSB Analytic AICPA Legal
A16. Courts do not depart from precedents.
CORRECT ANSWER: F PAGE: 9 TYPE: =
NAT: AACSB Reflective AICPA Critical Thinking
A17. A judge‘s function is to make the law.
CORRECT ANSWER: F PAGE: 13 TYPE: N
NAT: AACSB Analytic AICPA Legal
A18. Criminal law focuses on duties that exist between persons.
CORRECT ANSWER: F
A19. A reference to ―28 U.S.C. Section 1332‖ means that a statute can be found in section 1332 of title 28 of the
United States Code.
CORRECT ANSWER: T PAGE: 15 TYPE: =
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NAT: AACSB Analytic AICPA Research
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