WGU BUSINESS LAW C713 QUESTIONS AND ANSWERS
precedent - CORRECT ANSWER✅✅✅the tendency to decide current rulings based on previous cases,
only binding in lower courts
common law - CORRECT ANSWER✅✅✅judge made law, often created through many precedents
judicial power - CORRECT ANSWER✅✅✅gives the right to interpret laws and determine their validity
statutes - CORRECT ANSWER✅✅✅legislature to become a law
laws - CORRECT ANSWER✅✅✅bill (congress), simple majority in house and senate -> president
(veto power) -> 2/3 in house and senate -> statute
injunction - CORRECT ANSWER✅✅✅order to stop doing something
true - CORRECT ANSWER✅✅✅most government agencies are created by congress
regulations - CORRECT ANSWER✅✅✅laws created by government agencies
treaties - CORRECT ANSWER✅✅✅made by the president, ratified by senate by 2/3rds
stare decisis - CORRECT ANSWER✅✅✅let the decision stand
Legal Positivism - CORRECT ANSWER✅✅✅Law is what the ruling power says it is.
Legal Realism - CORRECT ANSWER✅✅✅It does not matter what is written as law, only those who
enforce the law and how they enforce it.
,Natural Law - CORRECT ANSWER✅✅✅A body of unchanging moral principles regarded as a basis for
all human conduct
administrative law - CORRECT ANSWER✅✅✅laws made by an administrative agencies
Reasons for a new law - CORRECT ANSWER✅✅✅New issue, unpopular judicial ruling, criminal law.
Three steps in statutory interpretation - CORRECT ANSWER✅✅✅Plain meaning rule, Legislative
history and intent, Public policy
first administrative agency - CORRECT ANSWER✅✅✅ICC Interstate Commerce Commission (trains)
executive agencies - CORRECT ANSWER✅✅✅federal agencies, under the president's control
independent agencies - CORRECT ANSWER✅✅✅agencies not under presidential control
How is an agency created? - CORRECT ANSWER✅✅✅Congress passing enabling legislation
Legislative rules - CORRECT ANSWER✅✅✅agency rules that act as statutes
Interpretive rules - CORRECT ANSWER✅✅✅agency rules that are an interpretation of what the law
already requires
Informal Rulemaking - CORRECT ANSWER✅✅✅Notice and comment method
Formal Rulemaking - CORRECT ANSWER✅✅✅Congress requires an agency to hold a public hearing
where affected parties can question agency experts.
administrative law judge - CORRECT ANSWER✅✅✅An agency employee who acts as an impartial
decision maker
, unintentional tort - CORRECT ANSWER✅✅✅Negligence that leads to injury, property damage, or
financial loss.
elements a plaintiff must prove to win negligence - CORRECT ANSWER✅✅✅Duty of care, breach,
factual cause, proximate cause, damages
duty of care - CORRECT ANSWER✅✅✅Each of us has a duty to behave as a reasonable person would
under the circumstances
breach of duty - CORRECT ANSWER✅✅✅if a legal duty of care exists, then a plaintiff must show that
the defendant did not meet it
negligence per se - CORRECT ANSWER✅✅✅When a legislature sets a minimum standard of care for
a particular activity, in order to protect a certain group of people, and a violation of the statute injures a
member of that group, the defendant has committed negligence per se. A plaintiff that can show this
need not prove breach of duty
factual cause - CORRECT ANSWER✅✅✅If the defendant's breach led to the ultimate harm
proximate cause - CORRECT ANSWER✅✅✅For the defendant to be liable, the type of harm must
have been reasonably foreseeable
res ipsa loquitur - CORRECT ANSWER✅✅✅"the thing speaks for itself" the facts imply that the
defendant's negligence caused the accident, unless the defendant can prove otherwise
voir dire - CORRECT ANSWER✅✅✅to speak the truth
assumption of risk - CORRECT ANSWER✅✅✅A person who voluntarily enters a situation that has an
obvious danger cannot complain if she is injured
precedent - CORRECT ANSWER✅✅✅the tendency to decide current rulings based on previous cases,
only binding in lower courts
common law - CORRECT ANSWER✅✅✅judge made law, often created through many precedents
judicial power - CORRECT ANSWER✅✅✅gives the right to interpret laws and determine their validity
statutes - CORRECT ANSWER✅✅✅legislature to become a law
laws - CORRECT ANSWER✅✅✅bill (congress), simple majority in house and senate -> president
(veto power) -> 2/3 in house and senate -> statute
injunction - CORRECT ANSWER✅✅✅order to stop doing something
true - CORRECT ANSWER✅✅✅most government agencies are created by congress
regulations - CORRECT ANSWER✅✅✅laws created by government agencies
treaties - CORRECT ANSWER✅✅✅made by the president, ratified by senate by 2/3rds
stare decisis - CORRECT ANSWER✅✅✅let the decision stand
Legal Positivism - CORRECT ANSWER✅✅✅Law is what the ruling power says it is.
Legal Realism - CORRECT ANSWER✅✅✅It does not matter what is written as law, only those who
enforce the law and how they enforce it.
,Natural Law - CORRECT ANSWER✅✅✅A body of unchanging moral principles regarded as a basis for
all human conduct
administrative law - CORRECT ANSWER✅✅✅laws made by an administrative agencies
Reasons for a new law - CORRECT ANSWER✅✅✅New issue, unpopular judicial ruling, criminal law.
Three steps in statutory interpretation - CORRECT ANSWER✅✅✅Plain meaning rule, Legislative
history and intent, Public policy
first administrative agency - CORRECT ANSWER✅✅✅ICC Interstate Commerce Commission (trains)
executive agencies - CORRECT ANSWER✅✅✅federal agencies, under the president's control
independent agencies - CORRECT ANSWER✅✅✅agencies not under presidential control
How is an agency created? - CORRECT ANSWER✅✅✅Congress passing enabling legislation
Legislative rules - CORRECT ANSWER✅✅✅agency rules that act as statutes
Interpretive rules - CORRECT ANSWER✅✅✅agency rules that are an interpretation of what the law
already requires
Informal Rulemaking - CORRECT ANSWER✅✅✅Notice and comment method
Formal Rulemaking - CORRECT ANSWER✅✅✅Congress requires an agency to hold a public hearing
where affected parties can question agency experts.
administrative law judge - CORRECT ANSWER✅✅✅An agency employee who acts as an impartial
decision maker
, unintentional tort - CORRECT ANSWER✅✅✅Negligence that leads to injury, property damage, or
financial loss.
elements a plaintiff must prove to win negligence - CORRECT ANSWER✅✅✅Duty of care, breach,
factual cause, proximate cause, damages
duty of care - CORRECT ANSWER✅✅✅Each of us has a duty to behave as a reasonable person would
under the circumstances
breach of duty - CORRECT ANSWER✅✅✅if a legal duty of care exists, then a plaintiff must show that
the defendant did not meet it
negligence per se - CORRECT ANSWER✅✅✅When a legislature sets a minimum standard of care for
a particular activity, in order to protect a certain group of people, and a violation of the statute injures a
member of that group, the defendant has committed negligence per se. A plaintiff that can show this
need not prove breach of duty
factual cause - CORRECT ANSWER✅✅✅If the defendant's breach led to the ultimate harm
proximate cause - CORRECT ANSWER✅✅✅For the defendant to be liable, the type of harm must
have been reasonably foreseeable
res ipsa loquitur - CORRECT ANSWER✅✅✅"the thing speaks for itself" the facts imply that the
defendant's negligence caused the accident, unless the defendant can prove otherwise
voir dire - CORRECT ANSWER✅✅✅to speak the truth
assumption of risk - CORRECT ANSWER✅✅✅A person who voluntarily enters a situation that has an
obvious danger cannot complain if she is injured
