2019 Business Law

Sample Revision Questions

Section A

Multiple Choice questions

1. The law is often described by the function it serves in a society. The

primary functions served by the law include the following except :
(a) Keeping the peace.
(b) Maintaining social relationships.
(c) Maximizing individual Freedom.
(d) Promoting social justice
2. What function of the law is being served when passing laws that prohibit
discrimination at workplaces?
(a) keeping the peace
(b) providing a basis for compromise
(c) maintaining the status quo
(d) promoting social justice
3. What function of the law is being served when passing laws that protect
the U.S. government from the risk of being forcefully overthrown?
(a) maintaining the status quo
(b) shaping moral standards
(c) facilitating orderly change
(d) promoting social justice
4. By allowing the U.S. citizens to practice any religion of their choice, what
essential function of the law does the U.S. Constitution serve?
(a) facilitating orderly change
(b) maintaining the status quo
(c) maximizing individual freedom
(d) facilitating planning
5. Which of the following would be considered an example of shaping moral
standards, as seen as a function of the law?
(a) laws granting freedom of speech and religion
(b) laws discouraging drug and alcohol abuse
(c) laws providing rights to peaceful protest
(d) laws preventing overthrow of a government

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6. Sources of U. S. Law include the following except:
(a) Constitutions
(b) Treaties
(c) Judicial decisions
(d) Custom and traditions
7. Cato and Dolly are involved in a lawsuit. The best definition of a lawsuit
is
(a) A criminal prosecution, not a civil proceeding.
(b) A failure to perform a legal obligation.
(c) A judicial proceeding for the resolution of a dispute.
(d) An enactment of law by a legislative body.
8. Mike and Nan are involved in a case. The best definition of a case is
(a) A criminal prosecution, not a civil proceeding.
(b) A failure to perform a legal obligation.
(c) A judicial proceeding for the resolution of a dispute.
(d) A type of regulation applied to a business.
9. Jack enters into a contract with Jill’s Farm to provide water for Jill’s
irrigation needs. Jack fails to deliver. Jill initiates a suit against Jack,
asking the court to order Jack to perform. Jill is
(a) The plaintiff.
(b) The defendant.
(c) The binding authority.
(d) The persuasive authority.
10. ________ is described as the science or philosophy of the law.
(a) Morality
(b) Ethics
(c) Justice
(d) Jurisprudence
11. Philosophers of the ________ School of jurisprudence emphasize a moral
theory of law, where law is based on morality and ethics, and is
discovered by human reasoning and making choices between good and
evil.
(a) Sociological
(b) Analytical
(c) Historical
(d) Natural Law
12. The Analytical School of jurisprudence maintains that the law is
________.
(a) shaped by logic

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 (b) based on social behaviour
(c) set by the ruling class
(d) based on morality
13. Which school of jurisprudence views law as a sort of evolutionary
process, where changing norms of society will be reflected in the law?
(a) the Natural Law School of jurisprudence
(b) the Sociological School of jurisprudence
(c) the Analytical School of jurisprudence
(d) the Historical School of jurisprudence
14. Which school of jurisprudence bases its principles, for solving legal
disputes, on broad notions of fairness, and subjective decision making by
judges?
(a) the Natural Law School of jurisprudence
(b) the Analytical School of jurisprudence
(c) the Critical Legal Studies School of jurisprudence
(d) the Sociological School of jurisprudence
15. Which school of jurisprudential thought emphasizes using law as a tool
for market efficiency while solving legal disputes?
(a) the Critical Legal Studies School of jurisprudence
(b) the Command School of jurisprudence
(c) the Sociological School of jurisprudence
(d) the Law and Economics School of jurisprudence
16. Type of Pleading include the following except
(a) Intrastate commerce
(b) Answer
(c) Cross-complaint
(d) Interstate commerce
17. The U.S. Constitution grants the federal government the power to
regulate three types of commerce except :
(a) Complain
(b) Commerce with Native American tribes
(c) Foreign commerce
(d) Response
18. Oak Street Market has a cause of action, which is best defined as
(a) A criminal prosecution, not a civil proceeding.
(b) A failure to perform a legal obligation.
(c) A judicial proceeding for the resolution of a dispute.
(d) A situation giving a person a right to initiate a judicial proceeding.

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19. In an action against Gina, Harry obtains a remedy. This is
(a) An administrative agency’s enforcement of its rule.
(b) A principle of the law derived from earlier court cases.
(c) a statute enacted by a state legislature or Congress
(d) The legal means to recover a right or to redress a wrong.
20. Rupert is a victim of Sara’s violation of a criminal law. Criminal law is
concerned with
(a) The prosecution of private individuals by other private individuals.
(b) The prosecution of public officials by private individuals.
(c) The relief available when a person’s rights are violated.
(d) Wrongs committed against the public as a whole.
21. Criminal acts are prohibited by
(a) Local statutes only.
(b) State statues only.
(c) Federal statutes only.
(d) Local, state, and federal statutes.
22. The ________ branch of the federal government has the power to enforce
the law.
(a) judicial
(b) legislative
(c) executive
(d) commissary
23. What is the function of the judicial branch of the federal government?
(a) It has the power to interpret and determine the validity of the law.
(b) It has the power to enact the law.
(c) It has the power to enforce the law.
(d) It has the power to act as a liaison between the legislative and executive
branches.
24. The ________ branch of the federal government has the power to enact
laws.
(a) legislative
(b) judicial
(c) consulate
(d) executive
25. Which of the following legal documents establishes the U.S. federal
government and specifies its powers?
(a) federal statutes
(b) the U.S. Constitution

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 (c) the combined list of state statutes
(d) the set of codified laws called ordinances
26. A(n) ________ is a compact made between two or more nations.
(a) amendment
(b) treaty
(c) charter
(d) statute
27. A(n) ________ is a written law enacted by the legislative branch of the
federal and state governments that establishes certain courses of conduct
to which covered parties must adhere.
(a) charter
(b) treaty
(c) executive order
(d) statute
28. What is a judicial decision?
(a) a decision issued by the executive branch in a state of emergency
(b) a decision about an individual lawsuit issued by a federal or state court
(c) a codified law passed by the state legislature
(d) a decision issued by the legislative branch to establish courses of conduct
to which covered parties must adhere
29. According to the priority of law in the United States, which of the
following statements is true?
(a) State regulations take precedence over state statutes.
(b) Valid state laws take precedence over any conflicting federal laws.
(c) Valid state laws take precedence over local laws.
(d) State laws take precedence over the U.S. Constitution within that state.
30. If a provision in the California state constitution conflicts with a provision
in the U.S. Constitution
(a) Neither provision applies.
(b) The provisions are balanced to reach a compromise.
(c) The state constitution takes precedence.
(d) The U.S. Constitution takes precedence.
31. A default judgment can be entered if which of the following is true?
(a) A plaintiff presents her evidence at trial and clearly fails to meet her
burden of proof.
(b) A defendant loses a lawsuit and does not pay a judgment within 180 days.
(c) A defendant fails to file an answer to a plaintiff’s complaint on time.
(d) A citizen fails to obey an order to appear for jury duty.

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32. In a strict liability tort, it is necessary to prove that:
(a) The other person intended to do the specific act.
(b) The other person intended to do the specific act and, in some cases, that
the person intended harm.
(c) A reasonable person would not have acted that way.
(d) The specific act occurred.
33. The branch of law dealing with the definition and enforcement of all
private or public rights is.
(a) Administrative law.
(b) Civil law.
(c) Constitutional law.
(d) Federal law.
34. Your wallet is stolen from your hotel room while you are using the
recreational facilities. The hotel is liable:
(a) No matter what the situation is because it in effect acts as an insurer
against theft of yours goods.
(b) If the wallet was stolen by an employee.
(c) If it refused to accept your wallet for safekeeping in the hotel vault.
(d) Both b and c.
35. The manner in which ideas are expressed may be protected as a:
(a) Copyright
(b) Trademark
(c) Patent
(d) Industrial design
36. Negligence is:
(a) a criminal wrong
(b) an offence punishable by imprisonment and/or a fine
(c) an offence punishable by imprisonment
(d) a civil wrong
37. all of the following are just an example of intellectual property except:
(a) Patents
(b) Copyrights
(c) Trademarks
(d) Business secrets.
38. requirements for obtaining a patented, an invention must be :
(a) novel
(b) unique
(c) useful
(d) Nonobvious.
39. Types of marks include the following except:
(a) Trademark

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 (b) Service mark
(c) Certification mark
(d) Quality mark
40. Elements of contracts include the following except:
(a) Agreement
(b) offered
(c) Consideration
(d) Lawful object

Section B

True or False Questions

1. The law consists of rules that regulate the conduct of individuals, businesses,
and other organizations in society. It is intended to protect persons and their
property against unwanted interference from others. T

2. Businesses that are organized in the United States are subject to its laws, but
not to the laws of other countries in which they do business. F

3. Laws should not attempt to shape society's moral standards. F

4. The American system of law is set up to be one of the fairest and most
democratic systems ever developed. When our system of law fails, it is often
because of human failure — abuses of discretion, mistakes by judges and
juries, and unequal application of law. T

5. The Historical School of jurisprudence believes that the law is an aggregate of

social traditions and customs that have developed over the centuries. T

6. The Analytical School of jurisprudence does not maintain that the law is
shaped by logic. F

7. The Sociological School of jurisprudence asserts that the law is a means of

achieving and advancing certain sociological goals. T

8. The Critical Legal Studies School proposes that legal rules are unnecessary
and are used as an obstacle by the powerful to maintain the status quo. T

9. The Command School of jurisprudence believes that the law is a set of rules
developed, communicated, and enforced by the ruling party. T

10. A special federal court is a federal court that hears matters of specialized or
limited jurisdiction. T

11. If all the justices voting agree as to the outcome and reasoning used to decide
a case, it is a majority decision. F

12. If a majority of the justices agree as to the outcome of a case but not as to the
reasoning for reaching the outcome, it is a plurality decision. T

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13. Diversity of citizenship occurs if a lawsuit involves (1) citizens of different
states or (2) a citizen of a state and a citizen or subject of a foreign country. T

14. Venue is a concept that requires lawsuits to be heard by the court with
jurisdiction that is nearest the location in which the incident occurred or where
the parties reside. T

15. The process of bringing, maintaining, and defending a lawsuit is called

litigation. T

16. The paperwork that is filed with the court to initiate and respond to a lawsuit is
referred to as the pleadings. T

17. Cross-complaint means the document a plaintiff files with the court and serves
on the defendant to initiate a lawsuit. F

18. A court order that directs the defendant to appear in court and answer the
complaint is known as summons. T

19. Complaint is a document filed by the defendant against the plaintiff to seek
damages or some other remedy. F

20. The act of a court to combine two or more separate lawsuits into one lawsuit is
known as consolidation. T

21. Statute of limitations is a statute that establishes the period during which a
plaintiff must bring a lawsuit against a defendant. T

22. Discovery means a legal process during which each party engages in various
activities to discover facts of the case from the other party and witnesses prior
to trial. T

23. A deposition is oral testimony given by a party or witness prior to trial. The
person giving a deposition is called the deponent. T

24. Interrogatories is a written questions submitted by one party to another party.

The questions must be answered in writing within a stipulated time. T

25. A request by one party to another party to produce all documents relevant to
the case prior to the trial is called production of documents. T

26. In cases that concern the physical or mental condition of a party, a court can
order the party to submit to certain physical or mental examinations to
determine the extent of the alleged injuries. T

27. Alternative dispute resolution (ADR) is methods of resolving disputes other

than litigation. T

28. A procedure whereby the parties to a dispute engage in discussions and

bargaining to try to reach a voluntary settlement of their dispute is called
negotiation. T

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29. Mediation is a form of negotiation in which a neutral third party assists the
disputing parties in reaching a settlement of their dispute. T

30. Preemption doctrine is a doctrine that provides that federal law takes
precedence over state or local law. T

31. Negligence is a tort related to defective products in which the defendant has
breached a duty of due care and caused harm to the plaintiff. T

32. Strictly liability can be defined as the liability of manufacturers, sellers, and
others for the injuries caused by defective products. F

33. Unlike negligence, strict liability does not require the injured person to prove
that the defendant breached a duty of care. T

34. Defect in manufacture is something wrong, inadequate, or improper in the

manufacture, design, packaging, warning, or instructions about a product. F

35. Product defect is a defect that occurs when a manufacturer fails to (1)
assemble a product properly, (2) test a product properly, or (3) check the
quality of the product adequately. F

36. Failure to provide adequate instructions for the safe assembly and use of a
product is a defect that subjects the manufacturer and others in the chain of
distribution to strict liability. T

37. Provisions of federal law are valid as long as they do not conflict with any
state law. F

38. Statutes are enacted by Congress and state legislatures. T

39. Statutes are written laws that establish certain courses of conduct that covered
parties must adhere to. T

40. State courts of one state are not required to follow the legal precedent
established by the courts of another state. T

41. Statute of limitations begins when the plaintiff suffers injury, where statute of
repose begins when the product is first sold. T

42. Comparative negligence is happened when a person who is partially

responsible for causing his or her own injuries may not recover anything from
the manufacturer or seller of a defective product. F

43. Contributory negligence is happened when a person who is partially

responsible for causing his or her own injuries is responsible for a proportional
share of the damages. The manufacturer or seller of the defective product is
responsible for the remainder of the plaintiff’s damages. F

44. Intellectual property is a term that describes property that is developed through
an intellectual and creative process. T

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45. Intellectual property falls into a category of property known as intangible
rights, which are not tangible physical objects. T

46. Trade secret is a product formula, pattern, and design compilation of data,
customer list or other business secret. T

47. Copyright infringement is an infringement that occurs when a party copies a

substantial and material part of a plaintiff’s copyrighted work without
permission. A copyright holder may recover damages and other remedies
against the infringer. T

48. Service marks are defined as a distinctive mark, symbol, name, word, motto,
or device that identifies the goods of a particular business. F

49. A contract entered into by way exchange of promises of the parties; “a

promise for a promise.” Is called bilateral contract. T

50. Unilateral contract is a contract in which the offeror’s offer can be accepted
only by the performance of an act by the offeree; a “promise for an act.” T

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