Business Law Chapter 1 Exam

The Nature of Law

True / False Questions 1. The U.S. Constitution recognizes the states' power to make law in certain areas.
True False 2. Uniform acts are model statutes drafted by private bodies of lawyers and/or scholars; they become law only after legislature enacts them.
True False 3. The Restatements usually state binding common law rules, promulgated by the American Law Institute.
True False 4. Common law is a state law and hence only the state courts can apply the same.
True False 5. If an international treaty signed in 1997 conflicts with a statute which was promulgated by federal legislature in 2007 and the subject matter of conflict is purely domestic in nature, the international treaty being the supreme law of land should prevail.
True False 6. Both civil and criminal liability can sometimes co-exist and can be claimed at the same time.
True False 7. A State Homicide statute is an example of a Substantive law, Criminal Law and Public Law.
True False

8. Though formal natural law defense is not recognized in court, judges do take natural law oriented views while interpreting a Statute.
True False 9. American legal realists distinguish between the "law in the books" and the "law in action" and they recognize law as the behavior of public officials (mainly judges) as they deal with matters before the legal system.
True False 10. The "Critical Legal Studies" movement regards the law as the product of political calculation and class biases of lawmakers.
True False 11. The State Statute says, "a driver operating a motor vehicle on road above 60 miles per hour must pay a fine of $50." Ann was driving her car at 65 miles per hour for which she was arrested, but the fact could not be proven in Court of law. She will be required to pay the fine as she had exceeded the speed limit.
True False 12. Doctrine of Stare Decisis states that like cases should be decided alike.
True False 13. Courts always interpret statutes by following the plain meaning of their words.
True False 14. The doctrine of standing to sue requires that, in order to be able to mount a civil suit, a plaintiff must have some direct and considerable stake in the outcome of the suit.
True False

15. Law does not allow parties to advance to the Court of Law seeking judgment on controversial issues that have not yet risen between them.
True False

Multiple Choice Questions 16. Administrative agencies make:
A. executive orders.
B. agency decisions.
C. ordinances.
D. common law. 17. Which of the following is false regarding equity?
A. Today, most states have abolished separate equity courts.
B. The typical equitable remedy is money damages.
C. The rules of equity are not very precise and technical.
D. Equitable principles cannot defeat statutes. 18. Why were equitable remedies developed?
A. Because the common law rules were too flexible to accurately predict the outcome of disputes.
B. Because the common law rules sometimes would produce unfair results.
C. Because statutes were too flexible to accurately predict the outcome of disputes.
D. Because statutes sometimes would produce unfair results. 19. Which of the following defeats a federal statute in case of a clash between them?
A. A state statute.
B. A state constitution.
C. An equitable principle.
D. US Constitution.

20. In general, when there is a conflict in law between a statutory rule and a common law rule which rule will prevail?
A. The common law rule.
B. The statutory rule.
C. The rule that was last in time to be developed.
D. The common law rule will prevail but only if it was developed by a State supreme court.