Chapter 1

Introduction to Law and

Legal Reasoning
N.B.: TYPE indicates that a question is new, modifed, or unchanged,
as follows.
N A question new to this edition of the Test Bank.
+ A question modifed from the previous edition of the Test
Bank,
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTINS
1. The stailit! and predictailit! created ! the law is essential to usi"
ness activities.
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). ,aw is a od! of enforceale rules governing relationships among
individuals and etween individuals and their societ!.
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-. The natural law philosopher elieves that formal law is inferior to
universal moral and ethical principles that are part of human nature.
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.. /onstitutional law includes onl! the 0.#. /onstitution.
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3. A state law that con4icts with the 0.#. /onstitution will e deemed
unconstitutional.
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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 3
2. To determine whether a law is constitutional, a court will onl! look at
the law5s source.
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6. 0niform laws appl! in all states, including those in which the laws
have not een adopted.
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7. #tate constitutions are supreme within their respective orders.
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8. #tatutor! law does not include count! ordinances.
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19. %ver! state has adopted the 0niform /ommercial /ode in its entiret!.
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11. /ommon law is a term for law that is common throughout the world.
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1). :amages is the normal remed! at law toda!.
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1-. %quitale remedies include in;unctions and decrees of specifc
performance.
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1.. <n most states, a court cannot grant a legal remed! and an equitale
remed! in the same case.
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13. >udges use precedent when deciding a case in a common law legal
s!stem.
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12. /ourts do not depart from precedents.
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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 5
16. ?ow the courts interpret a statute determines how that statute is
applied.
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17. /riminal law focuses on duties that e@ist etween persons.
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18. A reference to A8 0.#./. #ection .B means that a statute can e
found on page 8 of section . of the United States Code.
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)9. Cost state trial court decisions are not pulished.
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!ULTIPLE "#I"E QUESTINS
1. Alan is a ;udge. The function of Alan and other ;udges is to
a. decide cases on the asis of their opinions aout the issues.
. decide cases on the asis of their personal philosophical views.
c. interpret and appl! the laws.
d. make the laws.
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). Doters in North /arolina approve a new state constitution, after
which the Ecean /it! /ouncil passes new ordinances, the North
/arolina :epartment of 'arks and &ecreation issues new rules, and
the Ecean /it! /hamer of /ommerce sends out new instructions.
#ources of law do not include
a. ordinances passed ! the Ecean /it! /ouncil.
. instructions issued ! the Ecean /it! /hamer of /ommerce.
c. rules issued ! the North /arolina :epartment of 'arks and
&ecreation.
d. state constitutions passed ! popular vote.
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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 7
-. <n Neraska, the superior Fhighest"rankingG law is
a. a case decided ! the Neraska #upreme /ourt.
. a provision in the Neraska constitution.
c. a rule created ! a Neraska state administrative agenc!.
d. a statute enacted ! the Neraska legislature.
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.. ?awaii enacts a state law that violates the 0.#. /onstitution. This law
can e enforced !
a. no one.
. the federal government onl!.
c. the state of ?awaii onl!.
d. the 0nited #tates #upreme /ourt onl!.
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3. The 1ederal Trade /ommission is a government agenc! that issues
rules, orders, and decisions. The (eorgia state legislature enacts
statutes. The >ackson /ount! Board and the 'each /it! /ouncil
enacts ordinances. Administrative law includes which of the
followingH
a. All law that aIects a usiness5s operation.
. The rules, orders, and decisions of the 1ederal Trade
/ommission.
c. #tatutes enacted ! the (eorgia state legislature.
d. Erdinances created ! the >ackson /ount! Board and the cit!
council of 'each /it!, (eorgia.
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2. <n a suit against Jate, ,!le otains specifc performance. This is
a. an equitale remed! and a remed! at law.
. an equitale remed! onl!.
c. a remed! at law onl!.
d. neither an equitale remed! nor a remed! at law.
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6. As a ;udge, >a! applies common law rules. These rules develop from
8 TEST BANK 1UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
a. decisions of the courts in legal disputes.
. regulations issued ! administrative agencies.
c. statutes enacted ! /ongress and the state legislatures.
d. uniform laws drafted ! legal scholars.
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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 9
7. The federal government and the state governments constitute the
0.#. legal s!stem. This s!stem is ased on the legal s!stem of
a. Ancient (reece.
. Ancient &ome.
c. %ngland.
d. 1rance.
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8. <n a suit against Adam, Beth otains a remed!, which is the means
given to a part!
a. neither to recover a right nor to redress a wrong.
. onl! to recover a right.
c. onl! to redress a wrong.
d. to recover a right or to redress a wrong.
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19. ?oll! is a state court ;udge. <lsa appears in a case in ?oll!5s court,
claiming that >im reached a contract. As in most state courts, ?oll!
ma!
a. award damages, cancel a contract, or direct a part! to do or
not to do an act.
. award damages onl!.
c. cancel a contract onl!.
d. direct a part! to do or not to do a particular act onl!.
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11. <n a suit against /harles, :onna otains the cancellation of a
contractual oligation, which is
a. a remed! at law.
. rescission.
c. restitution.
d. specifc performance.
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10 TEST BANK 1UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
1). Net /orporation fles a suit against Emega, <nc., alleging that Emega
reached a contract to sell Net a computer s!stem for K199,999. Net
is
a. the appellant.
. the appellee.
c. the defendant.
d. the plaintiI.
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1-. <n Abel v. Baker, a state supreme court held that a minor could
cancel a contract for the sale of a car. Now a trial court in the same
state is deciding Charles v. Delta, a case with similar facts. 0nder the
doctrine of stare decisis, the trial court is likel! to
a. allow the minor to cancel the contract.
. disregard the previous case.
c. order the minor to cancel the contract.
d. require the minor to fulfll the contract.
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1.. <n Export Co. v. mports! nc.! there is no precedent on which the
court can ase a decision. The court can consider, among other
things,
a. neither pulic polic! nor social values.
. pulic polic! onl!.
c. pulic polic! or social values.
d. social values onl!.
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13. Jurt is a ;udge hearing the case of "ocal Co. v. #acro Corp. Appl!ing
the relevant rule of law to the facts of the case requires Jurt to fnd
previousl! decided cases that, in relation to the case under con"
sideration, are
a. as diIerent as possile.
. as similar as possile.
c. at odds.
d. e@actl! identical.
CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 11
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12. A federal statute regulates an emplo!ment practice. To resolve a
dispute concerning the practice, 'aula, a ;udge, will most likel! appl!
a. a common law doctrine that applied efore the statute was
enacted.
. a common law doctrine that applies to other, diIerent
practices.
c. 'aula5s personal philosoph! of law.
d. the statute.
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16. The term sustantive law refers to laws that
a. create legal rights and oligations.
. estalish the methods of enforcing rights.
c. focus on ma;or, as opposed to minor, issues.
d. prohiit sustandard acts.
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17. Beth is a victim of /arl5s violation of a criminal law. /riminal law is
concerned with
a. the prosecution of private individuals ! other private
individuals.
. the prosecution of pulic oLcials ! private individuals.
c. the relief availale when a person5s rights are violated.
d. wrongs committed against the pulic as a whole.
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18. The citation of a case does not include
a. the names of the parties.
. the nameFsG of the ;udgeFsG who decided it.
c. the !ear in which it was decided.
d. the volume and page numer of the applicale reporter where
the opinion ma! e found.
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CHAPTER 1: INTRODUCTION TO LAW AND LEGAL REASONING 13
)9. The 'enns!lvania #upreme /ourt decides the case of $ualit% Co. v.
&o%al Corp. Ef nine ;ustices, fve elieve the ;udgment should e in
Mualit!5s favor. >ustice #mith, one of the fve, writes a separate
opinion. This opinion is
a. a concurring opinion.
. a dissenting opinion.
c. a minorit! opinion.
d. a unanimous opinion.
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ESSAY QUESTINS
1. Americans with a Better /ause FAB/G, a nonproft organiNation, fles a
suit against the 0.#. :epartment of >ustice F:E>G, claiming that a cer"
tain federal statute the :E> is empowered to enforce con4icts with
the 0.#. /onstitution and with a state constitution. <n each situation,
which source of law has priorit!H
AN#$%&: The 0.#. /onstitution is the supreme law of the land. A
law in violation of the /onstitution, no matter what its source, will e
declared unconstitutional and will not e enforced. Thus, the federal
statute does not have priorit! over the /onstitution. The federal
statute would have priorit! over the state constitution, however,
ecause under the 0.#. /onstitution, when there is a con4ict
etween a federal law and a state law, the state law is rendered
invalid.
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). -)1 #tudios, a seller of software for cop!ing digital versatile discs
F:D:sG, fled an action in the 0.#. :istrict /ourt of the Northern
:istrict of /alifornia. -)1 #tudios sought a declarator! ;udgment
from the court as to whether -)1 #tudios5 product infringes on
cop!rights held ! Cetro (oldw!n Ca!er #tudios, <nc., and other flm
studios. The court5s opinion in the case is at '(1 Studios v. #etro
)oldw%n #a%er Studios! nc. -96 1.#upp.)d 1973 FN.:./a. )99.G.
#pecifcall! where can this opinion e foundH
AN#$%&: This caseO'(1 Studios v. #etro )oldw%n #a%er Studios!
nc. -96 1.#upp.)d 1973 FN.:./a. )99.GOcan e found in its entiret!
14 TEST BANK 1UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
in volume -96 of the *ederal Supplement, #econd #eries, on page
1973. The 0.#. :istrict /ourt for the Northern :istrict of /alifornia
decided this case in )99..
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