MGT 401 – Exam 1 UB – 2026 – Study Guide and Practice
Material
Law - correct answer ✔✔ A body of enforceable rules governing relationships among individuals
and between individuals and their society. (enables us to live in society)
Liability - correct answer ✔✔ The state of being legally responsible (liable) for something, such
as a debt or obligation.
Ethics - correct answer ✔✔ The moral principles and values that govern what constitutes right
or wrong behavior.
WE CANT ASSUME LAW AND ETHICS ARE THE SAME
business decision makers need to consider whether a decision is - correct answer ✔✔ both legal
and ethical
Primary sources of law - correct answer ✔✔ sources that establish the law such as
constitutions, statutes, and regulations
Secondary sources of law - correct answer ✔✔ sources that summarize and clarify the primary
sources of law such as treatises and legal encyclopedias
US Law primarily takes the form of - correct answer ✔✔ constitutions that set forth the
fundamental rights of the people living within the US or given state
10th amendment - correct answer ✔✔ reserves to states all powers not granted to federal
government, each state has a constitution
, statutes - correct answer ✔✔ passed by Congress and state legislatures (stop sign)
ordinance - correct answer ✔✔ passed by local governments (city or county)
UCC - correct answer ✔✔ Uniform Commercial code (Uniform Law) adopted by 49 states except
Louisiana, Article 2(sale of goods). Provides uniform rules for commercial transactions
Administrative Agency - correct answer ✔✔ 4th branch of government, entities that are
established to perform a specific function
congress gives power to agency
executive agency - correct answer ✔✔ FDA, subject to authority of the president
Independent Regulatory Agencies - correct answer ✔✔ such as the FTC and SEC, have officers
that serve for fixed terms and cannot be removed without just cause
Case Law - correct answer ✔✔ the doctrines and principles announced in cases, governs all
areas not covered by statutory law or administrative law
common law - correct answer ✔✔ judge made law of past decisions
Curiae regis - correct answer ✔✔ kings court, followed common law
Remedies - correct answer ✔✔ The relief given to an innocent party to enforce a right or
compensate for the violation of a right.
Material
Law - correct answer ✔✔ A body of enforceable rules governing relationships among individuals
and between individuals and their society. (enables us to live in society)
Liability - correct answer ✔✔ The state of being legally responsible (liable) for something, such
as a debt or obligation.
Ethics - correct answer ✔✔ The moral principles and values that govern what constitutes right
or wrong behavior.
WE CANT ASSUME LAW AND ETHICS ARE THE SAME
business decision makers need to consider whether a decision is - correct answer ✔✔ both legal
and ethical
Primary sources of law - correct answer ✔✔ sources that establish the law such as
constitutions, statutes, and regulations
Secondary sources of law - correct answer ✔✔ sources that summarize and clarify the primary
sources of law such as treatises and legal encyclopedias
US Law primarily takes the form of - correct answer ✔✔ constitutions that set forth the
fundamental rights of the people living within the US or given state
10th amendment - correct answer ✔✔ reserves to states all powers not granted to federal
government, each state has a constitution
, statutes - correct answer ✔✔ passed by Congress and state legislatures (stop sign)
ordinance - correct answer ✔✔ passed by local governments (city or county)
UCC - correct answer ✔✔ Uniform Commercial code (Uniform Law) adopted by 49 states except
Louisiana, Article 2(sale of goods). Provides uniform rules for commercial transactions
Administrative Agency - correct answer ✔✔ 4th branch of government, entities that are
established to perform a specific function
congress gives power to agency
executive agency - correct answer ✔✔ FDA, subject to authority of the president
Independent Regulatory Agencies - correct answer ✔✔ such as the FTC and SEC, have officers
that serve for fixed terms and cannot be removed without just cause
Case Law - correct answer ✔✔ the doctrines and principles announced in cases, governs all
areas not covered by statutory law or administrative law
common law - correct answer ✔✔ judge made law of past decisions
Curiae regis - correct answer ✔✔ kings court, followed common law
Remedies - correct answer ✔✔ The relief given to an innocent party to enforce a right or
compensate for the violation of a right.
