Test bank for essentials of business law 1st edition by cheeseman

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CHAPTER 1
LEGAL HERITAGE AND CRITICAL LEGAL THINKING

TRUE/FALSE QUESTIONS
What Is Law?
1.

The law in the United States has been influenced by English, but not by French or Spanish law.
F
[moderate]

2.

Law is intended to protect persons, and their property, from unwanted interference from others.
T
[easy]

3.

Businesses that are organized in the United States are subject to the laws of the United States but
are not subject to the laws of other countries in which they do business.
F
[easy]

4.

Promoting social justice is a function of the law.
T
[moderate]

5.

Facilitating orderly change and maintaining the status quo are functions of the law.
T
[moderate]

6.

The U.S. Supreme Court has ruled that it is improper for a party to be convicted in a criminal case
if another party involved in the same criminal activity has been acquitted.
F
[moderate]

7.

One goal of the law is to anticipate all disputes that can arise in the future and to establish laws
that address all situations before they arise.
F
[moderate]

8.

The U.S. Supreme Court decision in Brown v. Board of Education is an example of the function
of the law to maintain the status quo.
F
[moderate]

9.

The “battered woman’s syndrome” illustrates the application of feminist jurisprudence.
T
[moderate]

10.

The proponents of feminist legal theory argue that women should have superior rights to men in
some circumstances due to the past unequal treatment of women.
F
[moderate]

11.

According to Anotole France, the law should apply equally to the rich as well as the poor.
T
[easy]

Schools of Jurisprudential Thought
12.

The Nineteenth Amendment to the United States Constitution gave women the right to vote.
T
[difficult]
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13.

In the past the law did not allow married women in the United States to own property.

T
[difficult]

14.

The Natural Law School of jurisprudence believes that the law should be based on what is moral
and correct, and that this natural law is discovered by man through the use of reason.
T
[easy]

15.

The Historical School of jurisprudence believes that the law should not change and that what has
historically been the law should remain the law.
F
[moderate]

16.

The Sociological School of jurisprudence emphasizes the following of precedent.
F
[moderate]

17.

The Command School of jurisprudence believes that the law commands the ruling class, thus the
law should not change when there is a change in the ruling class.
F
[easy]

18.

Proponents of the Critical Legal Studies School argue for great subjectivity in decisions made by
judges.
T
[moderate]

19.

The Law and Economics School of jurisprudential thought holds that promoting market
efficiency should be the central goal of legal decision making.
T
[easy]

20.

The Law and Economics School of jurisprudential thought began at the University of Chicago.
T
[difficult]

History of American Law
21.

The English law courts could only award monetary damages.
T
[moderate]

22.

The English law courts emphasized legal procedure over the merits of the individual case.

T
[easy]

23.

The English Chancery Courts were under the authority of the Lord Chancellor.
T
[moderate]

24.

Equity Courts were created to allow remedies that could not be granted by the law courts.
T
[easy]

25.

Merchant courts were developed as a part of the English law courts.
F
[moderate]

26.

In most states today the law courts and equity courts have been combined so that both legal and
equitable remedies can be sought in the same court.
T
[moderate]

27.

The U. S. Constitution is often referred to as a “living document.”
T
[easy]
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28.

On the federal level, Congress through its legislative power enforces the law.
F
[easy]

Sources of Law in the United States
29.

Together, the federal and state constitutions are considered the supreme law of the land.
F
[moderate]

30.

The federal government has any power that the U.S. Constitution does not give to the states.
F
[moderate]

31.

Both the federal government and state governments have the power to enter into treaties with
foreign governments.

F
[moderate]

32.

Codes consist of statutes that have been organized by topic.
T
[easy]

33.

Statutes are enacted by legislative branches of the federal and state governments.
T
[easy]

34.

An example of executive power occurred when President George W. Bush established within the
Executive Office of the President an Office of Homeland Security.
T
[moderate]

35.

The executive and legislative branches of the federal government are each empowered to create
administrative agencies.
T
[easy]

36.

The doctrine of stare decisis provides that each court decision is independent and should stand on
its own.
F
[easy]

37.

Under the Full Faith and Credit Clause of the U.S. Constitution, state courts of one state are
required to follow the legal precedents established by the courts of another state.
T
[moderate]

38.

In deciding the case of Grutter v. Bollinger, the U.S. Supreme Court upheld the district court’s
ruling that the use of race as a factor in admissions violated the Equal Protection Clause of the
Fourteenth Amendment.
F
[difficult]

39.

Valid federal law takes precedence over any conflicting state or local law.
T
[moderate]

40.

In general, the courts in a civil law system play a much larger role in making law than in a

common law system.
F
[easy]

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MULTIPLE CHOICE QUESTIONS—LEGAL CONCEPTS
What Is Law?
41.

According to the text, what is the definition of “law”?
a.
The list of actions a person must not perform
b.
AA body of rules of action or conduct prescribed by controlling authority
c.
WThe acts a person must perform in order to assure fairness
d.
TOptional rules for members of society to follow or ignore as they see fit
B
[moderate]

42.

Which of the following is not a general function of the law?
a.
SShaping moral standards
b.

MMaintaining the status quo
c.
EEncouraging individual justice
d.
FFacilitating orderly change
C
[moderate]

43.

When statutes are passed only after considerable study, debate and public input, this is an
example of which function of the law?
a.
Maintaining the status quo
b.
Facilitating orderly change
c.
Keeping the peace
d.
Shaping moral standards
e.
Encouraging individual justice
B
[moderate]

44.

What was the U.S. Supreme Court’s reaction to a case where a business executive was found
guilty of aiding and abetting in the bribery of an Internal Revenue Service agent even though the
Internal Revenue Service agent had been found not guilty of the bribery in a separate trial?

a.
Because one of the defendants had been found guilty, then both should have been found
guilty.
b.
Because one of the defendants had been found not guilty, they both should have been
found not guilty.
c.
Because of the inconsistent outcomes, a third combined trial was ordered to reconcile the
different outcomes.
d.
The decisions in both cases were thrown out, making it possible, though not mandatory,
that one or both defendants would have to face another trial.
e.
This simply underscores the fact that there is always the possibility that different juries
might reach different results in a given situation.
E
[moderate]

45.

According to Judge Jerome Frank, uncertainty in the law:
a.
Is an unfortunate accident.
b.
Should be avoided whenever possible.
c.
Is of immense social value.
d.
Does not exist in the U.S. legal system.
C

[difficult]

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46.

The concept of flexibility in the law is best illustrated by:
a.
TThe use of precedent to decide similar cases in similar ways.
b.
PPassing statutes that purposely do not address precisely how they would apply in all
situations.
c.
TThe use of appointed judges rather than elected judges.
d.
IImposing mandatory penalties for criminal violations.
e.
SSetting a fixed amount of damages applicable to all wrongful death cases.
B
[difficult]

47.

Which doctrine was overturned in the case of Brown v. Board of Education?
a.
The legality of poll taxes.
b.
The permissibility of separate but equal accommodations for African Americans.

c.
Allowing only white males to vote.
d.
The acceptability of paying women less than men for comparable work.
e.
Differential working hours for male and female factory workers.
B
[easy]

48.

A woman was physically abused for years by her husband. The woman has limited education and
never worked outside the home. One day after being abused the previous evening, she plotted to
kill her husband when he came home that night. The husband came home and the woman killed
him. At the time of the crime, the husband was not making any threats. In the woman’s trial,
which of the following would be most consistent with feminist legal theory?
a.
Whether the killing was justified should be viewed from the standpoint of a reasonable
woman, not from that of a reasonable man.
b.
Any abuse justifies the killing of the abuser.
c.
A woman should not be guilty of murder if the murder victim is a man who abused her.
d.
The jury should be composed only of women.
A
[difficult]

49.

One of the goals of feminist legal theory is to:
a.
PPlace as many women in legal decision-making roles as possible.
b.
EEnsure that law schools graduate approximately equal numbers of men and women.
c.
HRemove gender biased doctrines from the law.
d.
UUsher in an era where woman hold the bulk of the power in the legal system.
e.
EEnsure that there are no areas in the law where women and men are treated differently.
C
[difficult]

Schools of Jurisprudential Thought
50.

Persons who believe that law is “discovered” by men and women through the use of reasoning
and choosing between good and evil, adhere to which school of jurisprudential thought?
a.
The Natural School.
b.
The Historical School.
c.
The Analytical School.
d.
The Command School.
e.
The Sociological School.
A

[easy]

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51.

Proponents of which school(s) of jurisprudential thought are unlikely to adhere to precedent in
making decisions?
a.
The Sociological School only.
b.
The Critical Legal Studies School only.
c.
Both the Sociological School and the Critical Legal Studies School.
d.
Neither the Sociological School nor the Critical Legal Studies School.
C
[difficult]

52.

Someone who believes that law is a reflection of those in power, believes in which school of
jurisprudential thought?
a.
The Natural School.
b.
The Historical School.
c.

The Analytical School.
d.
The Command School.
D
[easy]

53.

Which of the following is most consistent with the Natural Law School of jurisprudence?
a.
Law is based on moral and ethical principles of what is right and wrong.
b.
The law must change naturally as society changes over time.
c.
The laws of nature take precedence whenever the laws of man are in conflict with the
laws of nature.
d.
By applying the rules of logic to specific cases, the logical, or natural, result will be
obtained.
e.
Laws must first and foremost respect, preserve and promote the preservation of the
environment and life in all its forms.
A
[moderate]

54.

The __________________ School of jurisprudence believes that legal rules are unnecessary and
used by the powerful to maintain the status quo, and that disputes should be resolved based on
general notions of fairness

a.
Historical T.
b.
Natural.
c.
Command T.
d.
Critical Legal Studies.
D
[moderate]

55.

The Critical Legal Studies School of jurisprudence believes that:
a.
FFree market forces and market efficiency are the most important principles underlying
the law.
b.
PPast court decisions must be analyzed and criticized in developing new law.
c.
SSubjective decision making by judges based on general notions of fairness is
appropriate.
d.
OThe purpose of law is to serve as an official voice of criticism of those in power.
e.
JJudges should employ the same critical methods of analyzing cases in the courtroom that
law schools use in teaching the law to students.
C
[moderate]

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56.

The school of jurisprudence that believes that free market forces should determine the outcomes
to lawsuits is:
a.
TThe Command School.
b.
TThe Sociological School.
c.
TThe Critical Legal Studies School.
d.
TThe Law and Economics School.
D
[moderate]

57.

Which of the following is true about the Law and Economics School of jurisprudence?
a.
It is also known as the Chicago School.
b.
It promotes the use of economic principles in resolving cases, so long as the case is one
involving business.
c.
It would say that a case, which no lawyer would take on a contingent fee basis, should be
brought by an attorney who is paid by the state.

d.
It holds that antitrust cases should be vigorously prosecuted in order to protect the
economic viability of smaller firms.
A
[moderate]

58.

John lives in a large city and desires to start an airport shuttle service. In order to do so, John
must go through a complicated permit application and approval process. John believes that this
process is in place in order to protect the persons already operating such services. John believes
that these rules are arbitrary, and that he should be allowed to start his business based on general
notions of fairness. John’s beliefs most closely correspond to which school of jurisprudence?
a.
Critical Legal Studies.
b.
Law and Economics.
c.
Natural Law School.
d.
Historical School.
e.
Sociological School.
A
[moderate]

History of American Law
59.

The following courts were common in England before the founding of the United States except:

a.
Chancery Courts.
b.
Bankruptcy Courts.
c.
Merchant Courts.
d.
Equity Courts.
B
[moderate]

60.

What was the only remedy (relief) available in the law courts of England?
a.
SSpecific performance
b.
FFines and imprisonment
c.
MMonetary awards for damages
d.
RReturning the parties to their positions before the dispute arose
C
[moderate]

61.

Chancery Courts were also known as:
a.
Law Courts.

b.
Equity Courts.
c.
Criminal Courts.
d.
Merchant Courts.
B

[moderate]
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62.

What is an “equitable remedy”?
a.
AA remedy fashioned by the chancery court to fit a particular situation
b.
AA remedy granted by the merchant court
c.
A remedy that cannot be modified from its rigid prescribed form
d.
A remedy that Rmust to be approved by the law court
A
[moderate]

63.

Which of the following is true about the creation of courts in England?

a.
The law courts were created in order to have broader jurisdiction than the merchant
courts.
b.
The merchant courts were created in order to have more flexibility in fashioning remedies
than the chancery courts.
c.
The equity courts were created to allow remedies that could not be granted by the law
courts.
d.
The different types of courts were created in order to handle different types of cases, but
the remedies available to the different courts were the same.
e.
Today, the Merchant Court remains a separate system of courts in England and the United
States.
C
[moderate]

64.

Which of the following is a distinguishing feature of a common law legal system?
a.
RRequiring guilt to be proven beyond a reasonable doubt
b.
The sole source of law is a comprehensive Civil CodeU
c.
FThe making of law by the judges and the following of precedent
d.
HHaving an appeal process
e.

PProviding remedies to aggrieved parties
C
[moderate]

65.

Which of the following is true about United States law today?
a.
The law of all states is based on English common law.
b.
In several states, a portion of the law is based on civil law.
c.
The law and equity courts remain separate in most states today.
d.
The laws of the 50 states are essentially similar.
B
[moderate]

Sources of Law in the United States
66.

In the United States, what is the Supreme Law of the land?
a.
TThe U.S. Constitution
b.
TThe statutes passed by Congress
c.
TExecutive orders issued by the president
d.
TState constitutions

e.
State statutes
A
[moderate]

67.

Which branch of government has the authority to determine the validity of a law?
a.
Executive.
b.
Administrative.
c.
Judicial.
d.
Legislative.
C
[moderate]

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68.

Assume that there is a provision in the Colorado state constitution that is in conflict with a statute
that was passed by the U.S. Congress and enacted into law. Which is true?
a.
The Colorado constitutional provision will control; the federal statute is invalid.
b.

The federal statute will control and make the Colorado constitutional provision invalid.
c.
In Colorado, the Colorado constitutional provision will control over the statute passed by
Congress, but the federal statute will apply in the other 49 states.
d.
The Colorado state constitutional provision will prevail if it was adopted prior to the
enactment of the federal statute.
B
[difficult]

69.

Which of the following statements is true about treaties?
a.
Treaties are valid only if they do not conflict with a statute passed by Congress.
b.
Treaties are valid only if they do not conflict with a statute passed by Congress or any of
the state legislatures.
c.
Treaties and the U.S. Constitution are the supreme law of the land.
d.
Treaties are the supreme law of the land, and take priority over any inconsistent
constitutional provision.
C
[moderate]

70.

The Uniform Commercial Code is an example of what type of law?
a.

Statutory law
b.
Treaty
c.
Administrative law
d.
Judicial law
e.
Executive order
A
[moderate]

71.

When statutes are organized by topic, the resulting compilation of law is known as:
a.
AA code.
b.
CCommon law.
c.
CCivil law.
d.
PPrecedent.
A
[moderate]

72.

Which of the following powers do administrative agencies typically have?
a.

Rulemaking only.
b.
Statute Interpretation only.
c.
Dispute Adjudication only.
d.
All of the above.
D
[moderate]

73.

The Federal Trade Commission is an example of:
a.
AA federal agency created by Congress.
b.
AA corporation subsidized by the federal government.
c.
AA branch of the U.S. Supreme Court.
d.
AA temporary commission created by executive order that has become permanent.
e.
AA judicially created subdivision of the executive branch.
A
[easy]

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74.

The power of the president to issue executive orders:
a.
IIs expressly provided for in the U.S. Constitution.
b.
WWas granted to the president in an early Supreme Court decision.
c.
IIs implied, but not expressly stated in the U.S. Constitution.
d.
ISubject to a two-thirds approval of the Senate.
C
[moderate]

75.

Stare Decisis is the doctrine of:
a.
SSeparation of powers so that decisions are not made by a single branch of government.
b.
FFollowing precedent so that legal principles in earlier cases are followed in later cases.
c.
CConstitutional principles are applied when making any decision.
d.
SSpending long periods of time looking at facts before making a decision.
B
[difficult]

76.

What use may a court of one state make of an earlier state court decision made in another state?
a.
If the earlier decision in the other state is relevant, it must be followed even though it is
from another state because all of the states are part of one legal system.
b.
When deciding the case, the court deciding the case cannot take the decisions of other
states into account.
c.
Earlier court decisions are equally relevant as precedent whether they were made in the
same state or in a different state.
d.
The court of the state deciding a case can look to earlier court decisions in other states for
guidance in deciding the case at hand, but is not required to follow them.
D
[difficult]

77.

A legal system that relies on extensive codes in which judicial decisions do not become law is
known as what kind of legal system?
a.
Code law.
b.
Equitable law.
c.
Common law.
d.
Civil law.
D
[easy]

78.

Influential Civil Codes include the following except:
a.
TThe Napoleonic Code.
b.
TThe Roman Corpus Juris Civilis.
c.
TThe Spanish Civil Code of 1898.
d.
TThe German Civil Code of 1896.
C
[moderate]

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