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Chapter 1: American Law, Legal Reasoning, and the Legal System

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Chapter 1: American Law, Legal Reasoning, and the Legal System

8 problems · 0 figures

1-1 §1.AQ source ↗

Which country is the United States legal system derived from?
  1. a.
    Germany.
  2. b.
    United Kingdom.
  3. c.
    United States of America.
  4. d.
    Canada.

Answer

B. United Kingdom.

1-3 §1.AQ source ↗

As a judge, Baxter applies common law rules. These rules develop from:
  1. a.
    decisions of the courts in legal disputes.
  2. b.
    regulations issued by administrative agencies.
  3. c.
    statutes enacted by Congress and the state legislatures.
  4. d.
    uniform laws drafted by legal scholars.

Answer

A. decisions of the courts in legal disputes.

1-5 §1.AQ source ↗

The legislature of the state of Wyoming enacts a new statute that sets standards for the liability of businesses selling defective products. This statute applies in:
  1. a.
    Wyoming only.
  2. b.
    only Wyoming and its bordering states.
  3. c.
    all states.
  4. d.
    all states but only to matters not covered by other states’ laws.

Answer

A. Wyoming only.

1-7 §1.AQ source ↗

Four sources of law in the U.S. legal system are:
  1. a.
    Constitutional law, criminal law, civil law, and maritime law.
  2. b.
    Federal law, state law, international law, and maritime law.
  3. c.
    Statutory law, case law, equity, and common law.
  4. d.
    Constitutional law, judicial law, legislative law, and administrative law.

Answer

D. Constitutional law, judicial law, legislative law, and administrative law.

1-9 §1.AQ source ↗

What is the supreme law of the land? What are statutes? What are ordinances? What is an administrative rule?

Answer

What is the supreme law of the land? The federal constitution is the supreme law of the land. What are statutes? Laws enacted by Congress or a state legislative body. What are ordinances? Laws enacted by local legislative bodies. What are administrative rules? Laws issued by administrative agencies under the authority given to them in statutes.

1-11 §1.AQ source ↗

What is an Unfair Trade Practice and which Administrative Agency regulates it?

Answer

The term “unfair trade practices” is broadly used and refers to any deceptive or fraudulent business practice or act that causes injury to a consumer. Some examples include, but are not limited to, false representations of a good or service including deceptive pricing, non-compliance with manufacturing standards, and false advertising. The FTC investigates allegations of unfair trade practices raised by consumers and businesses, pre-merger notification filings, congressional inquiries, or reports in the media and may seek voluntary compliance by offending businesses through a consent order, administrative complaints, or federal litigation.

1-13 §1.AQ source ↗

Forms of Alternative Dispute Resolution (“ADR”) include all of the following except:
  1. a.
    Mediation.
  2. b.
    Settlement.
  3. c.
    Litigation.
  4. d.
    Arbitration.

Answer

C. Litigation.

1-15 §1.AQ source ↗

Securities are only regulated by federal laws.
  1. a.
    True.
  2. b.
    False.

Answer

B. False.

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Problems and answers are adapted from Business Law I Essentials 2e by Mirande Valbrune, Renee De Assis and Suzanne Cardell, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/business-law-i-essentials-2e/pages/1-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.