Chapter 4 Business Law

Deontological

Deontological theories focus on decisions or actions alone. For example, laying off competent employees is not justified regardless of its effect on prices and profits.

Bandwagon Fallacy

Similar to argumentum ad populum. States that we should or should not do something because one or more other people or firms do or do not do it

Begging the Question

You take for granted or assumes the thing that she is setting out to prove. Circular reasoning.

Justice Theory

A work of political philosophy and ethics by John Rawls, in which Rawls attempts to solve the problem of distributive justice (the socially just distribution of goods in a society) by utilizing a variant of the familiar device of the social contract.

Appeals to Tradition

Appeals to tradition infer that because something has been done a certain way in the past, it should be done the same way in the future.

False Analogies

Argues that since something is like something else in one or more ways, it is also like it in another respect. Used to make a point vividly and have a strong appeal.

Argument from Authority

Arguments from authority rely on the quality of an expert or person in a position of authority, not the quality of an expert or authority's argument.

Sunk Cost Fallacy

Attempt to recover invested time, money, and other resources, by still spending more time, money, and resources.

Reductio Ad Absurdum

Carries an argument to its logical end, without considering whether it is an inevitable or probable result. Slippery slope.

Non Sequiturs

Conclusion that does not follow from the facts or premises one sets out. The speaker is missing the point or coming to an irrelevant conclusion.

Appeals to Pity

Generates support for a proposition by focusing on a victim's predicament. Usually also a non sequitur. Seen in American press, appeal to pity or compassion.

Kantianism

Humans are able to judge the morality of any action by applying a categorical imperative.

Argumentum Ad Hominem

Means argument against the man. Tactic attacks the speaker, not his reasoning.

Argumentum Ad Baculum

Means argument to club. Arguer uses threats or fear to bolster his position.

Argumentum Ad Populum

Means argument to the people. Emotional appeal to popular beliefs, values, or wants. Merely because many or all people believe something does not mean it's true.

False Cause

Observing two events and concluding that there is a causal link between them when there is no such link. We commit this fallacy because we do not attempt to find all the evidence proving or disproving the causal connection.

Profit Maximization Theory

Requires a decision maker to maximize a business's long-run profits within the limits of the law. It is based in the laissez faire theory of capitalism first expressed by Adam Smith in the 18th century.

Utilitarianism

Requires a decision to maximize utility for society. Maximizing utility means achieving the highest level of satisfactions over dissatisfactions.

The Gambler's Fallacy

Results from the mistaken belief that independent prior outcomes affect future outcomes.

Teleological

Teleological theories focus on the consequences of decision. For example, laying off 5,000 employees is justified because the effect is that it keeps the price of goods low and increases profits for the shareholders.

The Lure of the New

The idea that we should do or buy something merely because it is "just released" or "improved"

Stakeholder Theory of Corporate Social Responsibility

The mirror image of corporate social responsibility. Instead of starting with a business and looking out into the world to see what ethical obligations are there, stakeholder theory starts in the world.

Rights Theory

The rights theory holds that certain human rights are fundamental and must be respected by other humans. Each of us faces a moral compulsion not to harm the fundamental rights of others.