1. Jim Crow laws promoted segregation and racial discrimination.
True False
2. Legal positivism is based on the theory that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
True False
3. The theory of natural law is based on the premise that law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
True False
4. The sociological theory is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
True False
5. The legislative branch of government is composed of Congress and the Senate.
True False
6. The judicial branch of government is primarily responsible for executing the laws of the land.
True False
7. The executive branch of government has the president as the chief executive.
True False
8. The legislative branch of the government has the authority to interpret executive orders or other presidential acts as unconstitutional.
True False
9. The executive branch of government has the authority to pass laws to bring the court's interpretation of law in line with the views of the legislature.
True False
10. The laws passed by congress are known as executive orders.
True False
11. Instead of granting money damages to the victim, civil laws generally result in punishment of the perpetrator.
True False
12. Public law may involve involuntary litigation and is brought by the state.
True False
13. Equitable remedies are generally available when no law has been violated, but a party wishes to have relief.
True False
14. Civil law is designed to make whole those who have suffered physical, monetary, property, or other injury at the hands of another.
True False
15. According to the categorical imperative theory, in the event of an ethical dilemma, the ends justify the means and the choice is made to do what is the "greatest good" for the most people.
True False
Multiple Choice Questions
16. Bernard Madoff, former NASDAQ chairman, was sentenced in June 2009 to 150 years in prison after pleading guilty to charges that he conducted purportedly the largest _____ swindle in the country's history and lost a reported $51 billion of his clients' assets.
A. forex
B. Ponzi scheme
C. insider trading
D. pyramid scheme
17. Which of the following is best defined as a system of limitations upon our actions imposed by the government to ensure order, safety, predictability and control?
A. Economics
B. Politics
C. Law
D. Society
18. _____ is the study of law, legal systems, and legal philosophy.
A. Conchology
B. Ethology
C. Jurisprudence
D. Emotivism
19. Which of the following is based on the theory that there is a discoverable set of absolute right and wrong principles upon which our laws should be based?
A. Legal positivism
B. Tort law
C. Syndicalism
D. Natural law
20. According to _____, to the extent the laws reflect the laws of nature or God, the laws are considered "good" ones; to the extent they do not, they are "bad."
A. Jim Crow laws
B. Natural law
C. Tort laws
D. Marxism
21. The Declaration of Independence's statement that "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness." is a well-known example of _____.
A. natural law
B. fascism
C. tort law
D. Jim Crow law
22. Which of the following statements is true regarding natural law?
A. According to the theory of natural law, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
B. The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. The theory of natural law is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
D. According to the theory of natural law, actual experience is the key to determining what law should be.
23. Which of the following theories of jurisprudence is based on law as issued by a governing figure or sovereign?
A. Legal realism
B. Natural law
C. Sociological theory
D. Legal positivism
24. Which of the following laws is true regarding legal positivism?
A. The theory of legal positivism is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
B. The theory underlying legal positivism is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. According to the theory of legal positivism, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
D. According to the theory of legal positivism, actual experience is the key to determining what law should be.
25. Which of the following concepts is most likely to justify the restriction and eventual extermination of millions of Jews, Pentecostals, Gypsies, gays, blacks, and other "undesirables" during the Holocaust?
A. Legal realism
B. Natural law
C. Sociological theory
D. Legal positivism
26. According to the _____ theory of jurisprudence, actual experience is the key to determining what law should be.
A. legal realism
B. natural law
C. sociological theory
D. legal positivism
27. Which of the following statements is true regarding legal realism?
A. The theory of legal realism is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
B. The theory underlying legal realism is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. According to the theory of legal realism, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
D. According to the theory of legal realism, law follows what people actually do.
28. According to this theory of jurisprudence, if the reality is that most people smoke marijuana, then it should be legalized, rather than deeming it illegal because it is viewed by some as immoral. Identify the theory of jurisprudence in discussion.
A. Natural law
B. Legal realism
C. Sociological theory
D. Legal positivism
29. Which of the following theories of jurisprudence is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society?
A. Legal positivism
B. Natural law
C. Sociological theory
D. Legal realism
30. Which of the following statements is true regarding the sociological theory?
A. This theory is based on a premise that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
B. According to this theory, law should change as societal ideas change.
C. According to this theory, to the extent laws reflect laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
D. This theory is based on the premise that law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
31. Which of the following theories of jurisprudence, according to some people, is not a good way to view law because it makes law too fluid?
A. Aristocracy
B. Legal Positivism
C. Natural law
D. Sociological theory
32. With reference to the federal government, which of the following is true regarding a system of checks and balances?
A. Only one of the branches is given all the authority.
B. All the branches of the government are given equal authority.
C. All the branches of the government operate independent of each other.
D. It ensures that government policies are not reached without the input of the other branches.
33. Which of the following branches of the government is composed of Congress and the Senate?
A. Legislative
B. Executive
C. Judicial
D. Civil
34. Which of the following branches of the government has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority?
A. Executive
B. Civil
C. Judicial
D. Legislative
35. The _____ branch of government is primarily responsible for interpreting the law by deciding cases in federal courts.
A. executive
B. legislative
C. judicial
D. civil
36. Which of the following branches of the government has the president as the chief executive?
A. Legislative
B. Executive
C. Judicial
D. Civil
37. The _____ branch of government is responsible for executing the laws of the land.
A. executive
B. legislative
C. judicial
D. civil
38. Which of the following statements is true regarding the legislative branch of government?
A. It is primarily responsible for interpreting the law by deciding cases in federal courts.
B. It has the right to issue executive orders and to veto bills Congress passes.
C. It is responsible for executing the laws of the land.
D. It is composed of Congress and the Senate.
39. The executive branch of the government has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. interpret executive orders or other presidential acts as unconstitutional.
40. The legislative branch of the government has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. interpret executive orders or other presidential acts as unconstitutional.
41. The judicial branch has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. nominate federal judges.
42. Which of the following branches of government has the authority to nominate federal judges?
A. Substantive
B. Executive
C. Judicial
D. Legislative
43. Which of the following branches of government has the authority to provide the president with advice and consent as to the president's judicial and other nominations?
A. Judicial
B. Executive
C. Civil
D. Legislative
44. Which of the following branches of government has the authority to interpret executive orders or other presidential acts as unconstitutional?
A. Civil
B. Legislative
C. Judicial
D. Executive
45. _____ law is generally the type of law that permits people to recover money damages for noncriminal actions which occur, such as car accidents, character defamation, or product liability.
A. Jim Crow
B. Executive
C. Criminal
D. Civil
46. Which of the following types of laws is most likely to govern matters such as the court in which a plaintiff should bring the case?
A. Private law
B. Procedural law
C. Substantive
D. Criminal
47. A law regarding trade secrets is an example of _____ law.
A. civil
B. substantive
C. private
D. criminal
48. Which of the following laws provides rights and remedies and dictates what kinds of actions we can and cannot engage in?
A. Procedural
B. Private
C. Substantive
D. Civil
49. Which of the following laws provides rules and regulations for how to exercise the rights we are given by substantive law?
A. Public law
B. Civil law
C. Procedural law
D. Private law
50. Which of the following statements is true regarding private law?
A. It is related to the private parties' rights and interests rather than the interest of the government.
B. It provides rules and regulations for how to exercise the rights we are given by substantive law.
C. It is related to area that deals with interaction between people and government.
D. It provides rights and remedies and dictates what kinds of actions we can and cannot engage in.
51. In the case of private law,
A. the suit can proceed if the victim doesn't want it to.
B. the suit is brought on behalf of harmed party.
C. the cases handled are generally criminal cases.
D. the harmed party does not pay for suit.
52. Which of the following statements is true regarding public law?
A. The harmed party bringing suit pays for suit.
B. The suit brought on behalf of harmed party.
C. The suit does not proceed if the harmed party doesn't want it to.
D. It often deals with criminal cases.
53. Which of the following statements is true in the context of equitable laws?
A. The case usually results in nonmonetary remedies.
B. The harmed party generally has a right to a jury trial.
C. The case is generally governed by federal laws.
D. Stare decisis is used for decision making.
54. Torts are noncontract violations of _____ law.
A. public
B. substantive
C. civil
D. procedural
55. All of the following statements are true regarding torts EXCEPT:
A. tort liability generally results in financial liability on the part of the tortfeasor.
B. negligent infliction of emotional distress would be an example of tort.
C. torts are noncontract violations of civil law.
D. tort cases are brought by the state.
56. Defamation is most likely to be an example of _____.
A. violation of public law
B. a tort
C. violation of substantive law
D. a felony
57. Which of the following best represents voluntary binding agreements people or businesses enter into in order to obtain something to which they are not otherwise entitled?
A. Torts
B. Memorandums
C. Contracts
D. Articles of incorporation
58. This act is a legislative response to some of the more nefarious business practices that often stemmed from less than stellar ethical decision making by businesses and that ostensibly led to the financial downturn and bailouts of 2008 and 2009. It was signed into law on July 21, 2010, by President Obama. Identify the act in the discussion.
A. Sarbanes-Oxley Act
B. Supplemental Appropriations Act
C. Lilly Ledbetter Fair Pay Act
D. Dodd-Frank Act
59. According to the _____ ethical theory, in the event of an ethical dilemma, the ends justify the means and the choice should be made to do what is the "greatest good" for the most people.
A. utilitarian
B. deontological
C. categorical imperative
D. consequentialism
60. According to which of the following ethical theories, in the event of an ethical dilemma, everyone should act as they would want someone else to act in the situation?
A. Utilitarian approach
B. Deontological
C. Categorical imperative
D. Consequentialism
Essay Questions
61. Define law.
62. What is the difference between law and morality?
63. Discuss with an example, natural law.
64. Discuss with an example legal positivism.
65. Discuss the legal realism theory of jurisprudence.
66. Discuss the sociological theory of jurisprudence.
67. Discuss briefly the three branches of the federal government.
68. Distinguish between public law and private law.
69. Discuss civil and criminal law.
70. Discuss substantive and procedural law.
71. What is equity? Distinguish between law and equity.
72. Compare civil law and criminal law.
73. Define tort. Discuss briefly common law torts.
74. What is a bailment? Explain with an example.
75. Explain the following ethical theories, utilitarian approach and categorical imperative.
Chapter 01 Introduction to the Business and Ethics Environment in a Diverse Society Answer Key
True / False Questions
1. (p. 3) Jim Crow laws promoted segregation and racial discrimination.
TRUE
The Jim Crow laws were state and local laws in the United States enacted between 1876 and 1965. They mandated de jure racial segregation in all public facilities, with a supposedly "separate but equal" status for black Americans.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-01 Discuss what law is and what it is designed to do.
Topic: Introduction
2. (p. 7) Legal positivism is based on the theory that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
FALSE
According to legal positivism, law derives its status as law not from some natural order of things that dictates that things should be right and just and fair because it comes from the Creator, but rather from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Hard
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
3. (p. 7) The theory of natural law is based on the premise that law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
FALSE
The theory of legal positivism is based on the premise that law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
4. (p. 7) The sociological theory is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
TRUE
The sociological theory is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Sociological theory
5. (p. 9) The legislative branch of government is composed of Congress and the Senate.
TRUE
The legislative branch of government is composed of Congress and the Senate.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
6. (p. 9) The judicial branch of government is primarily responsible for executing the laws of the land.
FALSE
The judicial branch of government is primarily responsible for interpreting the law by deciding cases in federal courts. The executive branch of government is primarily responsible for executing the laws of the land.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
7. (p. 9) The executive branch of government has the president as the chief executive.
TRUE
The executive branch of government has the president as the chief executive and is responsible for executing the laws of the land.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
8. (p. 10) The legislative branch of the government has the authority to interpret executive orders or other presidential acts as unconstitutional.
FALSE
The judicial branch of the government has the authority to interpret executive orders or other presidential acts as unconstitutional.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
9. (p. 10) The executive branch of government has the authority to pass laws to bring the court's interpretation of law in line with the views of the legislature.
FALSE
The legislative branch of government has the authority to pass laws to bring the court's interpretation of law in line with the views of the legislature.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
10. (p. 10) The laws passed by congress are known as executive orders.
FALSE
The president has the authority to make executive orders that act much like the laws Congress passes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
11. (p. 11) Instead of granting money damages to the victim, civil laws generally result in punishment of the perpetrator.
FALSE
Civil law is generally the type of law that permits people to recover money damages for noncriminal actions which occur, such as car accidents, character defamation, or product liability.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Civil and Criminal Law
12. (p. 11) Public law may involve involuntary litigation and is brought by the state.
TRUE
Public law may involve involuntary litigation and is brought by the state, while private law is voluntary on the part of the plaintiff, the party bringing the case, and will not be brought if plaintiff does not wish to do so.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
13. (p. 12) Equitable remedies are generally available when no law has been violated, but a party wishes to have relief.
TRUE
Equity stands outside the law to provide relief when legal remedies are not available. It is extralegal relief available when the law does not provide a legal remedy.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
14. (p. 13) Civil law is designed to make whole those who have suffered physical, monetary, property, or other injury at the hands of another.
TRUE
Civil law is designed to make whole those who have suffered physical, monetary, property, or other injury at the hands of another.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-08 Understand the various areas of law.
Topic: Civil and Criminal Law
15. (p. 16) According to the categorical imperative theory, in the event of an ethical dilemma, the ends justify the means and the choice is made to do what is the "greatest good" for the most people.
FALSE
According to the categorical imperative theory, in the event of an ethical dilemma, everyone should act as they would want someone else to act in the situation.
AACSB: Ethics
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-09 Explain the role and importance of ethics in business.
Topic: Ethics and Ethical Decision Making
Multiple Choice Questions
16. (p. 3) Bernard Madoff, former NASDAQ chairman, was sentenced in June 2009 to 150 years in prison after pleading guilty to charges that he conducted purportedly the largest _____ swindle in the country's history and lost a reported $51 billion of his clients' assets.
A. forex
B. Ponzi scheme
C. insider trading
D. pyramid scheme
Bernard Madoff, former NASDAQ chairman, was sentenced in June 2009 to 150 years in prison after pleading guilty to charges that he conducted purportedly the largest Ponzi scheme swindle in the country's history and lost a reported $51 billion of his clients' assets.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-01 Discuss what law is and what it is designed to do.
Topic: Introduction
17. (p. 5) Which of the following is best defined as a system of limitations upon our actions imposed by the government to ensure order, safety, predictability and control?
A. Economics
B. Politics
C. Law
D. Society
Law has been defined in many different ways. One of the definitions of law is that law is a system of limitations upon our actions imposed by the government to ensure order, safety, predictability and control.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-01 Discuss what law is and what it is designed to do.
Topic: Definition of Law
18. (p. 5) _____ is the study of law, legal systems, and legal philosophy.
A. Conchology
B. Ethology
C. Jurisprudence
D. Emotivism
Jurisprudence is the study of law, legal systems, and legal philosophy.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Jurisprudence
19. (p. 6) Which of the following is based on the theory that there is a discoverable set of absolute right and wrong principles upon which our laws should be based?
A. Legal positivism
B. Tort law
C. Syndicalism
D. Natural law
The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based. To the extent the laws reflect the natural law, that is, the laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Natural Law
20. (p. 6) According to _____, to the extent the laws reflect the laws of nature or God, the laws are considered "good" ones; to the extent they do not, they are "bad."
A. Jim Crow laws
B. Natural law
C. Tort laws
D. Marxism
The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based. To the extent the laws reflect the natural law, that is, the laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Natural Law
21. (p. 6) The Declaration of Independence's statement that "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness." is a well-known example of _____.
A. natural law
B. fascism
C. tort law
D. Jim Crow law
A well-known example of natural law is the Declaration of Independence's statement that "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness." The statement specifically says that the truths are self-evident, and that everyone is endowed with certain unalienable rights.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Natural Law
22. (p. 6) Which of the following statements is true regarding natural law?
A. According to the theory of natural law, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
B. The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. The theory of natural law is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
D. According to the theory of natural law, actual experience is the key to determining what law should be.
The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based. To the extent the laws reflect the natural law, that is, the laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Natural Law
23. (p. 7) Which of the following theories of jurisprudence is based on law as issued by a governing figure or sovereign?
A. Legal realism
B. Natural law
C. Sociological theory
D. Legal positivism
According to the theory of legal positivism, law derives its status as law not from some natural order of things that dictates that things should be right and just and fair because it comes from the Creator, but rather from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
24. (p. 7) Which of the following laws is true regarding legal positivism?
A. The theory of legal positivism is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
B. The theory underlying legal positivism is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. According to the theory of legal positivism, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
D. According to the theory of legal positivism, actual experience is the key to determining what law should be.
According to the theory of legal positivism, law derives its status as law not from some natural order of things that dictates that things should be right and just and fair because it comes from the Creator, but rather from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
25. (p. 7) Which of the following concepts is most likely to justify the restriction and eventual extermination of millions of Jews, Pentecostals, Gypsies, gays, blacks, and other "undesirables" during the Holocaust?
A. Legal realism
B. Natural law
C. Sociological theory
D. Legal positivism
According to the theory of legal positivism, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
26. (p. 7) According to the _____ theory of jurisprudence, actual experience is the key to determining what law should be.
A. legal realism
B. natural law
C. sociological theory
D. legal positivism
According to the legal realism theory of jurisprudence, actual experience is the key to determining what law should be.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal realism
27. (p. 7) Which of the following statements is true regarding legal realism?
A. The theory of legal realism is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
B. The theory underlying legal realism is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
C. According to the theory of legal realism, law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
D. According to the theory of legal realism, law follows what people actually do.
For legal realists, actual experience is the key to determining what law should be. What is actually done is important for them, rather than what the law says should be done.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal realism
28. (p. 7) According to this theory of jurisprudence, if the reality is that most people smoke marijuana, then it should be legalized, rather than deeming it illegal because it is viewed by some as immoral. Identify the theory of jurisprudence in discussion.
A. Natural law
B. Legal realism
C. Sociological theory
D. Legal positivism
For legal realists, actual experience is the key to determining what law should be. What is actually done is important for them, rather than what the law says should be done.
AACSB: Analytic
Bloom's: Apply
Difficulty Level: Hard
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal realism
29. (p. 7) Which of the following theories of jurisprudence is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society?
A. Legal positivism
B. Natural law
C. Sociological theory
D. Legal realism
The sociological theory is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Sociological theory
30. (p. 7) Which of the following statements is true regarding the sociological theory?
A. This theory is based on a premise that there is a discoverable set of absolute right and wrong principles upon which our laws should be based.
B. According to this theory, law should change as societal ideas change.
C. According to this theory, to the extent laws reflect laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
D. This theory is based on the premise that law derives its status as law from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes.
The sociological theory is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Sociological theory
31. (p. 7) Which of the following theories of jurisprudence, according to some people, is not a good way to view law because it makes law too fluid?
A. Aristocracy
B. Legal Positivism
C. Natural law
D. Sociological theory
Some think this sociological theory is not a good way to view law because it makes law too fluid.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Sociological theory
32. (p. 9) With reference to the federal government, which of the following is true regarding a system of checks and balances?
A. Only one of the branches is given all the authority.
B. All the branches of the government are given equal authority.
C. All the branches of the government operate independent of each other.
D. It ensures that government policies are not reached without the input of the other branches.
Allowing one branch of government to have some of the powers of the other is known as a system of checks and balances and ensures that government policies are not reached without the input of the other branches and ensures that power does not rest too heavily in one branch.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
33. (p. 9) Which of the following branches of the government is composed of Congress and the Senate?
A. Legislative
B. Executive
C. Judicial
D. Civil
The legislative branch of government, composed of Congress and the Senate, has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
34. (p. 9) Which of the following branches of the government has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority?
A. Executive
B. Civil
C. Judicial
D. Legislative
The legislative branch of government, composed of Congress and the Senate, has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
35. (p. 9) The _____ branch of government is primarily responsible for interpreting the law by deciding cases in federal courts.
A. executive
B. legislative
C. judicial
D. civil
The judicial branch of government is primarily responsible for interpreting the law by deciding cases in federal courts.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
36. (p. 9) Which of the following branches of the government has the president as the chief executive?
A. Legislative
B. Executive
C. Judicial
D. Civil
The executive branch of government has the president as the chief executive.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
37. (p. 9) The _____ branch of government is responsible for executing the laws of the land.
A. executive
B. legislative
C. judicial
D. civil
The executive branch of government has the president as the chief executive and is responsible for executing the laws of the land.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
38. (p. 9) Which of the following statements is true regarding the legislative branch of government?
A. It is primarily responsible for interpreting the law by deciding cases in federal courts.
B. It has the right to issue executive orders and to veto bills Congress passes.
C. It is responsible for executing the laws of the land.
D. It is composed of Congress and the Senate.
The legislative branch of government, composed of Congress and the Senate, has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
39. (p. 10) The executive branch of the government has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. interpret executive orders or other presidential acts as unconstitutional.
Executive branch has authority to request legislation and veto legislation.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
40. (p. 10) The legislative branch of the government has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. interpret executive orders or other presidential acts as unconstitutional.
The legislative branch of the government has the authority to pass laws to bring the court's interpretation of law in line with the views of the legislature.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
41. (p. 10) The judicial branch has the authority to:
A. interpret laws.
B. pass laws to bring the court's interpretation of law in line with the views of the legislature.
C. request legislation and veto legislation.
D. nominate federal judges.
The judicial branch has the authority to interpret laws.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
42. (p. 10) Which of the following branches of government has the authority to nominate federal judges?
A. Substantive
B. Executive
C. Judicial
D. Legislative
The executive branch of government has the authority to nominate federal judges.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
43. (p. 10) Which of the following branches of government has the authority to provide the president with advice and consent as to the president's judicial and other nominations?
A. Judicial
B. Executive
C. Civil
D. Legislative
The legislative branch of government has the authority to provide the president with advice and consent as to the president's judicial and other nominations.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
44. (p. 10) Which of the following branches of government has the authority to interpret executive orders or other presidential acts as unconstitutional?
A. Civil
B. Legislative
C. Judicial
D. Executive
The judicial branch of government has the authority to interpret executive orders or other presidential acts as unconstitutional.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
45. (p. 11) _____ law is generally the type of law that permits people to recover money damages for noncriminal actions which occur, such as car accidents, character defamation, or product liability.
A. Jim Crow
B. Executive
C. Criminal
D. Civil
Criminal law is generally the type of law that permits people to recover money damages for noncriminal actions which occur, such as car accidents, character defamation, or product liability.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Civil and Criminal Law
46. (p. 11) Which of the following types of laws is most likely to govern matters such as the court in which a plaintiff should bring the case?
A. Private law
B. Procedural law
C. Substantive
D. Criminal
Procedural law governs matters such as the court in which a plaintiff should bring the case.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Substantive and Procedural Law
47. (p. 11) A law regarding trade secrets is an example of _____ law.
A. civil
B. substantive
C. private
D. criminal
A law regarding trade secrets is an example of substantive law. It provides rights and remedies and dictates what kinds of actions we can and cannot engage in.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Substantive and Procedural Law
48. (p. 11) Which of the following laws provides rights and remedies and dictates what kinds of actions we can and cannot engage in?
A. Procedural
B. Private
C. Substantive
D. Civil
A law regarding trade secrets is an example of substantive law. It provides rights and remedies and dictates what kinds of actions we can and cannot engage in.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Substantive and Procedural Law
49. (p. 11) Which of the following laws provides rules and regulations for how to exercise the rights we are given by substantive law?
A. Public law
B. Civil law
C. Procedural law
D. Private law
Procedural law provides rules and regulations for how to exercise the rights we are given by substantive law.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Substantive and Procedural Law
50. (p. 11) Which of the following statements is true regarding private law?
A. It is related to the private parties' rights and interests rather than the interest of the government.
B. It provides rules and regulations for how to exercise the rights we are given by substantive law.
C. It is related to area that deals with interaction between people and government.
D. It provides rights and remedies and dictates what kinds of actions we can and cannot engage in.
Private law focuses on areas like torts, contracts, or property law, all of which involve private parties' rights and interests rather than the interest of the government.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
51. (p. 12) In the case of private law,
A. the suit can proceed if the victim doesn't want it to.
B. the suit is brought on behalf of harmed party.
C. the cases handled are generally criminal cases.
D. the harmed party does not pay for suit.
Private law is voluntary on the part of the plaintiff and the suit will not be brought if plaintiff does not wish to do so.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
52. (p. 12) Which of the following statements is true regarding public law?
A. The harmed party bringing suit pays for suit.
B. The suit brought on behalf of harmed party.
C. The suit does not proceed if the harmed party doesn't want it to.
D. It often deals with criminal cases.
Public law often deals with criminal cases.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
53. (p. 12) Which of the following statements is true in the context of equitable laws?
A. The case usually results in nonmonetary remedies.
B. The harmed party generally has a right to a jury trial.
C. The case is generally governed by federal laws.
D. Stare decisis is used for decision making.
A suit filed under equitable laws usually results in nonmonetary remedies.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Law and Equity
54. (p. 13) Torts are noncontract violations of _____ law.
A. public
B. substantive
C. civil
D. procedural
Torts are noncontract violations of civil law.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-08 Understand the various areas of law.
Topic: Areas of Law
55. (p. 13) All of the following statements are true regarding torts EXCEPT:
A. tort liability generally results in financial liability on the part of the tortfeasor.
B. negligent infliction of emotional distress would be an example of tort.
C. torts are noncontract violations of civil law.
D. tort cases are brought by the state.
Tort cases are voluntarily brought by the injured party.
AACSB: Analytic
Bloom's: Understand
Difficulty Level: Medium
Learning Objective: 01-08 Understand the various areas of law.
Topic: Civil and Criminal Law
56. (p. 14) Defamation is most likely to be an example of _____.
A. violation of public law
B. a tort
C. violation of substantive law
D. a felony
Defamation is most likely to be an example of a tort.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-08 Understand the various areas of law.
Topic: Tort Law
57. (p. 15) Which of the following best represents voluntary binding agreements people or businesses enter into in order to obtain something to which they are not otherwise entitled?
A. Torts
B. Memorandums
C. Contracts
D. Articles of incorporation
Contracts are voluntary binding agreements people or businesses enter into in order to obtain something to which they are not otherwise entitled.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-08 Understand the various areas of law.
Topic: Contracts
58. (p. 16) This act is a legislative response to some of the more nefarious business practices that often stemmed from less than stellar ethical decision making by businesses and that ostensibly led to the financial downturn and bailouts of 2008 and 2009. It was signed into law on July 21, 2010, by President Obama. Identify the act in the discussion.
A. Sarbanes-Oxley Act
B. Supplemental Appropriations Act
C. Lilly Ledbetter Fair Pay Act
D. Dodd-Frank Act
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The Dodd-Frank Act is a sweeping legislative response to some of the more nefarious business practices that often stemmed from less than stellar ethical decision making by businesses and that ostensibly led to the financial downturn and bailouts of 2008 and 2009.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-09 Explain the role and importance of ethics in business.
Topic: Ethics and Ethical Decision Making
59. (p. 17) According to the _____ ethical theory, in the event of an ethical dilemma, the ends justify the means and the choice should be made to do what is the "greatest good" for the most people.
A. utilitarian
B. deontological
C. categorical imperative
D. consequentialism
According to the utilitarian approach, the ends justify the means and the choice should be made to do what is the "greatest good" for the most people.
AACSB: Ethics
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-09 Explain the role and importance of ethics in business.
Topic: Ethics and Ethical Decision Making
60. (p. 17) According to which of the following ethical theories, in the event of an ethical dilemma, everyone should act as they would want someone else to act in the situation?
A. Utilitarian approach
B. Deontological
C. Categorical imperative
D. Consequentialism
According to the categorical imperative theory everyone should act as they would want someone else to act in the situation.
AACSB: Ethics
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-09 Explain the role and importance of ethics in business.
Topic: Ethics and Ethical Decision Making
Essay Questions
61. (p. 5) Define law.
Law is a system of limitations upon our actions imposed by the government to ensure order, safety, predictability and control. Law is the foundation of all of our business relationships and many of our personal ones.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-01 Discuss what law is and what it is designed to do.
Topic: Definition of Law
62. (p. 5) What is the difference between law and morality?
Law may often reflect our morals, but law and morality, or ethics, are not the same. While law is our government's determination as to our limitations and rights, morality is our own personal view of what we believe is proper and how we should conduct ourselves.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-02 Analyze the interplay between law; equity; morals; and justice.
Topic: Definition of Law
63. (p. 6) Discuss with an example, natural law.
The theory underlying natural law is that there is a discoverable set of absolute right and wrong principles upon which our laws should be based. To the extent the laws reflect the natural law, that is, the laws of nature, or God, the laws are considered "good" ones. To the extent they do not, they are "bad."
A well-known example of natural law is the Declaration of Independence's statement that "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness." The statement specifically says that the truths are self-evident, and that everyone is endowed with certain unalienable rights.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Natural Law
64. (p. 7) Discuss with an example legal positivism.
The legal positivism theory jurisprudence is based on law as issued by a governing figure or sovereign. Here the law derives its status as law not from some natural order of things that dictates that things should be right and just and fair because it comes from the Creator, but rather from the fact that it has been enacted by the sovereign with the power to enforce his or her wishes. This law may or may not be just or fair.
It is this theory that could justify the restriction and eventual extermination of millions of Jews, Pentecostals, Gypsies, gays, blacks, and other "undesirables" during the Holocaust.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal Positivism
65. (p. 7) Discuss the legal realism theory of jurisprudence.
Legal realism is based on the premise that actual experience is the key to determining what law should be. What is actually done is important for them, rather than what the law says should be done. Some view the drawback to this theory as that it follows rather than leads. Legal realism does not establish law as a guideline to be followed, but rather would have law follow what people actually do.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal realism
66. (p. 7) Discuss the sociological theory of jurisprudence.
The sociological theory of jurisprudence is based on the premise that society's ideas change over time and law should reflect a compromise between the changing, often conflicting, interests of society. Women underwent a change in their status and rights when they were allowed to vote by Constitutional amendment in 1919 and were included in the Civil Rights Act in 1964. In such instances, law has changed as societal ideas have changed, and the law has grown to encompass the new position society finds itself in.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-03 Recite four jurisprudential theories and decide which best reflects our law.
Topic: Legal realism
67. (p. 9) Discuss briefly the three branches of the federal government.
The three branches of the federal government are the:
Legislative branch: It is composed of Congress and the Senate, has primary responsibility for enacting laws in the areas over which the Constitution designated the federal government would have authority.
Judicial branch: It is primarily responsible for interpreting the law by deciding cases in federal courts.
Executive branch: It has the president as the chief executive and is responsible for executing the laws of the land.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-04 Provide several sources of our law.
Topic: Sources of Law
68. (p. 11) Distinguish between public law and private law.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Public and Private Law
69. (p. 11) Discuss civil and criminal law.
Civil law is generally the type of law that permits people to recover money damages for noncriminal actions which occur, such as car accidents, character defamation, or product liability. Criminal law addresses actions that violate criminal statutes and instead of granting money damages to the victim, generally result in punishment of the perpetrator. Examples of criminal law include laws relating to rape, murder, and robbery.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Civil and Criminal Law
70. (p. 11) Discuss substantive and procedural law.
Substantive law provides rights and remedies and dictates what kinds of actions we can and cannot engage in. Procedural law provides rules and regulations for how to exercise the rights we are given by substantive law. That is, procedural law tells us how to proceed in enforcing substantive rights provided by law.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Substantive and Procedural Law
71. (p. 13) What is equity? Distinguish between law and equity.
Equity stands outside the law to provide relief when legal remedies are not available. It is extralegal relief available when the law does not provide a legal remedy. Equitable remedies are generally available when no law has been violated, but a party wishes to have relief.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Hard
Learning Objective: 01-07 Explain the different classifications of law.
Topic: Law and Equity
72. (p. 14) Compare civil law and criminal law.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-08 Understand the various areas of law.
Topic: Civil and Criminal Law
73. (p. 14) Define tort. Discuss briefly common law torts.
Acts committed under civil law are called torts. Torts are noncontract violations of civil law. There are different types of torts. Most torts are derived from the common law and, as such, are called common law torts. Some typical common law torts include assault, battery, intentional infliction of emotional distress, fraud, negligent infliction of emotional distress, defamation. The underlying basis for tort relief is that people have a right to be protected in their person, property, business, and reputation. If others cause injury to one or more of those protected interests, either intentionally or negligently, they must take legal responsibility for their actions if the acts result in harm to the innocent victim. The court will order the defendant tortfeasor to do so if such responsibility is found by a court.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Hard
Learning Objective: 01-08 Understand the various areas of law.
Topic: Tort Law
74. (p. 15) What is a bailment? Explain with an example.
A bailment is the legal relationship created when a person gives possession of property but not title to the property to another for a specific purpose, such as the owner of a car leaving the car—that is, giving over possession—to the car repair shop owner to have the car repaired, or leaving your cat, which is considered your personal property, with your friend to care for while you are out of town on vacation.
AACSB: Analytic
Bloom's: Remember
Difficulty Level: Medium
Learning Objective: 01-08 Understand the various areas of law.
Topic: Property
75. (p. 16) Explain the following ethical theories, utilitarian approach and categorical imperative.
The utilitarian approach is based on the premise that the ends justify the means and the choice is made to do what is the "greatest good" for the most people.
According to the categorical imperative theory, everyone should act as they would want someone else to act in the situation.
AACSB: Ethics
Bloom's: Remember
Difficulty Level: Easy
Learning Objective: 01-09 Explain the role and importance of ethics in business.
Topic: Ethics and Ethical Decision Making
