Multiple Choice
1. Which area of law is most likely to impact directly the finance and accounting departments of a company?
a. products liability
b. employment discrimination
c. credit regulation
d. environmental law
e. all of these are likely to impact about the same
2. Which of these issues may impact a company‘s operations?
a. international issues
b. political issues
c. ethical issues
d. legal issues
e. all of these issues can impact operations
3. Which is generally recognized as the best (most correct) definition of law?
a. a body of rules of action or conduct prescribed by controlling authority, and having binding legal force
b. that which must be obeyed and followed by members of a society subject to sanctions or legal consequences
c. the circumstances in which the public force is brought to bear through the courts
d. a rule of conduct that justifies a prediction that it likely will be enforced by the courts if its authority is
challenged
e. all of the other choices are correct; there is no one agreed upon best definition
4. Which of the following is an accepted definition of law?
a. a body of rules of action or conduct prescribed by controlling authority, and having binding legal force
b. a body of rules of action or conduct prescribed by society, but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by international society
d. a body of rules of action or conduct prescribed by the Supreme Court, and having binding legal force
e. none of the other choices
5. Which of the following is an accepted definition of law?
a. a body of rules of action or conduct prescribed by society, but lacking legal force
b. that which must be obeyed and followed by members of a society subject to sanctions or legal consequences
c. that which must be obeyed and followed by the controlling authority of a country
d. a body of rules of action or conduct prescribed by the Supreme Court, and having binding legal force
e. none of the other choices
6. In an orderly society, law and the legal system help to:
a. influence the behavior of members of society
b. resolve disputes
c. maintain the important values of society
d. provide a way for important social changes to take effect
e. all of the answers are part of the role of law
7. Enforcement of law in a society is important because it:
a. provides some predictability and uniformity to the boundaries of acceptable conduct
b. promotes social well-being
c. leads to higher literacy rates
d. prevents large disparities in income
e. none of the other choices
8. Which of the following is not a part of the rules that govern behavior in most nations:
a. formal rules
b. informal rules
c. social customs
d. ethics
e. all of the other choices are part of the rules
9. Both and are part of the rules that govern behavior in most nations.
a. philosophy and sociology
b. psychology and ethics
c. formal rules and informal rules
d. all of the other specific choices
e. none of the other specific choices
10. Both and are part of the rules that govern behavior in most nations.
a. philosophy and sociology
b. customs and ethics
c. formal rules and psychology
d. all of the other specific choices
e. none of the other specific choices
11. Both and are part of the rules that govern behavior in most nations.
a. customs and informal rules
b. formal rules and ethics
c. formal rules and informal rules
d. all of the other specific choices
e. none of the other specific choices
12. Which of the following is a part of the rules that govern behavior in most nations:
a. the Old Testament
b. the New Testament
c. social customs
d. the Torah
e. all of the other choices are parts of the rules
13. Which of the following is a part of the rules that govern behavior in most nations:
a. ethics
b. statutory law
c. social customs
d. all of the choices are parts of the rules
e. none of the other choices are correct
14. Which of the following is NOT a part of the rules that govern behavior in most nations:
a. ethics
b. formal rules
c. social customs
d. administrative rules
e. all of the other choices are parts of the rules
15. Which of the following is NOT generally considered to be a part of the rules that govern behavior in most nations:
a. ethics
b. psychology
c. social customs
d. administrative rules
e. all of the other choices are NOT parts of the rules
16. By the use of laws and the legal system, the government can:
a. change acceptable behavior
b. instruct people on what is allowed in certain circumstances
c. encourage certain types of business activity
d. impose sanctions to try to eliminate certain business activities
e. all of the other choices are included
17. Which of the following statements is true?
a. law imposes structure on society by limiting activities that hurt the “public interest”
b. the sale of marijuana is illegal worldwide
c. the sale of alcoholic beverages is legal worldwide
d. laws do not apply to individuals; only to society as a whole
e. all of the other choices are correct
18. Which of the following statements about law is true?
a. law must be approved by the “will of the people”
b. the sale of marijuana is illegal worldwide
c. he sale of alcoholic beverages is legal worldwide
d. formal law is respected in all nations
e. none of the other choices are necessarily correct
19. Which of the following statements is true?
a. formal law is respected in all nations
b. the sale of marijuana is illegal worldwide
c. the sale of alcoholic beverages is legal worldwide
d. law imposes structure on society by limiting activities that hurt the “public interest”
e. all of the other choices are correct
20. Which of the following statements is true?
a. law applies to individuals only; not to groups or society as a whole
b. the sale of marijuana is illegal worldwide
c. the sale of alcoholic beverages is legal worldwide
d. formal law is respected by all nations
e. none of the other choices are true
21. Making marijuana illegal in the United States and alcohol illegal in Saudi Arabia are both examples of:
a. how law applies to individuals and not to groups or society as a whole
b. how governments can use law to enforce different social norms
c. how formal law is respected in all nations
d. how law applies to both individuals and to groups equally
e. none of the other choices
22. Making marijuana illegal in the United States and alcohol illegal in Saudi Arabia are both examples of:
a. how law applies to individuals and not to groups or society as a whole
b. how law applies to both individuals and to groups equally
c. how formal law is respected by all nations
d. all of the other specific choices
e. none of the other specific choices
23. Laws are important in societies made up of people with differing desire and values because:
a. disagreements are inevitable and laws is an attempt to settle disputes in a peaceful manner
b. disagreements are inevitable and law is a force that constrains people within a society
c. disagreements are inevitable and law provides social rules to govern behavior
d. all of the other specific choices
e. none of the other specific choices
24. Law(s) is (are):
a. an attempt to settle disputes in a peaceful manner
b. forces that constrains people within a society
c. social rules that govern our behavior
d. written statutes passed by legislatures
e. all of the other choices are correct
25. The reasonable “doing of something about disputes” refers to:
a. the business of law
b. the business of legality
c. the business of management
d. the business of courts
e. all of the other choices are correct
26. The reasonable “doing of something about disputes” refers to:
a. the business of the private sector
b. the need for regulations
c. the leadership of management
d. the structure of courts
e. none of the other choices
27. Which of the following are reflected in some aspect of law:
a. honesty and integrity are reflected by the enforceability of contracts
b. respect for other people and their property is reflected in tort and property law
c. some measures of acceptable behavior are reflected in criminal laws
d. all of the other specific choices
e. none of the other specific choices
e. none of the other choices
28. Which of the following are reflected in some aspect of law:
a. honesty and integrity are reflected by the enforceability of contracts
b. respect for other people and their property is reflected in agency law
c. some measures of acceptable behavior are reflected in tort and property law
d. all of the other specific choices
e. none of the other specific choices
29. Which of the following are reflected in some aspect of law:
a. honesty and integrity are reflected by family law
b. respect for other people and their property is reflected in agency law
c. some measures of acceptable behavior are reflected in tort and property law
d. all of the other specific choices
e. none of the other specific choices
30. The shift from laws of the past that required discrimination based on race to laws of today that prohibit
discrimination based on race show how:
a. the legal system can bring about changes in “acceptable” behavior
b. the legal system does not change with time
c. the legal system is subject to the whims of Supreme Court Judges
d. the legal system is subject to the will of the general public
e. none of the other choices
31. The shift from laws of the past that enforced discrimination based on race to laws of today that prohibit
discrimination based on race show how:
a. the legal system can only change when the majority of the country wants it to change
b. the legal system does not change with time
c. the legal system is subject to the whims of Supreme Court Justices
d. the legal system is subject to the will of the general public
e. none of the other choices
32. One of the major challenges that the extremely poor nation of Haiti faces is:
a. Haiti suffers under a corrupt government and a legal system that does not protect people’s lives and property
b. Haiti has too many legislative officials who have not studied constitutional law prior to entering the legislature
c. Haiti does not have any legal system
d. Haiti lacks a middle class that is capable of operating a successful business sector
e. none of the other choices
33. In the extremely poor nation of Haiti, doing business is almost impossible because:
a. there are too many natural disasters in Haiti
b. there are no businessmen in Haiti
c. the demands for bribes are endless
d. the leaders of the country do not like business
34. One of the major differences between high income countries like New Zealand and extremely low income
countries like Haiti is:
a. New Zealand has a well-functioning legal system and lack of corruption while Haiti has no meaningful law to
protect life and property and high corruption
b. Haiti has a well-functioning legal system and lack of corruption while New Zealand has no meaningful law to
protect life and property and high corruption
c. New Zealand has an elected parliament and Haiti does not
d. Haiti has a growing population and New Zealand has a declining population
e. none of the other choices
35. Many studies find that there is a strong relationship between:
a. a well-functioning legal system and the number of prisons
b. a well–functioning legal system and the level of economic development
c. a well-functioning legal system and the birth rate
d. the level of corruption and life expectancy
e. none of the other choices
36. Many studies find that there is a strong relationship between:
a. a well-functioning legal system and the number of prisons
b. a well-functioning legal system and incidence of disease
c. a well-functioning legal system and the birth rate
d. the level of corruption and life expectancy
e. none of the other choices
37. To resolve disputes between citizens or between citizens and government, which is the most important institution
that has evolved?
a. the penitentiary system
b. the diplomatic corps
c. the court system
d. the military
e. all of the other choices
38. One example of the law working to effect social change in the U.S. is in the area of:
a. commercial paper
b. negotiable instruments
c. easements
d. racial discrimination
e. covenants
39. One example of the law working to effect social change in the U.S. that is discussed in the text is in the area of:
a. commercial paper
b. negotiable instruments
c. easements
d. land titles
e. none of the other choices
40. The United States Constitution:
a. is the oldest written constitution except for those in England (U.K.) and Spain
b. created the three branches of government
c. established the common law
d. created the cabinet officers (Secretary of State, Secretary of Defense, etc.)
e. all of the other choices are correct
41. The United States Constitution:
a. is the oldest written constitution in force in a major nation
b. created the four branches of government
c. established the common law
d. created the 50 states
e. all of the other choices are correct
42. The United States Constitution:
a. is the oldest written constitution in force in a major nation
b. provides for the general powers and limits of the federal government
c. establishes a division in governmental powers called the separation of powers
d. establishes itself as supreme over state law
e. all of the other choices are correct
43. The United States Constitution:
a. has both clear rules and general principles
b. has only clear rules
c. has only general principles
d. has one fundamental goal
e. none of the other choices
44. The United States Constitution:
a. lacks both clear rules and general principles
b. has only specific rules
c. has only “theoretical” principles
d. has one fundamental goal
e. none of the other choices
45. A constitution must be:
a. a written document
b. applicable to all situations
c. accepted by at least two-thirds of the citizens of a country
d. acknowledged by the international community
e. none of the other choices
46. The fundamental law of the nation is the:
a. Declaration of Independence
b. Bill of Rights
c. Constitution
d. magna charta
e. curia regis
47. The U.S. Constitution:
a. established and limited the powers of the U.S. government
b. created the common law
c. created the four major branches of the U.S. government
d. created the 50 states
e. all of the other choices are included in the Constitution
48. The U.S. Constitution creates:
a. the rights of citizens
b. stare decisis
c. the executive branch of government
d. informal law
e. none of the other choices are in the Constitution
49. The United States Constitution:
a. established the form of state governments
b. gave the government certain powers
c. granted freedom to all citizens
d. granted Congress the power to impose income taxes
e. all other choices are correct
50. The United States Constitution divides governmental power to prevent:
a. extreme gaps in income
b. states from becoming too powerful
c. the tyranny the founders experienced under King George III
d. excessive taxation
e. none of the other choices
51. Powers not granted to the federal government are retained by states or are left to the people according to:
a. the Constitution
b. the Supreme Court
c. the common law
d. Executive Order 153
e. none of the other choices are correct
52. Powers not granted to the federal government are retained by states or are left to the people according to:
a. the Court of Law
b. the Supreme Court in Marbury v. Madison
c. the common law
d. Executive Order 153
e. none of the other choices are correct
53. A constitution is best described as:
a. the statutory law of the land
b. the fundamental law of the land
c. the supplementary law of the land
d. the nuanced law of the land
e. the accessory law of the land
54. The United States Constitution is:
a. an unwritten document
b. an understanding between the people and the government
c. the highest legal authority
d. the second highest legal authority; the Executive is the highest legal authority
e. the supplementary law of the land
55. The United States Constitution is:
a. an unwritten document
b. an understanding between the people and the government
c. the second highest legal authority; the Declaration of Independence is the highest legal authority
d. the second highest legal authority; the Executive is the highest legal authority
e. none of the other choices is correct
56. As the highest legal authority, the United States Constitution:
a. is unwritten
b. overrides any state or federal laws that go beyond what the Constitution permits
c. overrides any state, but not any federal, laws that go beyond what the Constitution permits
d. overrides any federal, but not any state, laws that go beyond what the Constitution permits
e. none of the other choices is correct
57. The United States Constitution:
a. is unwritten
b. overrides any state or federal laws that go beyond what the Constitution permits
c. overrides any state, but not any federal, laws that go beyond what the Constitution permits
d. overrides any federal, but not any state, laws that go beyond what the Constitution permits
e. none of the other choices is correct
58. The United States Constitution:
a. is unwritten
b. cannot override any state or federal laws that go beyond what the Constitution permits
c. overrides any state, but not any federal, laws that go beyond what the Constitution permits
d. overrides any federal, but not any state, laws that go beyond what the Constitution permits
e. none of the other choices is correct
59. Statutory law is:
a. a law enacted by a legislative body
b. also known as the fundamental law of the nation
c. a form of common law
d. the separation of powers at the federal level
e. all of the other choices are correct
60. Statutory law is:
a. a rule declared by the Supreme Court
b. also known as the fundamental law of the nation
c. a form of common law
d. the separation of powers at the federal level
e. none of the other choices are correct