Legal Environment of Business Exam 1 – Business Law, Ethics, and Regulatory Framework
Study Guide
The system of law that is based on written judicial decisions is called _____. - correct answer
✔✔common law
"Rule of Law" is defined as a series of rules created by the state that are enforceable. - correct
answer ✔✔True
Which of the following laws is given the lowest priority? - correct answer ✔✔A local ordinance
Law secures the elements of trust and certainty that are vital to economic transactions among
unrelated parties. - correct answer ✔✔True
A strong legal system is most important in diverse societies that lack uniform social forces to
govern their collective conduct. - correct answer ✔✔True
During jury selection, neither the plaintiff nor the defendant are allowed to excuse a juror
without cause. - correct answer ✔✔False
Kevin Durant sues Draymond Green in Federal court. Draymond loses the case and files an
appeal with the Ninth Circuit Court of Appeals. At the circuit level, Draymond is the appellant. -
correct answer ✔✔a) True
At the U.S. Supreme Court, what is the party called who lost at the appellant court level? -
correct answer ✔✔Petitioner
At the first appellate court level, what is the party called who won at the trial level? - correct
answer ✔✔Appellee
, Common law legal systems are likely to rely on precedent and stare decisis to determine what
the law is. - correct answer ✔✔True
Louisiana is the only state in the U.S. that follows a common law legal system. - correct answer
✔✔False
"Law" and "rule of law" mean the same thing. - correct answer ✔✔False
Which of the following laws is given the highest priority? - correct answer ✔✔A federal law
A statute that states, "Once a person is arrested, they must be brought before a judge within 10
days," is an example of a _____ law. - correct answer ✔✔procedural
A private property based legal system _____. - correct answer ✔✔allows people to utilize the
legal system to help them exclude others from interfering with their resources
_____ courts have judges that do not create law nor believe they have to follow previous court
opinions. - correct answer ✔✔Civil law
_____ suggests that an ethical business has managers who recognize and consider the various
groups whose interests are impacted by the business' operations. - correct answer
✔✔Stakeholder theory
Consequentialism concerns itself with the morality of the actions themselves. - correct answer
✔✔False
Which of the following are external stakeholders? - correct answer ✔✔A & C only
Creditors
Study Guide
The system of law that is based on written judicial decisions is called _____. - correct answer
✔✔common law
"Rule of Law" is defined as a series of rules created by the state that are enforceable. - correct
answer ✔✔True
Which of the following laws is given the lowest priority? - correct answer ✔✔A local ordinance
Law secures the elements of trust and certainty that are vital to economic transactions among
unrelated parties. - correct answer ✔✔True
A strong legal system is most important in diverse societies that lack uniform social forces to
govern their collective conduct. - correct answer ✔✔True
During jury selection, neither the plaintiff nor the defendant are allowed to excuse a juror
without cause. - correct answer ✔✔False
Kevin Durant sues Draymond Green in Federal court. Draymond loses the case and files an
appeal with the Ninth Circuit Court of Appeals. At the circuit level, Draymond is the appellant. -
correct answer ✔✔a) True
At the U.S. Supreme Court, what is the party called who lost at the appellant court level? -
correct answer ✔✔Petitioner
At the first appellate court level, what is the party called who won at the trial level? - correct
answer ✔✔Appellee
, Common law legal systems are likely to rely on precedent and stare decisis to determine what
the law is. - correct answer ✔✔True
Louisiana is the only state in the U.S. that follows a common law legal system. - correct answer
✔✔False
"Law" and "rule of law" mean the same thing. - correct answer ✔✔False
Which of the following laws is given the highest priority? - correct answer ✔✔A federal law
A statute that states, "Once a person is arrested, they must be brought before a judge within 10
days," is an example of a _____ law. - correct answer ✔✔procedural
A private property based legal system _____. - correct answer ✔✔allows people to utilize the
legal system to help them exclude others from interfering with their resources
_____ courts have judges that do not create law nor believe they have to follow previous court
opinions. - correct answer ✔✔Civil law
_____ suggests that an ethical business has managers who recognize and consider the various
groups whose interests are impacted by the business' operations. - correct answer
✔✔Stakeholder theory
Consequentialism concerns itself with the morality of the actions themselves. - correct answer
✔✔False
Which of the following are external stakeholders? - correct answer ✔✔A & C only
Creditors
