Legal Environment Ch. 1-5
management, customers, and employees
"Stakeholders" include
fifth amendment
A high school in Alabama suspended one of its students, John, on grounds of vandalism of school property. When the matter reached the court, the defense argued that John should be entitled to a fair trial in accordance with the _____ to the U.S. Constitution.
Public Law
A pharmaceutical company has been regularly dumping its hazardous waste in a nearby lake. This has led to serious health issues among people living in the neighborhood. Which of the following laws will regulate this incident?
Ethical dilemma
A problem about what a firm should do for which no clear, right decision is available is called a(n) _______.
political speech
A shipping corporation supporting the campaign of an Ohio congressman for the post of governor would be protected by the First Amendment under the category of
nonbinding jury verdict
A summary jury trial is an abbreviated trial that leads to a
brief
A written argument arguing why a litigant wants to appeal a judicial decision is called a _______.
choice-of-law
A(n) _______ clause may be inserted in a business's contract in order avoid time and expenses in determining what law shall be applied to the case.
Treaty
A(n) _______ is best described as a binding agreement between two states or international organizations.
regulatory
A(n) __________ taking, entitling a property owner to just compensation, occurs when a regulation deprives the property owner of all economically beneficial uses of the land
executive, judicial, and legislative.
The first three articles of the US Constitution establish the three branches of government, which are
justice
The human resource policy of a company states that the company aims to treat all humans identically, regardless of race, class, gender, age, and sexual preference. Which of the following values influencing business ethics does this best illustrate?
Choosing a lawful way to compete against rival firms
The minimum standard to be an ethical business includes
plaintiff has a personal stake in the outcome of the case.
The standing requirement of a lawsuit is said to be met when
standing, case or controversy, ripeness
The three threshold requirements a case must meet before it makes it to a court are _______.
dilemma
The use of ethics and ethical principles to solve business dilemmas is called an ethical
a citizen's willingness to compromise basic constitutional freedoms in return for government-provided security.
The value of "security" includes all of the following alternative meanings except
freedom
The value of _______ includes the following alternative meanings: the ability to act without restriction from rules imposed by others; the right to possess the capacity or resources to act as one wishes; and the choice to escape the cares and demands of this world entirely
to maximize the amount of wealth in society
The value of efficiency includes which of the following meanings?
Escaping the cares and demands of this world entirely.
The value of justice includes all but which of the following alternative meanings?
mediation
Two neighboring countries are in a dispute over the condition of a river that is common to both. Each country believes that the other country is polluting the river to dangerous levels. To resolve the situation, they decide to use a method of alternative dispute resolution (ADR) that is particularly useful in resolution of environmental disputes, and they voluntarily appoint a neutral third party. This method of dispute resolution is referred to as _______.
the categorical imperative
Under deontology, _______ states that an action is moral only if it would be consistent for everyone in society to act in the same way.
the takings clause
Under the Fifth Amendment, a government may take private property for public use under
lacks an official transcript.
Unlike a trial, an arbitration proceeding _______
are not bound by precedent
Unlike judges, artbitrators
postive abstractions
Values are _______ that capture one's sense of what is good or desirable.
Natural
_______ law describes certain ethical laws and principles believed to be morally right and "above" the laws devised by humans.
absolutism
_______ requires individuals to follow a rigid set of rules regardless of the situation.
In a binding arbitration clause
a contractual provision mandates that all disputes arising under the contract must be settled by arbitration.
identification with the vulnerable
The concept that some higher law or body of moral principles connects all of us in the human community is known as what?
In personam
_______ jurisdiction is a court's power to render a decision affecting the rights of specific persons before the court.
The arbitrator was not a duly appointed judge or licensed attorney of the jurisdiction in which the dispute arose.
According to the Federal Arbitration Act, under all but which of the following circumstances can an arbitrator's award be set aside?
tenth
According to the __________ Amendment to the U.S. Constitution, all powers that the Constitution neither gives exclusively to the federal government nor takes from the states are reserved for the states.
ethical dilemma
Acme Foods Inc. manufactures food products and is opening a subsidiary in United Cadvia. The firm discovers that to obtain raw materials it has to make some facilitating payments to the local officials and businesses in the host country. The second option is to import raw materials from its own country, which will be expensive in the long run. The managers at Acme are unable to decide which of the two options would be a better choice. Which of the following terms would best describe the situation Acme Foods Inc. is experiencing?
mediation
All 13 federal circuit courts of appeals have created programs to help parties resolve their issues on appeal. These programs typically encourage _______.
Tort law
All but which of the following include functional areas of business law?
Appealing an arbitrator's award is more restrictive.
All but which of the following is an advantage of using the arbitration process?
The court must be able to render an opinion that the current and future parties can use as an advisory opinion.
All but which of the following is needed to establish the case or controversy requirement before a court will hear a case?
property law
All of the following include relevant areas of business law with respect to corporate management except
county ordinances
Allison owned a floral shop in Greenville, South Carolina, but has moved to Chicago, Illinois, for personal reasons. She wants to establish another floral shop in the new city. She can find information regarding local taxes if she refers to the:
state court of last resort
Assume two parties are engaged in a lawsuit in the state of South Carolina, and the plaintiff chooses to appeal the verdict of the South Carolina trial court. Presuming South Carolina does not have an intermediate court of appeal, where would the case be heard?
mediation; 90
At the federal appellate level, if the judges refer the parties to a(n) _______ program, that program is expected to resolve the dispute within _______ days,
when it gives the defendant a copy of the complaint and a summon
At which stage of a case proceeding does a court acquire in personam jurisdiction over a defendant?
contract law
Betty's Bakery has a three-year agreement with Frank's Farm to purchase ten dozen eggs every week. After two years, Betty's Bakery wants to change the suppliers that will lead to a breach of their agreement. Which area of business law will best govern the legal aspects of this decision?
business people
Business ethics involves the application of ethics to the special problems and opportunities experienced by
dormant commerce clause
California, as a means to protect its environment, passes a law to ban a certain substance manufactured in Kansas by XYZ Corporation. XYZ Corporation can challenge California's legislation as a violation of the
responsibilities between people and people and their government.
Civil law involves
judicial review
Courts have the power of _____ to determine if legislative and executive actions are constitutional.
common law
Courts issue judicial decisions that often include interpretations of statutes and administrative regulations. This type of law is best described as which of the following?
original
Courts of jurisdiction have the power to hear and decide cases when they first enter the legal system.
leal positivism
The concept of _______ ensures that morality does not interfere with our inclination to obey the law.
objective
Ethical relativism is a theory of ethics that denies the existence of _______ moral standards.
defendant
For a legal case, the location in which the trial may be held is appropriate in the county where the _______ resides.
All arbitration decisions are binding in international disputes and no defenses to enforcement exist.
France and Belgium are having a contractual dispute. According to their agreement (which falls under the New York Convention) the parties agreed for the dispute to be arbitrated in France. The French company presented its side to the arbitrator; however, the Belgian company did not appear at the arbitration. The arbitrator ruled in favor of the French company. All but which of the following defenses might the Belgian company use as a defense to enforcement of the arbitrator's decision?
fourth amendment
Government and law enforcement officials can conduct a search on personal property only if they have a court issued search warrant. This right is given to the U.S. citizens by the _____ to the Constitution.
universalization test
If a business asks "would the world be a better place if everyone followed my example," that company is following the _______.
Administrative law
If the Federal Trade Commission (FTC), a government agency, requires businesses to adhere to certain standards in advertising, the law that would cover this rule would be:
federal preemption
In areas where state and federal government have concurrent jurisdiction, _____ allows the federal government to exclusive regulate a particular action?
Federalism
It is a system of government in which the authority to govern is divided between federal and state governments.
legal positivism
The concept of _______ sees our proper role as obedience to duly authorized law.
Criminal Law
Its managing director misappropriated the expenses and the incomes of a publicly held company. When the incident came to light, the share value of the company fell drastically. Which of the following laws will regulate this incident?
minitrial
Jason's Bakery and Sophia's Shoe Shop were involved in a dispute. They decided to have their lawyers present their respective arguments in front of a neutral advisor. Both Jason and Sophia have settlement authority for their companies. After the lawyers presented their arguments to this neutral advisor, she rendered a nonbinding decision. Jason and Sophia then discussed the case, their lawyer's arguments, and the neutral advisor's decision in hopes of coming to a settlement. This scenario is an example of what method of dispute resolution.
Case law
Legal interpretations by Judges are called common law, which is also known as
Statutory laws
Legislative bodies, such as Congress or state legislatures, create what kind of laws?
situational ethics
Like ethical relativism, _______ requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma.
privileges and immunities clause
Mac, a successful restaurateur from Georgia, wanted to expand his business to Memphis, Tennessee. He was denied a business license from the regulatory authorities in Memphis. The authorities told him that he was a nonresident and could not get a license to conduct business in Tennessee. This denial is a blatant violation of the
forum-selection
Occasionally businesses will insert a _______ clause in their contracts. These clauses specify which court would hear a case should a dispute arise over an alleged breach of the contract.
Law can never be enforced with complete consistency because the environment is ever changing.
On which of the following tenets does the concept of legal realism primarily rest?
Voir dire
Once the potential jurors have reported for jury duty, _______, or the jury selection process begins.
The parties may hide their dispute from the public, and the private trial may lead to a two-tier system of justice.
Private trials have been criticized for which of the following reasons?
Negotiation
Red Resource Inc. and Coral Techno Inc. are in a dispute over a contract. They decide to use a form of alternative dispute resolution (ADR) to settle the dispute. Both the parties, along with their respective lawyers, meet to discuss the issue. However, there is no neutral third party involved. Which form of ADR is most likely being used here?
ethics of care
Someone who adheres to the _______ argues that traditional moral hierarchies ignore relationships between people.
precedent
Stare decisis is the principle that courts use when they rely on previous case decisions also known as _______
allow the judge to set their own rules
Summary jury trails
business corporations are considered "artificial persons."
The Bill of Rights applies to corporations because
Sarbanes-Oxley
The Corporate and Criminal Fraud Accountability Act is also known as the _______ Act
supremacy clause
The Federal Trade Commission has issued a ban on an ingredient which cannot be allowed in products. This ban is based upon research showing its role in increased birth defects. If North Carolina permits the usage of this ingredient in a dietary supplement, then North Carolina would be a violation of the _____.
provides the right to limited free speech
The First Amendment of the U.S. Constitution
prevents states from denying the equal protection of the laws to any citizen.
The Fourteenth Amendment to the U.S. Constitution
One of the parties did not have the authority to enter into a legal contract.
The New York Convention ensures that countries that are parties to the treaty will enforce an arbitration award. Which of the following is a defense to lack of enforcement of the arbitration award?
federalism
The U.S. Constitution establishes a system of government based on the principle of __________, according to which the authority to govern is divided between federal and state governments.
nine; life
The United States Supreme Court is comprised of _______ justices, and these justices serve for _______
arbitration
The United States favors _______ for resolution of international disputes.
The Federal Circuit Court of Appeals hears appeals from government agencies.
The United States has 12 geographic-based intermediate appellate circuit courts and then a Federal Circuit Court of Appeals. The Federal Circuit Court of Appeals hears appeals from which of the following?
federal; state
The United States has two parallel court structures: a(n) _______ system and a(n) _______ system.
public disclosure test
The _______ is also called the "television test," for it requires us to imagine that our actions are being broadcast on national television.
Uniform Commercial Code (UCC)
The _______ laws include sales laws and other regulations affecting commerce, such as bank deposits and collections, title documents, and warranties.
Social Responsibility
The _______ of business consists of expectations that the community imposes on firms doing business inside its borders.
A verdict for the defendant as the jury would have no legal basis for decision in favor of the plaintiff even if it regarded the plaintiff's claims to be true.
What is a directed verdict?
Rights given to a party to challenge a certain number of potential jurors without giving a reason.
What is meant by peremptory challenges?
ADR tends to exemplify the spirit of compromise while a trial has a definite winner and loser.
When a business is involved in a dispute and it must decide between ADR and a trial, it needs to consider which of the following?
stare decisis
When courts rely on precedent, they are obeying the principle of _______.
When the defendant fails to answer to the copy of the complaint sent by the court.
When does a default judgment occur?
Rule utilitarianism
When employees in a firm asked for a pay hike, the management assessed the expenses involved in it. It realized that the shareholders and customers would have to face more negative consequences when compared to the benefits enjoyed by the employees. Thus, the management decided to introduce employee stock options in order to keep both the employees and the shareholders satisfied. Which of the following theories of business ethics does this best illustrate?
concurrent authority
When state and federal governments have _____, both powers have the power to regulate the same subject matter.
Refusing to hear relevant evidence.
Which of the following can form grounds for disputing an arbitrator's decision in a court of law?
Managerial decisions are made in an attempt to circumvent the law
Which of the following considerations is not included in the "WH Framework" for business ethics?
corporations
Which of the following does not determine what market participants may or may not legally do?
The confidentiality associated with an arbitration proceeding can be harmful.
Which of the following is a disadvantage of arbitration?
The court should be able to render a decision that will solve the existing problem.
Which of the following is a necessary condition for a justiciable controversy?
To encourage social justice
Which of the following is an intended and essential purpose of law?
personal service, service by certified mail, and residential service
Which of the following is not a proper method of service of process?
Quasi-criminal law
Which of the following is not an appropriate category or classification of law?
Help each party listen to the opposing party's concerns.
Which of the following is one of the main goals of a mediator in a dispute?
Private law
Which of the following laws would govern a dispute between a tenant and a landlord over payment of rent?
The federal district courts vary widely in the terms of which ADR methods they approve.
Which of the following statements is true regarding the federal district court's use of ADR?
commerce clause
Which provision of the U.S. Constitution is the primary source of authority for federal regulation of business?
Privileges and Immunities Clause
Which provision of the U.S. Constitution prohibits states from discriminating against citizens of other states when those nonresidents engage in "ordinary and essential" activities?
Are considered acts against society as a whole
While civil law involves the right between people and people and the governments, criminal law
It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state.
Why have most states enacted a long-arm statute?
The process of minitrial is less costly than arbitration.
Why is a minitrial preferred to arbitration?
Checks and balances
_____ is that system in which the U.S. Constitution allocates specific powers to each branch of government to keep the respective branches from dominating one another.
Med-arb
_______ is a dispute resolution process in which the parties agree to start out in mediation and, if the mediation is unsuccessful on one or more points, also agree to move on to arbitration.
venue
_______ is the legal term for the geographic location in which a case may be tried. It is determined by each state's statutes.
Mediation
_______ is the primary alternative dispute resolution (ADR) process used in federal district courts.
mediators
are not affected by a firm's business decision
commerce clause
authorizes the federal government to regulate interstate commerce and international commerce.
business law
consists of the enforceable rules of conduct that govern commercial relationships
appellate courts
have the power to review previous judicial decisions passed by trail courts
trial courts
hear and decide cases when they first enter the legal system
Consumer Product Safety Commission
not an example of a major executive federal agency
The Chinese constitution
prohibits citizens from engaging in political acts against the government.
supremacy clause
provides that any state or local law that directly conflicts with the U.S. Constitution or federal laws is void.
provide order, encourage social justice, guarantee personal freedoms
purpose of business law
1998 Alternative Dispute Resolution Act
requires that in all district courts, civil litigants must consider the use of an alternative dispute resolution process at an appropriate stage in the litigation. gives each district court the choice whether to require alternative dispute resolution. attempts to impress upon parties and courts the advantages of alternative dispute resolution.
The plaintiff and defendant must live in different states
to have a diversity of citizenship case
full faith and credit clause
uphold contracts and public acts established in other states, as long as they do not violate their public policy.
