BUSINESS LAW BUS 115 Ch. 1, 2, 4, 7, 8

**Stare Decisis**

"Let the decision stand" A basic principle of the common law, it means that precedent is usually binding

**Stare decisis**

"Let the decision stand," that is, the ruling from a previous case

2-3 j **Euphemisms and Reframing**

"friendly fire" vs. "killing your own troops" (true meaning) "enhanced interrogation techniques" good idea except true meaning "torture" business setting: "smooth earnings" better than "firing bunch of people" **making ethics decisions - important to use accurate terminology - otherwise anything else is variation on rationalization** i.e. Challenger - engineer Roger Boisjoly wanted to postpone launch - was told "we have to make a management decision" - reframed "management" not "engineering" primary concern please customer, NASA **consider if frame is correct** - people's behavior **changes if event is framed as loss not a gain - tendency to feel any harm twice as strongly as we do a benefit** i.e. salespeople told an event creates 75 percent **losing** commission, more likely engage unethical behavior than told event creates 25 percent **earn** commission **information same - way it's presented affects behavior**

**Role of law in society**

* the strong reach of the law touches nearly everything we do, especially at work who confronts the law? manager, voter, investor, juror, entrepreneur, community member influence and are affected by the law

**Sources of Law**

**50 State Governments** - state constitution establishes the state government guarantees the rights of state residents - **Legislative Branch** - State Legislature** - passes statutes on state law creates state agencies - **Executive Branch - Governor** - proposes statutes - signs or vetoes statues - oversees state agencies - **Judicial Branch - State Courts** - create state common law - interpret statues - review constitutionality of statues and other acts - **Administrative Agencies** - oversee day-to-day application of law in dozens of commercial and other areas **One Federal Government - United States Constitution** - establishes limited federal government protects states' power guarantees liberty of citizens **Legislative Branch - Congress** - passes statues - ratifies treaties - creates administrative agencies **Executive Branch - President** - proposes statues - signs or vetoes statutes - oversees administrative agencies **Judicial Branch - Federal Courts** - interpret statues - create (limited) federal common law - review the constitutionality of statutes and other legal acts **Administrative Agencies** - oversee day-to-day application of law in dozens of commercial and other areas

**Ethical Behavior Provides Financial Benefits**

**A company with a good reputation can pay employees less and charge consumers more** customers believe food made by trustworthy company has less calories **Conversely, unethical behavior causes financial harm** - companies caught socially irresponsible or illegal activities suffer significant decline in stock price - unethical behavior in workplace reduced productivity, job stability, profits - questionable behavior creates cynical, resentful, unproductive workforce **no guarantee but in long run, evidence ethical company more likely to win financially**

2-3 e **Moral Licensing**

**After doing something ethical, many people then have a tendency to act unethically** we refer to this tendency as **moral licensing** As if people keep running tally of how ethical they are, one ethical act a.m. then entitled to act unethically in p.m. i.e. people who buy environmentally friendly product are more likely to cheat & steal afterwards than those chosen less socially conscious item

4-3 b **Power of Agencies**

**Agencies use 3 Kinds of Power to do work assigned to them** 1. Make rules 2. Investigate 3. Adjudicate **Rulemaking** one of most important functions of administrative agency is make rules agency attempts to establish fair & uniform behavior for all businesses in affected area **To create a new rule is to promulgate it** agencies promulgate two types rules - legislative and interpretive **Types of Rules: Legislative and Interpretive** legislative rules most important agency rules like statutes agency creates law by requiring businesses or private citizens act certain way i.e. FTC promulgated detailed rules governing any site directed to young children - failure to comply follow rules result in substantial civil penalty **Interpretative rules do not change the law. They are the agency's interpretation of what the law already requires** can affect all of us i.e. 1977 Congress amended Clean Air Act attempt reduce factory pollution required EPA impose emission standards on "stationary sources" of pollution but what are they? (mean?) EPA's job to define term. results seen/smelled b/c EPA's definition determine quality of air entering our lungs EPA developed "bubble concept" ruling "stationary source" meant entire factory, not individual smokestacks - result polluters could shift emission among smokestacks single factory to avoid EPA regulation although environmentalists howled agency spoken by interpreting statute **How Rules are Made** Critical Issue: How much participation is public entitled to before agency issues rule? **Two Basic Methods of Rulemaking** 1. Informal Rulemaking - may use notice and comment method publish proposed rule in advance permit public comment period - submit objections/arguments w/supporting data agency decision/publish final rule - no obligation to oblige parties (DOT require safety features autos - manufacturers may object w/ written response - agency required rational reasons for final choices made 2. Formal Rulemaking - in enabling legislation, Congress may require agency hold hearing before promulgating rules. Congress does to make agency accountable to public - after agency publishes its proposed rule holds public hearing opponents may cross-examine agency experts need for rule & testify against it - when agency makes final decision about rule must prepare formal, written response to all occurred at hearing Used responsibly hearings give public access to agency help formulate sound policy Used irresponsibly hearings can be manipulated to stymie needed regulation i.e. peanut butter content 1958 - Jif had 75% peanuts 20% oil, P&G fought FDA investigation and changes yrs - 1965 FDA proposed minimum 90% peanuts in peanut butter, P&G wanted 87%. FDA wanted no more than 3% hydrogenated vegetable oil, P&G wanted no limit - 1968 decade after investigation, FDA promulgated final rules req. 90% peanuts but eliminating 3% cap veg. oil Delay doesn't end when FDA issues final rules b/c can still be challenged in court

1-2 a **United States Constitution**

**America's greatest legal achievement was writing of the United States Constitution in 1787** **supreme law of the land** **any law that conflicts w/ it is void** **federal Constitution does 3 basic things:** 1. establishes the national government of the United States w/ its 3 branches 2. it creates a system of checks and balances among the branches 3. the Constitution guarantees many basic rights to the American people

**Prosecution**

**But only the government can prosecute a crime and punish Roger by sending him to prison** - the local prosecutor has total discretion in deciding whether to bring Roger to trial on criminal charges

7-1 a **A Civil versus a Criminal Case**

**Civil law** involves the rights and liabilities that exist between private parties. If person claims another caused her civil injury she bears burden filing lawsuit, convincing court of her damages **Criminal law - Conduct is criminal when society outlaws it** State legislature or Congress concludes certain behavior threatens public safety and welfare, it passes a statute forbidding that behavior, declaring it criminal i.e. Medicare fraud is crime b/c Congress outlawed it Murder is state crime although some are both state/federal offenses i.e. violation of fed statute murder president (any time) or fed egg inspector (while perform duties) The title of criminal case is usually govt. vs someone - appears daunting that govt against you - criminal defendant often faces uphill climb b/c people assume accused is guilty B/C of this criminal procedure designed to protect accused & ensure criminal trials are fair **many of protections for accused of crime found in first ten amendments to US Constitution known as Bill of Rights**

**Enabling Legislation**

**Congress creates a federal agency by passing enabling legislation** i.e. Interstate Commerce Act enabling legislation established ICC typically the enabling legislation describes problems Congress believes need regulation, establishes agency to do it, defines agency's powers as long as limits on agency's discretion, courts generally uphold its powers

1-3 a **Criminal and Civil Law**

**Criminal law concerns behavior so threatening that society outlaws it altogether** - embezzle money from bank, steal a car, sell cocaine - most criminal laws are statutes passed by Congress or state legislature - govt prosecutes wrongdoer, regardless of what bank president or car owner wants - district attorney (paid by govt) brings case to court - victim not in charge of case, may appear as witness - govt seek to punish defendant w/prison sentence, fine, or both - if fine - money goes to state not to injured party **Civil law regulates the rights and duties between parties** -Tracy agrees in writing to lease you 30,000 sq ft store in mall, she now has **legal duty** to make space available - BUT another tenant offers more money and she refuses to let you move in - Tracy has violated her duty, but NOT committed a crime. Govt won't prosecute case, up to you to file civil lawsuit. Case based on **common law of contract** - seek equitable relief, injunction ordering Tracy not to lease to anyone else - you should win suit, get your injunction, some monetary damages, Tracy won't go to jail - some conduct involves both civil & criminal law maybe Tracy so upset over losing case she gets drunk causing serious car accident. She committed crime driving while intoxicated state will prosecute. She could be fined or imprisoned. She has committed negligence injured party file lawsuit against her seeking money. **Civil & Criminal joined together here & in Pub Zone case**

**Punishment**

**Eighth Amendment prohibits cruel and unusual punishment** Courts generally unsympathetic to claims under this provision i.e. Supreme Court ruled death penalty not cruel and unusual as long as not imposed in arbitrary or capricious manner **Another important case under 8th Amendment involved California's **Three strikes** law dramatically increases sentences for repeat offenders.. Gary Ewing on parole from 9 yr prison term prosecuted stealing 3 golf clubs worth $399 e. B/C prior convictions his crime normally misdemeanor treated as a felony. Ewing convicted/sentenced 25 yrs to life Supreme Court ruled sentence not cruel & unusual three strikes law rational response to legitimate concern about crime Eighth Amendment also outlaws excessive fines. Forfeiture most controversial topic under this clause. **Forfeiture is a CIVIL law proceeding permitted by many different CRIMINAL statutes**

Multiple Choice Test 1. The United States Constitution is among the finest legal accomplishments in the history of the world. Which of the following influenced Franklin, Jefferson, and the rest of the Founding Fathers?

**English common law principles The system of federalism (the division of the Federal Government and State Governments)** **Both A and B** None of the above

4-1 b **Bystander Cases**

**Inherited from England rule about bystanders** **Bystander's obligations: You have no duty to assist someone in peril unless you created the danger** Union Pacific Railway Co. v. Cappier, no fault of RR train hit man RR employees saw but did nothing to assist help arrived - victim died court held RR had no DUTY to help injured man **At the time** accurate statement of law both England & US: bystanders need do nothing criticized by judges, contemporary writers found cruel/inhumane - **stare decisis** - they followed law often common law changes bit by bit - like 18 yrs after Cappier - Iowa court found - Ed Carey farm worker fainted sunstroke - boss Davis carried him to wagon left in sun 4 more hrs serious damage - court found if a servant serious injury, master if present in duty take reasonable measures to relieve him even if not chargeable w/ fault w/ emergency Iowa bystander now liable **if** employer and **if** worker suddenly stricken and **if** emergency and **if** employer present next 50 yrs bystander law slow change - Osterlind v. Hill 1928 Osterlind rented canoe from Hill's boatyard paddled into lake, fell in water - 30 min. clung to canoe shouted for help Hill heard did nothing Osterlind drowned - court found Hill not liable bystander no liability half century later court reverse its position require assistance in extreme cases **Tarasoff v. Regents of the University of California** Oct. 27, 1969 Prosenjit Poddar killed Tatiana Tarasoff Poddar told psychologist employed by Univ. Cali Berkley **Issue: Did Dr. Moore have a duty to Tatiana Tarasoff, and did he breach that duty?** **Decision: Yes Dr. Moore had a duty to Tatiana Tarasoff** **Reasoning:** Under common law one person gen. owes no duty control conduct of another or warn anyone in danger. **Courts make exception when defendant special relationship to dangerous person or potential victim - therapist has special relationship w/patient** **Tarasoff exception** applies when special relationship exists i.e. therapist-patient Carey v. Davis if bystander was employer - no relationship law not require total stranger put self harm's way for another.

7-3 e **Hiring Illegal Workers**

**It is illegal to knowingly employ unauthorized workers**

**Society as a Whole Benefits from Ethical Behavior**

**John Akers former IBM chairman argued **Without ethical behavior a society could not be economically competitive** **recipe for headaches running company but a nation become wasteful, inefficient, noncompetitive** **the greater the measure of mutual trust and confidence in the ethics of a society, the greater its economic strength** **In short, ethical behavior builds trust, which is important in all of our relationships** - only ingredient allows us to live and work together recent Gallup poll results: 21 percent Americans have trust in big business 52 percent have confidence in police 24 percent in organized labor **only institution less trusted than big business is Congress - 17 percent**

**Summary of Jurisprudence**

**Legal Positivism - law is what the sovereign says Natural Law - an unjust law is no law at all Legal Realism - who enforces the law counts more than what is in writing**

2-2 e **Moral Universalism and Relativism**

**Moral universalism** - people believe some types behavior always right or always wrong **Moral relativism** - believe it's right to be tolerant of different views and customs - decision acceptable even if not in keeping w/ one's own ethics standards - i.e. Pope Benedict XVI - homosexuality is "a strong tendency ordered toward an intrinsic moral evil" while successor Pope Francis "if someone is gay and he searches for the Lord and has good will, who am I to judge?" - relativistic approach **There are at least two types of moral relativism: cultural and individual** - cultural relativists - what's right or wrong depends on norms & practices in each society - i.e. polygamy ethical in societies where practice longstanding & culturally significant - individual relativists - people must develop their own ethics rules - what's right for **me** might not be good for **you** **danger in individual relativism - it can justify just about anything**

2-1 a - **Ethics in Business**

**Nobel Prize-winning economist Milton Friedman (1912-2006) famously argued that a corporate manager's primary responsibility is to the owners of the organization, that is to shareholders** - unless owners explicitly provide otherwise, managers should make company profitable as possible while complying w/ the law **Others have argued that corporations should instead consider all company stakeholders, not just shareholders** **stakeholders** - employees, customers, communities & countries a company operates can create an obligation to broad categories "society" or the "environment" - i.e. When 20 first-graders & 6 teachers killed - GE stopped lending funds to shops that carry guns in Newtown (Sandy Hook elementary) **GE put employees ahead of investors** **true ethics dilemma**company considers action that would not increase shareholder returns but benefit other stakeholders sometimes face choices which most profitable option is not most ethical choice - Kraft exec Michael Mudd noted fellow execs good people but strayed from honorable business feeding people to enticing people consume more high-margin low-nutrition branded products to increase shareholder value **But when your *only* concern is maximizing company's profitability in short run, will find yourself in position of making unethical choices** - i.e. Hugh Aaron plastic company major clients hired purchasing agent who refused to buy product w/o incentives such as gifts, vacations, prostitutes. Company lost this business but Aaron doesn't regret decision b/c believed self-respect as important as profits

2-3 d **We Cannot Be Objective about Ourselves**

**People are not objective when comparing themselves to others** We tend to think about ourselves as better than other fellow. As a result we evaluate other's behavior more harshly Not big deal if cheat on expense account b/c we're honest/deserve extra income. But others who do it are corrupt We believe we've done more than fair share of work at home, team, study group studies found people overestimate own contribution to group effort.. **In making a decision that affects you, it is important to remember that you are unlikely to be objective** may assign easy tasks to yourself

**Right to a Lawyer**

**Right to a Lawyer** As **Miranda** made clear a criminal defendant has right to lawyer before interrogated by police. **The Sixth Amendment guarantees the right to a lawyer at all important stages of the criminal process** Because of right, govt must appt lawyer to represent, free of charge, any defendant who can't afford one.

1-2 b **Statues**

**Second important source of law - is statutory law** - Constitution gave to US Congress power to pass laws on various subjects - these laws are called **statutes** and they can cover any topic **as long as don't violate the Constitution** - almost all statutes created by same method - idea for new law - taxes, health care, texting while driving, etc. **first proposed in the Congress** - this idea is called a **bill** - The House & Senate then independently vote on bill - to pass Congress, bill must win simple majority vote in each of these chambers - if Congress passes bill, then goes to White House for president's approval. - if President signs it, a new statute is created - law of the land - if President refuses to approve or **vetoes**, a bill, it doesn't become a statute unless Congress overrides the veto - to do that, both House & Senate must **approve the bill by 2/3 two-thirds majority** - if this happens, it becomes a statute w/o president's signature

7-1 e **After Arrest**

**The Fifth Amendment** - protects criminal defendants - both the innocent and the guilty **Due Process** - context of criminal law due process requires fundamental fairness at all stages of the case. Prosecution required to disclose evidence favorable to the defendant. Similarly, if a witness says that a tall white male robbed liquor store, it would violate due process for police to place male suspect in lineup with four short women of color **Self-Incrimination** **The Fifth Amendment bars the government from forcing any person to provide evidence against himself.** Police may not use mental or physical coercion to force confession or any other information out of someone. Society doesn't want govt engages in torture. Might catch criminal but injure innocent make all citizens fear govt that's supposed to represent them. **Coerced confessions are inherently unreliable** (defendant may confess to end torture) **Protection against self-incrimination applies only to people - corporations, other organizations not protected may not required provide incriminating information** **Miranda Rights** Police can't legally force suspect to provide evidence against himself. Sometimes under forceful interrogation might forget his constitutional rights. **Landmark Case - Miranda v. Arizona 1966** Supreme Court est. requirement police remind suspects of their rights Ernesto Miranda poor mentally ill Mexican immigrant - rape victim identified him as perp to Phoenix police - police didn't inform right to lawyer present during questioning. 2 hrs questioning Miranda signed confession said voluntary Miranda's trial judge admitted written confession into evidence - officers testified Miranda also made oral confession during interrogation - jury found Miranda guilty kidnapping/rape - Supreme Court Arizona affirmed conviction, US Supreme Court agreed to hear case Issue: Was Miranda's confession admissible at trial? Should his conviction be upheld? Decision: Neither his written or oral confession was admissible. His conviction was overturned. Reasoning: Supreme Court heard series cases police engaged lengthy secret interrogations also beaten, hanged, whipped suspects **Court's goal in this case prevent police wrongdoing, fairly balance state power and individual rights, and respect human dignity** Justice requires that the govt when seeking to punish an individual, must find the evidence itself rather than force him to reveal it from his own mouth. **Once police deprive suspect of freedom, required to protect his constitutional right to avoid self-incrimination. Must warn him he has right to remain silent, that any statement he does make may be used as evidence against him, and that he has a right to the presence of an attorney.** Defendant may waive these rights, provided the waiver is made voluntarily, knowingly, intelligently. If he indicates in any manner/stage of process doesn't want interrogated or wishes speak to attorney, police cannot question him. Mere fact he volunteered some statements on own does not deprive him of right to refrain from answering questions until he has consulted with an attorney.

7-3 f **Foreign Corrupt Practices Act**

**The Foreign Corrupt Practices Act (FCPA) prohibits American companies from paying bribes overseas** **The FCPA has two principal requirements:**

1-1 a **The Role of Law in Society**

**The strong reach of the law touches nearly everything we do, especially at work** **Law is powerful, essential, and fascinating** **Law is also essential** **EVERY** society of which we have any historical record has had some system of laws ex: Visigoths - nomadic European people overran much of present-day France & Spain during 5th & 6th centuries required judges to be "quick of perception, clear in judgment, and lenient in the infliction of penalties" **our legal system largely based on English model, many societies contributed ideas** ex: Iroquois Native Americans role in creation our own govt 5 nations made up Iroquois: * Mohawk, Cayuga, Oneida, Onondaga, Seneca each nation gov. own domestic issues BUT each nation elected "sachems" to a League of the Iroquois - league had authority over any matters common to all i.e. relations w/ outsiders by 5th century, Iroquois solved problem of **Federalism** how to have 2 levels of govt each w/ specified powers their system impressed Benjamin Franklin & others influenced drafting of our Constitution, with its powers divided between state and federal govt **1835** French aristocrat **Alexis de Tocqueville** traveling US noticed American tendency to file suit "Scarcely any political question arises in the United States that is not resolved, sooner or later, into a judicial question" he got it right Americans expect courts do resolve many problems Americans litigate AND watch e. other do it i.e. courtroom dramas on TV TV coverage live trials i.e. O. J. Simpson **The law is a big part of our lives, and it is wise to know something about it"

**1-4 a - **Legal Positivism**

**This philosophy can be simply stated: Law is what the sovereign says it is** The **sovereign** is the recognized political power whom citizens obey. In U.S. both state AND federal governments are sovereign. A legal positivist holds whatever sovereign declares to be the law **IS** the law whether right or wrong **primary criticism** seems leave no room for questions of morality

2-3 p **Avoiding Ethics Traps**

**Three practices help us avoid these traps:** 1. **slow down** - ministry students told to go for talk met distressed man lying in doorway - only one-tenth stopped to help when told they were late - two-thirds stopped when thought they had time 2. **Do not trust your first instinct** - System I thinking - automatic, instinctual, sometimes emotional process - efficient but can lead to selfish, unethical decisions System II thinking - conscious & logical (for exam) Before making important choice use System II. 3. **Remember your Life Principles** - - Ariely research found less likely cheat if reminded of school honor code or Ten Commandments - true even if no school honor code, participants atheists, or couldn't remember all Ten Commandments - subject of talk mattered i.e. seminary students told talk would be about Parable of Good Samaritan = more likely to help distressed man **good practice to remind yourself about your values**

7-1 c **State of Mind**

**Voluntary Act** **A defendant is not guilty of a crime if she was forced to commit it. In other words, she is not guilty if she acted under duress** Defendant bears burden of proving by a **preponderance of the evidence** that she did act under duress 1974 terrorist group kidnapped heiress Patricia Hearst from apt near UC Berkeley - after 2 months torture, she helped in bank robbery w/ group - despite opportunities to escape, she stayed w/ criminals until capture by police yr later State of California put her on trial bank robbery - question for jury - did she voluntarily participate in crime? - Hearst convicted prison, later pardoned **Entrapment** **When the government induces the defendant to break the law, the prosecution must prove beyond a reasonable doubt that the defendant was predisposed to commit the crime** Goal is separate cases where defendant innocent before govt tempted him from those defendant too eager to break the law **Conspiracy** If police discover plot to commit a crime, they can arrest defendants before any harm has been done. If bad guys try to commit crime but fail, police can arrest w/o giving chance to try again. **It is illegal to CONSPIRE to commit a crime, even if that crime never actually occurs. A defendant can be convicted of taking part in a conspiracy if:** * A conspiracy existed * The defendants knew about it, and * Some member of the conspiracy voluntarily took a step toward implementing it

2-3 o **Blind Spots**

**We all have a tendency to ignore blatant evidence that we would rather not know** Madoff Ponzi scheme theft of $65 billion - alleged he was money manager earned consistent high returns yr in/out - even when market down explanation for results implausible - no else could replicate using his methods yet financial managers recommended him to clients

**Ch. 1 Review**

**We depend upon the law to give us a stable nation and economy, a fair society, a safe place to live and work** In a democracy, we all participate in crafting the society we want. Legal rules control us, **yet we create them** 1. **The Federal System** Our federal system of govt means law comes from a national govt in D.C. and from 50 state govts. 2. **Legal history** the history of law foreshadows many current legal issues - mediation, partnership liability, the jury system, the role of witnesses, the special value placed on land, the idea of precedent. 3. **Primary sources of Law** * United States Constitution and state constitutions * Statutes, drafted by legislatures * Common law - the body of cases decided by judges as they follow earlier cases, known as **precedent** * Court orders - place obligations on specific people or companies * Administrative law - the rules & decisions made by federal & state administrative agencies * Treaties & agreements between the United States & foreign nations 4. **Criminal and Civil Law** * criminal law - concerns behavior so threatening to society it's outlawed altogether * civil law - deals w/ duties and disputes between parties, not w/ outlawed behavior 5. Jurisprudence - concerned w/ basic nature of law **3 Theories of jurisprudence** * Legal positivism - the law is what the sovereign says it is * Natural law - an unjust law is no law at all * Legal realism - who enforces the law is more important that what the law says

2-2 d **Front Page Test**

**When faced with a difficult decision, think about how you would feel if your actions went viral - FB, YouTube, etc.** would it help you decide what to do? - not foolproof, might have legitimate reasons to do something private

2-3 k **Lost in a Crowd**

**When in a crowd, people are less likely to take responsibility because they assume (hope?) that someone else will** they check on reactions of others, if calm, assume all is right. **bystanders more likely react if alone and have to form independent judgment** in business if everyone lying to customers, smoothing earnings, sexually harassing staff, it's tempting to go with flow rather than protest wrongdoing. companies address responsibility in American obesity by pointing to other causes i.e. car culture, screen time, less outdoor play, fewer women home to cook - rationalize not responsible, nothing can do

4-2 h **Congressional Override**

**When the president vetoes a bill, Congress has one last chance to make it law; an override** **If both houses repass the bill, each w/ 2/3 margin becomes law over president's veto** Congress attempted pass 1990 Civil Rights bill over Bush veto, fell short in Senate by one vote Jan 1991 Civil Rights advocates introduced new bill reverse Wards Cove rule - both houses debated/bargained - new bill said once employee prove particular employment practice caused discriminatory impact, employer must "demonstrate that the challenged practice is job related for the position in question and consistent with business necessity" Two sides fought over exact meanings of terms "job related" and "business necessity" w/ e. offering definitions , but no agreement Congress did what it often does faced w/ problem of definition - dropped issue - with definitions left out - bill passed both houses Nov. 1991 - President Bush bill into law - stated new bill improved no longer threatened create racial quotas - opponents charged he had reversed course for political reasons - 1992 election - so Congress restored "business necessity" interpretation to its own 1964 Civil Rights Act Exam Strategy: Kelly Hackworth Progressive insurance leave care ailing mother - denied return to previous job Family Medical Leave Act - fed statute requires firm give workers returning from family leave original job or equivalent one - statute excludes from coverage workers whose company employs fewer 50 people w/in 75 miles of worker's jobsite - jobsite and company's workplace less than 75 miles employed 47 people - Lawton, Ok employed 3 more people but 75.6 miles away - so Progressive argued not covered by FMLA leave **to interpret statute - courts apply three steps:** 1. plain meaning rule 2. legislative history 3. public policy Result: court ruled plain meaning of "within 75 miles" was 75 miles or less so Hackworth lost

**Ch. 4 Conclusion Exam Review**

**Why can't they just fix the law** - study of law creates frustrations. 1. **Common Law** - The common law evolves in awkward fits and starts because courts attempt to achieve two contradictory purposes; predictability and flexibility. 2. **Stare decisis** - Stare decisis means "let the decision stand" and indicates that once a court has decided a particular issue, it will generally apply the same rule in future cases. 3. **Bystander Rule** - The common law bystander rule holds that, generally, no one has a duty to assist someone in peril unless the bystander himself created the danger. Courts have carved some exceptions during the last 100 years, but the basic rule still stands. 4. **Legislation** - Bills originate in Congressional committees and go from there to the full House of Representatives or Senate. If both houses pass the bill, the legislation normally must go to a Conference Committee to resolve differences between the two versions. The compromise version then goes from the Conference Committee back to both houses, and if passed by both, to the president. If the president signs the bills, it becomes statute; if he vetoes it, Congress can pass it over his veto with a two-thirds majority in each house. 5. **Statutory Interpretation** Courts interpret a statute by using the plain meaning rule; then, if necessary, legislative history and intent; and finally, if necessary, public policy. 6. **Administrative Agencies** - Congress creates federal administrative agencies with enabling legislation The Administrative Procedure Act controls how agencies do their work. 7. **Rulemaking** - Agencies may promulgate legislative rules which generally have the effect of statutes, or interpretive rules, which merely interpret existing statutes. 8. **Investigation** Agencies have broad investigatory powers and may use subpoenas and, in some cases, warrantless searches to obtain information. Exam Strategy: Hiller Systems safety inspection M/V Cape Diamond ocean vessel, accident killed 2 men OSHA tried investigate Hiller prohibited employees from speaking to OSHA Strategy: Agencies make rules, investigate, adjudicate - here need investigation - what power does agency have to force company provide dats? Limits on power? 9. **Adjudication** Agencies adjudicate cases, meaning they hold hearings and decide issues. Adjudication generally begins with a hearing before an administrative law judge and may involve an appeal to the full agency or ultimately to federal court. 10. **Agency Limitations** The four most important limitations on the power of federal agencies are statutory control in the enabling legislation and the Administrative Procedure Act, political control by Congress and the president, judicial review, and the informational control by the FOIA and the Privacy Act. Result Whitfield v. Edison case - protecting employee from anti-discrimination made by coworker slight step beyond Title VII appears consistent w/ goals of Title VII and anti-retaliation provision - Whitfield win - real case did Result OSHA and Hiller Systems - OSHA can issue subpoena dues tecum those on board ship, supervisor, appear for questioning bring ALL relevant documents. **OSHA may ask for anything that is** 1. relevant to the investigation 2. not unduly burdensome 3. not privileged Conversations between ship inspector, his supervisor relevant, discussion between supervisor/company's lawyer is privileged.

1-5 - **Working with the book's features** 1-5 a - **Analyzing a Case**

**a law case is the decision a court has made in a civil lawsuit or criminal prosecution** **cases are the heart of the law**

1-2 f - **Treaties**

**a treaty is an agreement between two or more sovereign countries - topics range from human rights /peace to commerce/intellectual property **Constitution authorizes president to make treaties, BUT pacts must also be approved by US Senate by two-thirds vote** - once ratified, treaties are binding, have force of federal law - 1994 Senate ratified the North American Free Trade Agreement (NAFTA) aimed reduce trade barriers between US, Mexico, Canada - controversial but **law**

Ch. 2 Multiple Choice 1. Milton Friedman was a strong believer in the_________model. He ___________argue that a corporate leader's sole obligation is to make money for the company's owners.

**a. shareholder; did** b. shareholder; did not c. stakeholder; did d. stakeholder; did not

3. When courts interpret statutes, they ask___________

**a. what the words in the statute ordinarily mean** b. which political parties endorsed the law **c. what Congress intended the law to do** **d. whether or not the law supports good public policy** **e. all of these except b.**

**Felonies and Misdemeanors**

**felony** is serious crime - a defendant can be sentenced one yr or more in prison - murder, robbery, rape, drug dealing, money laundering, wire fraud, embezzlement are felonies **misdemeanor** is less serious crime often punishable by yr or less in county jail - public drunkenness, driving w/o license, shoplifting are misdemeanors most states court can also impose a fine govt keeps not share w/victim can order **restitution** - defendant reimburses victim for harm suffered Govt also limit rights of convicted criminals broad manner - some states limit right of felons to vote or right to apply for license

1-1 b **Origins of our Law**

**law can' t be simple b/c it reflects the complexity of contemporary life** **no such thing as "the law"** principles & rules of law come from many different sources our nation born in revolution created to protect rights of its people FROM the govt. Founding Fathers created national govt but individual states maintain control many areas. e. state has own govt exclusive power over areas of our lives **Founders guaranteed many rights to the people alone, ordering national & state govts to keep it clear** creating multilayered system w/ 50 state govt one fed govt ALL creating/enforcing law **English Roots:** 10th century England rustic, agricultural w/tiny population little law & order Viking invaded repeatedly criminals hard to catch in heavily forested, sparsely settled nation king used primitive legal system maintain tenuous control over his people divided into shires daily admin carried out by shire reeve later called sheriff who collected taxes, kept peace, apprehend criminals, mediate between feuding families 2-3 times/year shire court met lower courts more frequently **today** method of resolving disputes lives on as mediation few officers to keep peace created method ensuring public order each freeman belonged to group of 10 freeman **tithing** headed by **tithingman** if anyone injured person outside his tithing or interfered w/king's property, all 10 men of tithing be forced to pay **today** we still use **idea collective responsibility in business partnerships w/ all partners personally responsible for debts of partnership - could potentially lose their homes & all assets b/c of irresponsible conduct of one partner** - liability helped create new forms of business organization, including limited liability companies when cases came before Anglo-Saxon court parties often represented by a clergyman, by a nobleman, or by themselves few professional lawyers - e. party produced "oath helpers," usually 12 men, swear that one version of events correct **Anglo-Saxon oath helpers forerunners of modern jury of 12 persons** **1066 Normans conquered England** William the Conqueror made claim never made in England before: **he owned all of the land** king then granted parts of their land to **tenants in demesne** who actually occupied a particular estate w/ each tenant in demesne owed fidelity to his lord (**landlord**) **1000 yrs later American law still regards land special** **Statute of Frauds** (contracts) demands contracts for the sale or lease of property be in writing **landlord-tenant law** vital to students & others reflects its ancient roots - some landlord's rights based on 1,000 yr tradition that land is uniquely valuable **1250 Henry de Bracton** wrote a legal treatise that still influences us **De Legibus et Consuetudinibus Angliae (On the Laws and Customs of England)** written in Latin summarized many legal rulings in cases since Norman Conquest. De Bracton teaching judges to rule based on previous cases, helping establish idea of **precedent** **The doctrine of precedent, which developed gradually over centuries requires that judges decide current cases based on previous rulings** **vital principle is heart of American common law** **precedent ensures predictability** - judge looks for precedent - older cases dealing w/ same issue **The accumulation of precedent, based on case after case, makes up the common law** - some cases from legal disputes hundreds of yrs ago still recognizable today case from 1329 is ancient medical malpractice action. Attorney Launde doesn't deny client blinded plaintiff, he claims plaintiff brought wrong kind lawsuit - argues plaintiff should brought case of "covenant" - lawsuit about a contract Judge Denum decides case on different principle - gives judgment to defendant b/c plaintiff voluntarily sought medical care, implies defendant would lose only if he had attacked plaintiff - might have different outcome today = informality of judge's ruling - casually mentions he came across related case before & would stand by that outcome - idea of precedent beg. take hold **Law in the United States** colonists brought basic knowledge English law w/ them some content to adopt as own but other parts i.e. religious restrictions abhorrent to them - made journey to escape persecution not to recreate difficulties in new land - some laws irrelevant or unworkable in world socially/geographically different - **American law blend of ancient principles of English common law & zeal/determination for change - **19th century US changed from weak, rural nation to vast size/potential power - cities grew, factories appeared, sweeping legal questions** - workers right to form unions? to what extent should manufacturer liable if product injured someone? could state govt invalidate employment contract required 16 hr workdays? should one company be permitted to dominate entire industry? - **20th century rate social/technological change increased, creating new legal puzzles** - some products i.e. autos so inherently dangerous seller responsible for injuries if no mistakes made in manufacturing? - who clean up toxic waste if company that caused pollution no longer exists? - if consumer signed contract w/ billion dollar corp. should agreement be enforced if consumer never understood it? -

4-1 a **Stare Decisis**

**let the decision stand** **Essence of common law** **Once a court decided particular issue will generally apply the same rule in similar cases in the future** Highest court Arizona must decide if contract signed by 16 yr old can be enforced? Is there precedent (if high court Arizona already decided similar case) They search, find several earlier cases holding such contracts NOT be enforced against minor. Court probably apply precedent and refuse to enforce contract in case. Courts don't always follow precedent but do generally, **stare decisis** **desire for predictabiilty created doctrine of stare decisis** - value of predictability - people must know what law is - law must be knowable - also flexibility in law - means to respond to new problems & changing social climate **more flexibility we permit, less predictability we enjoy**

2-3 q **Lying: A Special Case**

**lying is the act of intentionally misrepresenting the truth, by word, deed, or omission** - although taught early lying is wrong, we avg 2-3 lies per day - consequences of lying severe - research shows liars get sick more (headaches, nausea, sore throats), experience more mental health issues, have worse relationships **Kant felt that any lie violated his principle of the categorical imperative** b/c world intolerable if everyone lied all the time, so no one should lie ever Kant preferred you tell what's called a **Kantian Evasion or a palter** - **make a truthful statement that is nonetheless misleading** Clinton when asked if he used marijuana stated he "never broke the laws of my state or of the United States" he smoked in England so his statement technically correct but misleading critics say paltering is worse than lying b/c harm to victim is same, palterers less likely caught, therefore more likely to palter again lie to children about Santa Claus? In business, competition make a difference? When do ends justify the means?

**Theories of Ethics**

**reason for the decision** **outcome of their actions** choice between doing right and getting right result philosophical debate

2-4 **Reacting to Unethical Behavior**

**when faced with unethical behavior in organization, you have three choices**

1-2 d - **Court Orders**

- Judges have authority issue court orders that place binding obligations on specific people/businesses - court can compel a party to and prohibit it from doing something i.e. an **injunction**can require people to do things - like perform on a contract or remove a nuisance - judge might issue an injunction to stop salesperson from using former company's client or prevent counterfeiter from selling fake goods - courts have authority to imprison or fine those who violate their orders

1-3 b - **Law and Morality**

- Law is different from morality yet two are linked. - law can duplicate what we regard as moral position - we've had laws we now regard as immoral (factory owner firing employee b/c race/religion) - legal issues morality less clear i.e. - child playing w/matches intervene? law says no - who cleans up toxic waste if new owner discovers it buried & previous owner bankrupt?

4-3 **Administrative Law**

- administrative agencies have become fourth branch of govt - supporters believe they provide unique expertise in complex areas - detractors regard them as unelected govt run amok i.e. Federal Aviation Administration - requires airlines ensure your seats upright before takeoff/landing - Internal Revenue Service - Environmental Protection Agency regulates water quality of river in town - Federal Trade Commission - oversees commercials from TV - Bureau of Land Management - oil & gas industry - agency controls land - Immigration and Customs Enforcement - entering country

1-2c **Common Law**

- binding legal ideas often come from the courts - judges generally follow **precedent** - **when courts decide a case, tend to apply legal rules other courts used in similar cases** **The principle that precedent is binding on later cases is called *stare decisis,* which means "let the decision stand"** *stare decisis* makes the law predictable and in turn, enables businesses and private citizens to plan intelligently **precedent is binding only on lower courts** i.e. if Supreme Court decided a case one way in 1965, under no obligation to follow precedent if same issue arises in 2020 **beneficial** - 1896 - Supreme Court decided (unbelievably) that segregation (separating people by race in schools, hotels, public transportation, and other public services - legal under certain circumstances - 1954 - on exact same issue, court changed its mind - other circumstances more difficult to see value in breaking w/established rule

7-1 b **Conduct Outlawed**

- crimes created by statute - to win conviction prosecution must demonstrate to court statute outlawed defendant's conduct - Fifth and Fourteenth Amendments to Constitution require the **language of criminal statutes be clear and definite** enough: 1. ordinary people can understand what conduct is prohibited 2. enforcement cannot be arbitrary and discriminatory Roger: alleged computer thief - state charged he stole computer equipment from store, crime defined by statute as larceny - BUT Supreme Court ruled a statute prohibiting crime of loitering unconstitutionally vague b/c didn't clarify behavior prohibited & enforced arbitrarily Case: Skilling v. United States Jeffrey Skilling president & COO Enron - trading at $90 per share worthless govt investigation discovered company execs conspired prop up Enron's stock price overstating company finances - charged w/ theft of honest services - trad. fed statute prosecute public officials taking bribes - then prosecutors began charging employees under statute breached duty to employer - sentenced 24 yrs prison/$45 million restitution Skilling appealed arguing honest services statute unconstitutionally vague. Fifth Circuit disagreed affirmed conviction. Supreme Court granted **certiorari** Issue: Was the honest services statute too vague to be constitutional? Decision: It was constitutional but only when applied to bribery Reasoning: Constitution's due process clause provides a criminal statute must precisely define a violation so that an ordinary person knows what activities are illegal - Skilling claimed too vague didn't meet standard Govt didn't allege Skilling took bribes to misstake Enron's financials - he not in violation of honest services statute

1-4 c - **Legal Realism**

- they claim is doesn't matter what is written as law - what counts is who enforces that law and by what process it is enforced - personal characteristics make us bias (income, education, family background, race, religion) determine which contracts enforced/ignored - why some criminals receive harsh sentences while others get off lightly - other legal realists aggressively argue that those in power use the machinery of the law to perpetuate their control - outcome of case determined by needs of those w/money & political clout - court puts "window dressing" on decision so society thinks there are principles behind law **Problem w/ legal realism** - its denial any lawmaker can overcome personal bias yet some act unselfishly

**Chapter 7 Conclusion** **Exam Review**

1. **Burden of Proof** - in all prosecutions, the government must prove its case beyond a reasonable doubt. Exam Strategy: 2. **Right to a Jury** A criminal defendant has a right to a trial by jury for any charge that could result in a sentence of six months or longer. 3. **Felony** A felony is a serious crime for which a defendant can be sentenced to one year or more in prison. 4. **Conduct Outlawed** The language of criminal statutes must be clear and definite. 5. **Voluntary Act** A defendant is not guilty of a crime if she committed it under duress. However, the defendant bears the burden of proving by a preponderance of the evidence that she acted under duress 6. **Entrapment** When the government induces the defendant to break the law, the prosecution must prove beyond a reasonable doubt that the defendant was predisposed to commit the crime. 7. **Conspiracy** It is illegal to conspire to commit a crime, even if that crime never actually occurs. 8. **Fourth Amendment** The Fourth Amendment to the Constitution prohibits the government from making illegal searches and seizures. This amendment applies to individuals, corporations, partnerships, and other organizations. 9. **Warrant** As a general rule, the police must obtain a warrant before conducting a search, but there are seven circumstances under which the police may search without a warrant: plain view, stop and frisk, emergencies, automobiles, lawful arrest, consent, and no expectation of privacy. 10. **Probable cause** A magistrate will issue a warrant only if there is probable cause. Probable cause means that it is likely that evidence of a crime will be found in the place to be searched. 11. **The Exclusionary Rule** Under the exclusionary rule, any evidence the government acquires illegally (or any information obtained as a result of this illegal behavior) may not be used at trial. 12. **Fifth Amendment** The Fifth Amendment requires due process in criminal cases and prohibits double jeopardy and self-incrimination. 13. **Sixth Amendment** The Sixth Amendment guarantees criminal defendants the right to a lawyer at all important stages of the criminal process. 14. **Double Jeopardy** A defendant may be prosecuted only once for a particular criminal defense. 15. **Eighth Amendment** The Eighth Amendment prohibits excessive fines and cruel and unusual punishments. 16. **Larceny** Larceny is the trespassory taking of personal property with the intent to steal. 17. **Embezzlement** Embezzlement is the fraudulent conversion of property already in the defendant's possession. 18. **Fraud** Fraud refers to a variety of crimes, all of which involve the deception of another person for the purpose of obtaining money or property. 19. **Identity Theft** The Identity Theft and Assumption Deterrence Act of 1998 prohibits the use of false identification to commit fraud or other crime, and it also permits the victim to seek restitution in court. The Aggravated Identity Theft statute imposes a mandatory additional sentence of two years on anyone who engages in identity theft during the commission of certain crimes. 20. **Arson** Arson is the malicious use of fire or explosives to damage or destroy real estate or personal property. 21. **Hacking** The federal Computer Fraud and Abuse Act of 1986 prohibits hacking. It is illegal, among other things, to access a computer without authorization and obtain information from it. 22. **Corporate Liability** If a company's agent commits a criminal act within the scope of her employment and with the intent to benefit the corporation, the company is liable. 23. **Making False Statements** It is illegal to make false statements or engage in a cover-up during any dealings with the U.S. government. 24. **RICO** RICO prohibits using two or more racketeering acts to accomplish any of these goals: 1. investing in or acquiring legitimate businesses with criminal money 2. maintaining or acquiring businesses through criminal activity 3. operating businesses through criminal activity Exam Strategy: 25. **Money Laundering** Money laundering consists of taking profits from a criminal act and either using them to promote crime or attempting to conceal their source. 26. **Immigration Law** It is illegal to knowingly employ unauthorized workers. 27. **Foreign Corrupt Practices Act** Under the Foreign Corrupt Practices Act, it is illegal for any employee or agent of a U.S. company (and some foreign companies) or any U.S. citizen to give anything of value to any foreign official for purposes of influencing an official decision (unless the payment was merely intended to facilitate a routine governmental action). Exam Strategy:

Ch. 2 Exam Review

1. **Ethics** the law dictates how a person **must** behave. Ethics governs how people **should** behave. 2. **Life Principles** Life Principles are the rules by which you live your life. If you develop these Life Principles now, you will be prepared when facing ethics dilemmas in the future. 3. **Ethics in Business* There is an ongoing debate about whether managers should focus only on what is best for shareholders or whether they should consider the interests of other stakeholders as well. 4. **Why Be Ethical?** * Society as a whole benefits from ethical behavior. * Ethical behavior makes people happier. * Ethical behavior provides financial benefits. 5. **Theories of Ethics** * Utilitarian thinkers such as John Stuart Mill believe that the right decision maximizes overall happiness and minimizes overall pain * Deontological thinkers such as Immanuel Kant believe that the ends do not justify the means. Rather, it is important to do the right thing, no matter the result. * With his categorical imperative, Kant argued that you should not do something unless you would be willing to have everyone else do it too. * John Rawls asked us to consider what rules we would propose for society if we did not know how lucky we would be in life's lottery. He called this situation "the veil of ignorance." * Under the Front Page test, you ask yourself what you would do if your actions were going to be reported publicly. * Moral universalism is the belief that some types of behavior are always right or always wrong, regardless of what others may think. * Moral relativism is the belief that it is right to be tolerant of different views and customs. A decision may be acceptable even if it is not in keeping with one's own ethics standards. 6. **Ethics Traps** * money * Competition * Rationalization * The fudge factor * I did it for someone else * The slippery slope * Inability to be objective about ourselves * Moral licensing * Conflicts of interest * Conformity * Following orders * Euphemisms and reframing * Lost in a crowd * Short-term perspective * Optimism bias * Blind Spots 7. **To Avoid Ethics Traps:** * Slow down. * Do not trust your first instinct * Remember your Life Principles 8. **Kantian Evasion Or Palter** A truthful statement that is nonetheless misleading. 9. **Reacting to Unethical Behavior** When faced with unethical behavior in your organization, you have three choices: * Loyalty * Exit (either quiet or noisy) * Voice 10. **Giving Voice to Values (GVV)** To implement an ethics decision, use the information you derive from answering the following questions: * What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address? * What is at stake for the key parties, including those with whom you disagree? * What levers can you use to influence those with whom you disagree? * What is your most powerful and persuasive response to the reasons and rationalizations you need to address? 11. **Corporate Social Responsibility** An organization's obligation to contribute positively to the world around it.

**How to analyze a case**

1. **plaintiff person who is suing) v. defendant (who is being sued)** sometimes plaintiff name appears first, if defendant loses trial, files an appeal, SOME courts reverse names of parties 2. **legal citation** - indicates where to find the case in a law library 3. **Facts** section - provides background to lawsuit lawsuits always begin in trial court 4. **Issue** section - what the court had to decide - why you're reading the case 5. **Decision** - court's answer to issue posed. Court's decision often referred to as its **holding** **remanded** - if judges send case back down to lower court for new trial. **affirmed** - if appeals court agreed w. trial court's decision, judges affirm lower court's ruling - **uphold** it 6. **Reasoning** section explains why court reached its decision - could be 3 paragraphs or 75 pgs.

**Path of 1964 Civil Rights Act **

1. House Judiciary Committee approved bill sent it to full House 2. full House passed bill sent to Senate - assigned to Senate Judiciary Committee 3. Senate Judiciary Committee passed amended version of bill sent to full Senate 4. full Senate passed bill w/ additional amendments Senate version different from bill House passed, bill went to Conference Committee Conference Committee: 5. reach compromise sent new version of bill back to both houses 6. & 7. each house passed compromise bill sent to president 8. President Johnson signed bill into law

**What three steps does a court use to interpret statute?**

1. the plain mean rule 2. legislative history and intent 3.

5. If information requested under FOIA is not exempt, an agency has___________to comply with the request.

10 days

2-2 a **Utilitarian Ethics**

1863 Englishman **John Stuart Mill wrote Utilitarianism** **To Mill, a correct decision is one that maximizes overall happiness and minimizes overall pain, thereby producing the greatest net benefit** ** his goal produce greatest good for the greatest number of people** **examples are risk management & cost-benefit analysis** Should college grad admit to drug use during college on job application? Utilitarian asks "what harm caused if tell the truth? - less likely to get job - large & immediate harm What if lies? - no harm result b/c clean & no adverse harm to employer **Critics of utilitarianism argue that it is very difficult to measure utility accurately** not like measuring time or distance - **difficult to **predict** benefit & harm accurately** **not all lives are of equal value to us** - parent might choose sacrifice 10 lives of strangers to save own child's life **Furthermore, a focus on outcome can justify some really terrible behavior** - can be used to legitimize torture - after 9/11 terrorist attacks - is torture acceptable? ethical to kill old Ebenezer if suffering and wealth would help disabled grandchild heir?

Ethical Behavior Makes People Happier

1938 researchers in Boston study lives lg group people over 75 years - what makes people happy? - rich/famous or having good friends? **This study revealed that the secret to long-term happiness is having good relationships with a spouse, family, and friends** * connected people suffered fewer mental/physical illnesses less memory loss as aged * people focus on good relationships happier than those rely on external goals such as money or fame for satisfaction **It is difficult to maintain good relationships while behaving unethically** ask: Kind of person want to be? kind of relationships want to have? kind of world want to live in? sleep well at night - layoffs, recall defective products, burn cleaner fuel **bad decisions painful to remember** Hank and Sam and MBA reimbursement, mentor, betrayal when Sam fired in coup against him

4-2 b **Discrimination: Congress and the Courts**

1963 Kennedy proposed legislation guarantee equal rights areas discrimination jobs, housing, voting, schools, other basic areas of life bill went to House Judiciary Committee, heard testimony weeks. Witnesses testified blacks unable vote b/c race, landlords/home sellers refused sell/rent to blacks, education unequal, blacks denied good jobs - Judiciary Committee approved bill & sent it to full House bill dozens pages divided into "titles" w/ e. title covering major issue Title VII concerned employment

4-2 f **Changing Times**

1989 - conservative Supreme Court decided Wards Cove Packing Co. v. Atonio plaintiffs nonwhite workers salmon canneries Alaska 2 types jobs - skilled/unskilled nonwhites (Filipinos/native Alaskans) low-paid, unskilled, canning fish higher paid/skilled filled w/whites hired during off-season Washington/Oregon non overt discrimination - plaintiffs claimed various practices led to racial imbalances i.e. failing to promote w/in, hiring outside, nepotism, English language req. Supreme Court Justice White - if plaintiffs showed job req. led to racial imbalance employer demonstrate req./practice "serves, in a significant way, the legitimate employment goals of the employer... There is no requirement that the challenged practice be 'essential' or 'indispensable' to the employer's business" Court removed the "business necessity" req. of Griggs and replaced it w/ "legitimate employment goals"

4-3 c **Limits on Agency Power**

4 Primary Methods of reining in: 1. Statutory 2. Political 3. Judicial 4. Informational **Statutory Control** - enabling legislation of agency provides some limits. may require agency use formal rulemaking or investigate only certain issues - **Administrative Procedure Act** imposes additional controls by requiring basic fairness in areas not regulated by enabling legislation **Political Control** - president's control greatest w/ executive agencies - Congress "controls the purse" - no agency, executive or independent can spend money it doesn't have - agency that angers Congress risks defunding or entire budget cut - Congress may decide defund agency cost-cutting measure - In effort to balance budget Congress abolished Interstate Commerce Commission, transferring functions to the Transportation Dept. - Congress additional control b/c must approve presidential nominees to head agencies. Before approving nominee, Congress attempt determine intentions - Congress may amend agency's enabling legislation, limiting its power **Judicial Review** - an individual or corporation directly harmed by an administrative rule, investigation, or adjudication may generally have that action reviewed in federal court. - party seeking review must have suffered direct harm - courts will not listen to theoretical complaints about agency action - party must first have taken all possible appeals w/in agency itself **Standard on Review** How does court decide the case? In legal terms, what standard does a court use in reviewing the case? Does not simply substitute its own opinion for that of agency! **The standard a court uses must take into account:** **Facts** courts defer to agency's fact finding. Agency presumed expertise on said subjects. As long as there is **substantial evidence** to support fact decision, it will be respected. **Law** courts often defer to an agency's interpretation of the law. Due in part to enormous range of subjects administrative agencies monitor. i.e. "chicken catchers" lg. poultry operations wanted to organize union but company objected stating **agricultural workers** had no right. National Labor Relations Board administrative agency declared they were **ordinary workers** entitle to organize Supreme Court ruled courts obligated to give deference to agency's decision about chicken catchers If agency's interpretation **reasonable** it was binding even if court itself not same analysis. Workers permitted to form a union. Federal Communications Commission v. Fox Television Stations, Inc. 2012 - case about profanity on TV Supreme Court disagreed w. FCC's standards ruled standards too vague to be enforceable. Cher use F word once, Nicole Richie used S word repeatedly US law bans broadcast of "any obscene, indecent or profane language" FCC regulates broadcasting industry issued guidelines isolated vulgarity acceptable if not repeated after Richie FCC declared stringent policy but FCC failed to give clear definition of term "patently offensive" enforced rule unevenly Fox argued policy too vague/arbitrary - appeals court agreed Supreme Court granted **certiorari** Issue: **Was the FCC;s indecency policy unacceptably vague and arbitrary?** Decision: Yes - FCC failed give broadcasters fair notice what kind conduct punished and didn't apply rules to everyone. Reasoning: FCC has right set/change its policies. However, laws must provide a person of ordinary intelligence w/reasonable notice of behavior prohibited. Clear rules ensure govt. agencies don't act arbitrary or discriminatory fashion. Must treat same behavior same way. FCC can't penalize Fox if it ignores same behavior in others. Even after stricter indecency standard set, FCC allowed F word other contexts. **Informational Control and the Public** some of us have direct control over ubiquitous authorities **Information** **Freedom of Information Act** - Congress passed landmark act (FOIA) 1966. Designed to give us, citizens, businesses, organizations access to information federal agencies using. Idea is to avoid govt. by secrecy. Any citizen can make **FOIA request** to any federal govt. agency Written request agency furnish information on subject specified. **2 types data available FOIA** 1- anyone is entitled to information about how the agency operates, how it spends its money, what statistics and other information it has collected on a given subject. routinely obtain records agency policies, environmental hazards, consumer product safety, taxes & spending, purchasing decisions, agency forays into foreign affairs. 2- all citizens entitled to any records govt. has **about them** - information Internal Revenue Service, Federal Bureau of Investigation collected about you **FOIA doesn't apply to Congress, federal courts or executive staff at White House** B/C FOIA applies to fed govt agencies, may not use obtain info from state or local govts. or private businesses **Exemptions** * agency has 10 days to respond to request - reality unable to meet but obligated to try * FOIA exempts nine categories from disclosure - most important exemptions permit agency keep confidential info relates to criminal investigation, internal agency matters such as personnel or policy discussions, trade secrets or financial institutions, an individual's private life or national security American Civil Liberties Union v. United States Department of Justice 2016 Facts: reported use drones kill people, ACLU submitted broad FOIA request to CIA seeking info drones, targets, number strikes, number civilians killed CIA denied, argued exempt from disclosure b/c drone strikes intelligence activity part of agency's mission -Interest national security, FOIA exempts classified info - disclosure drone strike info imperil national security **Does FOIA require the disclosure of CIA records on drone strikes?** Argument for ACLU: CIA w/holding info from public - hiding behind FOIA exemption - principle mission foreign intelligence not targeted-killing programs like drone strikes - only request facts/figures not secrets - under CIA interpretation national security exemption, refuse provide info about anything does b/c everything relates to foreign activities or national security Argument for CIA - law gives CIA broad power to protect secrecy/integrity of intelligence process = ACLU FOIA request reveal sensitive info CIA capabilities, limitations, priorities, resources - law protects this info good reason, revelation compromise CIA efforts/endanger Americans.

**Moral relativism**

A belief that a decision may be right even if it is not in keeping with one's own ethics standards

**Moral universalism**

A belief that some acts are always right or always wrong

**Misdemeanor**

A less serious crime, often punishable by less than a year in a county jail

**Racketeer Influenced and Corrupt Organizations Act (RICO)**

A powerful federal statute, originally aimed at organized crime, now used against many ordinary businesses

**Kantian Evasion or palter**

A truthful statement that is nonetheless misleading

2. Which of the following parts of the modern legal system are "borrowed" from medieval England?

A.Jury trials B.Special rules for selling land C.Following precedent **D.All of the above**

10. Which of the following is **not** an ethical trap?

A.Money B.Rationalization C.Moral Licensing **D.Randomization**

3. Union organizers at a hospital wanted to distribute leaflets to potential union members, but hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas open to the public. The National Labor Relations Board (NLRB), a government agency, ruled that these restrictions violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop. What kind of law was it creating?

Administrative regulation

**Moral licensing**

After doing something ethical, many people then have a tendency to act unethically.

**Kant's categorical imperative**

An act is only ethical if it would be acceptable for everyone to do the same thing

**Administrative law judge (ALJ)**

An agency employee who acts as an impartial decision maker

**Plea Bargain**

An agreement in which the defendant pleads guilty to a reduced charge, and the prosecution recommends to the judge is relatively lenient sentence

**Precedent**

An earlier case that decided the issue

**subpoena**

An order to appear at a particular place and time. A **subpoena duces tecum** requires the person to produce certain documents or things.

**Racketeering acts**

Any of a long list of specified crimes, such as embezzlement, arson, mail fraud, wire fraud, and so forth

2-3 f **Conflicts of Interest**

Ariely experiment - participants paid more if right rectangle larger number dots than left - tendency was to say right rectangle had more dots even when left clearly did Evidence shows doctors influenced by small gifts and you should care when they use a pharmaceutical company's pen research found doctors fed inexpensive meals by pharmaceutical co. tend to prescribe that company's meds over cheaper alternatives small gifts influential b/c recipients do not make conscious effort to overcome any bias these tokens create Bias created by conflict of interest causes unconscious self-serving behavior **In short, if ethical decisions are your goal, it is better to avoid all conflicts of interest - both large and small** No one good at overcoming biases these conflicts create

**Civil Law**

Civil law regulates the rights and duties between parties

4-2 d **Conference Committee**

Civil rights now passed both houses bill no longer same due to many amendments **true w/ most legislation **next step is send representatives to House-Senate Conference Committee** committee examines differences between two bills tries reach compromise **new modified bill sent back to each house for new vote** after violent public demonstrations and debate from House and Senate e. house passed same bill. President Johnson signed bill passed Civil Rights Act of 1964 into law Sometimes courts must interpret Congressional language & intent

4-2 a **Bills**

Congress two houses: House of Representatives & Senate Either may originate proposed statutes **A bill** **To become law, the bill must be voted on and approved by both houses** - once passed, send to president - if president signs, becomes law and is then a statute - if president opposes bill, he will **veto** - not law - legislators one talks, no one listens b/c most work done in committees e. w/ special functions House - around 20 committees (100 subcommittees) Senate - around 17 committees (70 subcommittees) i.e. armed services committee e. house oversees huge defense budget & workings of armed forces. others: labor, banking, judiciary - reviews federal court nominees when a bill is proposed either house, referred to committee specializes in subject **Why are bills proposed?** - **new issue, new worry** - society focus new issue - **unpopular judicial ruling** - if Congress disagrees w/ judicial interpretation of statute, legislators may pass new statute to modify or undo court decision Supreme Court ruled lawyers had right under the First Amendment to advertise services, Congress lacked power change decision - **Criminal Law** - statutory law, unlike common law prospective. Legislators hoping control future Court can't retroactively announce been a **crime** for retailer accept kickbacks from wholesaler - everyone must know rules in advance b/c consequences - prison, felony record are HARSH

**Fundamental Rights**

Constitution grants many of our most basic liberties for most part, liberties found in amendments to the Constitution **First Amendment** guarantees right to free speech, free press, free exercise of religion **Fourth, Fifth, Sixth Amendments** protect the rights of any person accused of a crime **Other Amendments** ensure govt treats ALL people equally & it pays for any property it takes from citizen

**Criminal Law**

Criminal law prohibits certain behavior for the benefit of society

**Fraud**

Deception for the purpose of obtaining money or property

**Branches of Government**

Founding Fathers sought division of govt power - didn't want all power centralized in a king or anyone else Constitution divides legal authority into three pieces: **legislative, executive, and judicial power** **Legislative power** gives the ability to create new laws * Article I of Constitution gives power to Congress comprised of 2 chambers** * - a Senate & a House of Representatives * Voters in all 50 states elect representatives who go to Washington, DC to serve in Congress & debate new legal ideas * House of Representatives has 435 voting members * A state's voting power based on its population * States w/ lg populations (Texas, California, Florida) send dozens representatives to House, sparsely populated states (Wyoming, North Dakota, Delaware) send only one **Executive Power** is the authority to enforce laws * Article II of the Constitution establishes the president as commander in chief of the armed forces and the head of the executive branch of the federal government** **Judicial Power** gives the right to interpret laws and determine their validity. **Article III places the Supreme Court at the head of the judicial branch of the federal government** Interpretative power often underrated, often as important as ability to create laws i.e. Roe v. Wade Supreme Court ruled privacy provisions of Constitution protect woman's right to abortion, although neither the word "privacy" nor "abortion" appears in text of Constitution At times, courts void laws altogether. i.e. 2016 Supreme Court struck down Texas law regulating abortion clinics and doctors worked in them Court found those rules created undue burden for Texas women causing many clinics to close/making abortions unreasonably difficult to obtain

**deontological**

From the Greek word for **obligation**; the duty to do the right thing, regardless of the result

4. A law is created by the ________________________________; the legislature also has the ability to override an _____________________.

House of Representatives and Senate; Executive Veto

2-3 n **Ethics Case: Wobbly Platform**

IT professional recognizes problems w/ IT platform CIO insists on implementing, although out of date/unstable even adding product suite to it and use it in US - IT prof knows it's full of risks hidden costs he told CIO yet CIO ordered implementation four years later work not complete, millions spent, customers unhappy - platform expanded throughout entire company - short-term perspective focus on keeping job - should have gone to business leaders or left 1. Besides short-term perspective, what other ethics traps employee face? 2. Over long term, problem get better or worse? worse 3. What else could employee have done?

**Discovery**

If defendant doesn't plead guilty prosecution obligated hand over any evidence favorable to the defense that defense attorney requests. Defense has more limited obligation inform prosecution its evidence. Most states, if defense based on alibi, counsel must reveal alibi to govt before trial

8. Which of the following believed that the dignity of human beings must be respected, and that the most ethical decisions are made out of a sense of duty or obligation?

Immanuel Kant

**Burden of Proof**

In civil case, plaintiff must prove her case only by a preponderance of the evidence The penalties for conviction in criminal case more serious, stigma of criminal conviction stays with the guilty forever making more difficult obtain work/housing Result: **the government must prove its case beyond a reasonable doubt** in all criminal cases, if jury has significant doubt Roger stole computers it must **acquit**him

**Probably cause**

It is likely that evidence of a crime will be found in the place to be searched

9. Kant believed that:

It is wrong to tell an outright lie or to mislead

2-2 f **Ethics Case: Up In Smoke**

James on management team health insurance company CEO announces company no longer hire smokers = reduce expenses, increase productivity, encourage healthy choices by employees, community CEO convinced society will benefit & set good example for other businesses BUT James is concerned b/c city has high unemployment, poverty lg minority population - new policy prevent hiring people need jobs most - nicotine addictive hard to quit when lifestyle choices affect other illnesses diabetes, hypertension, obesity, sexual diseases, healthy activities increase cost What would Mills, Kant, Rawls said about CEO plans? What would be result if James applied Front Page Test?

7. Which of the following wrote the book, Utilitarianism, and believed that moral actions should "generate the greatest good for the greatest number"?

John Stuart Mill

**Common Law**

Judge-made law

5. ________ felt that any lie violated his principle of the categorical imperative.

Kant

To __________, a correct decision was one that would maximize overall happiness and minimize overall pain, thereby producing the greatest net benefit.

Mills

2-3 h **Ethics case:Diamonds in the Rough**

Orlanda software engineer received gift of diamond watch she then spent more time working on this supplier's issues. No company policy on accepting gifts. Supplier then offered her diamond necklace if she made them preferred supplier - necklace would look like the one he gave her boss. ethics trap - conflict of interest anything wrong w/ accepting these gifts? yes

**Spear phishing**

Phishing that involves personalized messages that look as if they have been sent by someone the victim knows

4-2 c **Debate**

Proposed bill controversial sparked argument in Congress Feb 8, 1964 Mr. Waggonner: right to choose social companions, right as businessman to run as please, as I will, right to discriminate & other man right to discriminate - everyone in country integrity of individual leave to people right to lives lives manner choose to live - don't destroy democracy for Socialist govt. Mr. Conte: if serious cleavage of Civil War justified w/ passage of legislation reaffirm rights to all inherent in Constitution - poet Mark Van Doren "equality is absolute or no, nothing between can stand" nothing stand between passage strong/effective civil rights legislation 88th Congress - one argument rhetorical right to discriminate not socialist - other aimed more information re quotas - anticipates 30 yr controversy on quotas - Congressman Smith of Virginia offered amendment small but important - after word "religion" insert "sex" to include discrimination basis of sex also be outlawed w/ existing grounds race, color, national origin, religion - generated more argument some supported "sex" amendment b/c end sexual bias **opponents** civil rights supported amendment b/c believe make legislation less popular cause Congress defeat entire Civil Rights bill amendment pass, sex added as protected trait House passed bill went to Senate Route from Judiciary Committee to full Senate some Senators raised new issue w/ 703(2) prohibited **segregating or classifying** employees based on any protected categories (race, color, national origin, religion, or sex) Sen. Tower concerned 703 (2) meant protected employee never be job tested so Senate amended 703 to include subsection: employer give/act upon ability test dev. professionally if not designed intended use to discriminate b/c race, color, religion, sex or national origin bill passed Senate

4-3 a **Creation of Agencies**

Railroads needed closer regulation - by 1880s trails across America - became economic headache Congress worried RR economic muscle enabled powerful corps unfair profits **Courts decide individual cases; they do not regulate industries** Congress passed statutes but no personnel oversee day-to-day working huge industry i.e. establish rates for freight passing from Kansas City to Chicago - no personnel to enforce rates once set **need new entity - Congress passed Interstate Commerce Act creating Interstate Commerce Commission (ICC) first administrative agency - ICC regulating freight/passenger transportation RR for more than 100 yrs** Congress gave ICC power regulate rates investigate harmful practices, hold hearings, issue orders, punish RR that didn't comply - able hire/develop staff expert in issues Congress wanted controlled - **regulating, investigating, punishing** **- made it attractive solution for Congress - one entity focusing on one industry, combine expertise and flexibility** BUT ICC dev. great power voters couldn't reach started great/lasting conflict over role of agencies during Depression Roosevelt admin & Congress created new agencies many based on social demands - political/social conditions 1960s Congress created agencies i.e. Equal Employment Opportunity Commission to combat discrimination 1980s Reagan admin effort decrease number/strength agencies

**Difference Principle**

Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole

2-3 r **Ethics Case: Truth (?) in Borrowing**

Rob invests by purchasing sole dentist offices but faced with dentist who filed bankruptcy 20 years ago - insists on honesty to bank but is denied loan by 4 banks - would help dentist, patients, Rob 1. Should Rob file loan documents with bank knowing dentist has lied? 2. Who would be harmed by this lie? 3. What rationalizations might Rob use? 4. What if Rob pays back the loan w/o incident? Was the lie still wrong? Do the ends justify the means? 5. What is your Life Principle about telling lies? When is making a misrepresentation acceptable? To protect someone's life or physical safety? To protect a job? To protect another person's feelings? To gain an advantage? When others are doing the same? When it makes sense from a cost-benefits perspective? 6. Do you have the same rule when lying to protect yourself, as opposed to benefiting others?

**Criminal Law**

Rules that permit a government to punish certain behavior by fine or imprisonment.

**Searches without a Warrant**

Seven circumstances police may search without a warrant: **Plain View** **Stop and Frisk** - **The police do have the right to stop and frisk, but ONLY if they have a clear and specific reason to suspect that criminal activity may be afoot and that the person may be armed and dangerous** **Emergencies** - if police believe evidence about to be destroyed, can search w/o warrant **Automobiles** - if police lawfully stopped car then observe evidence of other crimes in car i.e. burglary tools, may search **Lawful Arrest** - police may always search a suspect they've arrested. Goal is to protect officers and preserve evidence **Consent** - anyone lawfully living in a dwelling can allow the police to search it without a warrant. If your roommate gives the police permission to search your house, that search is legal. **No Expectation of Privacy** - police have right to search any area in which the defendant does not have a reasonable expectation of privacy. Technology & social media have challenged courts to define reasonable expectations of privacy in new settings: **DNA tests** i.e. King arrested for assault during booking, police cotton swab for DNA - genetic material match for rape victim another case King convicted of that crime too - 5-4 decision Supreme Court held cheek swab not much more intrusive than fingerprinting didn't violate King's rights under Fourth Amendment (provided swab done after arrest for "serious" offense) - Now, 28 states and federal govt collect DNA after arrest for such offenses **Blood versus breath tests** police can determine if drivers drunk by testing either blood or breath. Supreme Court treats two tests differently requiring warrant for blood not for breath Court's view blood test significantly more intrusive than breath test, which offers reasonable, less painful alternative. Also, police can obtain more information from blood than breath **Heat-seeking devices** - 5-4 decision Supreme Court ruled police officers need warrant before pointing heat-seeking device at house. Devices used to detect heat lamps used to grow marijuana - some states not permit use of devices even w/warrant **Digital cameras** - after arresting juvenile, police searched him found digital camera - looked through photos found him w/ sawed-off shotgun. Court held police not required to obtain warrant before viewing photos. **Cell phones** - police must obtain warrant before listening in on phone conversation or search digital content cell phone. Don't need warrant to obtain records from phone company i.e. phone location or numbers called **Computers** - people have expectation of privacy for data stored on computer, in their possession. Thus, police must obtain warrant before searching it. Not clear if protection applies to same info in cloud. **Global Positioning Systems (GPS)** Washington, DC police suspected Antoine Jones was drug dealer. W/O valid search warrant, attached GPS tracking device to his car for 28 days. Based on evidence collected, Jones convicted of conspiracy deal cocaine sentenced to life in prison. Supreme Court ruled w/o warrant, search illegal. **Email** - police generally don't need warrant to find out ADDRESS INFORMATION such as who you emailed. Under Electronic Communications Privacy Act, police do need warrant to intercept email in transit, but not to search opened email or messages sent more than six months prior **Websites** - General, police don't need warrant find out what websites you visited. Google complies w/ govt requests for account info (you agree to terms if have gmail account) **Internet messages** - Laurence Bode sent chat messages to other users of child porn site - court upheld right of Homeland Security agents access his chats w/o warrant. **Social media** - Before James Holmes shooting rampage in movie theater Aurora, CO he posted, "Will you visit me in prison?" on 2 of social media profiles, judge ruled Holmes didn't have reasonable expectation of privacy on posts. Court NY ruled Twitter users don't have reasonable expectation privacy in tweets. Police typically need warrant access a private Facebook profile. IF "friend" of accountholder allows them access, no warrant necessary.

1-4 b - **Natural Law**

St. Thomas Aquinas - Summa Theologica argued an unjust law is no law at all and need not be obeyed - **not enough a sovereign makes a command - law must have a moral basis** where do we find moral basic to justify a law? **good is that which all things seek after** - fundamental rule of all laws is **good is to be done and promoted, and evil is to be avoided** **VAGUE** which laws promote good and which don't?

5. What part of the Constitution addresses most basic liberties?

The Amendments

**Civil Law**

The large body of law concerning the rights and duties between parties. It is distinguished from criminal law, which concerns behavior outlawed by a government.

**Jurisprudence**

The philosophy of law

**Sovereign**

The recognized political power whom citizens obey

**Veil of Ignorance**

The rules for society that we would propose if we did not know how lucky we would be in life's lottery.

**Jurisprudence**

The study of the purposes and philosophies of the law, as opposed to particular provisions of the law.

4-2 e **Statutory Interpretation**

Title VII of Civil Rights Act prohibited employer from saying to job applicant not hire minorities - after passed rarity employers routinely hire whites losing lawsuits new cases arose job standard appeared racially neutral but discriminatory effect In NC Duke Power had two requirements: - high school diploma - pass standardized written test no evidence either related to successful job performance blacks met requirements lower percentages than whites Title VII didn't precisely address kind of case - outlawed overt discrimination - was Duke Power policy discrimination or protected by Sen. Tower amendment 703 (h)? - went to Supreme Court to interpret new law **3 Primary Steps in Court's Statutory Interpretation:** 1. **Plain meaning rule:** - when statute's words have ordinary everyday significance, court apply those words - fire Catholic b/c argue religion not religion but a group - NO word "religion" has plain meaning & courts apply its commonsense definition 2. **Legislative history and intent:** If language is unclear court look deeper Section 703 (a) prohibits classifying employees ways that are discriminatory - look at language and look at law's history determine intent of legislature - court examine committee hearings, reports, floor debates 3. **Public Policy:** if legislative history unclear, courts rely on general public policies such as reducing crime, creating equal opportunity may examine prior decisions courts assume legislature aware of prior judicial decisions if not change them statute interpreted to incorporate them Re: Griggs v. Duke Power Co. decision employment tests must be job-related to job performance - enacted Title VII - if any way for employer to achieve goal of job performance without discriminatory impact employer required to use it

**Adjudicate**

To hold a formal hearing about an issue and then decide it

5. Which of the following elements is required for a RICO conviction?

Two or more criminal acts

2-3 g **Conformity**

Warren Buffet "The five most dangerous words in business may be: "Everybody else is doing it"" B/c humans are social animals, often willing follow the leader, even to place don't really want to go. Researchers found if one company misstates its earnings, other in industry likely to fudge exact same accounts unless original offender suffers some penalty (i.e. SEC punishment or class action suit) **Evidently many people believe that if everybody else is doing it, then it must be okay** **Conformity can also be good - people more likely pay taxes on time if told everyone else does.**

2-3 l **Ethics Case: Man Down**

Wesley Autrey - man beside him seizure fell onto train tracks. Autrey moved him from harm - both survived. Another man pushed Han onto tracks while bystanders watched - no one reacted 1. Why was Autrey more likely to act than crowds watching Han pushed onto tracks? - b/c of **lost in a crowd** 2. Do you have an ethical obligation to act when someone needs help? yes Or when you observe wrongdoing? yes 3. Imagine, at work you know someone is: * lying on an expense account * wrongly booking sales not yet occurred * sexually harassing staff members What is your ethical obligation? What would you do, under what circumstances?

1-4 - **Jurisprudence**

What **is** law? Question is basis of field - **jurisprudence** real nature of law **illegal**law

4-1 **Common Law**

What is anything must a bystander do when he sees someone in danger? The **common law** is judge-made law. It's sum total of all the cases decided by appellate courts. i.e. Common law of Pennsylvania consists of all cases decided by appellate courts in that state, Illinois common law is made up of all cases decided by Illinois appellate courts. 200 yrs ago almost all of law was common law **Today common still predominates in tort, contract, and agency law, very important in property, employment, some other areas**

**Trial and Appeal**

When no plea bargain, case must go to trial. Mechanics criminal trial and appeal similar to civil trial

**Warrant**

Written permission from a neutral officer to conduct a search

**Restitution**

a court order that a guilty defendant reimburse the victim for the harm suffered

**Double Jeopardy**

a criminal defendant may be prosecuted only once for a particular criminal offense prohibition against **double jeopardy** means defendant may be prosecuted only once for particular criminal offense. purpose is prevent govt from destroying innocent citizens lives w/ repeated prosecutions

**Phishing**

a fraudster sends a message directing the recipient to enter personal information on a website that is an illegal imitation of a legitimate site

**Grand Jury**

a group of ordinary citizens who decides whether there is probable cause the defendant committed the crime with which she is charged

**Right to a Jury**

a judge or jury decides facts of a case **A criminal defendant has a right to a trial by jury for any charge that could result in a sentence of six months or longer** Defendant may choose not to have jury trial, judge decides verdict. Judge as fact finder, proceeding called **bench trial**

**guilty**

a judge or jury's finding that a defendant has committed a crime

**statute**

a law created by a legislature

**Compliance Program**

a plan to prevent and detect improper conduct at all levels of the company

**Bill**

a proposed statute submitted to Congress or a state legislature

**Felony**

a serious crime, for which a defendant can be sentenced to one year or more in prison

**certiorari**

a writ or order by which a higher court reviews a decision of a lower court. "an order of certiorari"

3. Union organizers at a hospital wanted to distribute leaflets to potential union members, but hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas open to the public. The National Labor Relations Board (NLRB), a government agency, ruled that these restrictions violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop. What kind of law was NLRB creating?

a. A statute b. Common law c. A constitutional amendment **d. Administrative regulation**

Ch. 1 Book Multiple Choice 1. The United States Constitution is among the finest legal accomplishments in the history of the world. Which of the following influenced Ben Franklin, Thomas Jefferson, and the rest of the Founding Fathers?

a. English common law principles b. The Iroquois's system of federalism **c. Both A and B** d. None of the above

2. Which of the following parts of the modern legal system are "borrowed" from medieval England

a. Jury trials b. Special rules for selling land c. Following precedent **d. All of the above**

2. Which of the following wrote the book Utilitarianism and believed that ethical actions should "generate the greatest good for the greatest number"?

a. Milton Friedman **b. John Stuart Mill** c. Immanuel Kant d. John Rawls

3. Which of the following believed that the dignity of human beings must be respected and that the most ethical decisions are made out of a sense of obligation?

a. Milton Friedman b. John Stuart Mill c. **Immanuel Kant** d. John Rawls

5. The following statement is true:

a. Most people are honest the vast majority of the time. **b. Even people who do not believe in God are more likely to behave honestly after reading the Ten Commandments.** c. Most people are accurate when comparing themselves to others d. People make their best ethical decisions when in a hurry.

Ch. 7 Multiple Choice 1. In a criminal case, which statement is true?

a. The prosecution must prove the government's case by a preponderance of the evidence. **b. The criminal defendant is entitled to a lawyer even if she cannot afford to pay for it herself.** c. The police are never allowed to question the accused without a lawyer present. d. All federal crimes are felonies

2. The police are not required to obtain a warrant before conducting a search if:

a. a reliable informant has told them they will find evidence of a crime in a particular location. b. they have a warrant for part of a property and another section of the property is in plain view c. they see someone on the street who could possibly have committed a criminal act d. someone living on the property has consented to the search

4. Henry asks his girlfriend, Alina, to drive his car to the repair shop. She drives his car alright - to Las Vegas, where she hits the slots. Alina has committed:

a. fraud b. embezzlement c. larceny d. a RICO violation

4. Under FOIA, any citizen may demand information about________

a. how an agency operates b. how an agency spends its money c. files that an agency has collected on the citizen herself **d. all of these**

4. Kant believed that:

a. it is ethical to tell a lie if necessary to protect an innocent person from great harm. b. it is ethical to tell a lie if the benefit of the lie outweighs the cost. c. it is ethical to make a true, but misleading, statement. **d. it is wrong to tell an outright lie or to mislead**

5. Dr. Martin Luther King, Jr. wrote "An unjust law is no law at all." As such, "One has... a moral responsibility to disobey unjust laws." Dr. King's view is an example of:

a. legal realism b. jurisprudence c. legal positivism **d. natural law**

4. If Congress creates a new statute with the president's support, it must pass the idea by a _________majority vote in the House and the Senate. If the president vetoes a proposed statute and the Congress wishes to pass it without his support, the idea must pass by a ________majority vote in the House and Senate.

a. simple;simple **b. simple; two-thirds** c. simple; three-fourths d. two-thirds; three-fourths Simple; 2/3.51% to pass initially, 2/3 if an override isn necessary.

1-2 e - **Administrative Law**

administrative agencies do the day-to-day work in a society as large/diverse as ours - executive & legislative branches of govt can't oversee all aspects of commerce - air safety w/ air traffic towers statutes passed by Congress - rules regarding foreign nationals set by executive branch **most govt agencies created by Congress** i.e. EPA (Environmental Protection Agency) SEC - Securities & Exchange Commission, IRS - Internal Revenue Service **Agencies have power to create laws called *regulations***

**Classification of Agencies**

agencies at federal, state, local levels **Types of Agencies: Executive and Independent. Some federal agencies are part of the executive branch, while others are independent agencies** **major distinction** president greater control of executive agencies reason he can fire agency head any time - seldom diverge far from president's preferred policies i.e. Internal Revenue Service (Treasury Dept.). Federal Bureau of Investigation (Dept. of Justice), Food and Drug Administration (Dept. of Health and Human Services), Nuclear Regulatory Commission (Dept. of Energy) President no removal power over independent agencies i.e. Federal Communications Commission (FCC) - more day-to-day influence over broadcasting business than Congress, courts or president combined others independent agencies: Federal Trade Commission, Securities and Exchange Commission, National Labor Relations Board, Environmental Protection Agency

**Investigation**

agencies do broad variety work but need factual knowledge of field they govern i.e. US Consumer Product Safety Commission investigates consumer products frequently urges companies recall goods agency considers defective - many comply - others jealously guard information often b/c corporate officers believe disclosure lead adverse rules to force disclosure agencies use ** subpoenas and searches** **Subpoenas** an order to appear at a particular time and place to provide evidence **subpoena duces tecum** requires person to appear and bring specified documents. Limits on an agency's investigation? Information sought: * must be **relevant** to lawful agency investigation. i.e. FCC empowered to investigate safety broadcasting towers need documents but documents re: employee racial stats might indicate discrimination, FCC lacks jurisdiction on that issue can't demand documents * must not be **unreasonably burdensome** - court compare agency's need for information w/ the intrusion on corporation * must not be **privileged** - Fifth Amendment privilege against self-incrimination means corporate officer accused of criminal securities violations may not be compelled to testify about own behavior **Search and Seizure** agency might want conduct surprise **Search** of enterprise & **seize** evidence of wrongdoing. YES can w/ **limitations** When particular industry **comprehensively regulated*** courts assume companies know subject to periodic, unannounced inspections In those industries, administrative agency may conduct search W/O warrant & seize evidence of violations. i.e. mining industry minutely regulated w/ strict rules covering equipment, mining depths, air quality mining execs understand they're closely watched. Bureau of Mines - may make unannounced warrantless searches to ensure safety **Landmark Case** est. many principles described. **US vs. Biswell 1972** Biswell's Pawn Shop license sell "sporting weapons" Treasury agents demanded search locked storeroom w/o warrant claiming Gun Control Act of 1968 gave right (under law Treasury agents permission inspect firearm deals' business records, firearms, ammunition during business hours. Biswell voluntarily open storeroom agent found 2 sawed-off rifles - b/c guns didn't meet definition sporting weapons, Biswell convicted firearms charges - appellate court found b/c **search violated Fourth Amendment** rifles not admitted as evidence, reversed conviction, govt appealed to Supreme Court Issue: Did agent's warrantless search violate the Constitution? Decision: No, agent had right to search firearm deal's premises w/o warrant Reasoning: Gun Control Act of 1968 valid statute aimed regulating firearms/preventing violent crime. gave Treasury agents right perform frequent/unannounced inspections of firearm deals' premises. Firearm inspection no good w/ prior announcement - warrant req. frustrate statute's purpose controlling illegal guns Warrants protect individual's expectation of privacy BUT Biswell had no justifiable expectation of privacy since he like other firearms dealers knew his business records, firearms, ammunition subject to inspection - Biswell accepted these rules when he obtained his license including annual reminders inspections furthered Gun Control Act's important purpose Biswell not expect storeroom be private seizure of sawed-off rifles permissible AND should have been admitted into evidence. **Adjudication** to adjudicate a case is to hold a hearing about an issue and then decide it. Agencies adjudicate countless cases FCC adjudicates which applicant for new television license best qualified Occupational Safety and Health Administration (OSHA) holds adversarial hearings to determine whether a manufacturing plant is dangerous Most adjudications begin w/ hearing before **administrative law judge (ALJ)** - no jury - ALJ is employee of agency but expected to be impartial in rulings - all parties represented by counsel - rules of evidence informal - an ALJ may receive any testimony or documents that may help resolve dispute - after all evidence taken, ALJ makes decision - losing party has right appeal to appellate board w/in agency - appellate board may ignore ALJ's decision - if doesn't unhappy party may appeal to federal court,

**Plea Bargaining**

an agreement between prosecution and defense that the defendant will plead guilty to a reduced charge, and the prosecution will recommend to the judge a relatively lenient sentence. In federal court system, around 97% all prosecutions end in plea bargain - high percentage led concern innocent people plead guilty to avoid risk tough mandatory sentences - judge need not accept bargain usually does

**precedent**

an earlier case that decided the same legal issue as that presently in dispute, and which therefore will control the outcome of the current case

**ethics decision**

any choice about how a person should behave that is based on a sense of right and wrong

**Arraignment**

at arraignment, clerk reads formal charges of indictment. The defendant must enter a plea to the charges. At this stage, most defendants plead not guilty

**Checks and Balances**

authors of Constitution wanted in addition to dividing govt power into 3 ways also wanted give each part of got some power over other 2 branches **many complain about "gridlock" in Washington BUT govt slow & sluggish by design - Founding Fathers wanted create system that w/o broad agreement would tend towards inaction** * president can veto Congressional legislation * Supreme Court can void laws passed by Congress * president appoints judges to federal courts, including Supreme Court but nominees don't serve unless approved by Senate * Congress (w/ help from 50 states) can override Supreme Court by amending the Constitution * President and Congress influence Supreme Court by controlling who is placed on court in first place

3. Under the exclusionary rule, which statement is true?

c. any statements a defendant makes after arrest are inadmissible if hte police do not read him his Miranda rights

**Ch. 7 Crime**

crime doesn't always dress the way we expect **A major crime has occurred during the 90 minutes Stacey was at her desk, but she will never report it to the police** crime whether violent or white-collar is detrimental to all society it poses huge cost on everyone fear of crime is expensive (alarm systems homeowners & businesses hire security guards) Fear and anger crime engenders tempt us to forget not all accused are guilty William Blackstone "better that ten guilty persons escape than that one innocent suffer" Criminal law is balancing act - between making society safe and protecting us all from false accusations and unfair punishment. **Criminal procedure** - the **process** by which criminals are investigated, accused, tried, and sentenced Crimes that **harm** businesses Crimes committed **by** businesses

2-2 b **Deontological Ethics**

deontological from Greek word for obligation **Proponents for deontological ethics believe that utilitarians have it all wrong and that the results of a decision are not as important as the reason for making it** deontological thinker - **ends DO NOT justify the means** - important to do the right thing no matter the result **best known proponent of deontological model is 18th century German philosopher Immanuel Kant (1724-1804)** Kant believed in **categorical imperative** argued you should not do something unless willing to have everyone else do it. concluded one should always tell truth b/c if everyone lied, world would be awful - college grad who used drugs should tell truth on job app even if never hired **truth should be told no matter the outcome** **Kant also believed that human beings possess a unique dignity, and it is wrong to treat them as commodities**** even if such decision maximizes overall happiness - would argue AGAINST killing Ebenezer **The problem w/ Kant's theory is that ends DO matter** wrong to kill, BUT country may not survive w/o wars most argue utilitarian approach incomplete/ winning in the end doesn't automatically make decision right

7-1 **Criminal Procedure**

difference civil and criminal case

intellectual property law

e: before signing deals, manager research whether similar games already exists could diminish her ability to market proposed new game

**Exclusionary Rule**

evidence obtained illegally may not be used at trial **Under the exclusionary rule, any evidence the government acquires illegally (or any information obtained as a result of this illegal behavior) may not be used at trial.** (Information resulting from an illegal search is referred to as "the fruit of the poisonous tree") Supreme Court created exclusionary rule to prevent governmental misconduct. Theory simple: if police and prosecutors know that illegally obtained evidence can't be used in court, they won't be tempted make improper searches or engage in other illegal behavior. Opponents argue guilty person go free b/c police officer bungled. Coolidge v. New Hampshire 14 yr old babysitter murdered. state's attorney generally led investigation who issued search warrant. Coolidge found guilty/sentenced to life but Supreme Court reversed conviction b/c warrant not issued by neutral magistrate. A law officer may not lead an investigation and simultaneously decide what searches are permissible. **Three Exceptions to the exclusionary rule:** **Inevitable discovery** - court will admit any evidence would be discovered w/o illegal behavior part of police. Police unlawfully questioned suspect he revealed location of body of child he murdered. Conviction upheld b/c court ruled body would eventually be discovered in ditch he left it in. **Independent source** - if police find tainted evidence from different source, can use it. Police lied to get warrant for Jerome Robert's cell phone telling magistrate murder suspect knowing he didn't commit the crime. Phone records revealed he spoke many times w/ Andre Bellinger the real murderer. Police arrested someone else possession of murder weapon. Court ruled although phone records inadmissible, police would have found Bellinger through murder weapon. Refused to overturn murder conviction. **Good Faith Exception** - police believe search warrant proper, later proves defective - search is legal as long as police **reasonably believed warrant was valid** Exam Strategy - police knockdown Mary Beth apt found meth lab no warrant. Defense argue motion based on police conduct. Defense lawyer argue violation Fourth Amendment and court grant motion unless other evidence - an informant told officers Mary Beth was his supplier.

administrative law

ex: another worker may complain about being required to work long hours

contract law

ex: negotiate deal w/ game developer

employment law

ex: one of subordinates might complain about being harrassed by a coworker

securities law

ex: she may consider investing own money in company's stock may wonder if get in trouble if she invests based on inside information

**Hacking**

gaining unauthorized access to a computer system

**ethics**

how people should behave

7-1 d **Gathering Evidence: The Fourth Amendment**

if police suspect crime committed, need to obtain evidence **The Fourth Amendment to the Constitution prohibits the government from making illegal searches and seizures.** Amendment applies to individuals, corporations, partnerships, and other organizations Goal is protect individuals and businesses from powerful state **Warrant** General rule police must obtain warrant before conducting search **warrant** is written permission from neutral official, such as a judge or magistrate, to conduct a search magistrate will issue a warrant only if there is probable cause **Probably cause** means that, based on all the information presented, **it is likely that evidence of a crime will be found in the place to be searched** Often police base applications for warrant on data provided by an informant - magistrate want evidence support informant's reliability - if informant been wrong last three times gave evidence to police, magistrate probably refuse request for warrant **If the police search without a warrant, they have, in most cases, violated the Fourth Amendment. But even a search conducted with a warrant violates the Fourth Amendment if:** * There was no probably cause to issue the warrant * The search does not specify with reasonable precision the place to be searched and the things sought; * The search extends beyond what is specified in the warrant

2-1 **Why Study Ethics?**

law dictates how a person **must** behave ethics how a person **should** behave - laws represent society's view of basic ethics rules - most people agree activities i.e. murder, assault, fraud are wrong **However, laws may permit behavior that some feel is wrong, and it may criminalize acts that some feel are right** * i.e. assisted suicide, hiring illegal immigrants (even though violation of federal law) Develop your own **Life Principles** the rules by which you live your life based on your values **Research shows that people who think about the right rules for living are less likely to do wrong** **Preparing Life Principles:** rules on: *lying * stealing * cheating * applying the same or different standards at home and at work * your responsibility as a bystander when you see other people doing wrong or being harmed **specific is better than general** i.e. maintain healthy work/life balance better to set aside certain specific times each week for family **Remember that, no matter what you say, every ethics decision you make illustrates your actual Life Principles** i.e. MBA student told his boss made him cheat on expense report no receipts for meals under $24 so submit increase cost although fast-food meals $12 if lie, Life Principle is "I am willing to cheat if I am unlikely to get caught or if my boss orders it" BETTER: "I will not cheat even if my boss tells me to - I'll look for another job instead"

2-1 b Why Be Ethical?

may not always be most profitable, but generates range benefits for employees, companies, society

negligence

one of law's basic principles

2-2 c **Rawlsian Justice**

people are born with different talents into different circumstances - all affect their outcomes poor children in San Francisco three times more likely prosper as adults than poor children in Atlants **John Rawls American philosopher referred to circumstances into which we are born as life prospects** hard work matters, so does luck Rawls argued we should think about what rules for society we would propose if we faced a **veil of ignorance** suppose lottery determine all our attributes - winner w/ talented, healthy person loving family OR poor, broken, abusive family violent neighborhood w/ deplorable schools/social services what society we establish not knowing outcome of lottery? 1. design sort of democratic system provides equal liberty to all & rights like freedom of speech /religion 2. Apply the **difference principle** - **not** plan a system everyone received equal income b/c society better off if people have incentive to work hard BUT regard type of work that provides most benefit to community as a whole - pay doctors more than baseball players or not all doctors equally **Rawl argues everyone should have opportunity to earn great wealth as long as tax system provides enough revenue to provide decent health care, education, and welfare for all** **In thinking about ethics decisions, it is worth remembering that many of us have been winners in life's lottery and that the unlucky also deserve opportunities**

3. Laws represent society's view of basic ethical rules. And most people agree that certain activities such as murder, assault, and fraud are wrong. However, laws may [permit] behavior that some feel is wrong, and it may [criminalize] act that some feel are right.

permit, criminalize

**Double Jeopardy**

prohibition against **double jeopardy** means defendant may be prosecuted only once for particular criminal offense. purpose is

**Criminal law**

prohibits and punishes conduct that threatens public safety and welfare

**promulgate**

promote or make widely known (an idea or cause). "these objectives have to be promulgated within the organization" put (a law or decree) into effect by official proclamation. "in January 1852 the new Constitution was promulgated"

2. Most government agencies are created by Congress. Familiar examples are the Environmental Protection Agency (EPA), the Securities and Exchange Commission (SEC), and the Internal Revenue Service (IRS), whose feelings are hurt if it does not hear from you every April 15. Agencies have the power to create ________________ (that have the same force and effect of law).

regulations

**Due process**

requires fundamental fairness at all stages of the case

4-2 g **Voters' Rule**

response to Wards Cove quick - liberals decried it conservatives hailed it agreed it was major change that would make harder for plaintiffs to brings successful discrimination cases Democrats introduced bills to reverse interpretation of Wards Cove President George HW Bush opposed any new bills - said lead to "quotas" - employers hire certain % workers racial categories to be protected from suits Congressman Johansen raised same issue in original House debate 1964 Both houses passed bills restoring "business necessity" holding of Griggs - Conference Committee resolve differences Both houses passed compromise bill Oct 1990 - **Not law** President Bush vetoed bill - said would compel employers to adopt quotas

6. Milton Friedman was a strong believer in the _____________ model. He _______________ argue that a corporate leader's sole obligation is to make money for the company's owners.

shareholder; did

4-2 **Statutory Law**

some states have versions of **Duty to Rescue** statute based on Good Samaritan common law principles require witnesses of certain violent crimes to **report** crime ASAP if do so w/o endangering selves or others - no obligation to **prevent** crime or **go to aid victim** **these laws differ from common law b/c enacted by a legislature, criminalize certain actions spell out penalties** Statues differ from common law - more law created by statue than by courts statutes affect each of us every day - business, professional, personal lives when system works correctly, it's **one part of law over which we the people have control - we elect legislators who pass state statutes, we vote for senators/representatives who create fed statutes**

**Life Prospects**

the circumstances into which we are born

**Federal Sentencing Guidelines**

the detailed rules that judges must follow when sentencing defendants convicted of crimes in federal court

**Embezzlement**

the fraudulent conversion of property already in the defendant's possession.

**Indictment**

the government's formal charge that the defendant has committed a crime and must stand trial once police provide local prosecutor w/ evidence he presents evidence to **Grand jury** asks members to indict defendant - grand jury is group ordinary citizens like trial jury but grand jury holds hearings for several weeks at a time, many different cases - only prosecutor presents evidence b/c better for defendant save evidence for trial jury If Grand Jury determines probable cause defendant committed crime charged, **indictment** is issued. **Indictment is the government's formal charge that the defendant has committed a crime and must stand trial. B/C jury never hears defendant's evidence, rather easy for prosecutor to obtain indictment. **Indictment not same as guilty verdict**

**Arson**

the malicious use of fire or explosives to damage or destroy real estate or personal property

**Defendant**

the party being sued

**Plaintiff**

the party who is suing

**Veto**

the power of the president to reject legislation passed by Congress

Ch. 4 Multiple-Choice 1. A bill is vetoed by_________

the president

**Criminal procedure**

the process by which criminals are investigated, accused, tried, and sentenced.

**Life Principles**

the rules by which you live your life

**Larceny**

the trespassory taking of personal property with the intent to steal it

**Beyond a reasonable doubt**

the very high burden of proof in a criminal trial, demanding much more certainty than required in a civil trial

**Bench trial**

there is no jury; the judge reaches a verdict

2. If a bill is vetoed, it may still become law if it is approved by __________

two-thirds of Congress

1-3 **Classifications**

types of laws - criminal and civil law intersection between law & morality

2-3 m **Short-Term Perspective**

unethical decisions made b/c thinking short term i.e. GE engineers found ignition switch faulty causing engine shut off w/ shut off steering/airbags - life-threatening chose to ignore b/c cause immediate & expensive recall hid fault choosing short term objective profits & job security over safety of drivers b/c might no longer be working there by time problem discovered. **short term perspective led to over 100 deaths, also damaging to company's finance & reputation** Part of problem - many of us have **optimism bias** - **we're overly confident in predicting our own success** Ariely experiment: subjects took math test w/ answers bottom page told not to look = did better than avg. Another group took test for money if accurately predicted how many correct problems w/o answers = optimism cost them money

**Money laundering**

using the proceeds of criminal acts either to promote crime or conceal the source of the money

2-3 **Ethics Traps**

we allow brain to trick us into believing wrong is right 2-3 a **Money** - powerful lure b/c belief make us happier if we had more - regardless of income 85 percent Americans feel happy - income exceeds $75,000 no impact on day-to-day happiness maybe b/c higher income often means more stressful time spent working - some evidence higher income reduce ability appreciate small pleasures - people come into windfall happier if spend on others or save it not blow on spree - money is way of keeping score = earn more must mean better than you - higher pay may make people feel more satisfied, more successful, life going better 2-3 b **Competition** **Humans are social animals who can't help but compare themselves w/ other people** experiment w/children found elected to get fewer prizes for self as long as got more than other child - 2 for self, zero for other not 2 for self, 2 for other researchers found **the mere process of negotiating the price of a product reduces a person's sense of morality** mouse experiment - if reject payment mouse would live if take payment, mouse euthanized another experiment buyer/seller negotiated payment euthanize mouse, third version - lg groups buyers/sellers negotiated against each other **people in multi-party negotiations more likely kill mouse than were pairs of two people** 2-3 c **Rationalization** study found more creative people tend to be less ethical - reason? - better at rationalizing their bad behavior **common rationalizations include:** * If I don't do it, someone else will. * I deserve this because... * They had it coming. * I am not harming a person - it is just a big company. * This is someone else's responsibility. **The Fudge Factor - important type rationalization** Dan Ariely found in research everyone is willing to cheat at least on small scale If we cheat, just a little, tell ourselves it doesn't really matter. We want to think of selves as honest, but speeding, cheating on taxes, using old photo online dating tell ourselves doesn't count Ariely experiment paid people to solve math problems - avg 4 correct answers w/neutral grader, when grading own test, w/ no one checking, avg 6 correct. rationalized like I was close, off day, etc. 40,000 test takers, 70 percent fudged a little, 20 percent cheated big When paid more for e. correct answer, cheated less- presumably felt worse about selves if stole more money than less real example - elderly volunteers Kennedy Center stole little amounts equal $150,000 felt good b/c volunteering so stealing little felt was alright **I Did it For Someone Else** rationalize "I did it for my family" - Ariely found if someone else benefits when participants cheat on math test, amt cheating increases **The Slippery Slope** **So many truly awful outcomes begin with that first step down the slippery slope** (rationalize, just this once) i.e. Brian accountant life insurance company - made numbers end quarter by stretching metrics believing next quarter sales would fill hole BUT instead hole kept getting larger Brian faced w/ stretching metrics more making up policies equals **FRAUD** **Problem w/ Slippery Slope** is once we lie, easier to lie again - part of brain stimulated by lying gets less stimulation each time we lie Telling a lie so much, becomes easy or lying to point believe it's true

2-3i **Following Orders**

when someone in authority issues orders, even if wrong, tempting to comply * fear of punishment * belief in authority * ability to rationalize i.e. private school difficulty paying bills, left hall lights off, someone fell and sued - lawyer asked teacher Amanda to lie - she did b/c lawyer told her to (right thing) and fear of losing job bosses need to be aware that when setting goals too narrowly focused, employees will meet goals even if untrue Research found subjects **more likely cheat if assigned specific goals** employees who work for firms w/culture blind obedience twice likely report unethical behavior than those w/ more collaborative environment

**voter referendum**

when states allow citizens to pass laws directly at the ballet box i.e. California Proposition 187 in 1990's - designed to curb illegal immigration into state by eliminating social spending for undocumented aliens. Federal court ruled only Congress had power to regulate immigration and California's attempt was unconstitutional and void.