The Legal Environment of Business and Online Commerce, 7e (Cheeseman)
Chapter 1 Legal Heritage and the Digital Age
1) 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.
2) The Law and Economics School of jurisprudential thought holds that rights are not worth
protecting if it is too costly from an economic viewpoint.
3) 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.
4) The Critical Legal Studies School of jurisprudential thought seeks to restrict the subjective
decision-making powers of judges.
5) The Analytical School of jurisprudence lays emphasis on how the result of a case is reached
rather than the logic of the result itself.
6) Natural Law School of jurisprudence emphasizes shaping laws based on morals and ethics.
7) Legal precedence is a key feature of the Historical School of jurisprudence.
8) Equitable orders and remedies of the Court of Chancery took precedence over the legal
decisions and remedies of the law courts.
9) The merchant courts were established because of the unfair results and limited remedies
available in the chancery courts.
10) The adoption of the English common law led to precedence being an important feature of the
American legal system.
11) The law courts of the English common law could only provide monetary awards for
damages.
12) Powers not given to the federal government by the U.S. Constitution are reserved to the
states.
13) Provisions of federal law are valid as long as they do not conflict with any state law.
14) Within a state, the state constitution precedes the U.S. Constitution.
15) Administrative agencies are created by the judicial branch of government.
16) A treaty does not require Senate approval before being passed.
17) Federal statutes take precedence over treaties.
18) Treaties are considered to be a part of the supreme law of the United States of America.
19) Statutes are written laws that establish certain courses of conduct that covered parties can use
as a form of guidance.
20) Federal statutes are organized by topic into code books.
21) The authority to enact ordinances lies solely with the state legislatures.
22) Executive orders are an example of codified law.
23) Ordinances are not codified into code books.
24) State courts of one state are not required to follow the legal precedent established by the
courts of another state.
25) The doctrine of stare decisis provides that each court decision is independent and should
stand on its own.
26) Law is described as ________.
A) a body of rules of action or conduct prescribed by controlling authority, and having binding
legal force
B) a study of fundamental problems, such as those connected with existence, knowledge and
language
C) a system that builds and organizes knowledge in the form of testable explanations and
predictions
D) a group of hypotheses employed to explain a phenomenon
27) 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 the government
28) 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
29) Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of
Halizona set up a committee to study the effects of past earthquakes on Halfren and the possible
methods that could be used to minimize damage and loss of life. The committee found that a new
technique of using steel reinforcements in building columns would help reduce overall damages.
The findings were put to a debate at the local town hall, where it was accepted by a majority of
the residents of Halfren. The state government then passed a law making it mandatory to use the
new steel-reinforced columns while constructing new buildings in Halfren. Which of the
following function of the law did the state government of Halizona exhibit in this case?
A) promoting social justice
B) maximizing individual freedom
C) shaping moral standards
D) facilitating orderly change
30) 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
31) By allowing 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
32) Mark Walton was involved in a car accident in which the airbag of his car failed to deploy.
He sued the car manufacturer for installing faulty airbags. But in the course of the case being
heard in court, the car company and Mark decided settle the lawsuit out of court. What important
function of the law was served in this case?
A) promoting social justice
B) maximizing individual freedom
C) providing a basis for compromise
D) maintaining the status quo
33) The Supreme Court case decision on the case of Brown v. Board of Education was important
because it exhibited ________.
A) the use of the affirmative action policy
B) the scope of flexibility of the law
C) the state’s supremacy over federal rulings
D) the importance of following precedence
34) The Analytical School of jurisprudence maintains that the law should be ________.
A) shaped by logic
B) based on social behavior
C) set by the ruling class
D) based on morality
35) 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
36) Imposing a ban on public smoking can serve as an example of a law that adheres to the
________ School of jurisprudence.
A) Command
B) Sociological
C) Law and Economics
D) Analytical
37) Proponents of the Command School of jurisprudence will assert that the law is ________.
A) developed, communicated, and enforced by the ruling party
B) a means to achieve and advance sociological goals
C) a collection of a society’s traditions and customs that has developed over the centuries
D) based on human reasoning, and humans’ choosing power between what is good and evil
38) What 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
39) What 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
40) What School of jurisprudential thought is reflected in documents such as the U.S.
Constitution, the Magna Carta, and the United Nations Charter?
A) the Natural Law School
B) the Historical School
C) the Sociological School
D) the Analytical School
41) The U.S. government passed draft laws during the Vietnam War decreeing that men of a
certain age had to serve in the military if they met physical requirements. Which of the following
schools of jurisprudential thought do such draft laws adhere to the most?
A) the Historical School of jurisprudential thought
B) the Natural Law School of jurisprudential thought
C) the Sociological School of jurisprudential thought
D) the Command School of jurisprudential thought
42) What was the key factor in the development of the English common law?
A) the development of forensic science in helping decide cases
B) the supremacy of the king and his intervening powers when deciding cases
C) the use of precedence of past cases for judges to decide present similar cases
D) the subjective decision making of judges when it came to similar cases
43) What was the key reason for the creation of law courts during the early development of the
English common law?
A) to administer law in a uniform manner
B) to help merchants form a standardized set of commercial laws
C) to increase the power of the king in law-making
D) to facilitate legal disputes for the wealthy and influential
44) Which of the following statements best indicates how chancery courts were different from
law courts?
A) Chancery courts emphasized developing merchant laws rather than laws for the common
citizen.
B) Chancery courts inquired into the merits of the case rather than emphasize legal procedures.
C) Chancery courts emphasized a standard set of remedies across different cases rather than
provide equitable remedies.
D) Chancery courts had lower precedence level over legal decisions than the law courts.
45) ________ courts were allowed to give equitable remedies under the English common law.
A) Merchant
B) Law
C) Chancery
D) Appellate
46) What led to the creation of the Chancery Courts?
A) the insistence for a court system that emphasized legal procedure rather than the merits of a
case
B) the law courts’ inability to hear all the cases presented to them
C) the increase in overseas trade and proliferation of piracy
D) the unfair results and limited remedies provided by the law courts
47) What is considered as the supreme law of the land in the United States?
A) judicial decisions issued by the state courts
B) the Constitution of the United States of America
C) the federal statutes passed by the United States Congress
D) executive orders passed by the President
48) The ________ branch of the federal government has the power to enforce the law.
A) judicial
B) legislative
C) executive
D) commissary
49) 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 legislative and the executive branches.
50) The branch of the federal government that has the power to enact laws is the ________.
A) legislature
B) judiciary
C) consulate
D) executive
51) A(n) ________ is a compact made between two or more nations.
A) amendment
B) treaty
C) charter
D) statute
52) A(n) ________ is a written law enacted by the legislative branch of the federal and state
governments that establishes certain courses of conduct that covered parties must adhere to.
A) charter
B) treaty
C) executive order
D) statute
53) What would be an example of codified law in the United States?
A) judicial rulings
B) federal statutes
C) treaties
D) executive orders
54) Ordinances are codified laws that are issued by ________.
A) the President
B) the state legislature
C) Supreme Court judges
D) local government bodies
55) ________ are established by the legislative and executive branches of the federal
government to enforce and interpret statues enacted by the Congress and state legislatures.
A) Commissaries
B) State courts
C) Administrative agencies
D) Councils
56) 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 that covered parties
must adhere to
57) Stare decisis is the doctrine of ________.
A) providing proof to assert a fact in court
B) adhering to legal precedent
C) separating powers between state and religion
D) ensuring all legal rights are provided to a person when otherwise deprived of them
58) How is legal precedent used between courts of different states?
A) Courts of a state cannot cite the judicial decisions of courts of another state in its decisions.
B) Courts of a state must follow precedent from courts of another state for similar cases.
C) Courts of a state can use precedent from courts of another state as a form of guidance.
D) Courts of a state cannot challenge the precedence of courts of another state.
59) How does the doctrine of stare decisis help in creating stability in a legal system?
A) by ensuring that witnesses of a case will be protected by the state
B) by ensuring that the legal rights of a defendant are preserved
C) by allowing the use of precedence in deciding future cases
D) by allowing the use of writs
60) The Securities and Exchange Commission (SEC), created by the Congress to enforce federal
securities laws, is an example of a(n) ________.
A) intelligence agency
B) congressional body
C) judicial body
D) administrative agency
61) Differentiate between the Historical School of jurisprudence and the Sociological School of
jurisprudence.
62) Give an account of the Law Merchant in early English common law.
63) Explain the doctrine of stare decisis and how it has influenced the legal system.
64) Explain the priority of law in the United States.
65) Give an account of how the digital age has affected lawmaking in the United States.
66) ________ is a key function of the law, which includes laws that prevent the violent
overthrow of governments.
67) The ________ School of jurisprudence emphasizes shaping laws based on morals and ethics.
68) The ________ School of jurisprudence maintains that the law is shaped by logic.
69) The ________ School of jurisprudence states that promoting market efficiency should be the
central goal of legal decision making.
70) In early English common law, equitable remedies were provided by the ________ courts.
71) ________ courts were established as a secondary resort to law courts.
72) The adoption of the ________ law led to precedence being an important feature of the
American legal system.
73) In countries that follow a civil law system, the adjudication of a case is done simply by
applying ________ or parliamentary statutes to the particular set of facts of that case.
74) The ________ branch of the government has the power to enact laws.
75) The ________ branch of the government has the power to interpret and determine the
validity of the law.
76) A(n) ________ is a compact made between two or more nations and is also considered as a
facet of the supreme law of the land.
77) Federal statutes that are organized by topic into code books are referred to as ________ law.
78) The ________ is the legislative branch of the U.S. government and has the power to enact
the law.
79) The legislative and ________ branches of federal and state governments are empowered to
establish administrative agencies.
80) According to the doctrine of stare decisis, past court decisions become ________ for
deciding future cases.