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01 Key 1. Law and "rule of law" are synonymous terms. Answer: False Law is known by everyone as being intended to tell members of society what they can or cannot do. Under the rule of law, laws that are made are generally and equally applicable. 2. The first known written set of laws was the Code of Hammurabi. Answer: True The first known written set of laws was the Code of Hammurabi, named after the Babylonian king of the 18th century BC. 3. Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. Answer: True Lawmakers have an incentive to make laws that benefit everyone. 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. Answer: False Common property applies to resources like land that more than one individual owns jointly. 5. Contract law compensates owners whose resources are wrongfully harmed by the actions of others. Answer: False Tort law compensates owners whose resources are wrongfully harmed by the actions of others. 6. The secret to economic prosperity and the wealth of nations lies in the foundation of property law and the legal system to implement it under the rule of law. Answer: True The secret to economic prosperity and the wealth of nations lies in the foundation of property law and the legal system to implement it under the rule of law. Modern private markets within nations simply do not work well without generally and equally applied property law. 7. Jurisprudence is the rule of law. Answer: False Jurisprudence is the philosophy of law. 8. Natural law theory asserts that law contains universal moral principles. Answer: True Aristotle and other ancient philosophers believed in the natural law theory. It asserts that law contains universal moral principles. 9. Sociological jurisprudence emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation. Answer: False Sociological jurisprudence supports the idea that law can and should change to meet new developments in society. 10. Jurisprudence refers to the general body of law interpretations by judges as different from legislation passed by legislators. Answer: True Jurisprudence is not law itself. But it also 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. Answer: False Legal realism tries to go beyond just the words of law to examine what police, administrators, prosecutors, and judges are actually doing as they enforce, interpret, and apply laws. 12. The United Kingdom, the United States, Canada, Jamaica, India, Nigeria, New Zealand, and a few other countries—all colonized by England—follow the common law. Answer: True Common law is followed in the United Kingdom, the United States, Canada, Jamaica, India, Nigeria, New Zealand, and a few other countries. 13. Civil law arose in the eleventh and twelfth centuries as the English monarch appointed royal judges to ride circuits around the English countryside and to resolve disputes in the name of the king (or queen). Answer: False Common law arose in the eleventh and twelfth centuries as the English monarch appointed royal judges to ride circuits around the English countryside and to resolve disputes in the name of the king (or queen). 14. Louisiana is the only state in the U.S. that follows a partial civil law system due to Louisiana's historical ties with France, a civil law nation. Answer: True Only Louisiana among the U.S. states follows a partial civil law system. This is due to Louisiana's historical ties with France, a civil law nation. 15. Common law relies more on legislation than judicial decisions to determine what the law is. Answer: False The common law legal system emphasizes the role of judges in determining the meaning of laws and how they apply. 16. In administrative law, a government official represents society, or "the people," and the official is responsible for seeking justice to achieve the ends of society. Answer: True Public law includes constitutional law, administrative law and criminal law. In each of these matters, a government official represents society, or "the people," and the official is responsible for seeking justice to achieve the ends of society. 17. Although property law is categorized as one kind of private law; in our legal system, it is at the heart of both public and private law. Answer: True Although we mention property law as only one kind of private law, actually, in its broad sense, property in our legal system is at the heart of both public and private law. 18. Contract law often but not always requires actual injury to the owner's resources. Answer: False Contracts often involve enforceable promises to exchange resources in the future. 19. Legislation passed by the Congress is called a statute or an act. Answer: True The legislation passed by the Congress is called "act" or "statute". 20. The Second Amendment to the Constitution holds that "No State shall . . . deprive any person of life, liberty or property without due process of law." Answer: False The Second Amendment to the Constitution says that "the right to bear arms shall not be infringed." 21. Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis. Answer: True Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis. 22. Judges in future cases are not so likely to follow the dicta in prior cases as they are the holdings. Answer: True The holdings in prior cases are what are necessary to the decision reached. Dicta are whatever else the court said. Judges in future cases are not so likely to follow the dicta in prior cases as they are the holdings. 23. Conflicting precedents when applying the principle of stare decisis do not create confidence in the certainty of law. Answer: True Under stare decisis, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases. Conflicting precedents do not create confidence in the certainty of law. 24. With reference to the hierarchy of sources of law, Case law prevails over local ordinances. Answer: False Case law is the lowest source of law; local ordinances rank higher and prevail over them. 25. 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. Answer: True 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. 26. Whether it's stated in the contract or not, when a breach of contract occurs, the injured party will usually recover her attorney fees as part of her compensatory damages. Answer: False Damages do not make most parties totally "whole," however, because they do not as a general rule include attorney's fees. Unless the contract or some special law provides to the contrary, parties to the contract litigation pay their own attorneys. 27. The single largest number of lawsuits today, especially in the federal courts, involves one business suing another business for tortious conduct. Answer: False The single largest number of lawsuits today, especially in the federal courts, involves one business suing another business for breach of contract. 28. Tort law helps protect property boundaries by providing compensation when someone wrongfully crosses such boundaries. Answer: True Torts involve improper crossing of property boundaries, usually causing injury to our person or other things we own. 29. 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. Answer: False In addition to compensatory damages, breach-of-contract cases may award consequential 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. 30. Drake verbally lashes out at his neighbor one evening following a drunken party. He also beats him up when Drake tries to back away from the argument. He is said to have committed a strict liability tort. Answer: False Strict liability torts usually require the plaintiff to prove only that the defendant has injured something proper to the plaintiff. 31. Corporate governance can fail even when corporate managers do nothing illegal. Answer: True Corporate governance can fail even when corporate managers do nothing illegal. 32. Article 6 of the Treaty on European Union, called the Maastricht Treaty, says the EU is "founded" on: A. specific performance. B. private markets. C. stare decisis. D. rule of law. E. property. Answer: D. rule of law. Article 6 of the Treaty on European Union, called the Maastricht Treaty, says the EU is "founded" on "the rule of law." 33. Economic growth depends "in particular on the rule of law" which is a "lodestar for all countries." Why? A. Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. B. It distinguishes lawmakers as being above the rule of law. C. It allows 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. Answer: A. Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. The Rule of Law has been called "a cornerstone of free trade". 34. 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 Answer: D. Common Common property applies to resources like land that more than one individual owns jointly. 35. A property based legal system: A. is unimportant in Western legal systems. B. protects and assists the wealthy over the poor. C. applies only to common property or resources like land that more than one individual owns jointly. D. does not allow for the transfer of private resources. E. allows people to exclude others from interfering with what their efforts produce. Answer: E. allows people to exclude others from interfering with what their efforts produce. It is a property based legal system that enables control by allowing people to exclude others from interfering with what their efforts produce. 36. can be thought of as the central concept underlying Western legal systems. A. Rule of law B. Property C. Tort law D. Ethics E. Stare decisis Answer: B. Property Property can be thought of as the central concept underlying Western legal systems. 37. 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. Answer: A. enables an owner to exchange resources, especially at a future date. Contract law enables an owner to exchange resources, especially at a future date. 38. law both protects ownership and sets limits on private resource use. A. Tort B. Antitrust C. Securities D. Regulatory E. Contract Answer: D. Regulatory Regulatory law both protects ownership and sets limits on private resource use. 39. The law protecting the owners of a business organization from the managers who run it for them is A. corporate governance B. antitrust law C. labor law D. contract law E. tort law Answer: A. corporate governance Corporate governance specifically concerns the law protecting the owners of a business organization from the managers who run it for them. 40. Which law forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources? A. Regulatory B. Tort C. Antitrust D. Antidiscrimination E. Contract Answer: D. Antidiscrimination Antitrust law forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources. 41. The ideas and philosophies that explain the origin of law and its justification is called . A. rule of law B. torts C. stare decisis D. jurisprudence E. statutes Answer: D. jurisprudence The ideas and philosophies that explain the origin of law and its justification is called jurisprudence. 42. law jurisprudence believes that law is simply the commands of the state backed up by force and punishments. A. Positive B. Natural C. Historical D. Sociological E. Tort Answer: A. Positive Positive law jurisprudence believes that law is simply the commands of the state backed up by force and punishments. 43. Friedrich Savigny, a prominent German legal philosopher, helped develop jurisprudence, which emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation. A. sociological B. tort C. positive D. historical E. natural Answer: D. historical The historical school of jurisprudence emphasizes that contemporary law should focus on legal principles that have withstood the test of time in a nation. 44. jurisprudence supports the idea that law can and should change to meet new developments in society. A. Historical B. Natural C. Sociological D. Positive law E. Tort Answer: C. Sociological Sociological jurisprudence supports the idea that law can and should change to meet new developments in society. 45. Which idea of law tries to go beyond just the words of law to examine what police, administrators, prosecutors, and judges are actually doing as they enforce, interpret, and apply laws? A. Positive law jurisprudence B. Sociological jurisprudence C. Stare Decisis D. Legal realism E. Originalism Answer: D. Legal realism Legal realism tries to go beyond just the words of law to examine what police, administrators, prosecutors, and judges are actually doing as they enforce, interpret, and apply laws. 46. So significant is the role of judges in the United States that they determine the meaning of the Constitution and can declare void the legislation of Congress and the acts of the president. This illustrates that the legal system in the U.S. is based on . A. civil law B. religious law C. common law D. hybrid law E. constitutional law Answer: C. common law The common law legal system emphasizes the role of judges in determining the meaning of laws and how they apply. 47. law courts do not make law nor do their judges think themselves obligated to follow prior judicial decisions, called precedents. A. Common B. Religious C. Civil D. Hybrid E. Constitutional Answer: C. Civil Civil law courts do not make law nor do their judges think themselves obligated to follow prior judicial decisions, called precedents. 48. law covers the legal principles that apply to government agencies, bureaus, boards, or commissions. A. Administrative B. Constitutional C. Tort D. Criminal E. Contract Answer: A. Administrative Administrative law covers the legal principles that apply to government agencies, bureaus, boards, or commissions. 49. Which of the following is not a typical area of concern in property law? A. Promises to exchange resources in the future B. Rules regarding patent, copyright, trademark, and trade secret C. Rules for compensation when an owner's legal boundaries are wrongfully crossed D. Rules regarding injury to an owner's resources E. Legal principles that apply to government agencies, bureaus, boards, or commissions Special areas of property concern land, goods, copyrights, patents, and trademarks. Answer: B. Rules regarding patent, copyright, trademark, and trade secret 50. Stephanie has written a book, "Mirari" and was talking to some interested parties from Hollywood about making a movie based on it. However, she turned down the offer due to differences of opinion. A year later, Mirari was made into a movie but it did not acknowledge the author. Such situations come under law. A. property B. administrative C. constitutional D. criminal E. tort Answer: A. property Property law, involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources. 51. Burberry is a luxury brand that has its own distinctive trademark pattern. The company recently learned that another retailer has been selling fake Burberry bags. The legal dispute that will arise here is governed by law. A. administrative B. constitutional C. property D. criminal E. tort Answer: C. property Property law, involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources. Special areas of property law concern land, goods, copyrights, trademarks, patents, and trade secrets. 52. Which of the following statements are true of tort law? A It involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources such as copyrights, patents, trademarks etc. B. It covers the rules of how owners transfer resources by exchanging them. C. It specifies various offenses against the proper order of the state. D. It covers the legal principles that apply to government agencies, bureaus, boards, or commissions. E. It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. Answer: E. It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. Tort law establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. 53. Kate has entered into a binding agreement to sell a house to Michael. When Michael shows up to complete the deal as per the agreement, Kate refuses to go through with the transaction. Which of the following best categorizes Kate and Michael's issues with regard to classification of laws? A. This is a public law issue regarding contract law. B. This is a private law issue regarding contract law. C. This is a public law issue regarding property law. D. This is a private law issue regarding criminal law. E. This is a public law issue regarding tort law. Answer: B. This is a private law issue regarding contract law. Private law covers those legal problems and issues that concern your private resource relationships with other people. Private law traditionally includes contract law, which covers the rules of how owners transfer resources by exchanging them. 54. In most criminal cases, an arrest can be made only based on probable cause and requires the officer to read out the Miranda rights to the criminal suspect before the arrest is made. This is an example of: A. tort law. B. procedural law. C. rule of law. D. substantive law. E. sociological jurisprudence. Answer: B. procedural law. Procedural law deals with the method and means by which substantive law is made and administered. The rules of law governing the process of a lawsuit are examples of procedural laws. 55. Which of the following statements about substantive law is true? A. It is regulation and made by agencies of the federal government. B. It covers the rules of how owners transfer resources by exchanging them. C. The time allowed for one party to sue another is an example of substantive law. D. Enforcement of a contractual promise is substantive in nature. E. It provides the machinery for rights and duties. Answer: D. Enforcement of a contractual promise is substantive in nature. Substantive law defines the legal relationship of people with other people or between them and the state. The rules of law governing the creation or enforcement of a contractual promise are substantive in nature. 56. A collection of legislations passed by the Congress on the same subject are called: A. statutes. B. jurisprudence. C. stare decisis. D. codes. E. citations. Answer: D. codes. A collection of legislations passed by the Congress on the same subject are called codes. 57. Following much debate the Congress has decided to pass a bill that will increase the taxes on tobacco. This legislation is called a: A. statute. B. regulation. C. ordinance. D. tort. E. citation. Answer: A. statute. The legislation passed by Congress, is also called "act" or "statute". 58. The City of Dover has passed a written law banning smoking in most restaurants and bars. Dover has enacted a/an: A. statute. B. act. C. regulation. D. ordinance. E. jurisprudence. Answer: D. ordinance. Law in the counties and cities is called ordinances. 59. At the state level, the hierarchy of law sources begins with the state . A. act B. statute C. constitution D. citation E. commercial code Answer: C. constitution At the state level, the hierarchy of law sources begins with the state constitution. 60. Judicial decisions, called laws, apply to a legal problem and interpret the relevant constitutional, legislative, and regulatory laws. A. case B. procedural C. ordinance D. commercial E. code Answer: A. case After considering constitutional language, reading legislation, and referring to administrative regulation, your attorney must still know the judicial decisions, called case law, that apply to your legal problem. These decisions interpret the relevant constitutional, legislative, and regulatory laws. 61. The in prior cases are precisely what was necessary to the decision reached. A. dicta B. holdings C. citations D. statutes E. ordinances Answer: B. holdings The holdings in prior cases are precisely what were necessary to the decision reached. 62. According to, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases. A. stare decisis. B. constitutional realism. C. statutory construction. D. constitutional relativism. E. legal realism. Answer: A. stare decisis. According to stare decisis, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases. 63. When judges, decide appeals from trial courts, make decisions on legal issues, they write their decisions, or, setting out reasons. A. citations B. opinions C. codes D. statutes E. ordinances Answer: B. opinions When judges, decide appeals from trial courts, make decisions on legal issues, they write their decisions, or opinions, setting out reasons. 64. Which of the following are judicial decisions that interpret the relevant constitutional, legislative, and regulatory laws? A. Citations B. Opinions C. Case law D. Dicta E. Statutes Answer: C. Case law In searching prior cases, attorneys find cases in which judicial decisions conflict with each other. Conflicting precedents do not create confidence in the certainty of law. Attorney must know the judicial decisions, called case law, that apply to your legal problem. These decisions interpret the relevant constitutional, legislative, and regulatory laws. 65. In constitutional law the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it is known as. A. constitutional relativity B. legal realism C. originalism D. dicta E. rule of law Answer: A. constitutional relativity In constitutional law the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it is known as constitutional relativity. 66. stands for the idea that courts should interpret the Constitution only according to the intentions of those who wrote it. A. Constitutional relativity B. Originalism C. Legal realism D. Dicta E. Conflicts of law Answer: B. Originalism Originalism stands for the idea that courts should interpret the Constitution only according to the intentions of those who wrote it. 67. The source of law which ranks the lowest among all the others is a . A. local ordinance B. statute C. case law D. state administrative regulation E. federal administration regulation Answer: C. case law The source of law which ranks the lowest among all the others is a case law. 68. are in effect a form of punishment for violating the law and sometimes also serve as a preventive action. A. Ordinances B. Statutes C. Sanctions D. Torts E. Opinions Answer: C. Sanctions Sanctions are in effect a form of punishment for violating the law and sometimes serve as a preventive action. 69. The right of an individual to take another person's resources (especially money) because that person has failed to meet the requirements of the law (e.g., the breach of a contract) is known as a(n). A. sanction B. amendment C. remedy D. dicta E. holding Answer: C. remedy The right of an individual to take another person's resources (especially money) because that person has failed to meet the requirements of the law (e.g., the breach of a contract) is known as a remedy. 70. A(n) is a civil wrong other than a breach of contract. A. ordinance B. tort C. sanction D. remedy E. dicta Answer: B. tort A tort is a civil wrong other than a breach of contract. 71. Which of the following statements about a breach of contract is false? A. If a breach by one party is serious enough, the other party may be permitted to rescind or cancel the contract. B. The remedy of an injured party may be an order by the court commanding the other party actually to perform a bargain as agreed. C. The single largest number of lawsuits today involves businesses suing one another for a breach of contract. D. A tort is a kind of breach of contract which is a civil wrongdoing. E. Compensatory damages along with additional consequential damages may be awarded in some cases of breach of contract. Answer: D. A tort is a kind of breach of contract which is a civil wrongdoing. A tort is a civil wrong other than a breach of contract. 72. In some cases of a breach of contract, a decree of may be made —an order by the court commanding the other party actually to perform a bargain as agreed. A. consequential damages B. compensatory damages C. stare decisis D. specific performance E. dicta Answer: D. specific performance In some circumstances, the remedy of an injured party may be a decree of specific performance —an order by the court commanding the other party actually to perform a bargain as agreed. 73. Each of the following is a remedy in case of a breach of contract EXCEPT: A. punitive damages. B. consequential damages. C. specific performance. D. rescind the contract. E. cancel the contract. Answer: A. punitive damages. Punitive damages —also called exemplary damages —are appropriate when the tort is intentional or the unreasonable conduct is extremely severe. 74. Coach Kleats is in charge of the softball team at Phoenix Junior School. He loses his temper with one of the substitutes following a game and slams the child against the lockers in his anger. The child is badly bruised and is bleeding from the nose. The coach can be sued for committing a(n) tort. A. negligence B. intentional C. strict liability D. specific performance E. criminal conduct Answer: B. intentional Intentional torts include assault (intentionally placing someone in apprehension of his physical safety), battery (intentionally making offensive, unconsented to physical contact with someone). 75. Punitive damages are frequently awarded in: A. ordinary negligence cases. B. intentional tort cases. C. breach of contract cases. D. criminal cases. E. violating the statutes. Answer: B. intentional tort cases. Punitive damages —also called exemplary damages —are also appropriate when the tort is intentional or the unreasonable conduct is extremely severe. 76. In a broad general sense, includes the legal property relations that large businesses have with each other, with their customers, and with society. A. corporate governance B. specific performance C. stare decisis D. tort law E. strict liability Answer: A. corporate governance In a broad general sense, corporate governance includes the legal property relations that large businesses have with each other, with their customers, and with society. 77. Give three explanations for why national economies are weak or strong. Answer: Several explanations attempt to show why national economies are weak or strong Dependency theory: This theory argues that economically strong nations exploit the resources and labor of weaker nations through trade. It asserts that some nations grow and flourish at the expense of keeping others economically poor. Lack of conditions encouraging internal economic activity rather than overdependence on international trade causes weak national economies. Private market: According to many economists, the presence or absence of a modern private market is the single most significant reason why some economies are strong and others are weak. Yet the mere existence of a private market may not be enough to create an economically prosperous economy. Law and the legal system: An adequately enforced system of equally applied law is increasingly recognized as a necessary foundation for strong, productive economies. Abundant natural resources, education and technology, a temperate climate, and the institutions of the private market all contribute to strong national economies. 78. When the former Soviet Union collapsed, many observers thought that the new private market would promptly improve Russia's economy. Why has the Soviet economy been slow to recover from the decline that it experienced? Answer: A certain framework of law is necessary for maximum incentive to entrepreneurs, investors, and inventors. The law of property, contract, tort, and various government regulations provides a foundation for institutions such as corporations, banks, and securities exchanges. As the countries of the former Soviet Union are finding out, written laws mean little unless they can be promptly and fairly enforced. Without adequate enforcement, resources can be taken from those who have them, and agreements can be disregarded. 79. What is rule of law? Answer: Under the rule of law, laws that are made are generally and equally applicable. They apply to all or most members of society and they apply to various groups in the same way. Under the rule of law, law applies to lawmakers as well as to the rest of society. Thus, lawmakers have an incentive to make laws that benefit everyone. Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. 80. With reference to property in the legal sense, what are the 3 main types of ownership? Answer: In law the word "property" (or "ownership") means the right to turn to public authorities like the police or the courts to help you keep others from interfering with what you own. Three types of ownership fences are • Public property, which applies to public resources owned by the government (or "state") like roads, public buildings, public lands, and monuments. • Private property, which applies to resources that you own as an individual. • Common property, which applies to resources like land that more than one individual owns jointly. 81. Compare natural law and positive law in jurisprudence. Answer: According to Aristotle and other ancient philosophers, natural law theory asserts that law contains universal moral principles. These principles are observable in nature, and we can determine them through human reason. Positive law jurisprudence believes that law is simply the commands of the state backed up by force and punishments. It is contrary to the philosophy of natural law. 82. Illustrate the concept of sociological jurisprudence with an example. Answer: Sociological jurisprudence supports the idea that law can and should change to meet new developments in society. From this point of view, the Second Amendment to the U.S. Constitution, which asserts the right to "bear arms," or weapons, should not be interpreted today to allow citizens to own and carry lightweight fully automatic rifles that can fire hundreds of rounds a minute. When the Second Amendment was written, a highly trained person carrying a 25-pound rifle could fire only about two rounds a minute. 83. Compare common law and civil law and how stare decisis is important in both instances. Answer: Common law emphasizes the role of judges in determining the meaning of laws and how they apply. Civil law relies more on legislation than judicial decisions to determine what the law is. Stare decisis is the doctrine of prior precedents. Like common law courts, courts in civil law nations decide the facts in a disputed case (for example, who did what, who committed a crime or breached a contract), but civil law courts do not make law nor do their judges think themselves obligated to follow prior judicial decisions, called precedents, as they do in common law nations, although they do refer to "settled" cases. 84. Describe public law and its categories. Answer: Public law includes those matters that involve the regulation of society as opposed to individuals interacting. The main types of public law include: • Constitutional law, which involves the interpretation and application of either the federal or state constitutions. • Administrative law, which covers the legal principles that apply to government agencies, bureaus, boards, or commissions. • Criminal law, which specifies various offenses against the proper order of the state. 85. What is private law? What are its categories? Answer: Private law covers those legal problems and issues that concern your private resource relationships with other people. Private law traditionally includes: • Property law, which involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources. • Contract law, which covers the rules of how owners transfer resources by exchanging them. • Tort law, which establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. 86. What is civil and criminal law? Answer: For administrative purposes, courts usually separate criminal actions from all other lawsuits. Civil cases may include suits for breach of contract or tort cases, such as suits for personal injuries. Typically, they involve a request for damages or other appropriate relief that does not involve punishment of the wrongdoer. Criminal cases involve a representative of government attempting to prove the wrong committed against society and seeking to have the wrongdoer punished by the court system. 87. Illustrate the concept of substantive and procedural law with examples. Answer: Substantive law defines the legal relationship of people with other people or between them and the state. That a plaintiff must prove the defendant failed to use reasonable care in order to establish the tort of negligence is an example of substantive law. Procedural law deals with the method and means by which substantive law is made and administered. The fact that an officer of the law must produce a search warrant before looking for evidence at a suspect's property is an example of procedural law. 88. What are acts, statutes and codes? Answer: In federal law, the legislation passed by the congress is called an act or statute. A collection of legislations on the same subject are codes. 89. Define stare decisis. Answer: Stare decisis is the doctrine of prior precedents. The Latin meaning of these words is "let the prior decision stand." One important advantage of stare decisis was people became secure in their right of property. Case law helps specify in great detail the boundaries of our property-based legal system, and it protects what is "proper" to people from the interference of others. 90. What are opinions, precedents and citations? Answer: When judges, especially judges who decide appeals from trial courts, make decisions on legal issues, they write their decisions, or opinions, setting out reasons. These case opinions are collected and published in book volumes known as "reporters," and these opinions now become precedents for future cases involving similar facts and legal issues. To locate prior precedents, it is helpful to know the citation for the case where a precedent is found. 91. What information can be obtained from the citation of a case? Answer: To locate prior precedents, it is helpful to know the citation for the case where a precedent is found. For example, a case opinion cited as 313 N.W.2d 601 (1982) can be located on page 601 of volume 313 of the Northwestern Reporter, second edition, a case decided in 1982. Knowing a case citation, you can easily locate the case in a library or through computer databases. 92. List two disadvantages of stare decisis or case law? Answer: Two disadvantages of case law are: Conflicting precedents: Sometimes in searching prior cases, attorneys find cases in which judicial decisions conflict with each other. Rejection of precedent: Because of stare decisis, courts usually hesitate to reject the precedents of prior cases, but sometimes they do. They may think that prior cases were wrongly decided, or they may think that times have changed. 93. Distinguish between holding and dicta in prior precedent. Answer: Increasing the difficulty of determining how to follow prior precedent is the distinction between the holding in a prior case and mere dicta. The holdings in prior cases are precisely what was necessary to the decision reached. Dicta are whatever else the court said. Judges in future cases are not so likely to follow the dicta in prior cases as they are the holdings. 94. What is constitutional relativity? How does it affect stare decisis? Answer: In constitutional law the idea that courts should understand the meaning of the Constitution relative to the times in which they interpret it is known as constitutional relativity. Because of stare decisis, courts usually hesitate to reject the precedents of prior cases, but sometimes they do. They may think that prior cases were wrongly decided, or they may think that times have changed. 95. Explain conflicts of law. Answer: In some cases, a question arises as to what state's law applies to a situation. Courts resolve such problems by applying conflicts of law rules, but even these rules may vary from state to state. In a tort case, the usual conflicts of law rule applies the law of the state where the injury occurred, no matter where the injury occurred. If a contract specifies no particular state's law for the parties to a dispute to follow, a court interpreting the contract will usually apply the law of the state where the contract was made. 96. List the various sources of law and their order of hierarchy. Answer: The hierarchy of the sources of law, however, is well understood. That hierarchy is as follows. Remember that each higher source of law voids, or prevails, over every lower source of law in the hierarchy Hierarchy of sources of law from highest to lowest: • U.S. Constitution and Amendments. • Statutes (also called "acts" or "legislation") of Congress. • Federal administration regulation. • State constitutions (apply only in individual states). • State statutes (apply only in individual states). • State administrative regulation (applies only in individual states). • Local ordinances (apply only in cities, towns, and other such areas). • Case law (court cases, as they interpret all of the other sources, may or may not void sources lower than the source being interpreted). 97. The 14th amendment recognizes that law may be enforced by taking resources owned by a citizen. Answer: Name the instances in which someone's resources may be taken. This provision recognizes that the law is enforced by taking a person's life, freedom, or the resources that he or she owns. The taking of an owner's resources may be (1) for the benefit of society generally, as when land is taken through eminent domain; (2) to punish someone, as with a traffic fine; or (3) for the benefit of another person, as an award of damages. 98. Differentiate between an intentional tort and negligence. Answer: Intentional torts all require the plaintiff (the person who initiates a lawsuit) to prove the defendant intended to cross the boundaries protecting the plaintiff. Intentional torts include assault (intentionally placing someone in apprehension of his physical safety), battery (intentionally making offensive, unconsented to physical contact with someone), conversion (intentionally depriving someone of goods owned), and trespass (intentionally crossing someone else's land boundaries without permission). Negligence is when the plaintiff shows that the defendant injured what was proper to the plaintiff through unreasonable behavior. 99. What are exemplary damages? Answer: In law, the sanction (or remedy) for tortious conduct is money damages. The damages compensate injured plaintiffs for medical expenses, lost wages or earning power, pain and suffering, and damages to other owned goods and land. Punitive damages —also called exemplary damages —are also appropriate when the tort is intentional or the unreasonable conduct is extremely severe. 100. What sanctions may be imposed for violating statutes and regulations? Answer: Statutes at both the federal and state levels of government impose a variety of sanctions for violating the statutes or regulations of administrative agencies adopted to accomplish statutory purposes. Many statutes, for example, impose a fine for a violation and authorized damages to injured parties as well. Although common law did not make a defendant pay a plaintiff's attorney fees, many statutes do require so in various circumstances. 101. Define a corporation? Answer: A corporation is a business chartered by the state to do business as a legal person in a certain form of organization. 102. How does corporate governance break down due to the illegal actions of managers? Answer: Corporate governance rules protect the property interest that the owners have in corporations. Because of the complexity of modern corporations, there are sometimes breakdowns in corporate governance. Managers like the president, vice presidents, or chief financial officer of a corporation can abuse their control of its resources to benefit themselves in ways that impair or even destroy the corporation's value to the shareholders. managers' engaging in insider trading of stock, running up stock prices in order to exercise stock options, and taking advantage of business opportunities that rightfully belong to the corporation and its shareholders are all examples of how corporate misgovernance occurs. Test Bank for The Legal and Regulatory Environment of Business O. Lee Reed, Marisa Pagnattaro, Daniel Cahoy, Peter Shedd, Jere Morehead 9780073524993, 9780077437336, 9781260161793
