The Legal Environment of Business, 8e (Kubasek)
Chapter 1 Critical Thinking and Legal Reasoning
1) Critical thinking ________.
A) is the ability to understand the structure of an argument and apply a set of evaluative criteria
to assess its merits
B) is the goal toward which reasoning pushes an individual
C) refers to the standards of conduct that an individual considers virtuous
D) is the comparison based on the assumption that if two things are alike in some respect, they
must be alike in other respects
2) A(n) ________ is a position or stance on an issue, the “takeaway” that the person giving you
the advice wants you to believe.
A) deduction
B) induction
C) reduction
D) conclusion
3) Business firms encounter legal ________ in the form of laws or court decisions and in the
advice they receive from people with formal legal training.
A) deductions
B) inductions
C) reductions
D) conclusions
4) Which of the following statements best illustrates the use of critical thinking skills by a
lawyer?
A) A lawyer raises a courtroom objection when her opponent engages in critical commentary
about an opponent without prior permission of the judge.
B) A lawyer develops a closing argument using visual aids that is likely to impress a jury
comprised of ordinary citizens.
C) A lawyer approaches a difficult problem by gathering all relevant facts, determining the real
issue in dispute, and applying reason to reach a conclusion.
D) A lawyer scientifically analyzes the handwriting of a defense witness to determine the
potential for bias.
5) The stimulus that initiates legal reasoning is known as the ________.
A) conclusion
B) reason
C) norm
D) issue
6) Martin, an entrepreneur, has been facing an employee union strike at his factory for the past
four weeks. Last week, the laborers from his factory entered his home without his consent to list
out their demands to him while insisting on better working conditions for the employees. Martin
consulted his lawyer who was of the opinion that the committed offense was criminal in nature.
Which among the following statements best describes the issue in this scenario?
A) the employee union striking at Martin’s factory
B) What is the reason for the employee union strike?
C) the employees asking for better working conditions
D) Are union organizers permitted to enter an employer’s property?
7) Issues are stated as questions because they ________.
A) reduce the complexity of the situation
B) are a call for action
C) are clearly defined and not open to interpretations
D) speed up the legal process
8) A(n) ________ is the goal toward which reasoning pushes us.
A) initiative
B) conclusion
C) analogy
D) premise
9) Mike’s organization manages the logistics for a petroleum company. Last month, one of its
tankers spilled about one hundred tons of oil in the ocean while transporting it. Mike meets with
a lawyer to understand his organization’s liability in the accident, and he is relieved to hear that
all the damages have to be paid by the petroleum company. Which of the following statements
best describes the conclusion in this scenario?
A) Mike’s firm is liable for the damages and must pay the company.
B) Mike’s firm is partially responsible for the damages.
C) Mike’s firm is not responsible for the damages.
D) Mike’s firm is solely responsible for the damages.
10) Which of the following statements best illustrates a conclusion?
A) the opening argument delivered by the defendant’s lawyer to the jury
B) the most important evidence offered by an eyewitness
C) the action of a lawyer in objecting to unconvincing testimony
D) the judge’s written decision in favor of the plaintiff or defendant at the end of a trial
11) The one characteristic shared by many forms of critical thinking is the focus on the quality of
an individual’s ________.
A) reasoning
B) past conclusions
C) stand on the issue
D) ethical values
12) Indoctrination refers to the ability to understand what someone is saying and then to ask
specific questions enabling you to evaluate the quality of the reasoning offered to support
whatever advice someone has given you.
13) A preconceived notion is a position or stance on an issue, the takeaway that the person giving
you the advice wants you to believe.
14) When people engage in legal reasoning, the stimulus that gets them thinking is called the
conclusion.
15) The reason is a position or stance on an issue, the takeaway that the person giving the advice
wants the other person to believe.
16) Critical thinking is inactive because it discourages people from forming judgments about the
quality of the link between someone’s reasons and conclusions.
17) Define critical thinking and discuss the importance of critical thinking skills in business.
18) Which of the following is the first step to legal reasoning in the critical thinking model?
A) stating the relevant rules of law
B) looking for evidence of relevant missing information
C) analyzing the legal analogies
D) stating the facts of the case
19) Which of the following is typically the step after identifying the issue in legal reasoning?
A) looking for evidence of relevant missing information
B) analyzing the legal analogies
C) stating the reasons and conclusion of the issue
D) stating the relevant rules of law
20) Which of the following is the last step to legal reasoning in the critical thinking model?
A) stating the relevant rules of law
B) looking for evidence of relevant missing information
C) stating the reasons and conclusion of the issue
D) evaluating the facts of the case
21) Janet, a lawyer, has been assigned to work on a money laundering case. She has collected the
facts and understood the issue. According to the eight steps to legal reasoning, which of the
following will be her next step?
A) verifying if the legal argument contains significant ambiguity
B) looking for evidence of relevant missing information
C) stating the reasons and conclusion of the issue
D) analyzing the ethical norms fundamental to the court’s reasoning
22) Which of the following is true of the eight steps to legal reasoning?
A) All of the eight steps are foundational steps.
B) The first four steps are the critical thinking steps and the final four steps are the foundational
steps.
C) The first four steps are the foundational steps and the final four steps are the critical thinking
steps.
D) All of the eight steps are critical thinking steps.
23) Which of the following statements best summarizes the first four steps to legal reasoning?
A) understanding the client, preparing the legal paperwork, appearing in court, and arguing the
case
B) drafting the summons, drafting the complaint, preparing the answer, and filing documents in
court
C) finding the facts, determining the issue, reasoning to a conclusion, and applying the relevant
rules of law
D) raising an objection, explaining the reasons for the objection, waiting for the judge’s ruling,
and proceeding with the testimony
24) Which among the following is a foundational step to legal reasoning?
A) looking for evidence of relevant missing information
B) determining the reasons and conclusion to an issue
C) analyzing the legal analogies
D) verifying if the legal argument contains significant ambiguity
25) Which of the following questions is a critical thinking step to legal reasoning?
A) analyzing the legal analogies
B) stating the facts of the case
C) determining the issue
D) stating the relevant rules of law
26) Which of the following statements best describes facts in legal reasoning?
A) Facts are the most basic building blocks in a legal decision or argument.
B) Facts are words used to describe the reasons for reaching conclusions in a complex legal
dispute.
C) Facts are the issues in a dispute, which is the bone of contention between two opposing
litigants.
D) Facts are the position or stance on an issue.
27) “What are the facts?” is typically the first step in the legal reasoning model.
28) “What are the reasons and conclusion?” is typically the final step in the legal reasoning
model.
29) The first four steps in the legal reasoning model are referred to as the critical thinking
components.
30) The purpose of the last four steps in the legal reasoning model is to discover the vital
elements in the case and the reasoning behind the decision.
31) List the eight steps in the critical thinking model.
32) List the eight steps of legal reasoning.
33) The most basic building blocks in a legal decision or argument are the ________.
A) conclusions
B) deductions
C) assumptions
D) facts
34) ________ provide the context in which the legal issue is to be resolved.
A) Conclusions
B) Assumptions
C) Facts
D) Deductions
35) Which of the following best describes a legal issue?
A) A legal issue is the ultimate reasoning behind a judge’s final decision.
B) A legal issue is the set of facts by which the lawyers and their clients assist the judge in
reaching a final decision.
C) A legal issue is the question that caused the lawyers and their clients to enter the legal system.
D) A legal issue is an ethical norm fundamental to the court’s decision.
36) Which of the following statements best defines “conclusion”?
A) It is the answer to a legal issue.
B) It is the most basic component of a legal decision.
C) It is the stimulus that initiates legal reasoning.
D) It is the main issue presented in a legal argument.
37) A(n) ________ is an explanation or justification provided as support for conclusion.
A) issue
B) fact
C) analogy
D) reason
38) A(n) ________ word is one capable of having more than one meaning in the context of
certain facts.
A) ambiguous
B) definite
C) certain
D) hypothetical
39) The primary ________ norms that influence judges’ decisions are justice, stability, freedom,
and efficiency.
A) ethical
B) illusory
C) contextual
D) procedural
40) The ethical norm of ________ includes possessing the capacity or resources to act as one
wishes.
A) freedom
B) security
C) justice
D) efficiency
41) The ethical norm of ________ includes being safe from those wishing to interfere with your
property rights.
A) freedom
B) justice
C) security
D) efficiency
42) The ethical norm of ________ includes achieving the psychological condition of self-
confidence such that risks are welcomed.
A) freedom
B) security
C) justice
D) efficiency
43) The ethical norm of ________ includes possessing anything that someone else was willing to
grant you.
A) freedom
B) security
C) justice
D) efficiency
44) The ethical norm of ________ includes treating all humans identically, regardless of class,
race, gender, or age.
A) freedom
B) security
C) justice
D) efficiency
45) The ethical norm of ________ includes providing resources in proportion to need.
A) freedom
B) security
C) justice
D) efficiency
46) The ethical norm of ________ includes minimizing costs.
A) freedom
B) security
C) justice
D) efficiency
47) The ethical norm of ________ includes getting the most from a particular input.
A) freedom
B) security
C) justice
D) efficiency
48) Precedents are the ________ on which legal decision making depends.
A) analogies
B) obstacles
C) legislation
D) prohibitions
49) Which of the following statements is true about rules of law?
A) Legal reasoning is complex because statutes and findings are never crystal-clear.
B) Judges and businesspeople do not have room for interpretive flexibility in their reasoning.
C) Judges can offer any reasoning they please.
D) They tend to cloud a judge’s reasoning, and should be avoided when reaching a decision.
50) A judge wants to encourage people to act without restriction from rules imposed by others.
Which of the following ethical norms is the judge emphasizing?
A) security
B) freedom
C) justice
D) efficiency
51) With reference to ethical norms, to provide the order in business relationships that permits
predictable plans to be effective is a form of ________.
A) security
B) justice
C) freedom
D) efficiency
52) With reference to ethical norms, to receive the product of your labor is a form of ________.
A) freedom
B) efficiency
C) security
D) justice