Exam 1: The Legal Environment

Damages are a remedy at law.

Criminal law focuses on duties that exist between persons.

Whether a law is constitutional depends on its source.

Much of American law is based on

Government authorities cannot enforce na-tional law.

Whether financial statements created by an accountant need to be verified for accuracy is not a legal question.

Businesspersons are expected to make decisions that are ethically sound.

International law is the law of a foreign nation and varies from country to country.

Americans with a Better Cause (ABC), a nonprofit organization, files a suit against the U.S. Department of Justice (DOJ), claiming that a cer-tain federal statute the DOJ is empowered to enforce conflicts with the U.S. Constitution and with a state constitution. In each situation, which source of law has priority?

Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organizations) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker about a recent news story. Sources of law include

Statutory law includes state statutes.

Kevin is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of the case requires Kevin to find previ-ously decided cases that, in relation to the case under con-sidera-tion, are

The Rhode Island state legislature enacts a law that violates the U.S. Constitution. This law can be enforced by

Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of

There are no precedents on which the court deciding the case Standard Resource Co. v. Topline Inventory, Inc., can base its decision. The court can consider, among other things,

The Consumer Product Safety Commission is a government agency that issues rules, orders, and decisions. The Colorado state legislature enacts statutes. The Washington County Board and the Silver City Council enact or-dinances. Administrative law includes

A judge's function is to make the law.

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

Cato and Dolly are involved in a lawsuit. The best definition of a lawsuit is

There are legal questions involved when considering ways to raise capital so a business can grow.