Future Business Leaders of America (FBLA) Business Law Practice Exam

What is a law enacted by a government body to establish legal principles called?

1. Regulation

2. Ordinance

3. Statute

4. Policy

The correct answer is: Statute

A law enacted by a government body to establish legal principles is referred to as a statute. Statutes are formal written laws that are created by legislative bodies at both the federal and state levels. They serve to create, modify, or revoke laws in a structured manner and are published in official documents. In contrast, regulations are rules made by governmental agencies that interpret and implement statutes, providing more detailed provisions necessary for the statutes' enforcement. Ordinances are typically local laws passed by municipalities or counties that govern specific issues within that area, such as zoning or public safety regulations. Policies, on the other hand, refer to guidelines or principles adopted by organizations or governments but do not carry the same legal weight as statutes and are not enacted through the legislative process. Thus, recognizing that a statute represents an official law created by a legislative body reinforces why it is the correct answer to the question.