1. American jurists and Supreme Court Justices Oliver Wendell Holmes and Benjamin Cardozo defined
law as “a rule of civil conduct prescribed by the supreme power in a state, commanding what is right,
and prohibiting what is wrong.”
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Nature of Law
KEY: Bloom's: Knowledge
2. The common law system is used in most of Europe, Scotland, and Latin America.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Critical Thinking TOP: A-Head: Sources of Law
KEY: Bloom's: Knowledge
3. The primary function of the law is to maintain stability in the social, political, and economic system
while simultaneously permitting change.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Critical Thinking TOP: A-Head: Nature of Law
KEY: Bloom's: Knowledge
4. Substantive law creates legal rights and duties.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Critical Thinking TOP: A-Head: Classification of Law
KEY: Bloom's: Knowledge
5. The Constitution provides that federal statutes are paramount to state constitutions and statutes.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Knowledge
6. The burden of proof in a criminal case is preponderance of the evidence.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Classification of Law
KEY: Bloom's: Knowledge
7. The law does not change; it is based on unchanging and universal truths.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Nature of Law
KEY: Bloom's: Knowledge
8. The main categories of the law are (a) substantive and procedural, (b) public and private, and (c) civil
and criminal.
, ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Classification of Law
KEY: Bloom's: Knowledge
10. Under the civil law system, adversaries initiate and conduct litigation.
ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Analysis
11. A judge deciding a common law case typically must follow decisions of similar cases previously
decided..
ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Analysis
12. The United States Constitution establishes the principle of judicial review, which is the principle also
called “separation of powers.”
ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Analysis
13. Since the end of the nineteenth century, case law which developed from court opinions has been the
primary source of new law and ordered social change in the United States.
ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
14. A constitution restricts the powers of the government and specifies the rights and liberties of the
people.
ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
15. The Uniform Commercial Code is a federal law that applies to commercial transactions among the
states.
ANS: F DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
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 DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Knowledge
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 DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Knowledge
18. The common law system of law uses the inquisitorial system of determining disputes.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
19. Rodriguez and Compton asked a court for reformation of their contract based on a mutual mistake.
They seek an equitable remedy.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
20. The principle of stare decisis gives stability to our system of jurisprudence.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
21. Once a court has decided a case, the principle of stare decisis precludes correction of erroneous
decisions.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
22. Civil law systems, as found in the State of Louisiana and countries such as Scotland, depend on
comprehensive legislative enactments.
ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Analysis
23. The business law topics of contracts, agency, property, and trusts are governed primarily by the
common law.
ANS: T DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: AICPA: BB-Legal TOP: A-Head: Sources of Law
KEY: Bloom's: Comprehension
24. Administrative agencies create more legal rules and decide more controversies than all the legislatures
and courts combined.
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