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The Legal Environment of Business provides an overview of how law influences business operations and decision-making. This course introduces students to the U.S. legal system, sources of law, and the basic principles of contract, tort, and property law as they pertain to business activities. Key topics include regulatory agencies, employment and labor law, intellectual property, agency, and the role of ethics in business. By examining real-world case studies and legal regulations, students learn how to identify potential legal issues and develop risk management strategies to ensure compliance and make informed business decisions within a complex legal framework.
Recommended Textbook
Introduction to Law 4th Edition by Joanne B. Hames
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18 Chapters
356 Verified Questions
356 Flashcards
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Sample Questions
Q1) Procedural criminal laws are found in
A) state constitutions
B) U.S. Constitution
C) state statutes
D) state and federal case law
E) all of the above
Answer: E
Q2) A right to a jury only exists in a criminal case.
A)True
B)False
Answer: False
Q3) The statute of limitations for damages resulting from an automobile accident is an example of
A) civil substantive law
B) civil procedural law
C) criminal substantive law
D) criminal procedural law
E) none of the above
Answer: B
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Sample Questions
Q1) Courts of appeals in the various states decide many cases that never become stare decisis.
A)True
B)False
Answer: True
Q2) The U.S. Supreme Court has the power to declare state laws unconstitutional.
A)True
B)False
Answer: True
Q3) When both state and federal governments have the right to regulate an area, those governments have:
A) exclusive jurisdiction
B) concurrent jurisdiction
C) original jurisdiction
D) bicameral legislatures
E) none of the above
Answer: B
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Q1) A special relationship of trust and confidence between an attorney and client is known as a fiduciary relationship.
A)True
B)False
Answer: True
Q2) Prosecutor's offices are also known as:
A) Public Defenders' Offices
B) District Attorneys' Offices
C) Corporate Legal Departments
D) all of the above
E) none of the above
Answer: B
Q3) Individuals must take and pass an examination known as a bar exam before they are licensed to practice law.
A)True
B)False
Answer: True
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Q1) Case law is a collection of reported cases.
A)True
B)False
Q2) The official reporter for U.S. Supreme Court cases is
A) Supreme Court Reporter
B) United States Reports
C) Lawyer's Edition
D) The Supreme Court Web Site
E) Westlaw
Q3) The case brief is a short summary of a case.
Multiple Choice
A)True
B)False
Q4) Primary sources include case law, statutes, constitutions, and dictionaries.
A)True
B)False
Q5) Precedent is an example set by the decision of an earlier court for similar cases or similar legal questions which arise in later cases.
A)True
B)False
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Q1) Id. and supra are examples of:
A) shorthand ways of citing authorities
B) abbreviations for certain courts
C) Latin terms that describe legal principles
D) terms that should never be used in a formal legal memorandum
E) Latin terms that have nothing to do with the law
Q2) Which of the following is not an element of a case brief?
A) facts
B) analysis
C) issues
D) judicial history
E) precedent
Q3) A legal memorandum compares a client's facts with facts of a reported case.
A)True
B)False
Q4) The issue in a case is also known as the question presented.
A)True
B)False
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Q1) The Supreme Court ruled in Baker v. Carr that when apportionment of voting districts is disproportionate, the Equal Protect Clause is violated. This became known as
A) the doctrine of checks and balances
B) disproportionate voting
C) one man-one vote rule
D) none of the above
Q2) The Establishment Clause of the First Amendment limits the government's power to interfere with a person's practice of his or her religion.
A)True
B)False
Q3) The Bill of Rights consists of the first ten amendments to the U.S. Constitution.
A)True
B)False
Q4) The Civil Rights Act of 1964 was enacted pursuant to congressional power under the Interstate Commerce Clause.
A)True
B)False
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Q1) The law will not allow a person to escape liability for dangerous activities by simply:
A) leaving the state
B) hiring an independent contractor to perform for them
C) declaring bankruptcy
D) changing his or her procedures after an injury has occurred
E) declaring that the injured person assumed the risk
Q2) Which of the following is not a defense to negligence?
A) assumption of the risk
B) contributory negligence
C) comparative negligence
D) immunity
E) self defense
Q3) In general, injured workers cannot sue employers under:
A) workers' compensation law
B) tort law
C) negligence
D) peculiar risk doctrine
E) assumption of the risk
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Q1) Spousal support is awarded when people end their marriage.
A)True
B)False
Q2) A premarital agreement may help to protect the assets of persons who plan to marry.
A)True
B)False
Q3) In all family law matters, the court will be most interested in the welfare of the children.
A)True
B)False
Q4) Not all family law matters concern married persons.
Multiple Choice
A)True
B)False
Q5) A divorce is a total dissolving of a marriage.
A)True
B)False
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Q1) A will may not be changed.
A)True
B)False
Q2) A trust is a document in which a person makes provisions for the disposition of all real property.
A)True
B)False
Q3) A person who has the duty of taking care of a person and that person's property is known as
A) executor
B) guardian
C) trustee
D) trustor
E) none of the above
Q4) Wills fall into two broad categories: holographic and formal.
A)True
B)False
Q5) Wills need not be drafted by attorneys.
A)True
B)False
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Q1) Patent and copyright laws are federal rather than state.
Multiple Choice
A)True
B)False
Q2) The legal doctrine that allows the court to treat a certain situation as if a contract exists, even where one of the elements is missing, is known as:
A) quasi contract
B) promissory estoppel
C) parole evidence rule
D) statute of frauds
E) assignment
Q3) Which of the following indicates a non-ownership interest in real property?
A) mortgage
B) deed of trust
C) lien
D) lease
E) all of the above
Q4) The key feature of joint tenancy is a right of survivorship.
A)True
B)False
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Sample Questions
Q1) The owners of a corporation are known as:
A) officers
B) shareholders
C) directors
D) members
E) none of the above
Q2) Equity securities are:
A) loans taken out by the corporation
B) only owned by shareholders in public corporations
C) only owned by shareholders in close corporations
D) usually in the form of shares of stock for a corporation
E) always regulated by the federal government
Q3) In a partnership, each of the partners is liable to third parties for debts of the partnership in proportion to his or her ownership interest in the partnership.
A)True
B)False
Q4) Bankruptcy is governed primarily by federal law.
A)True
B)False

Page 13
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Sample Questions
Q1) Lack of proper venue renders any judgment void.
A)True
B)False
Q2) In a complaint, the factual statements forming the basis of the claim are found in the caption.
A)True
B)False
Q3) If a defendant makes a claim against a co-defendant in federal court, it is known as a:
A) counterclaim
B) cross-claim
C) third party action
D) cross complaint
E) demurrer
Q4) The sole power or authority to act in a certain situation is known as:
A) exclusive jurisdiction
B) concurrent jurisdiction
C) pendant jurisdiction
D) original jurisdiction
E) diversity jurisdiction

Page 14
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Sample Questions
Q1) A mediator should always be a neutral person.
A)True
B)False
Q2) Courts have the right to stay arbitration proceedings.
A)True
B)False
Q3) Which of the following frequently offer arbitration services?
A) private judges
B) the court
C) the American Arbitration Association
D) none of the above
E) all of the above
Q4) If parties use any form of ADR they give up their right to trial.
A)True
B)False
Q5) A special master is a person usually appointed by a court to resolve disputed pretrial matters in civil actions.
A)True
B)False
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Sample Questions
Q1) Crimes can be committed against:
A) people
B) society
C) property
D) none of the above
E) all of the above
Q2) Crimes are generally categorized into felonies, misdemeanors, and petty offenses.
A)True
B)False
Q3) A battery is the reckless or intentional injuring of a person.
A)True
B)False
Q4) Most crimes have two basic elements.
A)True
B)False
Q5) Crimes can be committed against the public.
A)True
B)False

Page 16
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Q1) The exclusionary rule is a rule of criminal procedure stating that evidence obtained illegally
A) cannot be used at the arraignment
B) cannot be used at trial
C) never really existed
D) cannot be seized
E) must be returned to the person from whom it was seized
Q2) An affidavit is:
A) a sworn statement by a police office
B) a sworn statement by the defendant
C) a statement made in open court and then printed for the record
D) a non-oral statement of facts that is confirmed by oath or affirmation
E) none of the above
Q3) Which of the following is not a pretrial motion in a criminal trial?
A) motion to dismiss
B) motion to suppress evidence
C) motion for a change of venue
D) motion for a grand jury
E) none of the above
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Sample Questions
Q1) Judicial notice is sometimes taken when the court believes that the information is common knowledge.
A)True
B)False
Q2) Hearsay is only admissible when
A) two or more persons heard the statement
B) the witness is credible
C) the prosecutor asks the court to allow the statements
D) there were no exigent circumstances
E) none of the above
Q3) There are two basic types of evidence.
A)True
B)False
Q4) All states have adopted the Federal Rules of Evidence.
A)True
B)False
Q5) Actual evidence might include the weapon used in a crime.
A)True
B)False
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Sample Questions
Q1) A motion for summary judgment requests that the judge decide the case on the legal issues without consideration of the factual issues.
A)True
B)False
Q2) In a criminal case the burden of proof falls upon the prosecutor.
A)True
B)False
Q3) Voir dire is the process of questioning the jury to determine their suitability to serve on a jury panel.
A)True
B)False
Q4) In closing arguments each attorney will highlight:
A) the problems with the evidence
B) the importance of the jury
C) the evidence most favorable to his or her client
D) a and b
E) all of the above
Q5) The Constitution prescribes the method of jury selection.
A)True
B)False
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Sample Questions
Q1) Give a brief factual description of what led to this lawsuit.
Q2) Who wrote the Court's opinion in this matter?
Q3) Did Gideon have an attorney in his second trial? If so, what was his name, and who paid for him?
SEPARATE BUT EQUAL (Video is available commercially)
To the extent possible from watching the film, answer the following questions.
Q4) What was the name of the Chief Justice of the Supreme Court when this case was decided?
Q5) What was the legal issue in the case?
Q6) Which Constitutional Amendment formed the basis for this Court's decision?
Q7) Why did the Court rule the way that it did?
Q8) What is the name of the attorney who represented Briggs?
Q9) What was the jury verdict in the retrial of Gideon?
Q10) What was the name of the chief witness against Gideon at the trial?
Q11) Did Abe Fortas think traffic offenders should be entitled to court-appointed counsel?
Q12) Was Briggs the plaintiff or the defendant?
Q13) Which Constitutional Amendment or Amendments were involved in this case? Page 20
Q14) What did the judge rule regarding Gideon's motion for change of venue?
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