TEST BANK
Business Law Today, Standard Edition, 13th Edition by Roger LeRoy Miller
Chap 01_13e_Standard
Indicate whether the statement is true or false.
1. A citation is a regulation enacted by a city or county legislative body.
a. True
b. False
2. Legal encyclopedias, law review articles, and treatises are sources of primary law.
a. True
b. False
3. Rules issued by administrative agencies affect almost every aspect of the operations of a business.
a. True
b. False
4. Case law governs all areas of business not covered by statutory or administrative law.
a. True
b. False
5. A secondary source of law is one that clarifies a source of primary law.
a. True
b. False
6. The study of business law does not involve an ethical dimension.
a. True
b. False
7. Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one
specific area of the law.
a. True
b. False
8. Federal agency regulations take precedence over conflicting state regulations.
a. True
b. False
9. All laws establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its
ruling group.
a. True
b. False
10. Under the doctrine of stare decisis, judges are encouraged to follow the precedents established within their
jurisdictions.
a. True
b. False
Page 1
,Chap 01_13e_Standard
11. The U.S. Constitution is the basis of all law in the United States.
a. True
b. False
12. Controlling precedents are binding authorities.
a. True
b. False
13. In the United States, the law consists of written laws and court decisions.
a. True
b. False
14. Courts will not grant an equitable remedy unless the remedy at law is adequate.
a. True
b. False
15. Civil law has to do with wrongs committed against society for which society demands redress.
a. True
b. False
16. There is one right answer to every legal question.
a. True
b. False
17. Typically, in a civil case, a private party sues another private party who has failed to comply with a duty.
a. True
b. False
18. An administrative legislative rule is not legally binding on businesses.
a. True
b. False
19. Because courts of law and equity have merged, there is no distinction between the two any longer.
a. True
b. False
20. A federal statute applies to all states.
a. True
b. False
21. The legal rules that control the actions of a business, reflect past and current thinking about how similar
businesses should and should not act.
a. True
b. False
Page 2
,Chap 01_13e_Standard
22. A local ordinance commonly has to do with a matter concerning only a local governing unit.
a. True
b. False
23. The Administrative Procedure Act (APA) imposes strict procedural requirements that agencies must follow in
legislative rulemaking and other functions.
a. True
b. False
24. A court might look at fairness, social values and customs, and public policy in deciding a case if there is no
precedent.
a. True
b. False
25. Federal, state, and local governments may establish an administrative agency to perform a specific function.
a. True
b. False
26. A statute is a secondary source of law.
a. True
b. False
27. The UCC is a uniform law that most states have adopted to govern commercial transactions.
a. True
b. False
28. Only if a state legislature passes a statute, does that law become part of the relevant state code of laws.
a. True
b. False
29. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within the borders of that state.
a. True
b. False
30. Common law is a body of law developed from judge’s decisions in legal controversies.
a. True
b. False
31. A constitution is a primary source of law.
a. True
b. False
32. Independent regulatory agencies are not subject to the authority of the President.
a. True
b. False
Page 3
, Chap 01_13e_Standard
33. In a criminal case, the object is to obtain a remedy.
a. True
b. False
34. International law derives from a variety of sources, including the laws of individual nations.
a. True
b. False
35. In the IRAC method of case-briefing, the A stands for analysis.
a. True
b. False
36. The basis of a civil law system is a written code of laws.
a. True
b. False
37. If an agency fails to follow the rulemaking procedures imposed by the Administrative Act, the resulting rule may
not be binding.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
38. A precedent is:
a. the chief executive officer of the United States and their authority.
b. a court decision that is used as an example for deciding subsequent cases with similar facts.
c. a lawsuit in which a number of persons join together for ease of filing.
d. the fundamental procedure by which the government exercises its authority.
39. The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no
settlement is reached, the EPA can:
a. issue a formal complaint.
b. do nothing.
c. take the matter to the U.S. Supreme Court.
d. immediately impose sanctions.
40. The __________________________ to the U.S. Constitution reserves to the states, all powers not granted to
the federal government.
a. 1st amendment
b. 14th amendment
c. 10th amendment
d. bill of rights
Page 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller docusity. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £15.76. You're not tied to anything after your purchase.
