Business Law Ch 1-4

There are ______ U.S. Circuit Courts of Appeals, each of which reviews the decisions of federal district courts in the state or several states within its circuit.

13

A dog-sniff inspection at an airport would be invalid under the _______ if the inspection violates one's _______ of privacy.

4th amendment; reasonable expectation

In his book, _______ (1971) John Rawls imagines a world in which people negotiate their own ethical rules and principles for themselves.

A Theory of Justice

A generic definition of law would include: _______.

A body of rules or actions Prescribed by a controlling authority Having legal force

________ law is the source of law that authorizes the exercise of authority by executive branch agencies and independent government agencies.

Administrative

These amendments were designed to address a wide variety of objections raised by the _______, who initially opposed ratification of the Constitution.

Anti Federalists

Virtue ethics which dates back to _______, evaluates conduct based on whether it promotes good moral character.

Aristotle

______ of the Constitution vests general "executive power" in the President.

Artice III

The Constitution enumerates a series of delegated powers to Congress, that are listed in ________.

Article 1 Section 8

The _______ refers to the first ten amendments to the United States Constitution and is just as important as the original Constitution.

Bill of Rights

The U.S. system of common law is deep-seated in _______ common law.

British

Kant's idea of the _______, a moral test to help individuals decide right from wrong, is a central theme in his work.

Categorical Imperative

Some countries, such as Japan use a(n) _______ law system that requires courts to adhere to a strict interpretation of a legislatively established code and little use of _______.

Civil; Precedent

Historically, recorded law was initially a(n) ________ made by a powerful tribal chieftain to perpetuate his domination

Collection of rules

________ law is essentially court-made law that has not specifically been passed by the legislature.

Common

In the United States, examples of primary sources of law would include: _______. (Choose three correct answers)

Common Law Constitutional Law Statutory Law

A(n) _______ nonprofit is typically a(n) _______ entity created for the purpose ofserving the community and has no _______.

Community based; Tax-exempt; Shareholders

A(n) _______ department is a unit within the organization that helps an organization follow rules and regulations and maintain the company's overall culture and spirit of values and ethics.

Compliance

As the Chief Executive of the United States, the President has the power to: _______.

Conduct foreign affairs, appoint federal judges, enforce the laws made by congress

The _______ approach emphasizes that the ethical course of action is the one that provides the greatest good (happiness) for the greatest number of people and has the least harmful consequences for the majority of the community.

Consequences-based

The _________ prohibits the _______ interest (usually money damages) without a legal process being applied.

Constitution; Deprivation of a property

______ law is the foundation for all other law in the United States and is the _______ law of the land.

Constitutional; Supreme

The broad view of CSR involves the notion of "_______" which means a business should strive to promote the economic, legal, ethical, and philanthropic social responsibilities expected of it by its stakeholders.

Corporate Citizenship

The court can have in personam jurisdiction over a party, that may be either an individual or a business entity such as a _______.

Corporation; LLC; Limited Partnership

A paradigm for ethical decision-making may include: _______.

Defining the dilemma; Identifying the impact; Applying Standards

In some states, appeals to any appellate-level courts are _______, and the party requesting the appeal is known as the _______.

Discretionary; appellant

Federal courts may have _______ jurisdiction if the parties are from two different states, and the amount in question is over $75,000.

Diversity

_______ and equal protection are the most basic rights established in our Constitution; indeed, the right to _______ can be traced all the way back to the Magna Carta of 1215.

Due process

A court can ensure that exercising jurisdiction over an out-of-state defendant if it meets constitutional requirements of _______ and _______.

Due process; fairness

Religious-based principles establish _______ that are generally not subject to exceptions, except by other religious principles such as mercy and justice.

Duties

The _______ sets and enforces regulations on some industries and the courts are highly _______ agency decisions and enforcement.

EPA; Deferential to

Fundamentally, _______ requires the government to treat people who are similarly situated equally.

Equal protection

_______ allows the government to create constitutionally permissive _______ and may treat each category differently, but at a minimum, persons within each category must be treated the same.

Equal protection; categories

Early English courts were classified under the king's authority as either courts of _______, or courts of _______.

Equity; Law

When it comes to ethical decision-making, managers are often faced with _______ that are complex with no clear ethical choice.

Ethical Dilemmas

From an applied perspective, _______ refers to having a conscious system in place for solving moral dilemmas.

Ethics

_______ is the set of moral principles or core values for deciding between right and wrong.

Ethics

Broadly defined, justice is the maintenance or administration of what is _______

Fair

_______ and justice would be applied in a court of equity.

Fairness

Over the course of three millennia, the purpose of law evolved to ensure _______ and _______.

Fairness, Consistency

_______ courts are concerned primarily with national laws, federal constitutional issues, and other cases that are defined by federal regulations.

Federal

______ divides power along a vertical dimension between the federal government and the states.

Federalism

Constitutional law: (1) established _______, (2) granted _______ powers to the federal government; and (3) provided _______ protections for U.S. citizens from wrongful government actions.

Federalism; Specific; Procedural

Friedman argued that managers who pursue social initiatives with corporate funds are violating their _______ to the _______, the owners of the corporation.

Fiduciary Duties; Shareholders

The _______ Amendment requires that the power of _______ be coupled with "just compensation" for those whose property is taken.

Fifth; Eminent domain

Both the _______ and the _______ Amendments to the Constitution declare that no person shall be deprived "of life, liberty, or property, without due process of law."

Fifth; Fourteenth

The _______ Amendment protects individuals from being compelled to be witnesses against themselves in criminal cases, otherwise called the right _________.

Fifth; to remain silent

Private employers are free under the _______ Amendment to fire employees for attending a white supremacist rally or for posting hateful speech on the Internet.

First

A compliance department is a unit within an organization that helps the organization:

Follow rules and regulations; Maintain its culture of values and ethics.

A(n)_______ is a contractual agreement that obligates the parties to litigate any dispute arising out of the contract in a particular court named in the clause.

Forum selection clause

In cases involving _______ discrimination the court will apply the _______ standard, and courts will uphold a government action if the government can prove that the action furthers an important government objective.

Gender; Intermediate

The preamble lists the main goals of the Constitution: _______.

General welfare, Justice, a more perfect union.

Courts of _______ authority are organized into _______ districts (often divided by county or a set of contiguous counties) and hear many types of cases.

General; geographic

The law is a catalyst for commerce because it promotes _______ among merchants and consumers and giving some degree of ________ that can be considered in business planning and commercial transactions.

Good Faith Dealing; Reliability

According to the moderate CSR or "_______" view, it is the government's job to establish legal and regulatory guidelines for business because the government already represents the aggregate moral views of the public.

Government Hand

The protections in the Bill of Rights apply against the _______ not against _______.

Government; Private business firms

The definition of speech, for example, was expanded significantly extending the First Amendment to: ______, _______, and ______.

Hate speech; Campaign financing; Pornography

In a business context, physical presence may include: _______ or _______ within the court's jurisdiction.

Having an office; personnel

In District of Columbia v. _______ the Supreme Court handed down a landmark decision that held the amendment protects a(n) _______ right to possess and carry firearms.

Heller; Individual's

_______ jurisdiction is a court's authority over the parties in a legal dispute.

In personam; Personal

The Affordable Care Act in 2010 ("Obamacare") contained a controversial provision known as the "_______," which required all persons to purchase health insurance or pay a penalty to the IRS.

Individual Mandate

Amazon.com would be an example of the "_______" model where use of the website is an integral part of the business model and the website is used to accomplish commercial transactions with residents in the state of the court's jurisdiction.

Integral to business

The Zippo court found a(n) "________ middle" of the continuum when a website provides users with some functions whereby users may exchange information, purchase products, or engage in activity beyond merely viewing the content of the website.

Interactive

Legal terms are sometimes referred to as ______ or _______.

Jargon; Legalese

The first three articles of the Constitution establish three separate but coequal branches of the federal government: _______

Judicial, Executive, Congress

The U.S. Constitution creates three separate and coequal branches of the federal government: _______.

Judicial, Executive, Legislative

A comprehensive understanding of law and ethics starts with the overarching notion of _______.

Justice

_______ equally considers opposing sides and weighs the merits of the competing arguments carefully and with due consideration.

Justice

Besides English, much of the language of American law is a combination of ______ and ______ roots.

Latin; French

The term ____ has been defined in a variety of ways throughout history.

Law

At a minimum, due process means two things: _______ and _______.

Laws must not be vague or arbitrary; the government must provide reasonable notice and a neutral hearing

In the area of Fourth Amendment and electronic searches and seizures, the majority of courts have held that employees do not have a (n)_______ to information stored on a(n) _______ computer.

Legitimate expectation of privacy; Company-owned

Nobel Prize-winning economist _______ proposed that the only responsibility a business has is to maximize shareholder wealth (the _______ theory).

Milton Friedman; Maximizing Profits

To determine whether a court has personal jurisdiction over an out-of-state defendant, the court uses a two-prong test: _______ and _______.

Minimum contacts; fairness of due process

Ethics is the set of _______ principles or core values for deciding between right and wrong.

Moral

Under the "_______" theory, corporations have a(n) _______ to which profitability is secondary.

Moral Minimum; Social Responsibility

_______ are generally accepted standards of right and wrong in a given society or community.

Morals

Under the strict standard, courts will uphold the law only if the government's objective is _______, the means chosen is _______ to achieve that compelling end, and no _______ alternatives exist.

Narrowly tailored, Compelling, Less restrictive

The _______ theory claims that humans have certain inherent moral rights and duties that spring from their ability to reason and choose freely what they do with their lives.

Natural Law

_______ theory is a moral philosophy that certain rights and moral values are timeless, universal, and discoverable through human reason.

Natural Law

_______ that causes a personal injury would be an example of civil law.

Negligence

When a regulated activity is purely a ______ activity (such as when Congress passes a criminal statute unrelated to commerce), the Supreme Court has used increased levels of _______ to be sure that the activity that Congress seeks to regulate has a sufficient _______(connection) to some legitimate economic interest.

Noncommercial; Scrutiny; Nexus

n Zippo, the court found that a party with a(n) _______ that merely provides information, _______ be the sole basis for personal jurisdiction.

Passive Website; cannot

Constitutional law is different from other sources of law primarily in terms of _______ and _______.

Permanence; Preemption

The _______ of an out-of-state party in a particular state is generally a(n) _______ basis for jurisdiction over the defendant by both that state's courts and federal trial courts.

Physical presence; automatic

In a lawsuit, the ______ is the party that alleges a violation of some legal right or standard.

Plantiff

Courts sometimes justify departing from _______ on the basis that technological or societal changes render a particular precedent unworkable.

Precedent

_______ is the application of law from previous cases to current cases with substantially similar circumstances.

Precedent

The principle of _______ requires all lower courts, such as trial courts, to follow the case precedent, meaning that any similar case from that point in time onward would be decided according to the _______.

Precedent; Stare Decisis

_______ means that constitutional law is supreme over other sources of law such as state statutes.

Preemption

Administrative law would be an example of a _______ source of law.

Primary

Ethical decisions that are made according to a set of established principles or standards such as religious tenets or codes employ a _______ approach to ethics.

Principles-based

The government does not need a warrant if there are "_______" and if it is acting with _______ and obtaining a warrant is impractical.

Probable cause; Exigent circumstances

_______ law sets a structure and rules for pursuing _______ rights.

Procedural; Substantive

Just laws and outcomes must balance competing interests to achieve a(n) _______ that is fair and balanced for the parties involved and those similarly situated.

Proportional Outcome

The _______ test essentially applies to almost every economic regulation and tax-related law.

Rational basis

Among the enumerated powers delegated to Congress are the powers to: _______.

Regulate commerce, Bankruptcy, coin money

A measure of judicial action intended to compensate an injured party in a civil lawsuit is known as a _______.

Remedy

The law sets out a system for _______ among the parties by providing a basis for deciding their legal interests and rights.

Resolving Disputes

The English jurist _______ described the right to bear arms as an auxiliary right, one supporting the primary _______ of self-defense and resistance to oppression and the civic duty to act in defense of one's country.

Sir William Blackstone; natural rights

Any surplus earnings that remain in a community-based nonprofit are reinvested in activities that achieve the company's _______, as determined by the company's _______.

Social Mission; Board of Directors

The most common forms of equitable relief include: ___________.

Specific Performance Restraining Orders Injunctions

The First Amendment is perhaps the most famous provision in the entire Constitution, that protects individual liberty in three overlapping domains:_______, _______, and _______.

Speech, Association, Religion

Recall that precedent springs from the doctrine of _______ (let the decision stand) and is a foundation of American law.

Stare Decisis

The doctrine of _______ states that similar cases with similar facts and issues should have the same judicial outcome.

Stare Decisis

Strict adherence to _______ and the doctrine of _______ do not allow for evolving societal standards of behavior or expectations.

Stare Decisis; Precedent

_______ courts resolve matters dealing primarily with cases arising from state statutes, state common law, and state constitutional law.

State

When a government action impairs a fundamental constitutional such as freedom of speech or religion courts will tend to apply a(n) _______ standard in deciding whether to uphold the government action.

Strict Scrutiny

______ law provide individuals with rights and create certain duties.

Substantive

The remedy for breach of contract may depend on the classification of contracts as _______ law with ________ rights in dispute.

Substantive; Civil

Some federal district courts are specialized such as a _______, or a _______.

Tax Court; Bankruptcy Court

At the federal level, when Congress drafts a statute that has not yet been signed by _______, it is known as a bill.

The President

Federal appellate courts are called _______, and the final arbiter of federal laws is the _______.

US Courts of Appeals; US Supreme Court

Examples of entities engaged in interstate commerce might include: _____

United Airline, Amazon.com, FedEx carriers.

According to Kant, the _______ test occurs when considering whether a given action is right or wrong in the moral sense, and asks "What if everybody took that same action?"

Universalitization

The consequence-based approach stems from the _______ stream of moral philosophy which states that an action is ethically sound if it produces _______ or the least harm for the most people.

Utilitarian; Positive Results

What makes Rawls's theory so original is his notion that everyone negotiates from behind a "_______."

Veil of ignorance

_______ ethics is a principles-based approach and evaluates conduct based on whether it promotes good moral character.

Virtue

A court has _______ jurisdiction if the parties _______ agree to litigate in a specific court, regardless of the location of the defendant.

Voluntarily; personal

The Fourth Amendment prohibits unreasonable searches and seizures and requires a(n) _______ based on _______.

Warrant; Probable cause

Jurisdiction is a court's authority to decide a particular case based on (1) _______ and (2) _______.

Who the parties are; the subject matter of the dispute

The judiciary has two primary roles: _______ and to _______.

adjudicate disputes; judicial review

The Supreme Court has ruled that the Second Amendment's right to _______ belongs to _______ while also ruling that the right is not unlimited and does not prohibit all regulation of firearms or similar devices.

bear arms; individuals

If a party to a contract breaks her promise to the other party she might be liable for ________ contract.

breach of

Generally, state statutes provide that venue in a _______ case is where the defendant resides or is headquartered, while in a _______ case the venue is ordinarily where the act is committed.

civil; criminal

Under the moderate CSR view, a business's ethical responsibility is to: _______.

comply with the law and pursue objectives that are legal

A charge of homicide would be a violation of ________ law.

criminal

Long-arm statutes provide for jurisdiction if an out-of-state defendant (1) _______(2) _______, or (3) _______.

does business within the state's borders; owns property in the state; commits an act that results in loss

If a business sues the Internal Revenue Service for a federal tax refund, federal courts have ________ jurisdiction because it involves the United States as a party to the lawsuit.

exclusive

In the Zippo case, Zippo argued that ZippoDotCom's sale of approximately 3,000 subscription-based memberships to residents of Pennsylvania satisfied both the state's ________ and the constitutional _______ requirements of minimum contacts.

fairness and due process; long-arm statue

In order for a federal court to have subject matter jurisdiction in a case, the issue generally must involve a(n) ________ or ________ jurisdiction.

federal question; diversity

The origins of federal jurisdiction law are found in the U.S. Constitution, specifically, the Due Process Clause of the _____ and _______ Amendments

fifth; fourteenth

Federal courts may have diversity jurisdiction if the parties are _______, and the amount in controversy is over _______.

from two different states; $75,000

Not only does the text of the Constitution give Congress the enumerated power to regulate commerce, but the U.S. Supreme Court has interpreted this power: _______.

in very broad terms

Small claims courts are sometimes referred to as _______ trial courts because states provide an automatic appeal for the losing party.

inferior

The American legal system is primarily structured around a set of federal and state courts that are collectively known as the _______.

judiciary

Article III establishes the ________ of the federal courts.

jurisdiction

In addition, both the right to due process and the right to equal protection apply not just to individuals but also to "_______," such as corporations, LLCs, and other business entities.

legal persons

Courts of _______ authority are often confined to a particular type of disputesuch as family law or probate.

limited

Both state and federal courts have either ______ jurisdiction or ______ jurisdiction, depending on statutory authority.

limited; general

While jurisdiction requires an analysis of whether a court has authority over a particular case, _______ is the legal concept that defines the most appropriate _______ for the trial.

location; venue

For minor matters and cases with a dollar value that is relatively low (typically less than $10,000 depending on the state), states provide local courts known as: _______, or _______, or _______.

municipal courts; justice of the peace courts; small-claims courts

In US v. Lopez, the Supreme Court declared the Gun-Free School Zones Act unconstitutional because gun possession was a _______ activity.

non-commercial

Article III of the Constitution vests judicial power in _______ and in inferior federal courts established by Congress.

one Supreme Court

The U.S. Supreme Court is the ultimate arbiter of federal law and has both _______ and _______ jurisdiction.

original

The parties to a lawsuit are called: the ______ and the _______.

plantiff; defendant

Under the doctrine of federalism, the ______ power (to protect the health safety and welfare of the public) resides with the states.

police

Commercial speech receives less protection under the First Amendment than _______ speech, and is therefore subject to greater regulation.

political

The judicial power of _______ has binding authority and requires a lower court to apply law as decided by a higher court with authority over the lower court.

precedent

The major distinction between trial courts and appellate courts is that appellate court decisions set _______ that is binding on all lower courts.

precedent

To obtain a warrant, the government must first demonstrate _______ to a judge or magistrate that the proposed search or seizure is justified under the law.

probable cause

In National Federation of Independent Business v. Sebelius, the U.S. Supreme Court held that the individual mandate exceeded Congress's power to _______.

regulate commerce

One of the most significant sources of Congress's powers is its enumerated power to _______.

regulate commerce

Under the Fourth Amendment, _______ and _______ (including arrest) should be limited in scope according to specific information supplied to the issuing court, usually by a _______ officer who has sworn by it.

search, seizure, law enforcement

The principle of _______ refers to the creation of power centers within a single level of government.

separation of powers

Congress can use its commerce power strategically to regulate almost any aspect of business, including the following: _______.

waterways, interstate shippers, persons moving among the states

A party may petition the U.S. Supreme Court for an appeal using a petition for (a) _______ that explains the basis for the appeal.

writ of certiorari