The Legal Environment of Business, 6e...

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

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

3


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


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

4


14) Each of the following is one of the "Top Ten Reasons for Studying the Legal Environment"


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


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


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


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


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


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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


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


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


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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


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


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



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


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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


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



believes that the legislature is the source of the law?

A) Natural Law

B) Positivist

C) Sociological

D) American Realist

Answer: B

Diff: 1



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


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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


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


Answer: C

Diff: 1


36) Which of the following schools of law would a person probably adhere to if she said cost-

benefit analysis is useful in understanding our legal system?

A) Feminist

B) American Realist



Answer: D

Diff: 2


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



Answer: A

Diff: 1


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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


Answer: B

Diff: 3


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


Answer: C

Diff: 3


40) Martin Luther King would be most likely associated with which school of legal philosophy?

A) Natural Law

B) American Realist

C) Sociological


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


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


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


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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


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


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


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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


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


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


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


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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


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


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


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


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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


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


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


65) Each of the following is an important difference between criminal law and civil law


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


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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


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


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


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


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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


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

19


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


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


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


80) American law is not dynamic; rather, its precepts are "written in stone."

Answer: FALSE

Diff: 1


81) According to the American jurist Oliver Wendell Holmes, law is grounded in theory rather

than experience.

Answer: FALSE

Diff: 1


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


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


20


85) Cicero saw the law as an agreement of reason and nature.

Answer: TRUE

Diff: 1


86) Plato saw law as the command of the sovereign.

Answer: FALSE

Diff: 2


87) The true source of law is always the same, regardless of which school of jurisprudence is

applied.

Answer: FALSE

Diff: 2


88) Aristotle saw law as a rule of conduct.

Answer: TRUE

Diff: 1


89) Bacon said that certainly is a prime necessity of the law.

Answer: TRUE

Diff: 1


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


91) The Natural Law School draws a distinction between just laws and unjust laws.

Answer: TRUE

Diff: 2


92) The writings of Martin Luther King are consistent with the principles of the Natural Law

School.

Answer: TRUE

Diff: 2


93) Saint Thomas Aquinas was a leading proponent of the Positivist School.

Answer: FALSE

Diff: 2


21


94) Disciples of the Positivist School are known for their use of subjective morality in the

interpretation of statutes.

Answer: FALSE

Diff: 2


95) Justice Scalia is most likely a legal positivist.

Answer: TRUE

Diff: 1


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


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


98) Followers of the Sociological School seek to change the law by surveying human behavior

and determining present community standards.

Answer: TRUE

Diff: 2


99) The American Realist School believes that law should be based on the Ten Commandments

and the United States Constitution.

Answer: FALSE

Diff: 2


100) The justice who wrote that obscenity should be based on community standards was

probably not a legal positivist.

Answer: TRUE

Diff: 1


101) The writings of Karl Llewellyn have been cited by those favoring the American Realist

School.

Answer: TRUE

Diff: 2


22


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


103) The Feminist School bases legal precedent only on cases involving plaintiffs and

defendants who were female.

Answer: FALSE

Diff: 2


104) Only women believe in the school of feminist jurisprudence.

Answer: FALSE

Diff: 2


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


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


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


108) Members of the law and economics school tend to be politically conservative.

Answer: TRUE

Diff: 2


109) Executive orders are found in the Code of Federal Regulations and the Federal Register.

Answer: FALSE

Diff: 2


23


110) We have three direct and one indirect sources of law.

Answer: TRUE

Diff: 1


111) The legislature is a direct source of law, whereas the judiciary is an indirect source of law.

Answer: FALSE

Diff: 2


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


113) The source of Congress's legislative powers comes from article 1, Section 1 of the U.S.

Constitution.

Answer: TRUE

Diff: 1


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


115) A pocket veto occurs whenever the president does not sign a bill into law.

Answer: FALSE

Diff: 2


116) The Restatements are secondary sources of law, meaning that they have precedential value

only in trial courts.

Answer: FALSE

Diff: 3


117) Legal opinions published on the internet only have no precedential value.

Answer: FALSE

Diff: 2


24


118) The executive branch consists of only the president and vice-president.

Answer: FALSE

Diff: 1


119) The right of judicial review was created by the case of Marbury v. Madison.

Answer: TRUE

Diff: 2


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


121) Administrative agencies are sometimes called the fourth branch of government.

Answer: TRUE

Diff: 1


122) Administrative agencies cannot make rules because that is a legislative function reserved to

Congress.

Answer: FALSE

Diff: 1


123) Plaintiffs file civil cases whereas prosecutors initiate criminal cases.

Answer: TRUE

Diff: 1


124) Criminal law regulates relationships between two private parties.

Answer: FALSE

Diff: 1


125) Private law generally deals with the relationship of criminal law to the U. S. Constitution.

Answer: FALSE

Diff: 2


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

25


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


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


26


129) Why might "legal literacy" be important to a business manager?

Answer: The legal environment is an important component of the overall business environment

in which a manager must perform. Attention to the trends in government policy and law permits

the business to gear up for important opportunities and/or take action to head off major threats.

For example, a manager who is aware that Congress has recently passed major tax legislation

might be able to rearrange the business's financial affairs to take advantage of important tax

credits. A manager who is aware that local government officials are considering questionable

zoning changes might want to organize business leaders to speak out against the changes at City

Council meetings. From a broader perspective, "legal literacy" is important for all citizens, since

our democratic form of government can only work when citizens are informed and politically

active.

Diff: 2


130) Identify the four sources of law and briefly explain how each creates law.

Answer: The four sources of law are the legislature (or Congress), the Executive (the president),

the judiciary, and administrative agencies. Congress creates aw through a fairly straightforward

process. Basically, a bill is simultaneously introduced in both houses. It goes to committees for

hearings on its merits, and then is voted on in the respective houses. Once a bill has been voted

on in both houses, the bill goes to a joint committee of representatives from both houses, who

smooth out the language of the bill, ensuring that there is only one final version of the bill. That

bill then is voted on by each house, and once it has been passed, it goes to the president for his

signature. As long as there are more than ten days left in session, the president's signature is not

needed and the bill will become law after ten days. The executive branch makes law in two

primary ways: the president issues executive orders, and the president enters into treaties with

foreign nations. The judicial branch makes law by deciding cases that are brought before it. The

decision in the case becomes a precedent, and will be followed as law in the future.

Administrative agencies make law through a rulemaking procedure that requires public input

through either a hearing or by providing the public with the opportunity to provide written

comments to the agency making the rule. Rules of administrative agencies have the force of law.

Diff: 1


131) Explain the similarities and differences between criminal law and civil law.

Answer: In both civil and criminal cases, the burden of proof is on the party bringing the action,

but in the criminal case the burden of proof is beyond a reasonable doubt, whereas in a civil case

it is a preponderance of the evidence. The purposes are also different; in a criminal case, the

purposes are to punish the defendant, rehabilitate him, and provide restitution for his victims,

whereas the purpose of civil cases is to resolve a dispute between two parties and provide

compensation for the plaintiff. A representative of the state, called the prosecutor, files the case

against the defendant, whereas the wronged individual (the plaintiff) brings a civil action.

Diff: 2


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