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BLAW Exam Merged Bank – Verified Questions and Answers (2026/2027)

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The BLAW Exam Merged Bank provides a comprehensive collection of multiple-choice, scenario-based, and application questions with verified answers for business law students. Covers topics including contracts, torts, property law, agency, corporate governance, regulatory compliance, and legal decision-making. Designed for self-study, exam preparation, and classroom review. Fully updated for 2026/2027 to align with current business law education standards and academic requirements.

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BLAW Exam 1


1. Substantive Law states rights and duties of persons and entities.

2. Procedural Law procedural law describes means for applying substantive law by the courts
including where cases should be filed, what evidence will be admissible and
whether a jury will hear a case as well as grounds for appeal.

3. Written Enactment is law created by federal, state and local legislative entities

4. Common Law is law created and applied by appellate courts by judges appointed (federal)
and elected (many states) by voters. Common law is created and modified by
appellate courts in response to disputes where no written enactment exists for
resolving the disputes.

5. Civil Law Describes the rights and duties of individuals and enterprises as well as gov-
ernmental entities

6. How is Civil Law results from written enactment by legislative action as well as common law
created? created by appellate courts.

7. Who may enforce Individuals and entities can bring claims
Civil Law?

8. Crimes are acts against society

9. Who creates crimi- No crime exists except as stated in written enactment enacted by a legislative
nal law? entity.

10. Crimes are clas- misdemeanors and felonies
sifed as

11. Felonies punishable by more than a year in prison

12. Misdemeanor punishable up to a year in county jail

13. Only a governmental entity
Page 1 Page1 /111of 582 1 of 582

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BLAW Exam 1


Who may bring
governmental ac-
tion?

14. Trial Courts find facts and apply law created

15. Appellate courts review application of law to the facts as found by a trial court and create or
interpret law as necessary in order to reach a decision.

16. What usually oc- the appellate court will usually remand the case back to the trial court with
curs if an appel- instructions for fact finding.
late court requires
facts in addition to
those found by a
trial court in order
to render a deci-
sion in a case on
appeal?

17. Obtaining review Review by writ of certiorari is at the discretion of the court. The vote of four
in the U.S Supreme justices is required to grant the writ although nine justices sit on the court.
Court

18. Doctrine of Stare influences decision making by the courts. Facilitates predictability, consistency
Decisis and uniformity in the law. (precedent) Applicable in applying and interpreting
written enactment as well as in applying and creating common law.

19. State Courts apply state law and federal law except where federal law prohibits

20. Federal Courts federal courts apply State and Federal Law

21. Which State's Conflict of Laws. Generally the Law of the state that has the most significant
law is applicable relationship to the controversy will be applicable.
where plaintiff and
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BLAW Exam 1


defendant operate
businesses or re-
side in different
states?

22. Which State's Long Arm Statutes. Plaintitt who has a claim against a defendant residing or
courts can be doing business in another state to file in a court in the state where the plaintitt
used? resides.

23. Money Damage compensatory, consequential, liquidated and punitive damages.
Remedies

24. Compensatory include general and specific damages.
Damages

25. Consequential are anticipated or predictable losses that result not directly, but indirectly from
Damages events such as a breach of contract.

26. Liquidated Dam- are damages parties agree to pay in the event of a dispute. Such provisions are
ages often inserted in contracts.

27. Punitive Damages are punishment damages usually awarded by a jury for the purpose of punish-
ing and deterring reckless, malicious or fraudulent conduct-usually defined by
tort law.

28. Equitable Dam- Injunctions, Specific Performance, Reformation of Contract, Rescission of Con-
ages tract.

29. Injunctions are orders not do specified acts or to engage in certain conduct.

30. Reformation of A court will order reformation of contract where the court finds that the contract
Contract does not accurately reflect the intent of the parties.

31.

Page 3 Page3 /311of 582 3 of 582

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BLAW Exam 1


Rescission of Con- A court will order a contract to be canceled where evidence of fraud, duress or
tract undue is found.

32. Alternative dis- Mediation, Mini-Trial, Summary Jury Trial, Arbitration and court annexed arbi-
pute resolution tration.
options

33. Mediation involves the use of a neutral third party usually selected by the parties. The
parties decide.

34. Mini-Trial conducted by an impartial third party or parties for the purpose of defining
issues and developing a basis for settlement.

35. Summary Jury Trial involves parties presenting their case before jurors selected for their skills and
experience who give advisory opinions on liability and damages.

36. Arbitration involves the use of a neutral third party usually selected by the parties who con-
ducts a trial court type proceeding finding facts and applying law in resolving
a dispute.

37. Court annexed ar- is utilized at the direction of the judge or at the request of the parties with the
bitration judges permission. The losing party still has a right to a trial court proceeding.

38. lawsuit is initiated by a plaintitt filing a complaint or petition in an appropriate trial court
alleging facts and raising legal issues.

39. Jurisdiction Power of a trial court to issue a binding decision. Existence of a Justiciable
Controversy.

40. A Justiciable Con- a current dispute
troversy requires

41. Statute of Limita- Two years starting when the plaintitt knows or has reason to know of a claim.
tions

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