LEB 320F
When concurrent jurisdiction exists,
defendant has right of removal to move case to local federal district court
Legal standards source:
defined and applied by government processes puts power of state behind accepted moral standards
Summary Judgement
evidence in case clearly indicates that factually one side or the other is entitled to prevail that a trial would be a waste of time; can appeal and return to trial court SOLDANO
'General' personal jurisdiction
exists even when the cause of action arises out of events occurring outside the forum state, so long as D's contacts with the forum are both 'continuous and systematic.' a substantial and continuous nature...meaning that the D had a physical presence or targeted activities. Specific - P's claims arise out of D's forum- related activities. Courts make this a three-part test...see Arnold case next. Note that the test looks at the D's activities. Will have SJ if: Have an office in the state Direct marketing efforts to the states residents BUT a single contact is not enough.
Two factors children use to distinguish moral principles from simple conventions
fairness harm to others
Case (Socratic) Method of Study
form of inquiry based on asking and answering questions to stimulate critical thinking and to illuminate ideas
Not Moral Agents - Historical View
corporations are artificial beings, creatures of law, accumulations of legal documents, governing rules and operating procedures - no ability to reason
Agents of Capital vs Agents of Society
Duty is to maximize profit for shareholders Companies use resources to correct wrongs Serve general welfare Do well, do good
Sustainability
"CSR's Cousin" "Development that meets the needs of the present without compromising the ability of future generations to meet its needs." Good idea: finite resources, burgeoning global population, emerging economies increasing strains on water, food, energy Companies realize reputational/economic benefits of going green E.g., Wal-Mart (even pressures suppliers) Serve themselves while they serve the planet
Process-Oriented Approach
Views the law broadly; looks at how the rules are created; asks "Why?" More liberal interpretation - black letter law is more likely to change Views the law as the rules that are in effect at a given time
2 Aspects of Loyalty
(comprised of: created expectation to further friends interests; have ability to cause harm if we don't act in those interests Fiduciary relationships: agent-principal; legally enforceable obligations of loyalty)
Consequentialist Theories
-Every choice begets a result -What is the impact of that result? -the ends justify the means -prime example: Utilitarianism
4 Types of Norms
-Hypernorms (fundamental human rights, -Consistent norms (values that are less universal and more culturally specific) -Moral Free Space (unique cultural beliefs; inconsistent with norms in other cultures) -Illegitimate norms (infringe on fundamental human rights)
How are our ethical principles affected when we do business abroad?
-Illegal in U.S. v. legal elsewhere -How do cultural differences factor in? VERY difficult situations--lots of potential for conflict -When business operates internationally, ethical challenges become much more complicated due to cultural differences and competing legal requirements Harder to identify, Harder to resolve -Nepotism, conflicts of interest, bribes and gifts: Bureaucrats have low pay and get most money from bribes (illegal under US Foreign Corrupt Practices Act of 1977 ) -"Going native" v. "Ethical imperialism": ok to impose our standards on others Ethical relativism Whatever works for the foreign nation will work for us
***What is the law?
-Plato: a form of social control -the true reality of social structure commonwealth -Locke: norm established by the -an ideal of reason -a form of order -the agreement of reason and nature -an ordinance of reason for the common good -a norm established by the commonwealth -the idea of right
3 most valued traits of potential employees
1. Communication and interpersonal skills 2. team skills 3. ethics
Factors to be considered in determining whether a duty is owed to third persons
1. Foreseeability of harm 2. Degree of certainty that plaintiff suffered injury 3. closeness of connection between conduct and injury suffered 4. moral blame to defendants conduct 5. policy of preventing future harm 6. Availability, cost, prevalence of insurance for the risk involved
4 elements of Moral Minimum
1. Honesty - basic expectation of humanity - have to justify NOT telling truth 2. Loyalty- trust, confidence in others (reciprocal) develops over time 3. Keeping Commitments - following through on promises 4. Doing No Harm - applies to physical, emotional, economic well-being of people
Moral Reasoning in Decision Making
1. Identify the issues (narrowly defined) 2. Which rules apply? (law? moral minimums?) 3. Analyze the facts/information (yet, you will NEVER have all of the facts) (apply facts to principles and balancing competing obligations; excusing conditions) 4. Are there any conditions or exceptions or mitigating factors? 5.How do you minimize conflicts? (duty of loyalty to co-worker vs. employer) 6. Prioritizing (degree + likelihood of harm)
Consistent Moral Code: Cross-Culture Consistency
1. It's generally bad to harm others 2. It's generally good to be fair and reciprocal 3. Act in accordance with one's social status 4. Rules around bodily functions (purity v. pollution)
Hedonic psychology literature documents more happy people focus on
1. relationships/intimacy 2. religion and spirituality 3. generativity (leaving legacy and contributing to society)
5 Classifications of Law
1. Subject Area- contracts, criminal, wills, sales, etc 2. Federal and State 3. Common (comes from judges rulings) and Statutory (comes from elected officials who write statutes) 4. Civil (not as high-stakes; POE discussed later) and Criminal (higher standard of interpretation and proof) 5. Public (gov represents people) and Private (2 people have dispute)
2 types of jurisdiction; must have both to have power to adjudicate
1. Subject Matter Jurisdiction (criminal, family, tax, etc) nature of the case & relief sought. Jurisdiction may be limited by: Amount in Controversy (i.e. Small claims courts) Type of Controversy (i.e. Probate court, family court) 2 types: General (unlimited) jurisdiction Limited jurisdiction Federal question (federal civil or criminal statute) Diversity of citizenship (and >$75,000)—must have both for ability to elevate to federal district court (concurrent--can be heard in state court) Is federal court better than state court? Can this court hear this type of case? 2. Personal Jurisdiction a court's power to bring individuals into its adjudicative process Answer's the Question: Is it fair to make the Defendant appear in this state?
Rules for due process (courts acquisition of personal jurisdiction)
1. adequate notice 2. hearing 3. impartial decision maker 4. Contact between defendant and forum state
5 part test for measuring minimum contact (Youngtek)
1. nature and quaintly of contacts 2. quantity of contacts 3. relation of cause of action to contacts 4. interest of forum state in providing resident forum 5. convenience of the parties Ruled that exercise of general or specific personal jurisdiction over Youngtek is inappropriate and fails to comport with due process
Moral dumbfounding includes
1. not harming others 2. reciprocity and fairness 3. Behaving in manner that benefits status in social hierarchy 4. Bodily matters
Self Model
1. people not only decide what is the right way to act in a given situation but they also make a decision regarding their own responsibility for acting on the judgment 2. Criteria arise from their moral identity 3. model emphasizes human tendency to strive for self-consistency
Moral Heuristics: Biases that impede people from making moral judgements
2. Limitations of Human Judgement 3. Obedience to Authority 4. Conformity Bias (Peer pressure; conform when not enough info to make educated decision; aka theory of social proof) 5. In group vs out group (Theory of Special Social relativity) 6. Groupthink (more about decision making! decisions based on what group is doing; yield to strongest personality; assume everyone is thinking the same) 7. False Consensus Effect (assume honesty; 80% of lies are undetected; if no one else is speaking up you shouldn't--plays into groupthink) 8. Over-optimism (best will happen; more unreasonably optimistic the worse the situation gets) 9. Overconfidence ("I am more ethical than most people;" everybody's special) 10. Self Serving Bias 11. Framing 12. Role Morality 13. Cognitive Dissonance (screen info and reject what contradicts position) 14. Sunk Costs 15. The Tangible and the Abstract (more legitimacy to things we can see/experience; less unethical with more separation; moral distance) 15. Time-Delay Traps (long term consequences are less important; environmental; prefer immediate gratification) 16. Loss Aversion 17. Fundamental Attribution Error (misjudging effect of situational factors; dishes example; we do bad things bc we have to others do bad things bc they are bad people)
ADR: Alternative Dispute Resolution
ADR describes any procedure or device for resolving disputes other than the traditional judicial process. Benefits of ADR: 1. Save money 2. Parties have more control over the outcome; and 3. Unless court-ordered, there is no record which is an important factor in commercial litigation due to trade secrets.
Ethical Pre Scripting
Act in accordance with douse of action scripted for yourself -To whom am I responsible? -For what am I responsible? -What is fair treatment of stakeholders? -What are the minimum responsibilities? -What are the ideal role expectations? people make ethical errors when moral intensity is low
Role Morality
Adopting different ethics rules for different roles that you play Your brain can't really process different rules, you will end up yielding to the lower standard Tend to justify the less moral behavior b/c "the situation is different at work" (or school, or home, etc.) Will do something illegal to benefit others but not for personal gain (My God Says Though Shalt Not Kill)
Are Corporations Moral Agents?
Are Corporations Moral Agents? Individuals are morally responsible for their actions within business organizations Can corporation owe moral obligation independent of the individuals within the organization? Corporations are legal entities but can only act through human beings
The Moral Minimum
Basic standard of ethical behavior: logical, universal, consistent (logical comprehensiveness, universality, consistency) necessary for the existence of an advanced civilization People are ends in themselves Stand on their own moral foundation - do not need any justification Failure to comply tends to destroy social and economic relationships and requires defense or justification
Ch 37 : Notes 2
Business Ethics and individual Decision Making
PPT 1 - CH 36
Business Ethics and the Law
Standard Fire Ins. Co. vs Knowles
CAFA 2005: Class Action Fairness Act "Federal district courts have jurisdiction over civil class action suits if the matter exceeds the sum of $5 million Knowles tried to keep in state court by not seeking to recover > 5 million
4 Requirements for a good legal system
Certainty Consistency across different areas of law AND over time They are difficult to change; judges/legislatures are reluctant to change long-standing laws Flexibility Changes in society require that the laws change with it (and to suit it) Ex: space law / cyber law (changes due to technology) "Knowability" the laws can't be secret or so cryptic that they can't be understood by anyone. Individual can read it or hire others to read it (lawyers) Reasonableness - VERY IMPORTANT CONCEPT!! The rules need to appear reasonable or people won't abide by them There is also the idea that the "punishment fit the crime" Subjectivity is a big factor when you talk about what is reasonable **People apply their own definition; "soon" example
Common vs Statutory
Common comes from judges rulings aka case law, judge-made law, unwritten law Statutory comes from elected officials who write statutes; rules formally adopted by legislative bodies; corporation law, criminal law, tax law
Code of Ethics
Companies should also WRITE IT DOWN! But the key is putting it into practice. spells out the rules--clearly defines what the company expects Holds everyone accountable some companies have employees sign an "ethics agreement" Good attitude—book: hypernorms-universal business values Trust Open-minded-remain teachable Open communication Create community "Zappos family" Think creatively
Texas Courts
Courts of Limited Jurisdiction: Limited type of cases it can hear Family, Probate (will), Municipal, Traffic, Justice of the Peace General Jurisdiction General trial courts Contract law, criminal law, corporation law District courts Fact finder and determines questions of face Judge tells jury what law to use to interpret facts Court of Appeals Have right of appeal; above dotted line facts are no longer an issue; ask instead was the law applied correctly to the facts; no jury past dotted line; Appellate level--just attorney and judge Don't hear testimony or see evidence Ct. Criminal Appeals or Supreme Court Texas: fifth circuit court (rule-oriented approach) CA: 9th circuit (process oriented)
Criminal vs Civil
Criminal - defines an individual's obligations to society as a whole; fines or imprisonment for violating prohibited conduct EX - someone who commits murder will not be allowed to live free in society Beyond a reasonable doubt Either Felony or Misdemeanor Civil - defines rights between individuals and governments; plaintiff seeking to enforce private obligations or duties against other party; spells out rights among individuals, firms, and government EX: contract law, tort law, sales law
Encouraging Employees to Act Ethically
Culture, Culture, Culture Hiring ethical people - especially leaders Internal control factors v. external control factors Use heuristics and biases for good: obedience to authority; conformity bias Treating employees well (and they'll follow you anywhere) Just results and fair procedures = legitimacy "Moral spillover" (seeing injustice leads to unethical behavior) Codes of Ethics Get buy-in; make it real Ethics training Teach how to "talk the talk" Whistleblowers Structuring compensation Watch out for aggressive goals - Sears Example Walk the walk Punish unethical behavior; reward ethical behavior Vigilance Pay attention to acting ethically every day and in every way
Monitor rationalizations
Denial of responsibility, Denial of injury, Denial of victim Also in book: social weighing-you have no right/others are worse, appeal to higher loyalties, metaphor of the ledger-earned the right) Moral disengagement-process of making detrimental conduct personally acceptable by persuading oneself that it is permissible Corruption continues when: Co-optation-rewards induce attitude change Compromise-back into corruption in attempt to solve problem Incrementalism-newcomers gradually introduced to corrupt acts
Obedience to Authority Examples
Egil Kogh - Bud - head "Plumber" in Watergate Right thing is defined by the person in power and absolute power corrupts absolutely The Miligram Experiment; 85% of subjects were willing to administer pain Acceptability heuristics- people are more concerned about acceptability to people they are accountable to than the content of the decision itself
What are the Consequences if Businesses Don't Behave, Legally, Ethically and Morally?
Enron, Arthur Anderson, World Com, Lehman Brothers - No longer exist Increasing odds of getting caught: SEC and other regulators have more resources and focus Smart phones and the Internet: everyone is an investigator reporter with an instant global audience Fines, penalties and other consequences (e.g., loss of license) Reputational penalty multiplier (customers, suppliers, employees, investors) Triggers increasingly cumbersome and expensive government regulation Consequences of not embracing AOS Mortgage collapse, housing Hire regulators, auditors or create government agencies Lots of scandals in gov Companies should self-regulate
Utilitarianism
Ethical theory committed solely to the purpose of promoting the greatest good for the greatest number of people Permits all social that will maximize social utility One component in a rational process of ethical reasoning
Ch 38 : Lecture 3
Ethics, Organizations, and Corporate Social Responsiveness
Disgust Reflect
Evidence of evolutionary morality Incest, cannibalism, murder
Fraserside v. Youngtek IRAC
Facts = 2 internet pornography businesses. P sued D for trademark and copyright violation. Issue - does an Iowa court have personal jurisdiction over a Cypress-based Inc.? Rule = General Personal Jurisdiction requires "continuous and systematic" contacts Analysis = Youngtek has no offices, no employees, no phone numbers, etc. Clicks on its passive website by Iowans don't do it. Conclusion = Specific personal jurisdiction requires that P's injury arise from D's activities in the state or uniquely or expressly directed toward the state. D no more directed its activities at Iowa than at Uzbekistan - suit dismissed
Soldano v O'Daniels (Cal 1983)
Facts: - Villanueva pulled gun on Soldano at Happy Jack's Bar. Bar patron ran to the Circle Inn and asked to use phone (either to call police or allow the patron to call the police). Inn's bartender refused to let him use phone. Soldano shot & killed. His son brings wrongful death case against Circle Inn and bartender. ISSUE: Did bartender/Inn have duty to let patron use phone? Decision - YES. RULE: No duty to help. Exception: Courts have carved out exceptions for various reasons: Tarasoff - doctor/patient. Where patient says he is going to kill another, the doctor has a duty to protect others from foreseeable harm. Duty to warn the potential victim in spite of usual confidentiality. Here, court looks at benefit v. burden. (there is a duty if there is a close relationship) Application - No duty to help, but there is a duty not to obstruct Good Sams who wish to call police from a public place, where request involves little, if any, cost or risk. LOOK at the burden v. benefit. That's how the court came up with an exception to the general "No duty to help" rule. Here, Bartender had no duty to call the police himself, but could not obstruct Good Samaratian. Conclusion - Don't have to help, don't have to let into your house, but DO have to let use public phone! Note the reference to Clockwork Orange - no duty to let people into your personal residence. This was a narrow exception for "public places." Although there is a private owner, this place is open to the "public." The court goes so far as to define that this was a public place that was "open during ordinary hours." case information regarding summary judgment. The Ds filed a MSJ, which the trial court granted, meaning the case was dismissed. P appealed to CA state C of A, who decides that there is enough evidence to let the case go to trial (so the D's MSJ was denied and the case is sent back to the trial court to continue toward trial)
Adjudication
Fitting of rules to facts required for settling legal controversies; performed by state/fed courts or administrative agencies
"For a long time people believed that the only purpose of industry is to make a profit. They were wrong. Its purpose is to serve the general welfare." --
Henry Ford Duty to "do good"? go beyond the Moral Minimum Help fix problems you didn't cause Corporations are in positions of power—can be good or bad. Benefits: good publicity, tax deductions, improve the lives of employees, increase property values. Does it matter that the company is self-interested?
Fraserside v. Youngtek Solutions
Fraserside cannot get personal jurisdiction in Iowa Fraserside (Iowa) filed federal court copyright infringement lawsuit against Youngtek (Cyprus) for selling their pornography. Youngtek claimed court lacked personal jurisdiction.
Law and ethics venn diagram
If an action is not legal...it's probably not moral! All illegal actions are unethical
CSR Abroad
Includes concepts of sustainability and corporate citizenship Taken much more seriously in Europe than in the US Triple-bottom-line reporting very common among major corporations (economic, environmental and social matters) 70% of global CEO's believe CSR important to their long term success Consensus abroad that corporations should go beyond mere philanthropy and use their skills and abilities to ameliorate world problems
Moral Dumbfounding - 2 types
Innate moral sense/emotional reaction; snap moral judgements that humans around the world tend to make that they can't explain intellectually Self directed: shame, embarrassment, guilt, regret Other-directed: contempt, anger, disgust, schadenfreude (pleasure from others' misfortune)
Elements of a brief
Issue- What facts and circumstances brought these parties to court? Rule - What is the governing law for the issue? Analysis - Does the rule apply to these unique facts? Conclusion - How does the court's holding modify the rule of law?
Develop a moral identity
Keep your ethical antenna up Ethical fading-ethical dilemmas fade into background Monitor your overconfidence Acting courageously Publication test: if it comes to light will you feel good about your decision?
Ch 1 - Nature and Sources of the Law
Lecture 4
Ch 2 - Court Systems, Jurisdictions, and Functions
Lecture 4
Internet and Long Arm Jurisdiction
Long-arm statutes allow courts to obtain Personal Jurisdiction over non-resident Defendants who have done business or committed a tort (wrongful conduct for which civil liability can be imposed). Due Process requires that D have "substantial contact" with forum state. General vs specific personal jurisdiction Developing area of the law. Court relies on two tests: the "effects" that defendant's actions had in the forum state, and whether defendant "aimed" its actions at that state.
Federal Arbitration Act, FAA
Makes written commercial arbitration agreements and arbitrator awards legally enforceable if the underlying business transaction affected interstate commerce
AOC View
Milton Friedman: Not only is there no obligation to spend corporate resources on problems the company did not cause, it is inappropriate for managers to do so Managers are agents of the shareholders (owners) capital Sole duty is to earn as much as possible within limits of law and customary ethical practices Managers are free to devote their own time and resources to whatever cause they choose but to divert corporate assets is a breach of fiduciary duty Promoting good and social welfare is function of government, not business (managers ill-trained, unelected and unaccountable) CSR is an undemocratic and "fundamentally subversive doctrine" resembling theft
Arguments FOR Responsibility
Modern view: corporations are responsible because when harm is done, often hard to trace corporate malfeasance to particular individual Group dynamics: people in groups behave differently than when acting alone (lynch mob; group think). People feel no sense of personal ownership and are less likely to apply personal moral standard if company doesn't "Safety in numbers" - individuals less likely to be called to account Unclear lines of authority so no one feels responsible Communication challenges (different groups acting on different facts and assumptions or less than complete information)
Moral relativism vs moral pluralism
Morals can be overcome and integrated (not black and white) There is a plurality of ideals culture and temperaments; there is an infinite number of human ideals
Sunk cost examples Stuck with wrong decision because of:
More we have invested, more likely to stick with it- reluctant to let investment be loss Vietnam Money already spent, pride, being unsure, finish what you began, self-interest, losing face Escalation of commitment
3 types of ADR
Negotiation: Informal settlement talks between counsel before or after suit filed. Mediation: Non-binding procedure where a neutral party assists in negotiations and recommends a resolution-does not impose outcome on parties! Court-ordered or Agreement to Mediate Not binding-may have to go back to court Arbitration: Parties submit brief pleadings to third part or panel who makes decision (called an award). Usually binding under Taft-Hartley Act with no right to appeal but can be non-binding 2 types: Labor or commercial Getting to Arbitration: Court-ordered; Agreement to Arbitrate; or Arbitration Clause (generally enforced today).
AOS view
Not only appropriate but obligatory for corporations to try to solve problems they did not cause Required by the "social contract" Corporation is result of contract between owners and the society that permits its creation provides benefits to owners (limited liability, aggregation of resources in hands of a few, economic and political power) which create risks for society for which the corporation should be held responsible
Advocating Effectively
Offer viable solutions-don't just be "nay-sayer," give different way to act
Trolley Problem
Philosopher Phillipa Foot Should you turn trolley by flipping a switch to save 5 people on the tracks and kill 1 on the other track Frank is on footbridge over tracks should he push large person in front of train to save 5 people on tracks. Utilitarian-yes; 5 lives for 1 Kantian- no
Sources of the law
Primary: Black Letter Law Constitution, statutes, regulations, court decisions Secondary: (summarize, explain and sometimes criticize and advocate for change) Restatements, legal encyclopedias, treatises, legal journals and periodicals
Reasons to use Law as an Advantage?
Protect and monetize Intellectual Property Protect other rights (e.g., fair competition) Seek gov't incentives and subsidies
Public and Private
Public = when the gov't is "a party" (representing society as a whole) criminal law, constitutional law, administrative law Gov represents people against violator Private = individuals only Enforcement for one individual against another
Deontological Theories
Rule-Based -The Golden Rule -The Ten Commandments -actions judged by asking "can this action be justified by reasons that are uniformly applicable to all other persons?" -Always applied consistently -German philosopher Immanuel Kant
CSR
Should corporations go beyond the moral minimum and correct problems it did not cause? Should corporations expend corporate resources to "do good" and meet societal needs? Is it appropriate for corporations to do these things? Should they be obligated to do them?
Substantive v. Procedural
Substantive - defines or created the rights and obligations of persons & the government EX - You must be 16 to obtain a drivers' license. Procedural - steps one must follow in order to receive legal rights or enforce another persons' legal obligations. EX - Steps you must take to obtain a license.
Oxford Health Care Plans v. Sutter (2013)
Sutter was pediatrician for Oxford patients Sutter sued in state court for Oxford not making full/prompt payment Arbitration clause in contracts: disputes submitted to final and binding arbitration in NJ Arbitrator decided that their contract authorized class arbitration; Oxford filed motion to vacate decision; denied and court of appeals affirmed Question of whether arbitrator interpreted the contract, not whether he got the meaning right; he did construe the parties' contract so he did not exceed his powers!
The Rule of Law
The doctrine that every person is subject to the ordinary law of the area.
Why Should Businesses Behave Legally, Ethically and Morally?
To attract capital: Investors are looking for good corporate citizens Increasing numbers of investors are targeting companies with high CSR ratings To attract and retain high quality, loyal employees Employees want to work for a company they can be proud of Customers and suppliers prefer to deal with ethical companies More likely to be treated favorably by politicians, regulators and non-governmental/activist organizations Stock performs better Bottom Line: Reputation Matters
Tort Law
Torts include all negligence cases as well as intentional wrongs which result in harm. Therefore tort law is one of the major areas of law
Federal System
U.S. District Courts: fact finder 96 judicial districts Appellate Courts : Circuit Courts of Appeals -Eleven Circuit Courts (regional) could be 11 interpretations in Federal Court of same statute -Other two are: -Federal Circuit (patents) -D.C. Circuit (DC cases and administrative agency appeals) U.S. Supreme Court: final jurisdiction; can deny hearing case
Social Enterprise/Social Entrepreneurship
Using business skills to help nonprofit firms and solve society's greatest ills rather than focusing on making profits Alternative to trying to reform for-profit companies to act in a socially-responsive and sustainable way Related offerings growing in popularity in business schools
Should Batman kill the Joker
Utilitarian: Kill one save many Deontological: Murder is unethical Virtue: not the man Batman wants to be
Rule-Oriented Approach
Views the law as the rules that are in effect at a given time More conservative interpretation The black letter law is less likely to change much through interpretation Conservative, immutable, constitution as written—no interpretation needed
Framing
We make decisions based on context Classic Legal Example: the leading questions asked during a trial Marketing Example: "natural" food labels Option framed as loss or gain Ex: "90% fat free vs 10% fat" This is why we "spin" things to make them sound good and to get people to agree with us. Landolt promoted to director of career services--Seen as "playing favorites" y going to lunch with half of staff; Act differently for company than individually
Video Notes: Obsessed with Culture
Zappos: Employees come up with values Pays employees to quit No job listings-don't know what you're applying for—is this unethical? By end of year, will get rid of titles, hierarchy Holacracy-management theory—circles of responsibility; people work in groups Lead links- in order to complete project will assign roles; cannot evaluate/force Circle to hold accountability Tony Shay-founder; Fred- "company monkeys" Only conference rooms have doors and company "therapist" Zenga also tried this and failed Zappos trying to revitalize Vegas downtown-gives grants to companies to move downtown
Self-Serving Bias
accept what helps us and reject what hurts us; reinforce our beliefs Confirmation Bias - prone to search for info that supports conclusion and ignore contradictions Causal Attribution Theory - people attribute more than average credit for success and less for failure Belief persistence: people persist in beliefs after they are discredited Jack Video: )
Aristotelian virtue ethics
actor attempts to become a virtuous person in all aspects rather than resolve specific ethical issues people should develop and practice important virtues
Pendent/ancillary jurisdiction
avoid multiple lawsuits legal claims based on same set of factual circumstances
Federal jurisdiction can be
concurrent or exclusive
Legal standards may be less demanding than morals: Soldano v. O'Daniels
impose legal obligation to be a good Samaritan upon tavern owner
Business Ethics
is the study of standards of behavior IN BUSINESS that promote human welfare
JURISDICTION
legal power of official to take action (ex - police have jurisdiction over certain counties or states, courts have jurisdiction over certain people and subjects of controversy) The power and authority to decide a case and render a legally binding judgment
Moral Heuristics
mental shortcuts used to ease the cognitive load of making a decision KNOW: rule of thumb, educated guess, common sense, intuition
Loss Aversion
might do something illegal to avoid loss but not for personal gain we detest losses more than we enjoy gains endowment effect-we easily attach our elf to things and value them much more than before we identified with them People may decide to act illegally to protect endowment they never would have made in the first place (US v. Simon)
Adversarial system
parties are adversaries who research and develop the facts and have primary control and more of an incentive to do a thorough job; but may be aimed more at seeking strategic advantage than finding truth Shifts cost to private section (inquisitorial system costs more to private sector)
Minimum Contacts
purposefully availed itself of the privilege of conducting activities in the forum by affirmative act or conduct. Get the protections (and making a profit) - got to submit to the burden of litigation
Ethics
study of standards of behavior that promote human welfare Ethics: book: study of morality by systematically exploring moral values, moral standards and obligations, moral reasoning, and moral judgements.
Daniela (the Louisiana citizen purchased Rolls Royce) decides to sue Teranecia (the Texas citizen who was the seller of the Rolls Royce) for failing to deliver the car in one piece to New Orleans as promised in a Louisiana state court, then Teranecia can petition...
the federal court to hear the case instead. Teranecia can do this because there is Diversity of Citizenship and the amount in controversy exceeds $75,000. The case will then be tried in a Louisiana Federal District Court instead of a state court.
Both law and ethics are important because
they make it possible for humans to live in social groups
