The legal environment of business 6th edition kubasek test bank

The Legal Environment of Business, 6e (Kubasek/Brennan/Browne)
Chapter 2 Introduction to Law and the Legal Environment of Business
1) Each of the following countries is a member of the North American Free Trade Agreement
(NAFTA) EXCEPT for which one?
A) United States
B) Brazil
C) Canada
D) Mexico
Answer: B
Diff: 1
Topic: Introduction
2) Each of the following considerations that arise within the legal environment of business are
address in this book EXCEPT for which ones?
A) Legal
B) Economic
C) Political
D) None of the above; all are addressed in the text
Answer: D
Diff: 1
Topic: Introduction
3) The primary purpose of NAFTA is to do which of the following?
A) Codify international treaties
B) Increase immigration quotas
C) Lower trade barriers
D) Defend coastal borders
Answer: C
Diff: 1
Topic: Introduction
4) One purpose of the WTO is to do which of the following?
A) Codify international treaties
B) Increase immigration quotas

C) Lower trade barriers
D) Defend coastal borders
Answer: C
Diff: 1
Topic: Introduction

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5) How many Pacific Rim countries participate in the Asian-Pacific Economic Cooperation
(APEC) forum in addition to the United States?
A) 5
B) 10
C) 17
D) 27
Answer: C
Diff: 1
Topic: Introduction
6) Which of the following is a true statement about the legal literacy of Americans as found by
the Hearst Corporation?
A) 90% of Americans understood that a defendant is presumed innocent until proven guilty.
B) 90% of Americans could identify the Chief Justice of the Supreme Court.
C) Fewer than 50% of Americans knew that Sandra Day O'Connor was the first woman to be
appointed to the Supreme Court .
D) Fewer than 50% of Americans knew that legal literacy referred to their ability to understand
"legalese."
Answer: C
Diff: 2
Topic: Definition of the Legal Environment of Business

7) How many member nations does the European Union have?
A) 5
B) 17
C) 27
D) 144
Answer: C
Diff: 1
Topic: Introduction
8) How many member nations does the WTO have?
A) 27
B) 50
C) 127
D) 144
Answer: D
Diff: 1
Topic: Introduction

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9) The Asian-Pacific Economic Cooperation (APEC) forum is discussing the creation of an
economic free trade zone that would extend where?
A) From Chile to China
B) From the United States to China
C) From China to Singapore
D) From Japan to China
Answer: A
Diff: 1
Topic: Introduction

10) Our study of the legal environment of business is characterized by which of the following?
A) It develops an understanding that the law is dynamic, not static.
B) It is designed to maximize enrollment at schools of law throughout the United States.
C) It encourages the search for the "one true answer" to each legal question.
D) It is based on the Platonic system of social control.
Answer: A
Diff: 1
Topic: Definition of the Legal Environment of Business
11) Our study of the legal environment of business is characterized by which of the following?
A) It is arbitrary and capricious.
B) It is interdisciplinary.
C) It excludes ethical considerations.
D) It considers issues of a financial nature rather than human resources nature.
Answer: B
Diff: 1
Topic: Definition of the Legal Environment
12) Each of the following is one of the "Top Ten Reasons for Studying the Legal Environment"
EXCEPT for which one?
A) Becoming aware of the rules of conducting business.
B) Being able to communicate with your lawyer
C) Understanding estate planning in areas relating to corporate acquisitions.
D) Forming an awareness of the potential misconduct of competitors.
Answer: C
Diff: 1
Topic: Definition of the Legal Environment of Business n
13) Which of the following can be said about the rate of globalization in the twenty first century?
A) It is accelerating
B) It is slowing down.
C) It seems to be occurring at roughly the same pace as in previous centuries.
D) It is completely unpredictable.

Answer: A
Diff: 2
Topic: Introduction
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14) Each of the following is one of the "Top Ten Reasons for Studying the Legal Environment"
EXCEPT for which one?
A) Appreciating the limits of entrepreneurship.
B) Determining the right moment to downsize a business.
C) Making you a more informed citizen.
D) Providing a heightened awareness of business ethics.
Answer: B
Diff: 1
Topic: Definition of the Legal Environment of Business
15) A study of the legal environment of business includes all EXCEPT of the following?
A) The study of the legal process and our present legal system,
B) The study of the administrative law process and the role of businesspeople in that process.
C) The study of selected areas of public and private law, such as securities regulation.
D) None of the above; all are addressed in the text as part of our study of the legal environment
of business.
Answer: D
Diff: 1
Topic: Legal Environment of Business
16) Of the following, which is the BEST definition of "jurisprudence"?
A) Jurisprudence is a legal conclusion based on the facts.
B) Jurisprudence is the organization of attorneys and judges who handle a particular legal case.
C) Jurisprudence is the science or philosophy of law.
D) Jurisprudence consists of the legislative, executive, and judicial branches of government.

Answer: C
Diff: 2
Topic: Definition of Law and Jurisprudence
17) Which of the following is TRUE about administrative agencies?
A) Their purpose is to create regulations that guide the functions of the executive branch
B) Their authority to issue regulations comes from the President
C) They regulate business in areas such as employment, trade and safety
D) All of the above are true
Answer: C
Diff: 2
Topic: Sources of Law

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18) What is TRUE about federal statutes enacted by Congress:
A) Once the entire Congress passes a bill and the President signs it into law, it cannot be
overturned
B) The authority for judicial review of the constitutionality of federal law was established in the
case Marbury v. Madison
C) The history of the intentions and debates of Congress when they were drafting and discussing
a proposed law can be found in the Federal Register
D) All of the above are true.
Answer: B
Diff: 2
Topic: Sources of Law
19) The President has all of the following powers EXCEPT which one of the following?
A) Negotiating a treaty with Brazil
B) Issuing an executive order nationalizing the steel industry

C) Vetoing a bill a second time after both the House and Senate have successfully voted to
override the President's first veto
D) Signing a bill into law
Answer: C
Diff: 2
Topic: Sources of Law
20) The various Restatements of the Law:
A) Have the full force and effect of any other federal statute or regulation
B) Are often relied upon by the courts when rendering legal judgments
C) Are based on previous case decisions issued by the US Supreme Court
D) Cover only the legal subjects of contracts, torts and agency
Answer: B
Diff: 2
Topic: Sources of Law
21) Once the full House and Senate have each passed a version of a bill, what happens next?
A) If the House and Senate versions are substantially similar, the Senate version goes to the
President for his signature or veto.
B) The two versions of the bill go back to the applicable subcommittees in both the House and
Senate to reconcile the differences and create a single version for signature or veto by the
President.
C) The House and Senate versions are both sent to the President for signature or veto of the
version s/he finds best suited to meeting the needs of the country.
D) Both the House and Senate versions are sent to a Senate-House Conference Committee for
reconciliation and then a single version is returned to the full House and Senate for a vote.
Answer: D
Diff: 2
Topic: Sources of Law

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22) If the President negotiates a trade treaty with Ireland, what is TRUE about that agreement?
A) The treaty becomes law as soon as the US and Irish Presidents both sign a document
containing the final terms and conditions of the treaty.
B) The treaty can be amended or modified by state and local laws as necessary to meet the needs
of the various regions of the country.
C) The treaty does not become law unless approved by the House of Representatives.
D) The treaty cannot become law without the advice and consent of the Senate.
Answer: D
Diff: 2
Topic: Sources of Law
23) Which of the following is the best example of a substantive law?
A) A lawsuit must be filed within one year of when the injury occurred.
B) The defendant must respond to the plaintiff's complaint within 15 days.
C) A hearing on the merits of the case must be held within 60 days.
D) For a contract to exist, the parties must exchange valuable consideration.
Answer: D
Diff: 2
Topic: Classifications of Law
24) Which of the following is the best example of private law?
A) A law requiring that the parties to a contract exchange valuable consideration for the contract
to be enforceable.
B) A law requiring a local zoning board to conduct a hearing before approving a request to
change the zoning assigned to a particular parcel of land.
C) A law defining burglary as the breaking and entering of the property of another with the intent
to commit a felony therein.
D) A law requiring police officers to have probable cause when requesting a search warrant.
Answer: A
Diff: 2

Topic: Classifications of Law
25) All of the following are true about criminal law EXCEPT:
A) The government is always a party to a criminal lawsuit
B) If found guilty, the defendant may be fined or sentenced to prison or both
C) The burden of proof is preponderance of the evidence
D) Examples include fraud, forgery and extortion
Answer: C
Diff: 2
Topic: Classifications of Law

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26) Bubba pointed a gun at Richie Rich and took Richie's wallet which contained $10,000.
Bubba has been accused of robbery (the taking of the property of another by force or fear). What
is TRUE about Bubba's situation?
A) Bubba will be the defendant in a civil suit brought by the government.
B) Bubba has the burden of proving his innocence.
C) Bubba will be charged with robbery by the Richie Rich, the victim of the robbery.
D) The government will charge Bubba with robbery and they must prove his guilt beyond a
reasonable doubt.
Answer: D
Diff: 2
Topic: Classifications of Law
27) Which of the following is a true statement about the Natural Law School?
A) It has existed since 300 B.C. and bases law on certain unchanging value judgments.
B) It focuses on environmental concerns, such as toxic waste and air quality.
C) It is founded on the writings of Cicero and Hobbes.
D) None of the above are true statements about the Natural Law School.

Answer: A
Diff: 2
Topic: Natural Law School
28) Which of the following is a true statement about the Natural Law School?
A) It teaches that the legislature is the primary source of all law.
B) It teaches that certain moral and religious principles supersede any form of human law.
C) It teaches that "might makes right."
D) It bases its teachings on the writings of Plato.
Answer: B
Diff: 2
Topic: Natural Law School
29) Which of the following is a true statement about the Natural Law School?
A) It teaches that good laws depend on good judges.
B) It teaches that law, ethics, and morality should remain separate.
C) It teaches that one may have a moral responsibility to disobey an unjust law.
D) It teaches that the U. S. Constitution is the highest legal authority in the United States.
Answer: C
Diff: 2
Topic: Natural Law School

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30) Which of the following is an argument raised by critics of the Natural Law School?
A) It requires sophisticated quantitative methodology, relying too heavily upon statistical
methods.
B) It is based primarily upon European rather than American legal thinking.
C) It is overly subjective in a nation of differing cultures and moral values.
D) It is designed for Communist and Socialist political systems.

Answer: C
Diff: 2
Topic: Natural Law School
31) Which of the following schools of law would a person probably adhere to if he said that he
believes God is the source of the law?
A) Natural Law
B) Positivist
C) Sociological
D) American Realist
Answer: A
Diff: 1
Topic: Definition of Law and Jurisprudence
32) Which of the following schools of law would a person probably adhere to if he said that he
believes that the legislature is the source of the law?
A) Natural Law
B) Positivist
C) Sociological
D) American Realist
Answer: B
Diff: 1
Topic: Definition of Law and Jurisprudence
33) Which of the following schools of law would a person probably adhere to if he said that he
believes most court decisions and legal doctrine should support an efficient allocation of
resources in society?
A) Natural Law
B) Positivist
C) Sociological
D) Law and Economics
Answer: D
Diff: 1

Topic: Definition of Law and Jurisprudence

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34) Which of the following schools of law would a person probably adhere to if he said that he
believes contemporary community standards and custom are the most important sources of the
law?
A) Natural Law
B) Positivist
C) Sociological
D) American Realist
Answer: C
Diff: 1
Topic: Definition of Law and Jurisprudence
35) Which of the following schools of law would a person probably adhere to if she said law is a
cluster of legal and nonlegal beliefs that must be critiqued to bring about social and political
change?
A) Feminist
B) American Realist
C) Critical Legal Studies
D) Law and Economics
Answer: C
Diff: 1
Topic: Definition of Law and Jurisprudence
36) Which of the following schools of law would a person probably adhere to if she said costbenefit analysis is useful in understanding our legal system?
A) Feminist
B) American Realist
C) Critical Legal Studies

D) Law and Economics
Answer: D
Diff: 2
Topic: Definition of Law and Jurisprudence
37) Which of the following schools of law would a person probably adhere to if she said that our
jurisprudence reflects a male legislature and judicial system where female views are
underrepresented?
A) Feminist
B) Positivist
C) Critical Legal Studies
D) Law and Economics
Answer: A
Diff: 1
Topic: Definition of Law and Jurisprudence

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38) The posted speed limit on the interstate near Brian's house is 60 miles per hour, but no one
ever gets a ticket unless they drive over 70 miles per hour. One lovely spring day, Brian is
ticketed for going 68 miles per hour. He is the most likely to feel outraged that a true injustice
has occurred if he adheres to which legal philosophy?
A) Feminist
B) Sociological
C) Positivist
D) Law and Economics
Answer: B
Diff: 3
Topic: Definition of Law and Jurisprudence

39) The posted speed limit on the interstate near Brian's house is 60 miles per hour, but no one
ever gets a ticket unless they drive over 70 miles per hour. One day he is ticketed for going 68
miles per hour. He is the least likely to feel outraged that a true injustice has occurred if he
adheres to which legal philosophy?
A) Feminist
B) Sociological
C) Positivist
D) Law and Economics
Answer: C
Diff: 3
Topic: Definition of Law and Jurisprudence
40) Martin Luther King would be most likely associated with which school of legal philosophy?
A) Natural Law
B) American Realist
C) Sociological
D) Law and Economics
Answer: C
Diff: 1
Topic: Natural law
41) Which of the following schools of law is criticized for leading to a static jurisprudence
because it does not take into account social and ethical factors ?
A) Sociological
B) American Realist
C) Positivist
D) Natural Law
Answer: C
Diff: 2
Topic: Positivist School

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42) Disciples of the Positivist School would argue which of the following?
A) Social and community standards are an important source of international law.
B) The U. S. Supreme Court should respect the will of Congress when it comes to interpreting
legislation.
C) Positive arguments should carry more weight than negative ones.
D) The U. S. Constitution should be viewed with skepticism by members of the judicial branch
of government.
Answer: B
Diff: 2
Topic: Positivist School
43) When criticizing the Positivist School, legal scholars have made which of the following
arguments?
A) It is impossible to remain positive about everything when there is so much negativity in the
world.
B) The Positivist School is irrational and not founded in logic.
C) The Positivist School ignores the importance of precedence.
D) The Positivist School adopts a view that is too narrow and literal-minded.
Answer: D
Diff: 2
Topic: Positivist School
44) Followers of the Sociological School propose that judges should take which of the following
steps when determining law?
A) Use an inventory of community interests to familiarize themselves with the community's
standards and mores.
B) Carefully separate morality from law, using only legal precedents to guide decisions.
C) "Follow the money" by determining which groups will benefit financially from a particular
legal decision.

D) Reach decisions through strict neutrality, without bias of any kind.
Answer: A
Diff: 2
Topic: Sociological School
45) Why does the philosophy of the Sociological School contrast sharply with the Positivist
School?
A) The Positivist School relies heavily on "hard" quantitative data instead of "soft" social
science.
B) The Positivist School takes an optimistic view of civilization in contrast to the Sociological
School's pessimistic approach.
C) The Sociological School looks at actual human behavior and values, while the Positivist
School insists that the focus should remain on statutes and precedents.
D) The Sociological School actually takes a more optimistic view of civilization than does the
misnamed Positivist School.
Answer: C
Diff: 2
Topic: Sociological School
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46) Critics of the Sociological School have made which of the following arguments?
A) Many smaller universities lack sociology departments.
B) The Sociological School has proposed a view of law that is rigid and uncompromising.
C) The Sociological School places too great an emphasis on quantitative data rather than
experienced "gut reactions."
D) The Sociological School would make the law unpredictable, since community standards
change over time.
Answer: D
Diff: 2

Topic: Sociological School
47) Which of the following would be most helpful to a disciple of the American Realist School?
A) Copies of the past several opinions a particular judge had written.
B) A comparison of the Code of Hammurabi with the Ten Commandments.
C) A quantitative analysis of statistical data about county government expenditures.
D) None of the above.
Answer: A
Diff: 2
Topic: American Realist School
48) Which of the following BEST characterizes the views expressed by the Critical Legal
Studies School?
A) In order to understand law, it is necessary to understand the interlocking system of beliefs that
reinforces established wealth and privilege.
B) Law is nothing more than a system of regulations designed by the legislature.
C) Critical legal studies are a necessary balance to the right-wing political views expressed by
the Positivist School.
D) Laws and mores should be examined by critics rather than by lawyers and judges, who have a
biased stake in the matter.
Answer: A
Diff: 2
Topic: Critical Legal Studies School
49) What is the primary argument traditional critics of the Critical Legal Studies School have
raised?
A) Critical legal theorists have constructed an essentially negative position without developing
concrete strategies to bring about improvements.
B) Critical legal theorists tend to base their pronouncements on female-dominated scholarship.
C) Critical legal theorists pay too much attention to law without considering the effects of
morality.
D) Critical legal theorists tend to downplay the interaction between statutory and common law.
Answer: A

Diff: 2
Topic: Critical Legal Studies School

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50) Traditional critics of the Feminist School make which of the following arguments?
A) There are too few women in judicial positions to draw any realistic conclusions about the
ability of women to handle legal issues.
B) The Feminist School fails to account for changes taking place in U. S. society, such as the
increasing number of women in higher-ranking positions.
C) Feminist jurisprudence is just a variation of the Natural Law School.
D) There have been too few scholarly articles written by female jurists.
Answer: B
Diff: 2
Topic: Feminist School
51) Advocates of the Law and Economics School believe which of the following?
A) Precedents can be derived through the application of "trickle down" economics.
B) Lawyers earn substantially more money than they deserve.
C) The legal system is expensive and should be streamlined using modern principles of
management efficiency.
D) Court decisions can be explained as efforts to promote an efficient allocation of resources.
Answer: D
Diff: 2
Topic: Law and Economics School
52) Each of the following is a direct source of law created by the United States Constitution
EXCEPT which one?
A) Legislative branch
B) Executive branch

C) Federal branch
D) Judicial branch
Answer: C
Diff: 1
Topic: Sources of Law
53) A person can find cases decided in federal courts in all of the following EXCEPT which
one?
A) Federal Supplement
B) United States Reports
C) Federal Reporter
D) None of the above; all are compilations of various types of federal case law
Answer: D
Diff: 2
Topic: Sources of Law

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54) A person can find federal statutes in all of the following EXCEPT which one?
A) United States Code
B) United States Code Annotated
C) United States Official Laws and Regulations
D) None of the above; all are compilations of federal statutes
Answer: C
Diff: 2
Topic: Sources of Law
55) A person can find all of the following EXCEPT which one in the Code of Federal
Regulations?
A) Statutes passed by Congress

B) Rules handed down by administrative agencies
C) Executive orders issued by the president
D) None of the above; all are found in the CFR
Answer: A
Diff: 3
Topic: Sources of Law
56) Which of the following most accurately illustrates the chronological process of a bill
becoming a law?
A) Affirmative vote by both houses of Congress, referral to a committee, bill is "marked up,"
subcommittee approval
B) Referral of bill to a subcommittee, approval by the subcommittee and larger committee,
affirmative vote by both houses of Congress, President's signature
C) President's signature, bill is "marked up," subcommittee hearings, affirmative vote by both
houses of Congress
D) Passage of bill by Senate, passage of bill by House of Representatives, Senate-House
Conference Committee reconciles differences, referral to subcommittee
Answer: B
Diff: 2
Topic: Sources of Law
57) Which of the following is the most accurate statement of what happens if the President does
not sign a bill that has been passed by both houses of Congress?
A) It does not become law.
B) It does not become law unless it goes back to both houses for approval by a 2/3s majority
C) It becomes law unless the bill was passed by Congress within 10 days of the end of the
Congressional session, and in that case, it is treated as though the president vetoed it
D) It becomes law.
Answer: C
Diff: 3
Topic: Sources of Law

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58) When a president vetoes a bill, what vote is necessary to overturn his veto?
A) A 2/3s majority of both houses.
B) A 2/3s majority of either the house of Representatives or the Senate.
C) A 4/5s majority of both houses.
D) No vote can overturn the veto; once vetoed, the bill is dead.
Answer: A
Diff: 3
Topic: Sources of Law
59) When does a pocket veto occur?
A) When the president does nothing upon receipt of a bill.
B) When the president does nothing upon receipt of a bill within the last 10 days of a
Congressional session.
C) When the president vetos a bill during a lame-duck session of Congress
D) Any time the president vetoes a bill; a pocket veto is just the full name for a veto.
Answer: B
Diff: 3
Topic: Sources of Law
60) Which of the following would be useful to a court concerned with the proper interpretation
of a statute?
A) First and Fourth Amendments to the U. S. Constitution
B) Legislative history
C) Names and addresses of house subcommittee members
D) Sociological School
Answer: B
Diff: 2
Topic: Sources of Law

61) Where would someone be able to find a record of what transpired in a Congressional debate?
A) U.S. Reports.
B) Congressional Record.
C) Congressional Daily News
D) None of the above; these debates are kept confidential to encourage vigorous debate.
Answer: B
Diff: 2
Topic: Sources of Law

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62) Of the following, which is the BEST definition of "judicial review"?
A) The ability of judges to second-guess attorneys
B) The Freedom of Speech guaranteed to members of the judiciary under the First Amendment
of the U. S. Constitution
C) The power of courts to determine whether a statute is unconstitutional
D) The Legal research conducted by attorneys aimed at determining whether state or federal
common law is appropriate to the facts of a particular case
Answer: C
Diff: 2
Topic: Sources of Law
63) Which of the following states a valid reason why the regulations issued by an administrative
agency have the full force of law?
A) Congress has delegated authority to that agency to write binding regulations in a specific
subject area.
B) The administrative agency refers to statutory law to guide its behaviors.
C) Personnel are hired by the administrative agency pursuant to the President's orders.
D) Administrative agencies cannot be considered sources of law because they are not executive,

legislative, or judicial.
Answer: A
Diff: 3
Topic: Sources of Law
64) Which of the following is a method by which the executive branch makes law?
A) The president issues executive orders.
B) The president negotiates treaties subject to the consent of the Senate.
C) Both A and B
D) None of the above are considered ways the president makes law.
Answer: C
Diff: 1
Topic: Sources of Law
65) Each of the following is an important difference between criminal law and civil law
EXCEPT for which one?
A) The plaintiff in a criminal case is an agency of the government, whereas the plaintiff in a civil
case is usually a private entity.
B) Criminal cases are tried in a state court, whereas civil cases are tried in federal court.
C) The defendant in a criminal case usually faces a fine or prison sentence, whereas the
defendant in a civil case is usually being asked to pay money damages to compensate the
plaintiff for the losses he or she suffered.
D) A lower standard is used for the burden of proof in a civil case as opposed to the "beyond a
reasonable doubt" standard used in criminal cases.
Answer: B
Diff: 1
Topic: Classifications of Law

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66) Which of the following is NOT an example of a civil case?
A) Jill sues Sarah for taking her bike
B) Rob sues Heather for not fulfilling the terms of their contract.
C) Harold is prosecuted for stealing his neighbor's car.
D) None of the above; all are examples of civil cases.
Answer: C
Diff: 2
Topic: Classifications of Law
67) All of the following EXCEPT which one would be clues that a case is a criminal, not a civil,
case?
A) The case is described s a felony.
B) If the defendant loses, he will go to jail.
C) The state is one party to the case
D) None of the above; all are attributes of criminal cases.
Answer: D
Diff: 2
Topic: Classifications of Law
68) All of the following EXCEPT which one are clues that a case is most likely a civil case
rather than a criminal case?
A) The party filing suit is interested in getting compensation from the defendant.
B) The burden of proof is a preponderance of the evidence.
C) The state is one party to the case.
D) None of the above; all are attributes of civil cases.
Answer: C
Diff: 1
Topic: Classifications of Law
69) All of the following EXCEPT which one would are clues that a case is mostly likely a
criminal case rather than a civil case?
A) The party bringing the case is called the plaintiff
B) The defendant is charged with extortion.

C) The burden of proof is beyond a reasonable doubt.
D) None of the above; all are attributes of criminal cases.
Answer: A
Diff: 2
Topic: Classifications of Law

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70) Which of the following BEST expresses the difference between public and private law?
A) Public law is available to everyone, whereas private law is harder to find.
B) Public law applies to everyone, whereas private law applies only to private corporations.
C) Public law addresses the powers and obligations of government, whereas private law
addresses duties and interactions among individuals and businesses.
D) Public law refers to law as a subset of ethics, whereas private law refers to law as a subset of
morality.
Answer: C
Diff: 2
Topic: Classifications of Law
71) Since the United States is a powerful nation situated between two oceans, American
businesses can afford to ignore the rest of the world.
Answer: FALSE
Diff: 1
Topic: Introduction
72) An important purpose of the North American Free Trade Agreement is to lower trade
barriers among the United States, Canada and Mexico.
Answer: TRUE
Diff: 1
Topic: Introduction

73) An important function of the WTO is to lower trade barriers.
Answer: TRUE
Diff: 1
Topic: Introduction
74) The European Union is similar to the United States in that the EU has the same number of
member countries as the United States has states.
Answer: FALSE
Diff: 1
Topic: Introduction
75) The United States, Canada, and Mexico are parties to the North American Free Trade
Agreement.
Answer: TRUE
Diff: 1
Topic: Introduction
76) Because the pace of economic globalization has slowed in recent years, there is less reason
now to be concerned about political and economic developments in other countries.
Answer: FALSE
Diff: 1
Topic: Introduction

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77) Fortunately, most of the important regulations have already been written, so one area of the
legal environment that does not change very often is administrative law.
Answer: FALSE
Diff: 1
Topic: Definition of the Legal Environment of Business
78) A survey by the Hearst Corporation found that many Americans are poorly educated when it

comes to basic facts about our legal system.
Answer: TRUE
Diff: 1
Topic: Definition of the Legal Environment of Business
79) A survey by the Hearst Corporation found that the vast majority of Americans–well over
90%--had served on a jury.
Answer: FALSE
Diff: 2
Topic: Definition of the Legal Environment of Business
80) American law is not dynamic; rather, its precepts are "written in stone."
Answer: FALSE
Diff: 1
Topic: Definition of the Legal Environment of Business
81) According to the American jurist Oliver Wendell Holmes, law is grounded in theory rather
than experience.
Answer: FALSE
Diff: 1
Topic: Definition of the Legal Environment of Business
82) A study by the Hearst Foundation found that most Americans know that a criminal defendant
does not have to prove that he is innocent under our system of justice.
Answer: FALSE
Diff: 2
Topic: Definition of the Legal Environment of Business
83) Judges and attorneys are often obliged to consider material from multiple disciplines before
reaching a decision.
Answer: TRUE
Diff: 1
Topic: Definition of the Legal Environment
84) Jurisprudence is the science or philosophy of law.
Answer: TRUE

Diff: 1
Topic: Definition of Law and Jurisprudence

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85) Cicero saw the law as an agreement of reason and nature.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
86) Plato saw law as the command of the sovereign.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
87) The true source of law is always the same, regardless of which school of jurisprudence is
applied.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
88) Aristotle saw law as a rule of conduct.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
89) Bacon said that certainly is a prime necessity of the law.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
90) Given Bacon's view of the law, he was more likely to belong to the school of positivism
rather than the sociological school.

Answer: TRUE
Diff: 3
Topic: Definition of Law and Jurisprudence
91) The Natural Law School draws a distinction between just laws and unjust laws.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
92) The writings of Martin Luther King are consistent with the principles of the Natural Law
School.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
93) Saint Thomas Aquinas was a leading proponent of the Positivist School.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall


94) Disciples of the Positivist School are known for their use of subjective morality in the
interpretation of statutes.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
95) Justice Scalia is most likely a legal positivist.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
96) Disciples of the Positivist School would argue that when Congress has not acted on a matter,

the Supreme Court has no power to act on that matter.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
97) Followers of the Sociological School believe that legislators and judges should use an
inventory of community interests when reaching legal decisions.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
98) Followers of the Sociological School seek to change the law by surveying human behavior
and determining present community standards.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
99) The American Realist School believes that law should be based on the Ten Commandments
and the United States Constitution.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
100) The justice who wrote that obscenity should be based on community standards was
probably not a legal positivist.
Answer: TRUE
Diff: 1
Topic: Definition of Law and Jurisprudence
101) The writings of Karl Llewellyn have been cited by those favoring the American Realist
School.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
21

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall


102) Critics of the sociological school are concerned that it may lead to a lack of predictability In
the legal system.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
103) The Feminist School bases legal precedent only on cases involving plaintiffs and
defendants who were female.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
104) Only women believe in the school of feminist jurisprudence.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
105) Some proponents of the Feminist School have argued that the First Amendment was
authored by men and is presently interpreted by male-dominated courts to allow pornographers
to make large profits.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
106) The proponents of the Critical Legal Studies School argue that most court decisions are best
understood as efforts to promote an efficient allocation of resources in society.
Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
107) The school of Law and Economics is a relatively new school of jurisprudence, having
developed only in the late 1980's.

Answer: FALSE
Diff: 2
Topic: Definition of Law and Jurisprudence
108) Members of the law and economics school tend to be politically conservative.
Answer: TRUE
Diff: 2
Topic: Definition of Law and Jurisprudence
109) Executive orders are found in the Code of Federal Regulations and the Federal Register.
Answer: FALSE
Diff: 2
Topic: Sources of Law

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110) We have three direct and one indirect sources of law.
Answer: TRUE
Diff: 1
Topic: Sources of Law
111) The legislature is a direct source of law, whereas the judiciary is an indirect source of law.
Answer: FALSE
Diff: 2
Topic: Sources of Law
112) The executive serves as a direct source of law when the president makes an executive order,
but as an indirect source when he negotiates a treaty.
Answer: FALSE
Diff: 2
Topic: Sources of Law
113) The source of Congress's legislative powers comes from article 1, Section 1 of the U.S.

Constitution.
Answer: TRUE
Diff: 1
Topic: Sources of Law
114) A bill introduced into the U. S. House of Representatives or Senate is generally referred to
the committee that has jurisdiction over the subject matter of the bill.
Answer: TRUE
Diff: 2
Topic: Sources of Law
115) A pocket veto occurs whenever the president does not sign a bill into law.
Answer: FALSE
Diff: 2
Topic: Sources of Law
116) The Restatements are secondary sources of law, meaning that they have precedential value
only in trial courts.
Answer: FALSE
Diff: 3
Topic: Sources of Law
117) Legal opinions published on the internet only have no precedential value.
Answer: FALSE
Diff: 2
Topic: Sources of Law

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118) The executive branch consists of only the president and vice-president.
Answer: FALSE
Diff: 1

Topic: Sources of Law
119) The right of judicial review was created by the case of Marbury v. Madison.
Answer: TRUE
Diff: 2
Topic: Sources of Law
120) The President of the United States has the power to make treaties subject to the advice and
consent of the Senate.
Answer: TRUE
Diff: 1
Topic: Sources of Law
121) Administrative agencies are sometimes called the fourth branch of government.
Answer: TRUE
Diff: 1
Topic: Sources of Law
122) Administrative agencies cannot make rules because that is a legislative function reserved to
Congress.
Answer: FALSE
Diff: 1
Topic: Sources of Law
123) Plaintiffs file civil cases whereas prosecutors initiate criminal cases.
Answer: TRUE
Diff: 1
Topic: Classifications of Law
124) Criminal law regulates relationships between two private parties.
Answer: FALSE
Diff: 1
Topic: Sources of Law
125) Private law generally deals with the relationship of criminal law to the U. S. Constitution.
Answer: FALSE
Diff: 2

Topic: Classifications of Law
126) Many believe that by the end of this decade, over 50 percent of our jobs will be dependent
on exports.
Answer: TRUE
Diff: 2
Topic: Global Dimensions of the Legal Environment of Business
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127) A young mother from a minority ethnic group is arrested and charged with stealing a loaf of
bread to feed her children. The judge, an elderly Caucasian male, lectures the woman about the
evils of stealing, then proceeds to impose the standard sentence of 30 days in prison for a first
offender. An appellate judge is asked to review the trial court's decision. What difference would
it make whether the judge was a disciple of one school of jurisprudence rather than another?
(Discuss how a judge from each school of jurisprudence might approach the case.)
Answer: A judge from the Natural Law School might be concerned about the morality of a law
that would prevent a young mother from feeding her children. The judge might point to religious
principles recommending mercy in such cases, and might seek to reduce the lower court's
sentence. A judge from the Positivist School might applaud the lower court judge for applying
the standard sentence without regard to moral or religious considerations. According to a
Positivist judge, any reduction in the sentence should be determined not by judges, but by the
legislature. An appellate judge from the Sociological School might ask the attorneys to submit
information and research on the particular ethnic group from which the woman came, and might
seek to understand what customs in that ethnic group might govern the taking of food by a young
mother. An appellate judge from the American Realist School might want to know more about
the identity of the trial court judge and the attorney who represented the young woman. For
example, the appellate judge might want to know whether or not the young woman had been
adequately represented by an experienced lawyer and whether the trial judge had been
sufficiently attentive to the case. An appellate judge from the Critical Legal Theory School might

want to know why the issue of theft is being viewed more seriously than the issue of the
woman's poverty. An appellate judge from the Feminist School would point to the unfairness of
an elderly white male casting judgment upon a young, vulnerable female. A judge from the Law
and Economics School might observe that the young woman's theft of a loaf of bread actually
serves to allocate society's resources more efficiently, since it moves a resource (the bread) to a
place where it is most needed.
Diff: 3
Topic: Definition of Law and Jurisprudence
128) Abel believes that judges should understand the differences among the major schools of
jurisprudence. Baker believes that judges should ignore schools of jurisprudence and just "follow
the law." With which side of this debate do you agree? Why?
Answer: Ironically, Baker seems unaware of the fact that the "follow the law" argument comes
directly from the Positivist School, which argues that judges should ignore moral and ethical
considerations and simply "follow the law" as written by the legislature. In other words, Baker is
really arguing that all judges should be Positivists. Step 6 in the Critical Legal Reasoning process
requires that we examine the ethical norms that were fundamental to a court's reasoning. Each
school of jurisprudence places emphasis on a different set of ethical norms. For example, the
Feminist School emphasizes justice as a primary ethical norm. The Law and Economics School
emphasizes efficiency. Judges who prefer one school of jurisprudence over another typically do
so because of an underlying preference for a particular ethical norm. Abel is therefore correct in
suggesting that judges be aware of the potential for bias that may occur if the effect of these
powerful norms is ignored.
Diff: 3
Topic: Definition of Law and Jurisprudence

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall