Test Bank For The Legal and Regulatory Environment of Business Marisa Pagnattaro 18 Edition

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Test Bank For The Legal and Regulatory Environment of Business Marisa Pagnattaro 18 Edition

TABLE OF CONTENTS

Part ONE Introduction: Legal Foundations for Business
1 Law as a Foundation for Business
2 The Role of Ethics in Decision Making
3 The Court System
4 Litigation
5 Alternative Dispute Resolution
6 The Constitution
Part TWO Basic Legal Principles
7 The Property System
8 Contract Formation
9 Contractual Performance and Breach
10 Torts Affecting Business
11 Intellectual Property
12 International Law
13 Criminal Law and Business
14 Business Organizations
Part THREE The Regulatory Landscape for Business
15 The Regulatory Process
16 Regulating Competition—Antitrust Laws
17 Financial and Securities Regulations
18 Privacy and Consumer Protection
19 Environmental Regulation and Resource Sustainability
Part FOUR The Employer-Employee Relationship
20 Discrimination in Employment
21 Employment Laws
22 Labor–Management Relationship

The Legal and Regulatory Environment of Business, 18e (Pagnattaro)

Chapter 1   Law as a Foundation for Business

1) Law is considered to be a formal social force.

2) The first known written set of laws was the Code of King Solomon.

3) Rule-of-law nations adopt laws supporting the private market because it is in everyone’s interest, including the lawmakers’.

4) Common property applies to public resources owned by the government (or “state”) like roads, public buildings, public lands, and monuments.

5) Tort law compensates owners whose resources are wrongfully injured by the acts of others.

6) Regulatory law forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources.

7) Jurisprudence is the philosophy of law.

8) Natural law theory asserts that law contains universal moral principles.

9) The basis of sociological jurisprudence is that contemporary law should focus on legal principles that have survived the test of time in a nation.

10) Jurisprudence refers to the general body of law interpretations by judges as different from legislation passed by legislators.

11) Legal realism is the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it.

12) Those countries that were colonized by England, such as The United Kingdom, Canada, the United States, and India, follow the civil law.

13) The common law arose in the eleventh and twelfth centuries as the English monarchy appointed royal judges to ride circuits around the countryside and to resolve conflicts in the name of the king (or queen).

14) Louisiana is not the only U.S. state that follows a partial civil law system due to its historical ties with France, a civil law nation.

15) The common law relies more on legislation than judicial decisions to determine what the law is.

16) In tort law, a government official represents society, or “the people,” and it is the responsibility of the official to seek justice to achieve the ends of society.

17) Property law involves the recognition of an exclusive right in only tangible resources.

18) Contract law often but not always requires actual injury to the owner’s resources.

19) Judges in civil law courts find themselves obligated to follow precedents.

20) In a common law legal system, a judge would not use stare decisis to make current judicial decisions.

21) In the United States, there is only a federal court system to hear and decide legal issues.

22) In constitutional law, originalism is synonymous with constitutional relativity.

23) Legislation passed by the Congress is called an ordinance.

24) The Second Amendment to the Constitution holds that “No State shall . . . deprive any person of life, liberty or property without due process of law.”

25) A zoning board is a state or local agency that helps plan local development by specifying where businesses can be located.

26) Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis.

27) Judges in future cases are not as likely to follow the dicta in prior cases as they are the holdings.

28) Under stare decisis, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases.

29) If a dispute arises involving the rule of law in multiple states, judges will need to apply conflict of law rules to determine which state’s substantive rules of law to use.

30) With reference to the hierarchy of sources of law, case law prevails over local ordinances.

31) The Fourteenth Amendment to the Constitution recognizes that the law is enforced by taking a person’s life, freedom, or the resources that he or she owns.

32) Whether it is stated in the contract or not, when a breach of contract occurs, the injured party will usually recover his or her attorney fees as part of compensatory damages.

33) The single largest volume of lawsuits heard by courts today, especially the federal courts, involves one business suing another business for breach of contract.

34) Tort law helps protect property boundaries by providing compensation when someone wrongfully crosses such boundaries.

35) In addition to compensatory damages, breach-of-contract cases may award punitive damages, when the breaching party knew or had reason to know that special circumstances existed that would cause the other party to suffer additional losses if the contract were breached.

36) A strict liability tort requires the plaintiff to show that a defendant injured what was proper to a plaintiff through unreasonable behavior.

37) Sanctions for breach of contract include death sentences.

38) The threat of sanctions usually results in compliance with the requirements of law.

39) Corporate governance rules do not safeguard the property interests that owners have in corporations.

40) Corporate governance can fail even when corporate managers do nothing illegal.

41) Article 6 of the Treaty on European Union, called the Maastricht Treaty, says the EU is “founded” on ________.

A) specific performance

B) the law of eminent domain

C) stare decisis

D) the rule of law

E) constitutional relativity

42) Which of the following statements is true of the rule of law?

A) Rule-of-law nations adopt laws supporting the private market because it is in everyone’s interest, including the lawmakers’.

B) Under the rule of law, laws that are made are not generally and equally applicable.

C) Its only aim is to prevent special interest groups to benefit at the expense of others.

D) It adopts laws supporting the growth of the public markets over private markets, increasing economic growth of nations.

E) It removes the power of the courts and creates an autocratic regime where businesses can freely invest and economic growth is high.

43) ________ property is an ownership fence, which applies to resources like land that more than one individual owns jointly.

A) Private

B) Civil

C) Public

D) Common

E) Tort

44) ________ property is a resource that you own as an individual.

A) Public

B) Private

C) Shared

D) Communal

E) Government

45) A property-based legal system ________.

A) is unimportant in Western legal systems

B) believes that law is simply the commands of the state backed up by force and punishments

C) is contrary to the philosophy of natural law

D) does not allow for the transfer of private resources

E) allows people to exclude others from interfering with what their efforts produce

46) ________ can be thought of as the central element providing the basis for Western legal systems.

A) Dictum

B) Morals

C) Contract

D) Property

E) Common law

47) In the context of property, contract law________.

A) enables an owner to exchange resources, especially at a future date

B) compensates owners whose resources are wrongfully harmed by the actions of others

C) punishes those who harm an owner’s resources in particular ways

D) identifies how individuals can own and use private resources in groups

E) protects ownership and sets limits on private resource use

48) ________ law both protects ownership and sets limits on private resource use.

A) Tort

B) Antitrust

C) Securities

D) Regulatory

E) Contract

49) The law that provides protection to the owners of a business entity from the managers who run it for them is called ________.

A) corporate governance

B) criminal law

C) constitutional law

D) conflicts of law

E) civil law

50) ________ law forbids owners of businesses from monopolizing classes of resources and sets rules for how businesses can compete to obtain ownership in new resources.

A) Environmental law

B) Antitrust law

C) Securities law

D) Antidiscrimination law

E) Labor law

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