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Test Bank for Business Law and the Regulation of Business, 11th Edition

Page 1

Chapter 1—Introduction to Law TRUE/FALSE 1. American jurists and Supreme Court Justices Oliver Wendell Holmes and Benjamin Cardozo defined law as “a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong.” ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Legal TOP: A-Head: Nature of Law KEY: Bloom's: Knowledge 2. The common law system is used in most of Europe, Scotland, and Latin America. ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Critical Thinking TOP: A-Head: Sources of Law KEY: Bloom's: Knowledge 3. The primary function of the law is to maintain stability in the social, political, and economic system while simultaneously permitting change. ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Critical Thinking TOP: A-Head: Nature of Law KEY: Bloom's: Knowledge 4. Substantive law creates legal rights and duties. ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Critical Thinking TOP: A-Head: Classification of Law KEY: Bloom's: Knowledge 5. The Constitution provides that federal statutes are paramount to state constitutions and statutes. ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Legal TOP: A-Head: Sources of Law KEY: Bloom's: Knowledge 6. The burden of proof in a criminal case is preponderance of the evidence. ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic STA: AICPA: BB-Legal TOP: A-Head: Classification of Law KEY: Bloom's: Knowledge 7. The law does not change; it is based on unchanging and universal truths. ANS: F

DIF: Difficulty: Easy

NAT: BUSPROG: Analytic


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