Test Bank For Essentials of Business Law and the Legal Environment International Edition 10th Edition by Richard A. Mann
Chapter 3—Civil Dispute Resolution
TRUE/FALSE
1. A case before a U.S. Court of Appeals is generally heard by all judges of the circuit sitting en banc. ANS: F PTS: 1...
1. Roscoe Pound, a distinguished American jurist, defined law as predictions of the way in which a court
will decide specific legal questions.
ANS: F PTS: 1 MSC: AACSB Analytic
2. The common law system is used in most of Europe, Scotland, and Latin America.
ANS: F PTS: 1 MSC: AACSB Analytic
3. The primary function of the law is to maintain stability in the social, political, and economic system
while simultaneously permitting change.
ANS: T PTS: 1 MSC: AACSB Analytic
4. Substantive law creates legal rights and duties.
ANS: T PTS: 1 MSC: AACSB Analytic
5. The Constitution provides that federal statutes are paramount to state constitutions and statutes.
ANS: T PTS: 1 MSC: AACSB Analytic
6. The burden of proof in a criminal case is preponderance of the evidence.
ANS: F PTS: 1 MSC: AACSB Analytic
7. The law does not change; it is based on unchanging and universal truths.
ANS: F PTS: 1 MSC: AACSB Analytic
8. The main categories of the law are (a) substantive and procedural, (b) public and private, and (c) civil
and criminal.
ANS: T PTS: 1 MSC: AACSB Analytic
9. Law is an instrument of social control.
ANS: T PTS: 1 MSC: AACSB Analytic
10. Under the civil law system, adversaries initiate and conduct litigation.
ANS: F PTS: 1 MSC: AACSB Analytic
11. A judge deciding a common law case must look to similar cases previously decided for guidance.
ANS: T PTS: 1 MSC: AACSB Analytic
,12. The United States Constitution establishes the principle of judicial review, which divides the
government into three distinct and independent branches: the judicial, executive, and legislative
(Congress).
ANS: F PTS: 1 MSC: AACSB Analytic
13. Since the end of the nineteenth century, case law developed from court opinions has been the primary
source of new law and ordered social change in the United States.
ANS: F PTS: 1 MSC: AACSB Analytic
14. A constitution restricts the powers of the government and specifies the rights and liberties of the
people.
ANS: T PTS: 1 MSC: AACSB Analytic
15. The Uniform Commercial Code is a federal law that applies to commercial transactions among the
states.
ANS: F PTS: 1 MSC: AACSB Analytic
16. Laws passed by Congress are the supreme law of the land in the United States and take precedence
over the United States Constitution.
ANS: F PTS: 1 MSC: AACSB Analytic
17. The final arbiter as to the constitutionality of laws passed by Congress or by the legislature of a state is
the Supreme Court of the United States.
ANS: T PTS: 1 MSC: AACSB Analytic
18. The common law system of law uses the inquisitorial system of determining disputes.
ANS: F PTS: 1 MSC: AACSB Analytic
19. Rodriguez and Compton asked a court for reformation of their contract based on a mutual mistake.
They seek an equitable remedy.
ANS: T PTS: 1 MSC: AACSB Analytic | AACSB Diversity
20. The principle of stare decisis gives stability to our system of jurisprudence.
ANS: T PTS: 1 MSC: AACSB Analytic
21. Once a court has decided a case, the principle of stare decisis precludes correction of erroneous
decisions.
ANS: F PTS: 1 MSC: AACSB Analytic
22. Civil law systems, as found in the State of Louisiana and countries such as Scotland, depend on
comprehensive legislative enactments.
ANS: T PTS: 1 MSC: AACSB Analytic
, 23. The business law topics of contracts, agency, property, and trusts are governed primarily by the
common law.
ANS: T PTS: 1 MSC: AACSB Analytic
24. One important source of law in the United States is the Restatement of law.
ANS: F PTS: 1 MSC: AACSB Analytic
25. The State of Minnesota has been negotiating with the Canadian government on issues involving acid
rain and eventually reaches an agreement with Canadian officials. This is a valid treaty under the
United States Constitution.
ANS: F PTS: 1 MSC: AACSB Reflective Thinking
26. In the United States, treaties are not subject to judicial review.
ANS: F PTS: 1 MSC: AACSB Analytic
27. Tate brings an action against Marsheen for damages from trespass to Tate’s property. Tate must prove
the case by a preponderance of the evidence.
ANS: T PTS: 1 MSC: AACSB Reflective Thinking
28. All laws are related to morals, but some moral precepts are not enforced by legal sanctions.
ANS: F PTS: 1 MSC: AACSB Analytic
29. Business law is primarily public law.
ANS: F PTS: 1 MSC: AACSB Analytic
30. Decisions of courts of appeals are published in volumes known as "reports" or "reporters."
ANS: T PTS: 1 MSC: AACSB Analytic
31. The terms "law" and "justice" are interchangeable.
ANS: F PTS: 1 MSC: AACSB Analytic
MULTIPLE CHOICE
1. A crime is:
a. a private wrong that necessitates litigation between the victim and the perpetrator.
b. any act prohibited by the government or an omission of an act required by public law and
made punishable by the government in a judicial proceeding brought by it.
c. litigation where the injured party sues to recover compensation for the damages and injury
sustained as a result of the defendant's wrongful conduct.
d. wrongful conduct as set forth in statutes that constitute the supreme law of the land.
ANS: B PTS: 1 MSC: AACSB Analytic
2. What is the supreme law of the land in the United States?
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