Acct 324 Hughes Exam 1

ethical dilemma

A problem about what a firm should do for which no clear, right decision is available

Appellate Court Decision-Making Powers

Affirmation Modification Reversal Remand

In a controversy between a plaintiff and a defendant in the state of West Virginia, one party appealed the verdict of the state trial court. In the absence of an intermediate court of appeal, where would the case be heard? A. State court of last resort B. Federal trials court C. State court of original jurisdiction D. Federal circuit court

Appeals from the state intermediate courts of appeal lead cases to the state court of last resort. Most states call this court the Supreme Court, although some states refer to it as the court of appeals. Because approximately half the states lack intermediate courts of appeal, appeals from trial courts in these states go directly to the state court of last resort.

Which of the following statements is true of appellate courts? A. Appellate courts hold trials, and hence are referred to as courts of common pleas. B. Appellate courts primarily handle questions of facts, not questions of law. C. Appellate courts primarily hear and decide cases when they first enter the legal system. D. Appellate courts have the power to review previous judicial decisions passed by trial courts.

Appellate courts have the power to review previous judicial decisions to determine whether trial courts erred in their decisions. They can overrule trial courts' decisions on questions of fact, but only when the trial court's finding was clearly erroneous or when no trial evidence supports the trial court's finding.

Which of the following is an intended and essential purpose of law? A. To increase dependency on the political system B. To demand respect from civilians C. To limit individual freedom D. To encourage social justice

D. to encourage social justice

Business Law

Enforceable rules of conduct that govern commercial relationships

Social responsibility of business

Expectations that the community imposes on firms doing business inside its borders

School of Jurispredence

Making Laws guided by certain habits of mind a specific beliefs of human nature

A pharmaceutical company has been regularly dumping its hazardous waste in a nearby lake. This has led to serious health issues among people living in the neighborhood. Which of the following laws will regulate this incident?

Public Law

What laws are defined as a collection of rules and regulations put forth by legislatures?

Statutory Laws

Administrative Law

The Collections of rules made by all Federal Agencies

Business Ethics

The application of ethics to the problems and opportunities experienced by business people - does not result in a set of correct decisions - serves as a reminder not to choose the easiest or best short term decision - helps guide the law - Serves as an interactive system

Historical School

Using tradition or custom as guidelines for shaping law

What are best described as positive abstractions that capture our sense of what is good or desirable.

Values

WPH: The Purpose

What are the values, or purposes, we will fulfill with the decision? - Freedom - Security - Justice - Efficiency

For a firm to be an ethical business, the minimum standard to be met would be:

choosing a lawful way to compete against rival firms

Deontology

defines actions as right or wrong

Virtue Ethics

development of moral character is the basis for morality. move towards Human flourishing

Executive Orders

directives issued by the president or state governor that require executive officials to perform their functions in a specific manner

Classification of the Law

- Private Law - Public Law - Civil Law - Criminal Law

Purposes of the Law (6)

- Providing Order - Serving as an alternative to altercation - Facilitating a sense that change is possible - Encouraging social Justice - Guaranteeing personal freedoms - Serving as a moral guide

WPH: The How

- Public Disclosure - Universalization - Golden Rule

Freedom (3)

- To act without restriction from rules imposed by others - To possess the capacity or resources to act as one wishes - To escape the cared and demands of this world entirely

WPH System

A useful set of guidelines that requires recognition that managerial decisions must meet the following criteria: - the decision affects the stakeholders - decisions are made in pursuit of a purpose - the decisions must meet standards of action-oriented business behavior

If the Food Safety and Inspection Service (FSIS), a government agency, requires the labeling on egg cartons to include the product's expiry date, the law that would cover this rule would be:

Administrative Law

Subject-Matter Jurisdiction: State Jurisdiction

All cases not falling under exclusive federal jurisdiction

Which of the following statements is true of business ethics? A. Business ethics always produces a list of correct business decisions that all ethical businesses will make. B. Ethical conceptions shape business law and business relationships uniquely in each country. C. Business law and business ethics operate as two independent systems due to which businesses often face ethical dilemmas. D. Business ethics is all about finding the one and only right thing to do rather than making a choice between two or more available options.

B. Ethical conceptions shape business law and business relationships uniquely in each country.

what consists of the enforceable rules of conduct that govern commercial relationships.

Business Law

What is best described as the collection of legal interpretations made by judges.

Common Law

Jurisdiciton

Courts power to hear and decide cases

Consequentialism

Does not provide a rigid set of rules. Rather, this approach depends on consequences. requires that we inquire about the consequences to relevant people of our making a particular decision

Threshold requirements for Litigation

In order to initiate litigation, the plaintiff must have "standing" to sue, there must be a "justiciable" controversy, and the case must be "ripe" for trial

Statutory Law

Law passed by the U.S. Congress or state legislatures

Uniform Laws

Laws that are similar across states

Constitution

The fundamentals of how a government is run

Federal Court System

Three Levels: - U.S. Supreme Court - Intermediate Courts of Appeal - Federal Trial Courts

Legal realism

When judges weigh on a case they need to consider more than just the law, but also factors like social and economic conditions

Question of Law

an issue concerning the application and interpretation of law

Tri-Partite System

consisting of 3 levels, both state and federal court systems operate under this system

A lawsuit is said to be standing only when the: A. plaintiff and the defendant reside in the same state. B. plaintiff has a personal stake in the outcome of the case. C. defendant replies to the complaint filed by the plaintiff. D. defendant denies the claims made by the plaintiff.

plaintiff has a personal stake in the outcome of the case.

Subject Matter Jurisdiction: Exclusive Federal Jurisdiction (7)

- Admiralty cases - Bankruptcy cases - Federal criminal prosecutions - Cases in which one state sues another state - Claims against the United States - Federal patent, trademark, and copyright claims - Other claims involving federal statutes that specify exclusive federal jurisdiction

Major Federal Administrative Agencies (Independent)

- Commodity Futures Trading Commission - Consumer Product Safety Commission - Equal Employment Opportunity Commission - Federal Trade Commission - Federal Communications Commission - National Labor Relations Board - National Transportation Safety Board - Nuclear Regulatory Commission - Securities and Exchange Commission

Sources of Business Law (6)

- Constitutions - Statutes - Cases - Administrative Law - Treaties - Executive Orders

Functional Areas of Business Affected by Business Law (6)

- Corporate Management - Production and Transportation - Marketing - Research and Development - Accounting and Finance - Human Resource Management

Major Federal Administrative Agencies (Executive)

- Federal Deposit Insurance Corporation - Occupational Safety and Health Administration - General Services Administration - National Aeronautics and Space Administration - Small Business Administration - U.S. Agency for International Development - National Science Foundation - Veterans Administration - Office of Personnel Management

Subject-Matter Jurisdiction: Concurrent Federal and State Jurisdiction

- Federal question cases - Diversity of citizenship cases

Steps in Civil Litigation: The Pretrial Stage (7)

- Informal Negotiations - Pleadings - Service of Process - Defendant's Response - Pretrial Motions - Discovery - Pretrial Conference

Steps in Civil Litigation: The Trial (5)

- Jury Selection - Opening Statements - Examination of Witnesses and Presentation of Evidence - Closing Arguments - Jury Instructions

Steps in Civil Litigation: Post-Trial Motions (3)

- Motion For Judgment In Accordance With Verdict - Motion For Judgment Notwithstanding Verdict - Motion For New Trial

Schools of Jurisprudence (6)

- Natural Law - Legal Positivism - Identification with the Vulnerable - Historical School: tradition - Legal realism - Cost-Benefit Analysis

Types of Jurisdiction

- Original Jurisdiction - Appellate Jurisdiction - In personam Jurisdiction - Subject-Matter Jurisdiction

Efficiency

- To maximize the amount of wealth in society - To get the most from a particular output - To minimize costs

Security

- To possess a large enough supply of goods and services to meet basic needs - To be safe from those wishing to interfere with your property rights - To achieve the psychological condition of self confidence to such an extent that risks are welcome

Justice

- the right to recieve the products of your labor - To treat all humans identically, regardless of race, gender, age, and sexual preference - To provide resources in proportion to need - to possess anything that someone else is willing to grant you

When does a default judgment occur? A. When the defendant agrees that the facts contained in the complaint are accurate B. When the plaintiff fails to provide accurate evidence C. When the defendant denies the claims made by the plaintiff D. When the defendant fails to answer to the copy of the complaint sent by the court

A default judgment is a judgment in favor of the plaintiff that occurs when the defendant fails to answer the complaint and the plaintiff's complaint alleges facts that would support such a judgment.

Which of the following statements accurately brings out the difference between civil law and criminal law? A. Civil law is applicable for transactions between an individual and the state or federal government, whereas criminal law is applicable for transactions between two individuals. B. The defendant must be found guilty by a preponderance of evidence in criminal cases, while the defendant must be found guilty beyond all reasonable doubt in civil cases. C. The guilty defendant of a civil case is never incarcerated, whereas the guilty defendant of a criminal case can be incarcerated. D. Criminal law deals with personal issues like marriage and divorce, whereas civil law deals with commercial relationships.

C. The guilty defendant of a civil case is never incarcerated. Typically, if the defendant is found guilty, the victim receives some sort of compensation.

Cost-Benefit Analysis

Choosing alternatives that maximize benefits and minimize costs

Case Law

Collection of legal interpretations made by judges. These interpretations are law unless revoked by new statutory laws

Wong owned a laundry in Aurora, Colorado, but has moved to Salt Lake City, Utah, for personal reasons. He wants to establish another laundry in the new city. He can find information regarding local taxes if he refers to the:

County Ordinance

Trial Courts

Courts that hear civil and criminal cases and consider the facts only when they first enter the legal system. These courts present evidence and witnesses. Also referred to as common pleas or county courts

Which of the following conditions must a diversity-of-citizenship case satisfy? A. The controversy should concern an amount in excess of $50,000. B. The controversy should not have occurred before six months. C. The plaintiff and the defendant should represent different ethnic groups. D. The plaintiff should not reside in the same state as the defendant.

D. The plaintiff should not reside in the same state as the defendant.

What is best described as a problem about what a firm should do for which no clear, right decision is available.

Ethical Dilemma

Acme Foods Inc. manufactures food products and is opening a subsidiary in United Cadvia. The firm discovers that to obtain raw materials it has to make some facilitating payments to the local officials and businesses in the host country. The second option is to import raw materials from its own country, which will be expensive in the long-run. The managers at Acme are unable to decide which of the two options would be a better choice. Which of the following terms would best describe the situation Acme Foods Inc. is experiencing?

Ethical dilemma

Utilitarianism

Form of consequentialism, where managers take those actions that provide the greatest pleasure, after subtracting the pain or harm associated with them.

Natural Law

God's or nature's law that defines right from wrong and is higher than human law

Criminal Law

Involved incidents in which someone commits and act against the public as a whole

Private Law

Involves disputes between private individuals or groups

Public Law

Involves disputes between private individuals or groups and their government

Civil Law

Involves the rights and responsibilities involved between people, and between people and their government

Why have most states enacted a long-arm statute? A. It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state. B. It enables district courts to handle both questions of law and questions of fact for cases within their states. C. If a defendant has property in a state, it allows a plaintiff to file suit against the owner instead of his or her property. D. It allows trial courts to overrule appellate courts' decisions when no trial evidence supports the appellate court's finding.

It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state.

Why is ethical fundamentalism/absolutism difficult to follow?

It provides a rigid set of rules to follow regardless of the situation.

Precedent

Past decisions made in similar cases that guide later decisions

Identification with the Vulnerable

People who require assistance to meet fundamental needs of live should be helped. Even playing field

what laws would govern a dispute between a tenant and a landlord over payment of rent?

Private Law

WPH: The Who

Stakeholders, all of them, must be considered when making business decisions. - Consumers - Owners or Investors - Management - Employees - Community - Future Generations

Original Jurisdiciton

The power to hear and decide cases when they first enter the legal system

Subject Matter Jurisdiction

The power to hear certain kinds of cases

In Personam Jurisdiction

The power to render a decision affecting the rights of the specific persons before the court

Appellate Jurisdiction

The power to review previous judicial decisions to determine whether a trial courts erred in their decision

When employees in a firm asked for a pay hike, the management assessed the expenses involved in it. It realized that the shareholders and customers would have to face more negative consequences when compared to the benefits enjoyed by the employees. Thus, the management decided to introduce employee stock options in order to keep both the employees and the shareholders satisfied. Which of the following theories of business ethics does this best illustrate?

The scenario best illustrates rule utilitarianism. Instead of advocating the maximization of pleasure over pain in each individual situation, rule utilitarianism holds that general rules that on balance produce the greatest amount of pleasure for all involved should be established and followed in each situation.

Which of the following is a necessary condition for a justiciable controversy? A. The issue should have occurred at least six months before filing the lawsuit. B. The court should be able to render a decision that will solve the existing problem. C. The plaintiff and the defendant should have a personal stake in the issue. D. The controversy should concern an amount in excess of $75,000.

Three criteria are necessary for a case or controversy to exist. First, the relationship between the plaintiff and the defendant must be adverse. Second, actual or threatened actions of at least one of the parties must give rise to an actual legal dispute. Third, courts must have the ability to render a decision that will resolve the dispute.

State Court System

Three levels: - State Supreme court - Intermediate Courts of Appeal - State trial courts

what is best described as a binding agreement between two states or international organizations

Treaty

Which of the following statements is true of trial courts? A. Trial courts have the power to overrule appellate courts' decisions on questions of law. B. Trial courts handle primarily questions of law, not questions of fact. C. Trial courts have the power to hear and decide cases when they first enter the legal system. D. Trial courts can only exercise in personam jurisdiction and not in rem jurisdiction.

Trial courts, or courts of original jurisdiction, have the power to hear and decide cases when they first enter the legal system. In these courts, the parties present evidence and call witnesses to testify.

For a law case, venue is appropriate in the county where the _____ resides. A. prosecutor B. defendant C. plaintiff D. jury

Venue is appropriate in the county where the defendant resides or where the incident took place over which the lawsuit arose.

At which stage of a case proceeding does a court acquire in personam jurisdiction over a defendant? A. When the final verdict is passed B. When it gives the defendant a copy of the complaints and a summons C. When the defendant appeals the court's judgment to a higher court D. When the defendant provides evidence against the plaintiff

When it gives the Defendant a copy of the complaints and a summons

Treaties

a binding agreement between two states or international organizations

ethic relativism

a theory of ethics that denies the existence of objective moral standards. Individuals must evaluate actions on the basis of what they feel is best for themselves. When do individuals disagree over a question, about morality, both individuals are correct because no objective standard exists to evaluate their actions.

Under deontology, the categorical imperative proposed to determine whether an action is right states that

an action is moral only if it would be consistent for everyone in society to act in the same way.

Act Utilitarianism

assesses each separate act according to whether it maximizes pleasure over pain

courts of appellate jurisdiction

courts that review the decisions of trial courts to determine if there was an error. These courts do not hold trial, and only question Law not Facts

situational ethics

evaluating the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma.

Absolutism or ethical fundamentalism

individuals defer to a set of rules to guide them in the ethical decision making process. Whether an action is moral depends on whther the action conforms to the given set of ethical rules

Legal Postivism

law is quite distinct from morality and moral questions about the law should not interfere with our inclination to obey them

Businesses have social responsibilities that they need to honor because they

operate in a community that has expectations from the businesses

The _____ of a firm are best described as the many groups of people affected by the firm's decisions.

stakeholders

Rule Utilitarianism

supports rules that on balance produce the greatest pleasure for society

Constitutional Law

the general limits and powers of a government as interpreted from its written constitution

Ethics of Care

the right course of action is the option most consistent with the building and maintaining of human relationships

Ethics

the study and practice of decisions about what is good or right