The Legal Environment of Business Text and Cases 11th Edition by Frank B. Cross test bank

20. Administrative law plays a relatively insignificant role in the regulatory environment of business.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
21. The doctrines and principles announced in court decisions govern all areas not covered by statutory or administrative law.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
22. The common law is a body of law developed from judicial decisions.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
23. A court should overturn its precedents unless there is a compelling reason not to.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
24. Controlling precedents are binding authorities.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
25. A case of first impression is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
26. Often, more than one rule of law will be applicable to a case.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
27. There is one right answer to every legal question.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
28. Because courts of law and equity have merged, the principles of equity are no longer applied.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
29. With respect to the study of jurisprudence, there is only one school of legal thought.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
30. Civil law has to do with wrongs committed against society for which society demands redress.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
31. International law derives from a variety of sources, including the laws of individual nations.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
32. In a criminal case, the object is to obtain a remedy.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
33. Courts will not grant an equitable remedy unless the remedy at law is adequate.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
34. Rescission is the cancellation of a contractual obligation.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
35. The basis of a civil law system is a written code of laws.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
Multiple Choice

 
36. Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm’s managers, legal concepts can be useful for Power’s
 
a. 
accounting and finance manager.

 
b. 
human resources manager.

 
c. 
marketing manager.

 
d. 
all of the choices.

 
ANSWER:  
d


 
37. Primary sources of law include
 
a. 
legal encyclopedias.

 
b. 
official comments to statutes.

 
c. 
case law.

 
d. 
legal treatises.

 
ANSWER:  
c


 
38. Secondary sources of law include