The Legal Environment of Business, 6e (Kubasek/Brennan/Browne) Chapter 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: 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: Topic: Introduction 3) The primary purpose of NAFTA is to which of the following? A) Codify international treaties B) Increase immigration quotas C) Lower trade barriers D) Defend coastal borders Answer: C Diff: Topic: Introduction 4) One purpose of the WTO is to which of the following? A) Codify international treaties B) Increase immigration quotas C) Lower trade barriers D) Defend coastal borders Answer: C Diff: Topic: Introduction Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 5) How many Pacific Rim countries participate in the Asian-Pacific Economic Cooperation (APEC) forum in addition to the United States? A) B) 10 C) 17 D) 27 Answer: C Diff: 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: Topic: Definition of the Legal Environment of Business 7) How many member nations does the European Union have? A) B) 17 C) 27 D) 144 Answer: C Diff: Topic: Introduction 8) How many member nations does the WTO have? A) 27 B) 50 C) 127 D) 144 Answer: D Diff: Topic: Introduction Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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: Topic: Definition of the Legal Environment of Business 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: 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: 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: Topic: Introduction Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 14) Each of the following is one of the "Top Ten Reasons for Studying the Legal Environment" EXCEPT for which one? 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: Topic: Definition of the Legal Environment of Business 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: 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: 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: Topic: Sources of Law Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sources of Law 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: 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: Topic: Classifications of Law 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: Topic: Classifications of Law Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Classifications of Law 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: Topic: Natural Law School 28) Which of the following is a true statement about the 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: Topic: Natural Law School 29) Which of the following is a true statement about the Natural Law School? 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: Topic: Natural Law School Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Natural Law School 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: Topic: Definition of Law and Jurisprudence 32) Which of the following schools of law would a person probably adhere to if he said that he believes that the legislature is the source of the law? A) Natural Law B) Positivist C) Sociological D) American Realist Answer: B Diff: Topic: Definition of Law and Jurisprudence 33) Which of the following schools of law would a person probably adhere to if he said that he 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: Topic: Definition of Law and Jurisprudence Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 34) Which of the following schools of law would a person probably adhere to if he said that he 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: Topic: Definition of Law and Jurisprudence 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 D) Law and Economics Answer: C Diff: Topic: Definition of Law and Jurisprudence 36) Which of the following schools of law would a person probably adhere to if she said costbenefit analysis is useful in understanding our legal system? A) Feminist B) American Realist C) Critical Legal Studies D) Law and Economics Answer: D Diff: Topic: Definition of Law and Jurisprudence 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 C) Critical Legal Studies D) Law and Economics Answer: A Diff: Topic: Definition of Law and Jurisprudence Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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 D) Law and Economics Answer: B Diff: Topic: Definition of Law and Jurisprudence 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 D) Law and Economics Answer: C Diff: Topic: Definition of Law and Jurisprudence 40) Martin Luther King would be most likely associated with which school of legal philosophy? A) Natural Law B) American Realist C) Sociological D) Law and Economics Answer: C Diff: 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: Topic: Positivist School 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sociological School 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: 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: 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: Topic: Critical Legal Studies School 12 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: 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: 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: Topic: Sources of Law 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: Topic: Sources of Law 13 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 14 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 15 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Sources of Law 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: Topic: Sources of Law 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: Topic: Sources of Law 65) Each of the following is an important difference between criminal law and civil law EXCEPT for which one? 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: Topic: Classifications of Law 16 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Classifications of Law 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: Topic: Classifications of Law 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: Topic: Classifications of Law 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: Topic: Classifications of Law 17 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Classifications of Law 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: 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: Topic: Introduction 73) An important function of the WTO is to lower trade barriers Answer: TRUE Diff: 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: Topic: Introduction 75) The United States, Canada, and Mexico are parties to the North American Free Trade Agreement Answer: TRUE Diff: 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: Topic: Introduction 18 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Definition of the Legal Environment of Business 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: Topic: Definition of the Legal Environment of Business 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: Topic: Definition of the Legal Environment of Business 80) American law is not dynamic; rather, its precepts are "written in stone." Answer: FALSE Diff: Topic: Definition of the Legal Environment of Business 81) According to the American jurist Oliver Wendell Holmes, law is grounded in theory rather than experience Answer: FALSE Diff: Topic: Definition of the Legal Environment of Business 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: Topic: Definition of the Legal Environment of Business 83) Judges and attorneys are often obliged to consider material from multiple disciplines before reaching a decision Answer: TRUE Diff: Topic: Definition of the Legal Environment 84) Jurisprudence is the science or philosophy of law Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 19 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 85) Cicero saw the law as an agreement of reason and nature Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 86) Plato saw law as the command of the sovereign Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 87) The true source of law is always the same, regardless of which school of jurisprudence is applied Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 88) Aristotle saw law as a rule of conduct Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 89) Bacon said that certainly is a prime necessity of the law Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 91) The Natural Law School draws a distinction between just laws and unjust laws Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 92) The writings of Martin Luther King are consistent with the principles of the Natural Law School Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 93) Saint Thomas Aquinas was a leading proponent of the Positivist School Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 20 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 94) Disciples of the Positivist School are known for their use of subjective morality in the interpretation of statutes Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 95) Justice Scalia is most likely a legal positivist Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 98) Followers of the Sociological School seek to change the law by surveying human behavior and determining present community standards Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 99) The American Realist School believes that law should be based on the Ten Commandments and the United States Constitution Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 100) The justice who wrote that obscenity should be based on community standards was probably not a legal positivist Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 101) The writings of Karl Llewellyn have been cited by those favoring the American Realist School Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 21 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 102) Critics of the sociological school are concerned that it may lead to a lack of predictability In the legal system Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 103) The Feminist School bases legal precedent only on cases involving plaintiffs and defendants who were female Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 104) Only women believe in the school of feminist jurisprudence Answer: FALSE Diff: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 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: Topic: Definition of Law and Jurisprudence 108) Members of the law and economics school tend to be politically conservative Answer: TRUE Diff: Topic: Definition of Law and Jurisprudence 109) Executive orders are found in the Code of Federal Regulations and the Federal Register Answer: FALSE Diff: Topic: Sources of Law 22 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 110) We have three direct and one indirect sources of law Answer: TRUE Diff: Topic: Sources of Law 111) The legislature is a direct source of law, whereas the judiciary is an indirect source of law Answer: FALSE Diff: Topic: Sources of Law 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: Topic: Sources of Law 113) The source of Congress's legislative powers comes from article 1, Section of the U.S Constitution Answer: TRUE Diff: Topic: Sources of Law 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: Topic: Sources of Law 115) A pocket veto occurs whenever the president does not sign a bill into law Answer: FALSE Diff: Topic: Sources of Law 116) The Restatements are secondary sources of law, meaning that they have precedential value only in trial courts Answer: FALSE Diff: Topic: Sources of Law 117) Legal opinions published on the internet only have no precedential value Answer: FALSE Diff: Topic: Sources of Law 23 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 118) The executive branch consists of only the president and vice-president Answer: FALSE Diff: Topic: Sources of Law 119) The right of judicial review was created by the case of Marbury v Madison Answer: TRUE Diff: Topic: Sources of Law 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: Topic: Sources of Law 121) Administrative agencies are sometimes called the fourth branch of government Answer: TRUE Diff: Topic: Sources of Law 122) Administrative agencies cannot make rules because that is a legislative function reserved to Congress Answer: FALSE Diff: Topic: Sources of Law 123) Plaintiffs file civil cases whereas prosecutors initiate criminal cases Answer: TRUE Diff: Topic: Classifications of Law 124) Criminal law regulates relationships between two private parties Answer: FALSE Diff: Topic: Sources of Law 125) Private law generally deals with the relationship of criminal law to the U S Constitution Answer: FALSE Diff: Topic: Classifications of Law 126) Many believe that by the end of this decade, over 50 percent of our jobs will be dependent on exports Answer: TRUE Diff: Topic: Global Dimensions of the Legal Environment of Business 24 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Definition of Law and Jurisprudence 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 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 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 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: Topic: Definition of Law and Jurisprudence 25 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 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: Topic: Definition of the Legal Environment of Business 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: Topic: Sources of Law 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: Topic: Classifications of Law 26 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall ... of business ethics Answer: B Diff: Topic: Definition of the Legal Environment of Business 15) A study of the legal environment of business includes all EXCEPT of the following? A) The study of. .. None of the above; all are addressed in the text as part of our study of the legal environment of business Answer: D Diff: Topic: Legal Environment of Business 16) Of the following, which is the. .. control Answer: A Diff: Topic: Definition of the Legal Environment of Business 11) Our study of the legal environment of business is characterized by which of the following? A) It is arbitrary and