Business Law 2106 – Legal Environment of Business –
Mindtap Assignments and Exam Questions
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CHAPTER 01: LAW AND LEGAL REASONING VOCABULARY
1. Adjudicate: To render a judicial decision. Adjudication is the trial-like
proceeding in which an administrative law judge hears and resolves
disputes involving an administrative agency’s regulations.
2. Administrative agency: A federal, state, or local government agency
created by the legislature to perform a specific function, such as to make
and enforce rules pertaining to the environment.
3. Administrative law: The body of law created by administrative agencies
in order to carry out their duties and responsibilities.
4. Administrative law judge (ALJ): One who presides over an
administrative agency hearing and has the power to administer oaths,
take testimony, rule on questions of evidence, and make determinations
of fact.
5. Administrative process: The procedure used by administrative agencies
in fulfilling their three basic functions: rulemaking, enforcement, and
adjudication.
6. Allege: To state, recite, assert, or charge.
7. Binding authority: Any source of law that a court must follow when
deciding a case.
,8. Case law: The rules of law announced in court decisions. Case law
interprets statues, regulations, and constitutional provisions, and
governs all areas not covered by statutory or administrative law.
9. Case on point: A previous case involving factual circumstances and
issues that are similar to those in the case before the court.
10. Citation: A reference to a publication in which a legal authority-
such as a stature or a court decision- or other source can be found.
11. Civil law: The branch of law dealing with the definition and
enforcement of all private or public rights, as opposed to criminal
matters.
12. Civil law system: A system of law derived from Roman law that is
based on codified laws (rather than on case precedents).
13. Common law: The body of law developed from custom or judicial
decisions in English and U.S. courts, not attributable to a legislature.
14. Concurring opinion: A court opinion by one or more judges or
justices who agree with the majority but want to make or emphasize a
point that was not made or emphasized in the majority’s opinion.
15. Constitutional law: The body of law derived from the U.S.
Constitution and the constitutions of the various states.
16. Criminal law: The branch of law that defines and punishes
wrongful actions committed against the public.
17. Cyberlaw: An informal term used to refer to all laws governing
electronic communications and transactions, particularly those
conducted via the Internet.
18. Defendant: One against whom a lawsuit is brought or the accused
person in a criminal proceeding.
19. Dissenting opinion: A court opinion that presents the views of one
or more judges or justices who disagree with the majority’s decision.
,20. Enabling legislation: A stature enacted by Congress that
authorizes the creation of an administrative agency and specifies the
name, composition, purpose, and powers of the agency being created.
21. Equitable maxims: General propositions or principles of law that
have to do with fairness (equity).
22. Historical school: A school of legal thought that looks to the past
to determine what the principles of contemporary law should be.
23. International law: Law that governs relations among nations.
24. Interpretive rule: A nonbinding rule or policy statement issues by
an administrative agency that explains how it interprets and intends to
apply the statues it enforces.
25. Jurisprudence: The science of philosophy of law.
26. Law: A body of enforceable rules governing relationships among
individuals and between individuals and their society.
27. Legal positivism: A school of legal though centered on the
assumption that there is no law higher than the laws created by a
national government. Laws must be obeyed, even if they are unjust, to
prevent anarchy.
28. Legal realism: A school of legal thought that holds that the law is
only one factor to be considered when deciding cases, and that social
and economic circumstances should also be taken into account.
29. Legal reasoning: The process of reasoning by which a judge
harmonizes his or her opinion with the judicial decisions in previous
cases.
30. Legislative rule: An administrative agency rule that carries the
same weight as a congressionally enacted statute.
31. Liability: The state of being legally responsible (liable) for
something, such as a debt or obligation.
,32. Majority opinion: A court opinion that represents the views of the
majority (more than half) of the judges or justices deciding the case.
33. National law: Law that pertains to a particular nation (as opposed
to international law).
34. Natural law: The oldest school of legal though, based on the belief
that the legal system should reflect universal (“higher”) moral and
ethical principles that are inherent in human nature.
35. Ordinance: A regulation enacted by a city or country legislative
body that becomes part of that state’s statutory law.
36. Per curiam opinion: A court opinion that does not indicate which
judge or justice authored the opinion.
37. Persuasive authority: Any legal authority or source of law that a
court may look to for guidance but need follow when making its
decision.
38. Plaintiff: One who initiates a lawsuit.
39. Plurality opinion: A court opinion that is joined by the largest
number of the judges or justices hearing the case, but less than half of
the total number.
40. Precedent: A court decision that furnishes an example or
authority for deciding subsequent cases involving identical or similar
facts.
41. Primary source of law: A document that establishes the law on a
particular issue, such as a constitution, a statute, an administrative rule,
or a court decision.
42. Procedural law: Law that establishes the methods of enforcing the
rights established by substantive law.
43. Remedy: The relief given to an innocent party to enforce a right or
compensate for the violation of a right.
, 44. Rulemaking: The process by which an administrative agency
formally adopts a new regulation or amends an old one.
45. Secondary source of law: A publication that summarizes or
interprets the law., such as a legal encyclopedia, a legal treatise, or an
article in a law review.
46. Stare decisis: A common law doctrine under which judges are
obligated to follow the precedents established in prior decisions.
47. Statutory law: The body of law enacted by legislative bodies (as
opposed to constitutional law, administrative law, or case law).
48. Substantive law: Law that defines, describes, regulates, and
creates legal rights and obligations.
49. Uniform law: A model law developed by the National Conference
of Commissioners on Uniform State Laws for the states to consider
enacting into statute.
WORKSHEET 01.1: SOURCES OF AMERICAN LAW
1. One primary source of American law is:
The U.S. Constitution
2. A state’s constitution is a primary source of law in that state.
True
3. Law based on documents setting forth the general organization, powers,
and limits of the government is called ___.
Constitutional law
4. Of all U.S. laws, including state laws, the U.S. Constitution ___
Is considered the supreme over all others
, 5. If the United States Supreme Court determines that a state criminal law
violates a provision of the Fourth Amendment to the U.S. Constitution,
that law will be declared ___.
Unconstitutional
6. Statutes are enacted by either the U.S. ___ or state ___.
Congress; Legislatures
7. When the U.S. Congress passes federal statutes, states are not obligated
to follow them.
False
8. The ___ is a uniform law adopted by all states that facilitates business
transactions.
Uniform Commercial Code
9. Which of the following is not true of administrative agencies:
They are prohibited from adjudicating disputes regarding their own
regulations
10. The Federal Trade Commission is an example of a(n) ___.
Independent regulatory agency
11. Enabling legislation:
Creates an administrative agency and gives the agency powers
12. Case law is based on the decisions made by those who run
administrative agencies.
False
13. Match the term to the correct definition.
Statutory Law Laws enacted by federal, state, and
local legislative bodies.
Administrative Law The rules, orders, and decisions of
federal, state, or local government
administrative agencies.
, Case Law The law as stated by judges in their
court opinions.
Constitutional Law The law as expressed in the U.S.
Constitution and state constitutions.
WORKSHEET 01.2: THE COMMON LAW AND
CLASSIFICATIONS OF LAW
1. A precedent is a decision that furnishes an example or authority for
deciding subsequent cases involving similar legal principles of facts.
True
2. The Latin term stare decisis means:
To stand on decided cases
3. Match each of the following types of authority to their correct
description.
Persuasive Authority Any legal authority or source of law
that a court may look to for guidance
but does not need to follow when
making a decision.
Binding Authority A source of law that a court must
follow when deciding a case.
4. A binding authority does NOT include ___.
Opinions from experts in the field
5. Remedies ___ include specific performance.
In equity
6. Today, most jurisdictions maintain separate courts of equity and courts
of law.
False
, 7. Match each of the following theories of jurisprudence to their correct
description.
Natural Law Legal standards derive from a
universality of rights which apply to
all human beings.
Historical Doctrines that have withstood the
passage of time, either unchanged or
have evolved with time, help guide
us in shaping present laws.
Positivist Law is constructed based on the
norms as created by a legislature
within the framework of the time in
which they are created.
Legal realism Customary practices and the
circumstances surrounding a
transaction guide us in shaping the
decision for that situation.
8. From the following, civil law can best be described as:
The law that protects private and public rights of individuals
9. Which of the following would NOT be the subject of a criminal law
statute?
Not performing an employment agreement
10. If one nation violates international law, it is up to other nations to
use persuasion or ___ actions such as severance of diplomatic relations,
___, sanctions, or armed conflict.
Coercive; boycotts
WORKSHEET 01.3: APPENDIX TO CHAPTER 1
1. In the field of legal research, a “citation” is:
A reference to a publication in which a legal authority can be found
2. When Congress passes a law, it can be found in which publication?
,United States Statutes at Large
3. A citation to 42 U.S.C. 1981 means that the statute is in ___ 1981 of ___ 42
of the United States Code.
Section; Title
4. The plaintiff is the person who files the original petition with the court
to start a lawsuit.
True
5. The ___ is the party who appeals to a lower court’s decision.
Appellant
6. United States Supreme Court opinions can be found in which three of
the following reporters?
Lawyers’ Edition of the Supreme Court Reports (L.Ed.), Supreme Court
Reporter (S.Ct.), United States Reports (U.S.)
7. In a case title at the appellate court level, the first party name is always
the plaintiff at the trial court level.
False
8. When a court’s opinion is not unanimous but most judges in that case
agree with it, it is called as:
Majority opinion
9. In a particular case, Judge A does not agree at all with the other judges’
opinions. Which of the following type of opinion will he write?
A dissenting opinion
BRIEF HYPOTHETICALS 01.1
1. Assume that Congress passes a law establishing a new administrative
agency to oversee cyberterrorism issues. The agency writes rules to
enable itself to carry out its duties. The rules written by the agency will
be known as:
, Administrative law
2. The Indiana state legislature passes a law increasing the minimum jail
time for repeat violent offenders. This law becomes part of a body of law
known as:
Statutory law
3. The National Conference of Commissioners on Uniform State Laws
(NCCUSL) passes a new uniform act related to texting while driving.
This uniform act:
Becomes the law in every state that adopts the uniform act through legislative
action
4. Richard is a state appeals court judge. In making judicial decisions,
Richard issues rulings that are consistent with precedents established in
similar cases within his jurisdiction. Richard is following the principle
of:
Stare decisis
5. All of the cases that have been decided by U.S. judges, as well as by
English judges prior to the American Revolution, constitute a body of
law known as:
The common law
6. Sarah prevails in her lawsuit against Carl for injuries she sustained in a
car accident. As a result, Sarah is entitled to a remedy. In the U.S. legal
system, Sarah’s remedy will most likely be in the form of:
Damages
7. A case comes before a Wisconsin state trial court on the subject of free
speech on the Internet. It is a case of first impression, meaning that no
case involving the same issue has been decided by the Wisconsin courts.
In deciding such a case, it would not be considered proper for the judge
to consider:
Equitable maxims
