Question 1

Damages traditionally were awarded by courts of law only.

Accepted Answer

Damages are traditionally awarded by courts of law, as they have the authority to determine the amount of compensation to be paid to the injured party.

Question 2

Courts do not depart from precedents.

Accepted Answer

Courts may depart from precedents in certain circumstances, such as when a precedent is outdated or incorrect, or when there are significant changes in society or the law. This is known as the doctrine of stare decisis, which means to "stand by things decided." However, departure from precedents is rare and requires careful consideration and justification.

Question 3

A small business owner is likely to face legal questions when determining ways to reduce business taxes.

Accepted Answer

Small business owners often encounter legal questions regarding tax deductions, credits, and compliance with tax laws when trying to minimize their tax liabilities.

Question 4

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

Accepted Answer

Stare decisis is actually a doctrine obligating judges to follow and apply precedent from previous cases to ensure consistency in the law, not to help persons who have failed to protect their own rights.

Question 5

Being a small-business owner means that you will never have to take on the role of a human resources manager.

Accepted Answer

Small-business owners often have to take on multiple roles, including human resources management, especially in the early stages when they may not have the budget to hire specialized staff.

Question 6

Administrative agencies like the Food and Drug Administration make rules and regulations called administrative law.

Accepted Answer

Administrative agencies create rules and regulations to enforce laws, which is a key component of administrative law.

Question 7

In most states, the courts no longer grant "equitable" remedies.

Accepted Answer

In most states, courts do still grant equitable remedies such as injunctions, specific performance, and rescission. While legal remedies (such as monetary damages) are more common, equitable remedies are still available and granted in appropriate cases.

Question 8

Constitutional law includes only the U.S. Constitution.

Accepted Answer

Constitutional law includes not only the U.S. Constitution, but also case law and other constitutional documents such as state constitutions and international treaties.

Question 9

Business people do not need to understand court processes because if they are sued, the lawyers will know those rules.

Accepted Answer

Understanding court processes can help business people make informed decisions, manage legal risks, and effectively communicate with their lawyers.

Question 10

Common law is a term for the laws that are familiar to most of us.

Accepted Answer

The answer of Common law is a term for the...

Question 11

The study of business law does not involve an ethical dimension.

Accepted Answer

The study of business law necessarily involves an ethical dimension because it requires consideration of legal and moral principles, values, and norms related to business transactions, contracts, property rights, torts, employment, intellectual property, antitrust, environmental responsibility, consumer protection, and corporate social responsibility. Ethics is an integral part of business law education and practice, and it is essential for professionals to understand the interplay between legal rules and ethical issues in making sound and responsible business decisions.

Question 12

Remedies in equity include injunctions.

Accepted Answer

Injunctions are a form of equitable remedy that requires a person to do or refrain from doing a certain action.

Question 13

Small business owners are company leaders who do not have to deal with management issues and understand the detailed laws.

Accepted Answer

Small business owners often face management issues and must understand relevant laws to effectively run their businesses.

Question 14

Laws and government regulations affect almost all business activities.

Accepted Answer

Laws and government regulations can impact various aspects of business activities such as hiring practices, workplace safety standards, taxation, product labeling requirements, environmental regulations, and many more. Therefore, businesses need to comply with these laws and regulations to avoid legal penalties, fines, or other liabilities.

Question 15

A state constitution is supreme within the state borders and will govern state issues even if it conflicts with the U.S. Constitution.

Accepted Answer

The U.S. Constitution is the supreme law of the land, and state constitutions cannot conflict with it. If there is a conflict, the U.S. Constitution prevails.

Question 16

Raising additional capital so that a business can grow is a strategy problem and not a legal issue.

Accepted Answer

Raising additional capital involves legal issues such as compliance with securities laws, drafting legal documents, and ensuring regulatory requirements are met, in addition to being a strategic business decision.

Question 17

The term common law refers to law that is common throughout the world.

Accepted Answer

The term common law refers specifically to the legal system developed in England and followed by many English-speaking countries. It is not a universal legal system.

Question 18

Precedents are court decisions that guide future legal decisions to create stability and predictability.

Accepted Answer

Precedents, also known as case law, are past judicial decisions that are used as a benchmark for deciding similar future cases, ensuring consistency and predictability in the legal system.

Question 19

In a common law system, judges are obligated to follow the precedents established within their jurisdictions.

Accepted Answer

In a common law system, the principle of stare decisis obligates judges to follow legal precedents set by higher courts within the same jurisdiction to ensure consistency and predictability in the law.

Question 20

Law consists of enforceable rules governing individuals and their society.

Accepted Answer

Law is a system of rules created and enforced through social or governmental institutions to regulate behavior, ensuring order and justice within a society.

Quiz 1: Introduction to the Law