Answer to Question 1
TRUE
Answer to Question 2
A country's legal system is its set of laws and regulations, including the processes by which its laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions. Many cultural factorsincluding ideas on social mobility, religion, and individualism influence a nation's legal system. Likewise, many laws and regulations are enacted to safeguard cultural values and beliefs.
Key characteristics of each type of legal system in use around the world (common law, civil law, and theocratic law), include:
1. Common law: A common law legal system reflects three elements:
Tradition. A country's legal history
Precedent. Past cases that have come before the courts
Usage. How laws are applied in specific situations
Under common law, the justice system decides cases by interpreting the law on the basis of tradition, precedent, and usage. Yet each law may be interpreted somewhat differently in each case to which it is applied. In turn, each new interpretation sets a precedent that may be followed in later cases. As new precedents arise, laws are altered to clarify vague wording or to accommodate situations not previously considered.
2. A civil law system is based on a detailed set of written rules and statutes that constitute a legal code. Civil law can be less adversarial than common law because there tends to be less need to interpret what a particular law states. Because all laws are codified and concise, parties to contracts tend to be more concerned only with the explicit wording of the code. All obligations, responsibilities, and privileges follow directly from the relevant code. Less time and money are typically spent, therefore, on legal matters.
3. Theocratic law: A legal tradition based on religious teachings is called theocratic law. Three prominent theocratic legal systems are Islamic, Hindu, and Jewish law. Islamic law is the most widely practiced theocratic legal system today. Islamic law was initially a code governing moral and ethical behavior and was later extended to commercial transactions. It restricts the types of investments companies can make and sets guidelines for business transactions.
Answer to Question 3
TRUE
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A company that makes cell phones has the following cost structure. They have fixed costs of ...