1. Which of the following is a primary source of U.S. business law? a) Legal textbooks b) Law review articles c) Federal and state statutes d) Business ethics guidelines **Answer: c) Federal and state statutes** *Rationale: Federal and state statutes are one of the main sources of binding laws in the U.S.* 2. What is the primary purpose of the Sarbanes-Oxley Act (SOX) of 2002? a) To increase tax revenue b) To regulate international trade c) To enhance financial disclosures and combat corporate fraud d) To promote environmental conservation **Answer: c) To enhance financial disclosures and combat corporate fraud**