Chapter 1—Introduction to Law

TRUE/FALSE

	1.	American jurists and Supreme Court Justices Oliver Wendell Holmes and Benjamin Cardozo defined law as “a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong.”

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Knowledge	

	2.	The common law system is used in most of Europe, Scotland, and Latin America.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	3.	The primary function of the law is to maintain stability in the social, political, and economic system while simultaneously permitting change.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Nature of Law
KEY:	Bloom's: Knowledge	

	4.	Substantive law creates legal rights and duties.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Classification of Law
KEY:	Bloom's: Knowledge	

	5.	The Constitution provides that federal statutes are paramount to state constitutions and statutes.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	6.	The burden of proof in a criminal case is preponderance of the evidence.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Knowledge	

	7.	The law does not change; it is based on unchanging and universal truths.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Knowledge	

	8.	The main categories of the law are (a) substantive and procedural, (b) public and private, and (c) civil and criminal.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Knowledge	

	9.	Law is an instrument of social control.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Introduction	
KEY:	Bloom's: Knowledge	

	10.	Under the civil law system, adversaries initiate and conduct litigation.

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	11.	A judge deciding a common law case typically must follow decisions of similar cases previously decided..

ANS:	T	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	12.	The United States Constitution establishes the principle of judicial review, which is the principle also called “separation of powers.”

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	13.	Since the end of the nineteenth century, case law which developed from court opinions has been the primary source of new law and ordered social change in the United States.

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	14.	A constitution restricts the powers of the government and specifies the rights and liberties of the people.

ANS:	T	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	15.	The Uniform Commercial Code is a federal law that applies to commercial transactions among the states.

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	16.	Laws passed by Congress are the supreme law of the land in the United States and take precedence over the United States Constitution.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	17.	The final arbiter as to the constitutionality of laws passed by Congress or by the legislature of a state is the Supreme Court of the United States.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	18.	The common law system of law uses the inquisitorial system of determining disputes.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	19.	Rodriguez and Compton asked a court for reformation of their contract based on a mutual mistake. They seek an equitable remedy.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	20.	The principle of stare decisis gives stability to our system of jurisprudence.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	21.	Once a court has decided a case, the principle of stare decisis precludes correction of erroneous decisions.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	22.	Civil law systems, as found in the State of Louisiana and countries such as Scotland, depend on comprehensive legislative enactments.

ANS:	T	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	23.	The business law topics of contracts, agency, property, and trusts are governed primarily by the common law.

ANS:	T	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	24.	Administrative agencies create more legal rules and decide more controversies than all the legislatures and courts combined.

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	25.	The State of Minnesota has been negotiating with the Canadian government on issues involving acid rain and eventually reaches an agreement with Canadian officials. This is a valid treaty under the United States Constitution.

ANS:	F	DIF:	Difficulty: Easy		
NAT:	BUSPROG: Reflective Thinking	STA:	AICPA: BB-Legal	
TOP:	A-Head: Sources of Law	KEY:	Bloom's: Application	

	26.	In the United States, treaties are not subject to judicial review.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Application	

	27.	Tate brings an action against Marsheen for damages from trespass to Tate’s property. Tate must prove the case by a preponderance of the evidence.

ANS:	T	DIF:	Difficulty: Moderate		
NAT:	BUSPROG: Reflective Thinking	STA:	AICPA: BB-Legal	
TOP:	A-Head: Sources of Law	KEY:	Bloom's: Application	

	28.	All laws are related to morals, but some moral precepts are not enforced by legal sanctions.

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Nature of Law
KEY:	Bloom's: Application	

	29.	Business law is primarily public law.

ANS:	F	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Comprehension

	30.	Decisions of courts of appeal are published in volumes known as "reports."

ANS:	T	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Comprehension

	31.	The terms "law" and "justice" are interchangeable.

ANS:	F	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Comprehension

MULTIPLE CHOICE

	1.	A crime is:
a.	a private wrong that necessitates litigation between the victim and the perpetrator.	
b.	any act prohibited by the government or an omission of an act required by public law and made punishable by the government in a judicial proceeding brought by it.	
c.	litigation where the injured party sues to recover compensation for the damages and injury sustained as a result of the defendant's wrongful conduct.	
d.	wrongful conduct as set forth in statutes that constitute the supreme law of the land.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Comprehension

	2.	What is the supreme law of the land in the United States?
a.	Criminal statutes.	
b.	Treaties.	
c.	Case law as developed through the U.S. Supreme Court.	
d.	The U.S. Constitution.	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	3.	Which of the following is a remedy that can be obtained from a court of equity?
a.	A maxim.	
b.	Specific performance.	
c.	Money damages.	
d.	Stare decisis.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	4.	Which of the following terms correctly describes the law?
a.	Pervasive.	
b.	Permissive	
c.	Prohibitory	
d.	All of the above.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Analysis	

	5.	Which one of the following is NOT true of a suit brought under criminal law?
a.	It must be brought by the government.	
b.	It may be a state or a federal case.	
c.	Proof of guilt must be "by preponderance of the evidence."	
d.	Conviction may result in imprisonment.	

ANS:	C	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Analysis	

	6.	Sources of federal law include all but which of the following?
a.	Rules of administrative agencies.	
b.	Decisions of federal courts.	
c.	Executive orders of the President.	
d.	Hearings before the Senate.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	7.	If conflicts exist, which of the following sources of law would be paramount?
a.	A state constitution.	
b.	A federal administrative rule.	
c.	A municipal resolution.	
d.	A state statute.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	8.	The separation of powers involves:
a.	the federal judiciary.	
b.	the Congress.	
c.	the executive branch.	
d.	All of the above.	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	9.	Glenna has been charged with arson of a storage building. The prosecutor must prove Glenna’s guilt:
a.	by a preponderance of the evidence.	
b.	by the greater weight of the evidence.	
c.	beyond a reasonable doubt.	
d.	beyond shadow of a doubt.	

ANS:	C	DIF:	Difficulty: Easy		
NAT:	BUSPROG: Reflective Thinking	STA:	AICPA: BB-Legal	
TOP:	A-Head: Classification of Law	KEY:	Bloom's: Comprehension

	10.	The President of the United States has the authority to issue laws, which are called:
a.	Restatements of law.	
b.	executive orders.	
c.	maxims.	
d.	codes.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	11.	An example of private law is:
a.	business law.	
b.	administrative law.	
c.	criminal law.	
d.	All of the above.	

ANS:	A	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Knowledge	

	12.	The courts in common law systems have developed a body of law that serves as precedent for determination of later controversies. This is called:
a.	judge-made law.	
b.	case law.	
c.	common law.	
d.	All of the above.	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	13.	The decision of an equity court is called a(n):
a.	judgment.	
b.	decree.	
c.	stare decisis.	
d.	injunction.	

ANS:	B	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	14.	The branch of public law that deals with the various regulatory functions and activities of agencies of the government is:
a.	criminal law.	
b.	administrative law.	
c.	Constitutional law.	
d.	substantive law.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	15.	The common law system is used in:
a.	Australia.	
b.	Latin America.	
c.	England.	
d.	Australia and England.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	16.	A constitution:
a.	restricts powers of government.	
b.	specifically enumerates certain liberties of the people.	
c.	establishes governmental structure.	
d.	All of the above.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	17.	The person who files or commences a civil lawsuit is the:
a.	plaintiff.	
b.	defendant.	
c.	prosecuting attorney.	
d.	attorney general.	

ANS:	A	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		
TOP:	A-Head: Classification of Law | A-Head: Legal Analysis	KEY:	Bloom's: Comprehension

	18.	Because of the increasing complexity of the social, economic, and industrial life of the nation, the scope of __________ has expanded enormously.
a.	common law	
b.	administrative law	
c.	procedural law	
d.	equity	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	19.	A court order requiring that a person do or refrain from doing a particular act is known as a(n):
a.	injunction.	
b.	maxim.	
c.	statute.	
d.	executive order.	

ANS:	A	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	20.	The three distinct and independent branches of the United States government are:
a.	the executive branch, the House of Representatives, and the U.S. Senate.	
b.	the federal judiciary, the House of Representatives, and the U.S. Senate.	
c.	the federal judiciary, the Congress, and the executive branch.	
d.	the state government, the federal government, and local government.	

ANS:	C	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	21.	Which of the following is a true statement?
a.	A treaty signed by the president and approved by the Senate has the legal force of a federal statute.	
b.	A federal statute may supersede a prior treaty.	
c.	All of these are correct.	
d.	None of these are correct.	

ANS:	C	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	22.	The __________ are orderly compilations of the general common law of the United States, prepared by a distinguished group of lawyers, judges, and law teachers.
a.	statutes of frauds	
b.	Uniform Commercial Code Articles	
c.	Maxims	
d.	Restatements of law	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	23.	The sources of law in the American legal system include:
a.	state administrative orders.	
b.	executive orders.	
c.	ordinances.	
d.	All of these are correct.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	24.	In which of the following ways does a state constitution differ from the U.S. Constitution?
a.	State constitutions are often more restrictive of rights than the U.S. Constitution.	
b.	A state constitution can guarantee rights beyond those provided in the U.S. Constitution.	
c.	A state constitution is generally amended less frequently than the U.S. Constitution.	
d.	State constitutions tend to be more general than the U.S. Constitution.	

ANS:	B	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	25.	Which of the following is/are characteristic(s) of a common law legal system?
a.	A common law system relies heavily on the adversary method for handling disputes.	
b.	A common law system relies heavily on inquisitorial method for settling disputes.	
c.	A common law system relies heavily on comprehensive statutes called codes.	
d.	All of these are correct.	

ANS:	A	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	26.	The source of law best suited to making drastic or comprehensive change is:
a.	common law.	
b.	the federal court system.	
c.	statutes.	
d.	state court decisions.	

ANS:	C	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	27.	Which of the following is NOT considered to be an equitable remedy?
a.	Specific performance.	
b.	Injunction.	
c.	Reformation.	
d.	Money damages.	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	28.	The National Conference of Commissioners on Uniform State Laws:
a.	was created by President Bill Clinton to study and report on the Uniform Commercial Code.	
b.	is another name for the American Law Institute.	
c.	has drafted only five uniform laws: the UCC, the Uniform Partnership Act, the Uniform Limited Partnership Act, the Uniform Probate Code, and the Model Business Corporation Act.	
d.	has drafted over 250 uniform laws.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	29.	In reading the title of a case, Smith v. Jones:
a.	you can determine that Smith is the plaintiff.	
b.	you can determine that Jones is the plaintiff.	
c.	the determination of who is the plaintiff depends on the level of the court at which the case is being heard.	
d.	it is not always possible to determine from the case title which party is the plaintiff.	

ANS:	D	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Analysis	

	30.	The doctrine of stare decisis means that:
a.	the common law has not been able to evolve in a stable and predictable manner.	
b.	decisions can be overruled.	
c.	courts adhere to and rely on rules of law that they or superior courts relied on in similar decisions.	
d.	courts are not allowed to correct erroneous decisions or to choose among conflicting precedents.	

ANS:	C	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	31.	Which of the following is correct with regard to treaties in the United States legal system?
a.	They have no legal effect.	
b.	Under the U.S. Constitution, they must be signed by the President and approved by the U.S. Senate.	
c.	They have no effect on business law.	
d.	They must be approved by the states before they have the force of law.	

ANS:	B	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	32.	The category of law that creates, defines, and regulates legal rights and obligations is known as:
a.	substantive law.	
b.	procedural law.	
c.	constitutional law.	
d.	criminal law.	

ANS:	A	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Knowledge	

	33.	Which of the following is correct regarding the English courts of equity?
a.	They were presided over by a chancellor.	
b.	They could only award money damages.	
c.	They could issue a decree ordering a defendant to do or to refrain from doing a specific act.	
d.	Both (a) and (c).	

ANS:	D	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Knowledge	

	34.	The party who files an appeal is called the:
a.	plaintiff.	
b.	appellant.	
c.	appellee.	
d.	defendant.	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Comprehension

	35.	The __________ is composed of a distinguished group of lawyers, judges, and law teachers who assumed the task of preparing "an orderly restatement of the general common law of the United States."
a.	New York City Bar	
b.	American Law Institute	
c.	National Conference of Commissioners on Uniform State Laws	
d.	National Reporter System	

ANS:	B	DIF:	Difficulty: Easy		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Comprehension

	36.	A decision of an appeals court in Minnesota would be recorded in the:
a.	state’s statutory code.	
b.	Minnesota administrative code.	
c.	North Western regional reporter.	
d.	Federal Supplement.	

ANS:	C	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Application	

	37.	Which of the following is NOT ordinarily a part of a reported opinion?
a.	The essential facts.	
b.	The names of the attorneys representing the parties.	
c.	What pleadings are material to the issues.	
d.	The application of legal principles involved in the case.	

ANS:	B	DIF:	Difficulty: Moderate		NAT:	BUSPROG: Analytic
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Analysis	

ESSAY

	1.	List and discuss the specific information provided in the reported opinion in a court case in the common law system of the United States.

ANS:	
Normally, the reported opinion in a case provides the following specific information that can be used to understand and apply legal analysis: (a) The essential facts, the nature of the action, the parties, what happened to bring about the controversy, what happened in the lower court, and what pleadings are material to the issues; (b) the issues of law or fact; (c) the legal principles involved; (d) the application of these principles; and (e) the decision of the court.

DIF:	Difficulty: Moderate		
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Legal Analysis
KEY:	Bloom's: Synthesis	

	2.	Discuss the concepts of “right” and “duty” under the law.

ANS:	
A “right” is the capacity of a person, with the help of the law, to require someone else to perform, or to refrain from performing, a certain act. A correlative concept is duty. A “duty” is a legally imposed obligation to perform or to refrain from performing a certain act. When one person has a right, another person has a corresponding duty.

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Classification of Law
KEY:	Bloom's: Analysis	

	3.	What is stare decisis? Discuss its role in the American legal system.

ANS:	
Stare decisis is the principle that, in reaching decisions, courts should apply rules they or superior courts relied on and applied in prior, substantially similar cases. This principle is followed in the American legal system, and it allows the common law to evolve in a stable and predictable manner. Stare decisis does not preclude courts from correcting erroneous decisions or from choosing among conflicting precedents.

DIF:	Difficulty: Moderate		
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Critical Thinking	TOP:	A-Head: Sources of Law
KEY:	Bloom's: Synthesis	

	4.	What are the various kinds or sources of American law? Discuss how these various types of law interrelate to form the system of law in the United States.

ANS:	
The sources of American law include the U.S. Constitution and the constitutions of the various states; judicial decisions in precedent-setting cases, the common law that has developed over centuries; statutes passed by Congress and by state legislatures; ordinances passed by local legislative bodies, such as city councils; treaties; executive orders; and administrative rules or regulations adopted by federal and state administrative agencies. The U.S. Constitution is the supreme law of the land, and federal statutes and treaties are paramount to state constitutions and statutes, federal administrative law, and federal common law. State constitutions are the paramount law of the state. They cannot deprive citizens of federal constitutional rights, but can guarantee rights beyond those provided in the U.S. Constitution. Subordinate to the state constitution are state and local legislative enactments and case law developed by the state judiciary. State administrative rules and regulations are subordinate to the state statutes.

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Synthesis	

	5.	What is law? Discuss the various definitions of law by legal scholars. What is the relationship between law and morality and between law and justice?

ANS:	
Numerous philosophers and jurists have attempted to define law. American jurists Oliver Wendell Holmes and Benjamin Cardozo defined law as predictions of the way a court will decide specific legal questions. On the other hand, the English jurist Blackstone defined law as a "rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong." Roscoe Pound, a distinguished American jurist, described law as having multiple meanings, including the legal order, the aggregate of laws or legal precepts, and the judicial process. 

Law and morality can be viewed as intersecting circles, but they are not concentric. They include some common area, but they are not exactly the same. Law and justice represent separate and distinct concepts. Without law, there can be no justice, but law is no guarantee of justice.

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Synthesis	

	6.	You have just been asked to serve as a host for a visitor from France who is very interested in the American legal system and the formation of law in the United States. How would you explain the system of law in this country to your guest?

ANS:	
France has a civil law system, which is based upon the Napoleonic Code, whereas the U.S. has a common law system, which is based on the English common law. The common law depends upon the judiciary as a major source of law and on the adversary system of settling disputes. In an adversary system, the parties, not the court, must initiate and conduct litigation. The courts in a common law system develop a body of law that serves as precedent for determining later disputes. The strength of common law is its ability to adapt to change without losing its sense of direction.

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Legal		TOP:	A-Head: Sources of Law
KEY:	Bloom's: Analysis	

	7.	Identify three specific functions of law.

ANS:	
The primary function of law is to maintain stability in the social, political, and economic system while simultaneously permitting change. A second essential function of law is to protect the private ownership of property and to assist in the making of contracts relating to exchanges of property and services. A third function of law is preservation of the state.

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Legal		TOP:	A-Head: Nature of Law
KEY:	Bloom's: Synthesis	

	8.	Explain how the terms civil law and civil law system differ.

ANS:	
“Civil law systems” depend on comprehensive legislative enactments called codes, and the inquisitorial system of determining disputes. "Civil law" defines duties, the violation of which constitutes a wrong against the party injured by the violation.

The main alternative to “civil law system” would be “common law sytem,” while the opposite of “civil law” is “criminal law.”

DIF:	Difficulty: Challenging	
NAT:	BUSPROG: Reflective Thinking | BUSPROG: Communication	
STA:	AICPA: BB-Legal		TOP:	A-Head: Classification of Law
KEY:	Bloom's: Analysis