Test Bank Chapter.2 Sources of the Law

Business Law with UCC Applications, 15e (Sukys)

Chapter 2 Sources of the Law

1) Ideally, the primary objectives of the law, such as harmony, stability, and justice within a society, should be balanced equally at all times.

Difficulty: 1 Easy

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-01 List the objectives of the law.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

2) The law is a delicate balancing act between the power of the state and the rights of individuals.

Difficulty: 1 Easy

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-01 List the objectives of the law.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

3) Trade-offs rarely occur within the law.

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-01 List the objectives of the law.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

4) The language of the law can become a hindrance instead of assisting in the execution of the law.

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5) In his book, Law and History, Professor Anthony Chase writes that the balance between the words and the interpretation of the law is a strength of the law, and not a weakness.

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

6) According to the John M. Keynes' Uncertainty Principle, intent and results almost never coincide in economics, but when they do it is merely a matter of luck.

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

7) The Articles of Confederation created a strong national government.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

8) The principle of the separation of powers divides power between the national and United Nations governments.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

9) Article III of the U.S. Constitution creates the U.S. Supreme Court and other lower courts.

Difficulty: 1 Easy

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

10) The original intent of the Bill of Rights was to protect the rights of slave owners among the southern colonies.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

11) The Electoral College was a political compromise created so that the President would be chosen by electors, rather than directly by the people.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

12) In the "Opening Case," current President Donald Trump signed an Executive Order in August 2017 ending the DACA program created by former President Barack Obama in June 2012.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

13) California's introduction of SB 54 to declare California a "Sanctuary State" may involve a clash with the federal government under the Supremacy Clause of the U.S. Constitution.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

14) An executive memorandum is a device by which the president can act on his own without having to resort to the somewhat cumbersome process of going through Congress.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

15) A compilation of all the statutes of a particular state or the federal government is known as a code.

Difficulty: 1 Easy

Topic: Statutory Law

Learning Objective: 02-05 Explain the role of statutory law in the legal system.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

16) Courts today rely on precedent according to the principle of stare precedentus, which means "let the decision stand."

Difficulty: 1 Easy

Topic: Court Decisions

Learning Objective: 02-07 Describe how the principle of stare decisis provides stability within the law.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

17) Binding precedent is a precedent that courts must follow.

Difficulty: 2 Medium

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

18) Stare decisis means "let the decision stand."

Difficulty: 1 Easy

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

19) Statutory interpretation is the process of determining the constitutionality of various legislative statutes, administrative regulations, or executive actions.

Difficulty: 2 Medium

Topic: Court Decisions

Learning Objective: 02-09 Account for the legislature's need to establish administrative agencies.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

20) To help prevent any conflict of interest that could arise from overlapping responsibilities of creating and enforcing rules and regulations, Congress passed the federal Administrative Procedures Act (APA).

Difficulty: 2 Medium

Topic: Administrative Regulations

Learning Objective: 02-10 Clarify the nature of the deep state within the American political and legal system.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

21) The law is a delicate balancing act. This is evident because:

A) political parties are always competing for power.

B) individuals require restraint to prevent chaos.

C) one corporation's contractual rights may be upheld, while another's are struck down.

D) one company may overcharge consumers.

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-01 List the objectives of the law.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

22) The law has built-in ________—on the one hand, a person discovers the ________ of the law when he understands the law's actual intent, while on the other hand, if a person holds to the ________ of the law the person may have missed the true meaning.

A) dualities; spirit; letter

B) dualities; words; interpretation

C) dualities; abstract; concrete

D) dualities; uncertainty; reason

Difficulty: 2 Medium

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

23) Lillian, who now lives in Oregon, was charged by an Idaho court with molesting several children while she worked for Idaho Social Services. Lillian could be brought back to Idaho for trial based on:

A) the Uniform Commercial Code.

B) persuasive precedent.

C) the Third Amendment to the U.S. Constitution.

D) Article IV of the U.S. Constitution.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

24) Outside of the Bill of Rights, what is widely recognized as the most important amendment to the U.S. Constitution?

A) 13th Amendment which abolished slavery

B) 18th Amendment which gave 18-year-olds the right to vote

C) 14th Amendment's due process and equal protection

D) 21st Amendment which gave women the right to vote

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

25) In 2017, when President Trump rescinded former President Obama's 2012 DACA order, opponents of Mr. Trump claimed that the rescission order violated the: ________. (See The Opening Case, Round 1).

A) Fourteenth Amendment's Rights and Privileges clause

B) First Amendment's Equal Protection clause

C) Fifth Amendment's Due Process Clause

D) First Amendment's Freedom of Speech clause

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

26) ________ is the process by which the courts decide that a federal statute must take precedence over a state statute.

A) Stare Decisis

B) Revision

C) Uniformity

D) Preemption

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

27) ________ includes the freedom of the press, freedom of speech, freedom of assembly, and freedom of religion.

A) The Fifth Amendment

B) The Fourth Amendment

C) The Articles of Confederation

D) The First Amendment

Difficulty: 1 Easy

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

28) According to ________, the third type of ________ in the law exists between ________ principles and ________ situations.

A) Anthony Chase; duality; abstract; concrete

B) Anthony Chase; uncertainty; abstract; concrete

C) Anthony Chase; duality; abstract; uncertain

D) John Maynard Keynes; duality; abstract; concrete

Difficulty: 3 Hard

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) If Texas signed a trade agreement with Mexico which established tariffs and importing conditions for goods made in Mexico, the U.S. Constitutional objection to Texas' actions would be based upon the:

A) principle of preemption.

B) doctrine of devolution.

C) principle of separation.

D) principle of supremacy.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

30) ________ subdivided into groupings of statutes that deal with a particular area of the law are called ________.

A) Codes; titles

B) Codes; articles

C) Titles; chapters

D) Codes; divisions

Difficulty: 2 Medium

Topic: Statutory Law

Learning Objective: 02-05 Explain the role of statutory law in the legal system.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

31) The ________ is a unified set of statutes designed to govern almost all commercial transactions.

A) Uniform Common Law Code

B) Uniform Commercial Code

C) Uniform Civil Code

D) Uniform State Code

Difficulty: 1 Easy

Topic: Statutory Law

Learning Objective: 02-06 Defend the need to set up a system of uniform laws.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

32) The ________ created ________ dealing with the sale and licensing of digital information, and the ________ dealing with the enforceability of cyber-contracts.

A) NCCUSL; Cyber-Commerce; UCITA

B) NCCUSL; UETA; UCITA

C) NCCUSL; UCITA; UETA

D) UCITA; NCCUSL; UETA

Difficulty: 1 Easy

Topic: Statutory Law

Learning Objective: 02-06 Defend the need to set up a system of uniform laws.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

33) ________ comes from the attempts of early English kings to establish a body of law for all the courts in the kingdom.

A) Statutes

B) Amendments

C) A constitution

D) The common law

Difficulty: 1 Easy

Topic: Court Decisions

Learning Objective: 02-07 Describe how the principle of stare decisis provides stability within the law.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

34) Generally, if there are no modern court decisions or statutes dealing with an issue in dispute, the court hearing the case will:

A) apply common law.

B) inevitably devolve.

C) be unable to decide the case.

D) ask the U.S. Supreme Court for an advisory opinion.

Difficulty: 2 Medium

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

35) Generally, if the Florida Supreme Court issues a decision, that decision would be considered:

A) persuasive precedent in all Florida state courts.

B) binding precedent in all Florida state courts.

C) binding in neighboring state courts.

D) binding precedent in all Florida federal courts.

Difficulty: 2 Medium

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

36) Under the doctrine of ________, courts determine the constitutionality of statutes, regulations or executive actions and must rely upon any ________ in their analysis.

A) statutory interpretation; persuasive precedents

B) statutory interpretation; binding precedents

C) judicial review; persuasive precedents

D) judicial review; binding precedents

Difficulty: 2 Medium

Topic: Statutory Law

Learning Objective: 02-09 Account for the legislature's need to establish administrative agencies.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

37) A business asks a court to interpret the way in which a newly enacted shoplifter detention statute will be applied if the business, at some future point, detains a suspected shoplifter. The court may:

A) issue an advisory memorandum.

B) convene a conference of business and consumer representatives.

C) not interpret the statute until a lawsuit is filed challenging the statute.

D) ask the legislature to issue an advisory memorandum.

Difficulty: 2 Medium

Topic: Court Decisions

Learning Objective: 02-09 Account for the legislature's need to establish administrative agencies.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

38) A ________ is a network of interacting conditions which ________ one another, while at the same time ________ change from agents outside and inside the system.

A) legal ecosystem; adjust to; reinforces

B) complex adaptive system; reinforce; adjusts to

C) legal ecosystem; reinforce; adjusting to

D) complex adaptive system; adjusts to; reinforces

Difficulty: 3 Hard

Topic: Administrative Regulations

Learning Objective: 02-10 Clarify the nature of the deep state within the American political and legal system.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

39) A new administrative regulation allowed the Social Security Administration to charge women for Social Security cards, yet enabled men to obtain the cards for free. A lawsuit was filed challenging the constitutionality of this new regulation. If you were a justice on the Supreme Court you would most likely:

A) review common law to see whether a precedent exists that violates the Fourth Amendment.

B) use statutory interpretation to clarify the law based on First Amendment considerations.

C) rule the regulation unconstitutional because it violates the Equal Protection clause.

D) let the regulation stand in the interest of justice and equity.

Difficulty: 3 Hard

Topic: Court Decisions

Learning Objective: 02-09 Account for the legislature's need to establish administrative agencies.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

40) According to the Administrative Procedures Act, a proposed federal regulation must first be published in the ________ with adequate time allowed for public comments.

A) Administrative Register

B) Code of Federal Regulations

C) Uniform Commercial Code

D) Modern Federal Register

Difficulty: 1 Easy

Topic: Administrative Regulations

Learning Objective: 02-10 Clarify the nature of the deep state within the American political and legal system.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

41) Stanley runs a business in Middletown. He knows bribing an officer in return for favorable duties is a crime. However, he avoids "bribery" by sending "gifts" to the sheriff as a token of appreciation for the officer's services to the town. The sheriff is impressed by Stanley's act and ensures that his business is "well protected." Analyze the situation.

Difficulty: 3 Hard

Topic: The Purpose and the Operation of the Law

Learning Objective: 02-02 Clarify the duality of the law.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

42) Small towns want to restrict the speed of trains passing through the towns to 20 miles per hour. The Federal Railroad Administration allows trains to travel through the towns at up to 70 miles per hour. Discuss whether or not the towns may restrict the speed of the trains.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) A local city council enacts an ordinance that prohibits aircraft from taking off before 7:00 A.M., disturbing the city's residents. An airline whose schedule is subject to federal regulation challenges this ordinance. Discuss the legal basis of this challenge and the likely outcome.

Difficulty: 2 Medium

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

44) A Massachusetts law prohibited governmental agencies of Massachusetts from buying goods from companies that conducted business with Myanmar. If the U.S. Supreme Court were to strike down this law, what might be the basis?

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

45) A state law restricts the sulfur dioxide emissions from electric generation plants more severely than those of the federal Clean Air Act. Must an electric generation plant obey the state law or may it follow the federal statute?

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-03 Outline the content of the U.S. Constitution.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

46) Pierce was arrested under a city ordinance that made distributing handbills on the city streets a crime. Pierce argued that the U.S. Constitution guaranteed his right to free speech under the First Amendment. The local prosecutor argued that the First Amendment to the U.S. Constitution did not apply to state laws. Was the prosecutor correct? Explain.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

47) Matrix Corp. is fined by the Occupational Safety and Health Administration for violations of workplace safety regulations. Matrix challenges the fine on the basis that it was not allowed to have a jury trial before being fined. What resolution will result?

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

48) A court decides that a state agency, rather than a federal one, can control what government employees, in the course of performing their duties, are permitted to talk or write about in relation to official policies, procedures, and programs. Such a prohibition might appear to violate the employee's Constitutional right of free speech as a U.S. citizen. Analyze.

Difficulty: 3 Hard

Topic: Constitutional Law

Learning Objective: 02-04 Define and explain the use of executive orders.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

49) In a case presented to a Philadelphia court, the judge and the jury realize that no specific statute is applicable and decide to refer to previously recorded legal decisions made in similar cases. Discuss.

Difficulty: 3 Hard

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

50) Helen, a 15-year-old citizen of Illinois, was about to go to the doctor for an abortion when the Supreme Court of Michigan ruled that minors could not receive an abortion without parental consent. What effect might the Michigan Supreme Court's decision have on Helen?

Difficulty: 3 Hard

Topic: Court Decisions

Learning Objective: 02-08 Differentiate between statutory interpretation and judicial review.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation