Legal Environment of Business CHAPTER 1 1. Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced by a. no one. b. the federal government only. c. the state of Hawaii only. d. the United States Supreme Court only. 2. Voters in North Carolina approve a new state constitution, after which the Ocean City Council passes new ordinances, the North Carolina Department of Parks and Recreation issues new rules, and the Ocean City Chamber of Commerce sends out new instructions. Sources of law do not include a. instructions issued by the Ocean City Chamber of Commerce. b. ordinances passed by the Ocean City Council. c. rules issued by the North Carolina Department of Parks and Recreation. d. state constitutions passed by popular vote. 3. If a provision in the Florida state constitution conflicts with a provision in the U.S. Constitution a. neither provision applies. b. the provisions are balanced to reach a compromise. c. the state constitution takes precedence. d. the U.S. Constitution takes precedence. 4. The U.S. Congress enacts a new federal statute that sets different standards for the liability of businesses selling defective products. This statute applies a. only to matters not covered by state law. b. only to those states that adopt the statute. c. to all of the states. d. to none of the states. 5. The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress enact laws. These laws constitute a. administrative law. b. case law. c. stare decisis . d. statutory law. 6. Jay is a federal judge. Jay’s judicial decisions are part of case law. This law includes interpretations of a. administrative regulations only. b. constitutional provisions only. c. statutes only. d. administrative regulations, constitutional provisions, and statutes. 7. As a judge, Phil applies common law rules. These rules develop from a. administrative regulations. b. court decisions. c. federal and state statutes. d. proposed uniform laws.
8. Jill is an appellate court judge. In this capacity, Jill establishes a rule of law. Under the doctrine of stare decisis, the principle must be adhered to by a. all courts. b. courts of lower rank only. c. that court and courts of lower rank. d. that court only. 9. Kurt is a judge hearing the case of Local Co. v. Macro Corp. Applying the relevant rule of law to the facts of the case requires Kurt to find previously decided cases that, in relation to the case under consideration, are a. as different as possible. b. as similar as possible. c. at odds. d. exactly identical. 10. A state trial court has before it Eagle Manufacturing Co. v. Fine Products Corp. , a case with no binding authority. The court can a. not refuse to decide the Eagle case . b.
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