BUS135

Stare Decisis

Adherence to precedent is called the doctrine of ________.

Functions of Law

Keeping the peace. Shaping moral standards. Promoting social justice

US Courts of Appeals

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Law court

A court that developed and administered a uniform set of laws decreed by the kings and queens after William the Conqueror Legal procedure was emphasized over merits

Judicial Decisions

A decision about an individual case issued by a federal or state court

Rawl's Social Justice Theory

A moral theory which asserts that fairness is the essence of justice Each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony Criticism Establishing blind "original position" for choosing moral principles is impossible in the real world People in society may choose not to maximize the benefit to the least advantaged persons in society

Utilitarianism

A moral theory which dictates that people must choose the action or follow the rule that provides the greatest good to society It has faced criticism because: It is difficult to estimate the "good" that will result from different actions It is difficult to apply in an imperfect world It treats morality as if it were an impersonal mathematical calculation

Ethical Relativism

A moral theory which holds that individuals must decide what is ethical based on their own feelings about what is right and wrong Criticism Action that is usually thought to be unethical would not be unethical if the perpetrator thought it was in fact ethical

Kantian Ethics (Duty Ethics)

A moral theory which says that people owe moral duties that are based on universal rules It is based on two principles Consistency - all cases are treated alike Reversibility - the actor must abide by the rule he or she uses to judge the morality of someone else's conduct Criticism It is difficult to reach consensus as to what the universal rules should be

Section 406 of the Sarbanes-Oxley Act

A section that requires a public company to disclose whether it has adopted a code of ethics for senior financial officers Makes certain conduct illegal Establishes criminal penalties for violations

Ethics

A set of moral principles or values that governs the conduct of an individual or a group Ethics and the law are intertwined The rule of law and the rule of ethics may demand the same response by a person confronted with a problem In some situations, the law may permit an act that is ethically wrong

Ethical Fundamentalism

A theory of ethics which says that a person looks to an outside source for ethical rules or commands False Claims Act (Whistleblower Statute): A federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery

Corporate Citizenship

A theory of responsibility which says that a business has a responsibility to do good Proponent view Corporations owe a debt to society to make it a better place Criticism Duty of a corporation to do good cannot be expanded beyond certain limits If taken to its maximum limit, potential shareholders might be reluctant to invest in corporations

Treaties

A treaty is a compact made between two or more nations. The president can enter into treaties with the consent of two-third of the Senate

Administrative agencies

Agencies that the legislative and executive branches of federal and state governments are empowered to establish.They adopt rules and regulations to interpret statutes that they are authorized to enforce. They have the power to hear and decide disputes.Their decisions are called orders

Executive Orders

An order issued by a member of the executive branch of the government. The president and state governors can issue executive orders

Federal Court System

Article III of the U.S. Constitution provides that the federal government's judicial power is vested in one "Supreme Court" It authorizes Congress to establish "inferior" federal courts Pursuant to its Article III power, Congress has established the U.S. district courts U.S. courts of appeals U.S. bankruptcy courts

Doctrine of Stare Decisis

Based on the common law tradition, past court decisions become precedent for deciding future cases Lower courts must follow the precedent established by higher courts. Stare decisis—adherence to precedent

Digital Law

Computers have revolutionized society. Digital devices and technologies have introduced new ways of communicating. The electronic age arrived before new laws were written that were unique and specific for this environment. U.S. Congress has led the way, enacting many new federal statutes to regulate the digital environment

History of American Law

English common law was developed by judges who issued their opinions when deciding a case. The principles became precedent for later judges deciding similar cases

Court of Chancery (Equity Court):

Established because of some unfair results and limited remedies available in the law courts The chancellor's remedies were called equitable remedies because they were shaped to fit each situation

relativism

Ethical ________ holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

Two Major Court Systems

Federal court system Court systems of the 50 states, Washington, DC (District of Columbia), and territories of the United States

Functions of the law include all but which of the following?

Functions of the law include keeping the peace, shaping moral standards, promoting social justice, maintaining the status quo, facilitating orderly change, facilitating planning, providing a basis for compromise, and maximizing individual freedom.

universal

Immanuel Kant believed that people owe moral duties that are based on ________ rules.

Command School

Law is a set of rules developed, communicated, and enforced by the ruling party rather than a reflection of the society's morality, history, logic, or sociology

Critical Legal Studies School

Legal rules are unnecessary and are used as an obstacle by the powerful to maintain the status quo

State Court Systems

Limited-jurisdiction trial courts Courts that hear matters of specialized or limited nature Evidence can be introduced and testimony can be given General-jurisdiction trial courts Courts that hear cases of a general nature that are not within the jurisdiction of limited-jurisdiction trial courts Testimony and evidence at trial are recorded and stored for future reference Intermediate appellate courts Courts that hear appeals from trial courts No new evidence or testimony is permitted Highest state court The highest court in a state court system It hears appeals from intermediate appellate state courts and certain trial courts Decisions are appealable to the U.S. Supreme Court

Social Responsibility of Business

Maximizing profits, Moral Minimum, Stakeholder Interest, Corporate Citizenship

Merchant court

Merchants in the Middle Ages developed their own set of rules to solve commercial disputes; these rules became the Law Merchant and were based on common trade practices and usage

Schools of Jurisprudential Thought

Natural Law School-Law is based on what is "correct" Historical School-Law is aggregate of social traditions and customs Analytical School-Law is shaped by logic Sociological School-Law is a means of achieving and advancing certain sociological goals

Law and Economics School

Promoting market efficiency should be the central concern of legal decision making; also called the Chicago School

Precedent

Rule of law established in a court decision

Sociological

School of jurisprudence asserts that the law is a means of achieving and advancing certain sociological goals.

Historical

School of jurisprudence believes that the law is an aggregate of social traditions and customs that have developed over the centuries.

Analytical

School of jurisprudence maintains that the law is shaped by logic.

Natural Law

School of jurisprudence postulates that the law is based on what is "correct."

Ordinances

State legislatures delegate lawmaking authority to local government bodies. These governmental units are empowered to adopt ordinances The local government bodies include cities and municipalities, counties, school districts, and water districts

State Statutes

State legislatures enact state statutes They can be placed in code books They can be assessed in the hardcopy code books or online

Ordinances

State legislatures often delegate lawmaking authority to local government bodies, including cities and municipalities, counties, school districts, water districts, and such. These governmental units are empowered to adopt ________.

Codified

Statutes are often called ________ law.

What is Law?

That which must be obeyed and followed by citizens, subject to sanctions or legal consequences A body of rules of action or conduct prescribed by controlling authority and having binding legal force

Federal Statutes

The U.S. Congress is empowered by the Commerce Clause and other provisions of the U.S. Constitution to enact ________ to regulate foreign and interstate commerce.

Priority of Law in the U.S.

The U.S. Constitution and treaties take precedence over all other laws Federal statutes take precedence over federal regulations Valid federal law takes precedence over any conflicting state or local law. State constitutions rank as the highest state law State statutes take precedence over state regulations Valid state law takes precedence over local laws

Fairness of the Law

The U.S. legal system is one of the most comprehensive, fair, and democratic systems of law ever developed and enforced. However, some misuses and oversights of our legal system allow some guilty parties to go unpunished

Law and Economics

The ________ School believes that promoting market efficiency should be the central goal of legal decision-making.

Critical Legal Studies

The ________ School proposes that legal rules are unnecessary and are used as an obstacle by the powerful to maintain the status quo.

US Courts of Appeals

The federal court system's intermediate appellate courts Circuit - The geographical area served by each court There are 13 circuits in the federal court system The first 12 are geographical The 12th circuit court is called the District of Columbia Circuit The 13th court of appeals is called the Court of Appeals for the Federal Circuit

US District Courts

The federal court system's trial courts of general jurisdiction There are 94 district courts The geographical area served by each court is referred to as a district

Interpret

The judicial branch of the United States government has the power to ________ the law.

Make

The legislative branch of the United States government has the power to ________ the law.

Command

The philosophers of the ________ School of jurisprudence believe that the law is a set of rules developed, communicated, and enforced by the ruling party rather than a reflection of the society's morality, history, logic, or sociology.

What is Juriprudence?

The philosophy or science of the law

Constitution of the United States of America:

The supreme law of the United States It created three branches of government and gave them the following powers: Legislative branch (Congress): to make the law Executive branch (president): to enforce the law Judicial branch (courts): to interpret and determine the validity of the law Powers not given to the federal government by the Constitution are reserved for the states

Flexibility of the law

U.S. law has evolved and changed along with the norms of society, technology, and the growth and expansion of commerce in the United States and the rest of the world

Special Federal Courts

US Tax Court US Court of Federal Claims US Court of International Trade US Bankruptcy Court US Court of Appeals for the Armed Force US Court of Appeals for Veterans Claims

Fairness

Under John Rawls's social justice theory, ________ is considered the essence of justice.

fundamentalism

Under ethical ________, a person looks to an outside source for ethical rules or commands.

Corporate citizenship

Under which theory of social responsibility would corporations owe a duty to subsidize schools and help educate children?

Jeremy Bentham and John Stuart

Utilitarianism has its origins in the works of which of the following individuals?

greatest good to society

Utilitarianism is a moral theory which dictates that people must choose the action or follow the rule that provides the ________.

John Locke

Which of the following individuals proposed a social contract theory of morality?

Milton Friedman

Which of the following individuals said that in a free society, "there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits as long as it stays within the rules of the game, which is to say, engages in open and free competition without deception and fraud"?

stakeholder interest

Which theory of social responsibility asserts that a corporation must consider the effects its actions have on persons other than its stakeholders?

moral minimum

Which theory of social responsibility contends that a corporation's duty is to make profits while avoiding harm to others?

corporate citizenship

Which theory of social responsibility says that a business has a responsibility to do well?

maximizing profits

Which traditional theory of social responsibility dominated business and the law during the nineteenth century?

Immanuel Kant

Whose ethical theory would have people behave according to the categorical imperative "Do unto others as you would have them do unto you?"

Federal Statutes

Written laws that establish certain courses of conduct that covered parties must adhere to. The U.S. Congress is empowered by the Commerce Clause and other provisions of the U.S. Constitution to enact federal statutes to regulate foreign and interstate commerce

Duty

________ ethics are also referred to as Kantian ethics.