Chap 01 – 6e
1) List the purposes of the law and discuss why these purposes are necessary for an ordered
society.
2) What is stare decisis and why is it so important to the American legal system? Why must
business managers pay attention to changes in the law?
3) Judge Joanie Justice, who is newly appointed to the bench, is presented with a question of
law involving a cat named Tiger who scratched a neighbor's antique car. The neighbor, Carl,
demands justice in the form of full payment from Tiger's owner, Stacy, and also requests that
Tiger be shipped to the local animal shelter. Stacy says that she should not have to pay anything
because Tiger had never scratched before, that Tiger should be allowed to stay in the
neighborhood, and that Carl (who is a grump and never should have brought the lawsuit) should
reimburse her for her legal fees. Judge Justice is perplexed. Judge Justice wants to make a good
decision, especially since she is new to the bench. Explain how the judge should go about
reaching a decision. Discuss in your answer the impact of cases from other jurisdictions,
assuming there is no relevant law in Judge Justice's jurisdiction. Also, assuming there is relevant
law in Judge Justice's jurisdiction, discuss the applicable legal standard when case law conflicts
with a later passed state statute.
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,4) The text references two ways in which a treaty between the U.S. and a foreign country is
similar to a contract. Discuss these two ways.
5) The text discusses five factors suggested as a structure for critical thinking when
reviewing case law. List and describe the five factors.
6) Miko comes to Jamal's law office to ask him about the law in regard to dogs running at
large in her neighborhood. Jamal tells Miko that he will research the issue and get back to her.
Where should Jamal look first in order to locate applicable law?
A) Restatements
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
7) The president issued an executive order requiring that every citizen purchase a head of
broccoli to eat once a week in order to maintain health. The executive order was challenged and
the case went to the U.S. Supreme Court. The Supreme Court declared the executive order could
not be enforced because it was an abuse of the president’s power. What is the primary source of
law the Supreme Court would interpret to determine if the executive order was enforceable?
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, A) The Constitution
B) State statutes
C) Case law
D) Uniform laws
E) Executive orders
8) In 1995, the ________ was created to replace GATT.
A) United Nations
B) World Trade Organization
C) North American Free Trade Agreement
D) Nation to Nation Trading Organization
E) Nation’s Status on Trade
9) When you read a case, you should:
A) Find the facts, look for the issue, critically think about the issue, and determine if your
reasoning matches the reasoning of the judge.
B) Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning
of the judge in light of the facts of the case.
C) Consider the truth of the facts of the case, identify legal questions raised, review the
decision of the judge, and determine if the judge’s decision was justified by the rule of law.
D) Find the facts, look for the issue, identify the judge’s reason and conclusion, locate the
rules of law that govern the reasoning, and apply critical thinking to the judge’s reasoning.
E) Identify the facts, apply critical thinking skills to determine the truths of the facts, and
identify how the judge interpreted the facts in the case.
10) Which areas of business law would a human resources manager find most relevant?
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, A) Contracts, employment and labor law, and employment discrimination
B) Contracts only
C) Contracts and labor law, but not employment discrimination
D) Employment and labor law, but not contracts
E) Human resource managers hold administrative positions and are not concerned with
areas of business law
11) Gardenia Abraham is a newly hired Production Manager for Stoneworks, Incorporated,
which manufactures wind turbines. As a new manager, Stoneworks sends Gardenia to training so
she can familiarize herself with laws that might impact her work. What laws would most likely
impact a production manager?
A) White collar crime, contracts, antitrust laws
B) Tort law, contracts, environmental law and consumer law
C) Antitrust law, contracts, intellectual property law
D) Property law, negotiable instruments, contracts
E) Consumer law, international law, employment law
12) Antonio and Veronica are arguing over who makes new federal law. Which of the
following entities is responsible for making new federal law?
A) State legislatures
B) Congress
C) Judges
D) The federal courts
E) The executive branch
13) If someone has failed to live up to a promise made to a business organization, the
business organization should:
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