TEST BANK
Dynamic Business Law, 6th Edition
By Nancy Kubasek Chapters 1 - 52
,TABLE OF CONTENTS
Part One: THE LEGAL ENVIRONMENT OF BUSINESS
Chapter 1: An Introduction to Dynamic Business Law
Chapter 2: Business Ethics
Chapter 3: The US Legal System
Chapter 4: Alternative Dispute Resolution
Chapter 5: Constitutional Principles
Chapter 6: International and Comparative Law
Chapter 7: Crime and the Business Community
Chapter 8: Tort Law
Chapter 9: Negligence and Strict Liability
Chapter 10: Product Liability
Chapter 11: Liability of Accountants and Other Professionals
Chapter 12: Intellectual Property
Part Two: CONTRACTS
Chapter 13: Introduction to Contracts
Chapter 14: Agreement
Chapter 15: Consideration
Chapter 16: Capacity and Legality
Chapter 17: Legal Assent
Chapter 18: Contracts in Writing
Chapter 19: Third-Party Rights to Contracts
Chapter 20: Discharge and Remedies
Part Three: DOMESTIC AND INTERNATIONAL SALES LAW
Chapter 21: Introduction to Sales and Lease Contracts
Chapter 22: Title, Risk of Loss, and Insurable Interest
Chapter 23: Performance and Obligations under Sales and Leases
Chapter 24: Remedies for Breach of Sales and Lease Contracts
Chapter 25: Warranties
Part Four: NEGOTIABLE INSTRUMENTS AND BANKING
Chapter 26: Negotiable Instruments: Negotiability and Transferability
Chapter 27: Negotiation, Holder in Due Course, and Defenses
Chapter 28: Liability, Defenses, and Discharge
Chapter 29: Checks and Electronic Fund Transfers
Part Five: CREDITORS’ RIGHTS AND BANKRUPTCY
Chapter 30: Secured Transactions
Chapter 31: Other Creditors’ Remedies and Suretyship
Chapter 32: Bankruptcy and Reorganization
Part Six: AGENCY
Chapter 33: Agency Formation and Duties
Chapter 34: Liability to Third Parties and Termination
Part Seven: BUSINESS ORGANIZATIONS
Chapter 35: Forms of Business Organization
Chapter 36: Partnerships: Nature, Formation, and Operation
Chapter 37: Partnerships: Termination and Limited Partnerships
,Chapter 38: Corporations: Formation and Financing
Chapter 39: Corporations: Directors, Officers, and Shareholders
Chapter 40: Corporations: Mergers, Consolidations, Terminations
Chapter 41: Corporations: Securities and Investor Protection
Part Eight: EMPLOYMENT AND LABOR RELATIONS
Chapter 42: Employment and Labor Law
Chapter 43: Employment Discrimination
Part Nine: GOVERNMENT REGULATION
Chapter 44: Administrative Law
Chapter 45: Consumer Law
Chapter 46: Environmental Law
Chapter 47: Antitrust Law
Part Ten: PROPERTY
Chapter 48: The Nature of Property, Personal Property, and Bailments
Chapter 49: Real Property
Chapter 50: Landlord-Tenant Law
Chapter 51: Insurance Law
Chapter 52: Wills and Trusts
,Chapter 1: An Introduction to Dynamic Business Law:
Answers are at the End of Each Chapter
Student name:
Business law consists of the enforceable rules of conduct that govern commercial
relationships.
⊚ true
⊚ false
Contracts, employment decisions, and payments to suppliers are protected by business law.
⊚ true
⊚ false
Public law controls both disputes between private individuals and their government and
disputes involving only private individuals.
⊚ true
⊚ false
Criminal law lays out the rights and responsibilities implied in relationships between persons.
⊚ true
⊚ false
Only civil law regulates the behavior of individuals.
⊚ true
⊚ false
Case law interpretations are law, unless they are revoked later by new statutory law.
⊚ true
⊚ false
,The decision of a state supreme court is binding on a lower court that is located in the samestate.
⊚ true
⊚ false
Model or uniform laws are sources of law that are binding on courts.
⊚ true
⊚ false
Constitutions and statutes always cover all of the detailed rules that affect business and
government relations.
⊚ true
⊚ false
"Legal positivism" is also known as "natural law."
⊚ true
⊚ false
Miko comes to Jamal's law office to ask him about the law in regard to dogs running at largein 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?
Restatements
State statutes
Case law
Uniform laws
Executive orders
,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 orderwas enforceable?
The Constitution
State statutes
Case law
Uniform laws
Executive orders
In 1995, the was created to replace GATT.
United Nations
World Trade Organization
North American Free Trade Agreement
Nation to Nation Trading Organization
Nation’s Status on Trade
When you read a case, you should:
Find the facts, look for the issue, critically think about the issue, and determine ifyour
reasoning matches the reasoning of the judge.
Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoningof the
judge in light of the facts of the case.
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.
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.
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.
,Which areas of business law would a human resources manager find most relevant?
Contracts, employment and labor law, and employment discrimination
Contracts only
Contracts and labor law, but not employment discrimination
Employment and labor law, but not contracts
Human resource managers hold administrative positions and are not concerned withareas
of business law
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 lawswould most
likely impact a production manager?
White collar crime, contracts, antitrust laws
Tort law, contracts, environmental law and consumer law
Antitrust law, contracts, intellectual property law
Property law, negotiable instruments, contracts
Consumer law, international law, employment law
Antonio and Veronica are arguing over who makes new federal law. Which of the followingentities
is responsible for making new federal law?
State legislatures
Congress
Judges
The federal courts
The executive branch
If someone has failed to live up to a promise made to a business organization, the business
organization should:
Seek a legal remedy within the courts
Ask the lawmakers to impose a punishment upon the violator
Publicly shame the violator for breaking his promise
Turn to the executive branch to impose legal penalties
Ask lawmakers and the executive branch to impose consequences
,In a civil law case, defendants must be found guilty by a .
reasonable doubt standard
more likely than not standard
guilty until proven innocent standard
preponderance of the evidence standard
social norms standard
A majority of citizens in a democracy can agree to permit certain authorities to make and
enforce rules describing what behavior is permitted and encouraged in their community.
These rules are what we refer to as the .
electoral college
community standard
democratic validation
stare decisis
law
A new type of hydraulic fracturing (“fracking”) has been implemented to help bring more natural
gas to a well site. The company associated with this process has followed all federaland state
guidelines associated with the process of fracking. Residents, however, are very unhappy and
vocal about the process of fracking and fights have broken out amongst the residents and
workers. Residents demand the company be shut down. A new law was implemented that is
designed to help keep the peace yet look at alternatives to the fracking process. The purposes
of the new law include:
Providing order, serving as a moral guide, serving as an alternative to fighting,
facilitating a sense that change is possible
Creating enforceable rules of law which change the way that the manufacturing
process is handled
Providing new rules that would allow for civil disobedience
Setting new rules and guidelines that would allow for protests to occur on the
fracking site
Guaranteeing the personal freedoms of the company to continue fracking as long asthey
were doing so within state and federal guidelines
, Gordon hires Rita to clean offices after normal business hours. If Gordon and Rita get into a
dispute in regards to Rita’s expenses and salary, what type of law would govern the dispute?
Private
Joint
Criminal
Public
Common law
If a concrete plant dumps its waste into a river that impacts the local town’s drinking water,in
violation of a city ordinance, which of the following laws is implicated?
Private
Common law
Criminal
Public
Black letter
law cases involve either two individuals or two organizations.
Civil
Legal realism
Criminal
Precedent
Public
After a court action brought by Henry, Henry was awarded $1,000 in damages from Shelly because
he proved by a preponderance of the evidence that Shelly damaged his bicycle. Whattype of law
applied to Henry’s case that resulted in him being awarded $1,000?
Criminal
Procedural
Civil
Natural
Positive
