Business Law Ch.1 T/F – Flashcards
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Business law consists of the suggested rules of conduct that govern commercial relationships.
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F Business law consists of the enforceable rules of conduct that govern commercial relationships.
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Many market transactions occur without legal guidelines.
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F There is simply no market transaction that occurs outside legal guidelines.
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Because of the law, we rely on the goodwill and dependability of one another.
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F The respect we give to the law as a source of authority is in part a recognition of the fact that in the absence of law, we would rely solely on the goodwill and dependability of one another.
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Crimes are prosecuted by the government, not individuals.
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T
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Public law involves disputes between private individuals or groups and their government.
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T
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Another name for case law is common law.
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T
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Case law interpretations are law unless they are revoked later by new statutory law.
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T
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The term "stare decisis" means "reversing the decision."
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F When courts rely on precedent, they are obeying stare decisis ("standing by their decision").
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A decision of a state supreme court is binding on a lower state court located in the state.
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T
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A decision from a state supreme court in one state is binding on a trial court judge in another state if the other state has no applicable law on the issue involved.
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F Different state courts are not bound by each other's decision, and so they might have different decisions on the same subject.
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Constitutions and statutes are complete in the sense of covering the detailed rules that affect government and business relations.
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F Constitutions and statutes are never complete in the sense of covering all the detailed rules that affect government and business relations.
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Presidents claim the power to issue executive orders on the basis of their Article II, Section 1, constitutional power to "take care that the laws be faithfully executed."
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T
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Ethical conversation is primarily about finding the one and only right thing to do.
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F Business ethics refers to standards of business conduct, not a set of correct decisions.
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The social responsibility of business if formed by expectations employees have of employers.
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F The social responsibility of business consists of the expectations the community imposes on firms doing business within its borders.
