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Business Law Chapter 1 Study Guide
True/False
Indicate whether the statement is true or false.
1. The three branches of the U.S. government are known as the legislative,
executive, and administrative branches.
2. The U.S. Supreme Court justices are selected by the states.
3. Courts can make laws by deciding whether or not laws conflict with the
Constitution.
4. When unethical business practices are discovered, new laws are often
created to hold all businesses more accountable.
5. The duties and requirements for serving in state and local governments are
determined by the federal government.
6. The main sources of the law include constitutional law, commerce law,
statutes, and civil law.
7. The 19th Amendment gave women the right to vote.
8. Everyone in the United States must follow any treaty that the United
States has signed.
9. Civil law is enacted to govern the relationships between two parties and
usually involves the government.
10. Civil litigation usually begins with pleadings and a pretrial hearing.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
11. A set of laws made by the courts based on the customs and traditions of
the people is called
a. the Roman Code.
b. administrative law.
c. common law.
d. moral law.
12. Decisions made by the highest court of any state follow the law of
a. original jurisdiction.
c. citation.
b. prosecution.
d. precedent.
13. One difference between criminal and civil procedure is
a. the judge can decide who has the right to due process and who does
not.
b. in civil cases the procedures must be followed exactly, while in
criminal cases they do not.
c. in civil cases the defendants have the right to due process, but in
criminal cases they do not.
d. in criminal cases the procedures must be followed exactly, while in
civil cases they do not.
14. Young people who appear before a juvenile court have
a. the right to an open trial in front of the jury.
b. the right to request to be tried as an adult.
c. no right to a trial and no right to be released on bail.
d. a right to a trial and a right to be released on bail.
15. Article IV of the U.S. Constitution is very important to American
businesses because
a. many companies do business in more than one state.
b. it creates the opportunity for businesses to have freedom of speech.
c. it creates the system of checks and balances that companies must
follow.
d. many companies plan on adjudicating civil cases across state lines.
16. An appeal in a civil case can
a. be based only on the arguments made during arraignment.
b. be based only on a legal mistake by the judge.
c. lead to a retrial at the appellate level.
d. lead to fines or imprisonment.
17. One advantage of mediation is
a. the parties are kept apart from each other.
b. the final decision remains in the hands of the parties.
c. the final decision is in the hands of an objective third party.
d. it can actually highlight the disagreement between the parties.
18. A case that has been decided by a state supreme court may be appealed to
the
a. general trial court.
c. U.S. Supreme Court.
b. special U.S. court.
d. intermediate appellate court.
19. In the United States, it is everyone’s responsibility to
a. share the same ethics.
c. create the laws that govern us.
b. be compassionate about others. d. obey the law.
20. Statutory laws are signed by the President or Governor after they are
passed by the
a. judges.
c. legislators.
b. commerce board.
d. regulatory agencies.
Completion
Complete each statement.
21. In a(n) ____________________ case, the indictment and arraignment take
place before the trial and sentencing.
22. The heart of the ____________________ is empathy, which means
putting yourself in another’s situation.
23. When people are arrested, they must be informed of their
____________________, including what crimes they are being arrested
for.
24. Another name for bringing a civil lawsuit to court is called
____________________.
25. The first amendments to the U.S. Constitution, which protect our
individual freedom, are called the ____________________.
26. ____________________ are laws specifically passed by a governing body
created for that purpose.
27. The first three Articles of the Constitution form a system of checks and
balances so that one branch of the government has no more
____________________ than another.
28. According to the principle of ____________________ a person cannot be
tried twice for the same crime in the same court.
29. In a civil case there are two types of ____________________: one is a
payment of money and the other is some other action by the defendant.
Matching
Match each term with its definition.
a. substantive law
f.
b. appellate court
g.
c. alternative dispute resolution h.
d. constitution
i.
e. precedent
j.
general trial courts
ethical
procedural law
jurisdiction
administrative law
30. A document that spells out the principles by which the country’s, state’s,
or local government operates
31. Rules and procedures established by regulatory agencies
32. Has two major divisions: civil and criminal
33. Tells us what the law is, not how the law works
34. State courts located in each county handling criminal and civil cases
35. A requirement for a judge to follow an earlier court decision when
deciding a case with similar circumstances
36. Courts that review cases from lower courts
37. Changes in these standards often lead to new laws
38. Federal courts have this over patent and copyright cases
39. A substitute for a lawsuit used to resolve disagreements outside the court
system
Short Answer
40. Explain the difference between morals and ethics. Describe four ethical
character traits and explain the ways ethical decisions are made. Then
discuss the relationship between ethics and the law and why laws are
necessary. Include an example of an unethical business practice.