Exam #1 Legal Environment of Business

Define establishment clause

prohibits the government from establishing a state-sponsored religion, as well as passing laws that promote religion or show preference for one religion versus another

Defenses

reason offered by the defendant as to why the plaintiff should not obtain damages

Define annual social responsibility reports

reports that show the company's commitment to issues and how they are doing their part ethically

Define procedural due process

requires that any government decision to take life, liberty, or property must be made fairly. Government must give proper notice and an opportunity to be heard

Define compelling government interest

requires the government to have compelling reasons for passing any law that restricts fundamental rights (EX: free speech)

Define duty-based ethics

rooted in the idea that every person has certain duties to others (including humans and the planet)

Define concurrent

shared by federal government and the states

Define ethics

the study of what constitutes right or wrong behavior

Define principle of rights

belief that human beings have certain fundamental rights

Define interstate commerce

commerce among the states

Define filtering software

computer program that blocks access to certain websites based on their content

Define substantive due process

focuses on the content of legislation rather than fairness of procedures. Must be fair and reasonable in content and must further a legit government objective

Define outcome-based ethics

focuses on the impacts of a decision on society or on key stakeholders

Define outsourcing

when a company hires an outside firm or individual to perform work rather than hiring employees to do it

Define ethical reasoning

when an individual links the application of their morals or ethical standards to a situation

Define torts

wrongful actions that can lead to civil liability

Intentional tort

wrongful acts knowingly committed

Define judicial branch

interprets the law

When making decisions, a business should evaluation the four-part analysis

1. legal implications of each decision 2. public relations impact 3. safety risks for consumers and employees 4. financial implications

Define commerce clause

Article I, Section 8 of the Constitution Gives Congress the power to regulate commerce (Has greater business impact than any other provision in the Constitution)

Define supremacy clause

Article VI (6) of the Constitution provides that the Constitution, laws, and treaties of the US are the "supreme law of the land"

Laws can be ______ so they apply to a lot of situations.

Broad

National Labor Relations Board and social media

Changed the law to where employees can converse about workplace issues without employer interference on social media. An employer cannot prohibit employees from criticizing the company via social media

Gibbins v. Ogden, 1824

Commerce within a state can be regulated if commerce substantially affects commerce in more than one state

Define internal code of ethics

Company codes that are NOT law

Fraud Reduction and Data Analytics Act (2016)

Congress passed to identify and asses fraud risks in federal government agencies

D (#2) in IDDR

Decision -Craft a consensus decision or plan of action for the company -Documentation phase

Name some of the main ethical issues in business:

Developing integrity and trust Respecting diversity Making decisions (BIGGEST CHALLENGE)

R in IDDR

Review -Determine the outcome, whether the solution was effective

Seventh Amendment 7th Amendment

Right to a trial by jury in a civil (noncriminal) case involving at least $20

Second Amendment 2nd Amendment

Right to keep and bear arms

Fifth Amendment 5th Amendment

Rights to indictment by a grand jury, to due process of law, and to fair payment when private property is taken for public use. Also prohibits compulsory self-incrimination and double jeopardy

Ninth Amendment 9th Amendment

The people have rights in addition to those specified in the Constitution

Tenth Amendment 10th Amendment

Those powers neither delegated to the federal government nor denied to the states are reserved for the states

Define unprotected speech

Under the First Amendment, includes fighting words, defamatory speech, or violates criminal laws

Define checks and balances

allows each branch to limit the actions of the other two branches and prevents one branch from exercising too much power

Foreign Corruption Practices Act

an act that US businesses are prohibited from making payments/bribing foreign officials to secure beneficial contracts. HOWEVER: It is acceptable to pay small amounts to minor officials to facilitate/speed up administrative services

Define corporate social responsibility

an idea that corporations can and should act ethically and be held accountable to society for those actions, can be a form of self-regulation for the company

Define preemption

certain federal laws preempt conflicting local or state laws

Define intrastate commerce

commerce within a state

define commercial speech

communications made by business firms that involve only their commercial interests (typically advertising and marketing)

General damages

compensate individuals (not companies) for the non-monetary aspects of the harm suffered, such as: pain and suffering, loss of companionship, disfigurement, etc.

Special damages

compensate plaintiffs for quantifiable monetary loss, such as medical expenses, lost wages, extra costs, and the cost of replacing damaged property

Protected Interests: property protection

destruction or damage of property

Define executive branch

enforces the laws

An action that is legal is not exactly ____________.

ethical

Define Bill of Rights

first ten amendments to the US Constitution adopted in 1791 of protections for the individual against various types of interference by the federal government

Define long-run profit maximization

focusing on long-term profit through ethical behavior, and understanding that unethical conduct will cause long-term profits to suffer

Define maximum societal utility

greatest positive benefits for greatest amount of people

Define stakeholders

groups other than shareholders that are affected by corporate decisions. Employees, customers, suppliers, and the community are examples

Define free exercise clause

guarantees that a person can hold any religious belief they want, or can have no religious belief

Damage

harm or injury to persons or property

Compensatory damages

intended to compensate or reimburse plaintiffs for actual losses to make plaintiffs whole and put them in the same position they would have been had that tort not occurred

Gross negligence

intentional failure to perform a manifest duty in reckless disregard of the consequences of such a failure for the life or property of another

Define meta tags

key words, can be found online and in documents

Define business ethics

looks at the decisions businesses make and whether those decisions are right or wrong

Define legislative branch

makes laws

Define true threat

meant to communicate serious intent to commit an unlawful, violent act against a particular person or group

Define moral minimum

minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law. Failure to meet this will have significant consequences

Damages

monetary award sought as a remedy for breach of contract or tortious action

Damages

monetary compensation for such harms

Punitive damages

monetary damages that punish the wrongdoer and deter others from similar wrongdoing

Define due process clause

no person shall be deprived of "life, liberty, or property" without due process of law. Applies to "legal persons" (corporations and individuals)

Define symbolic speech

nonverbal expressions of beliefs. Could include clothing, tattoos, etc. Given substantial protection by the courts.

Tort actions are ___________ criminal actions, and tort lawsuits are handled in __________ ____________.

not civil courts

Define police powers

powers possessed by individual states to protect or promote public order, health, safety, morals, and general warfare

Define profit-maximization theory

a business' only goal of maximizing profit

Common defenses to intentional torts:

-consent -statute of limitations -comparative negligence

Punitive damages mainly happen in:

-intentional tort actions -rarely in negligence suits -product liability or gross negligence

Restrictions on commercial speech are valid if:

1. Seeks to implement a substantial government interest 2. Directly advances that interest 3. Goes no further than necessary to accomplish its objective

When applying the utilitarian theory, ask:

1. Which individuals will be affected? 2. Cost-benefit analysis 3. Choice among alternative actions that produces maximum societal utility

2 notions serve as the basis for all Torts:

1. Wrongs 2. Compensation

Fourteenth Amendment 14th Amendment

1868, no state shall deprive any person of life, liberty, or property, without due process of law

Define the IDDR Approach

A system of organizing issues to approach them systemically

Fourth Amendment 4th Amendment

Prohibits unreasonable searches and seizures of persons or property

D in IDDR

Discussion -Think through each alternative and analyze the potential impact on stakeholders -What should you do? Pick the most ethical

Name the two major categories of the study of ethics:

Duty-based ethics Outcome-based ethics

Greatest good for the greatest amount of people may not always be _____________.

Ethical

First Amendment 1st Amendment

Freedoms of religion, speech, and the press. Rights to assemble peaceably and to petition the government

Sixth Amendment 6th Amendment

Guarantees that accused in a criminal case the right to a speedy and public trial by an impartial jury and with counsel. Accused has the right to cross-examine witnesses against them and to solicit testimony from witnesses in their favor

IDDR

I Desire to Do Right

Supremacy clause is important in the ordering of state and federal relationships. When there is a conflict, state law is rendered __________.

INVALID Ex: recreational marijuana

I in IDDR

Inquiry -Understand the problem -Identify the ethical problems and all parties involved

Laws created through the political process may:

Lack a means of enforcement Ambiguous Weaker than inteded

What are the three branches of government?

Legislative branch Executive branch Judicial branch

If management does not enforce the company code, the code is basically ____________.

Nonexistent

Eighth Amendment 8th Amendment

Prohibits excessive bail and fines, as well as cruel and unusual punishment

Third Amendment 3rd Amendment

Prohibits the lodging of soldiers in any house without the owner's consent

Wickward v. Filburn 1942

Supreme Court held that wheat production by an individual farmer intended for his own consumption was subject to federal regulation Reason? Consumption of his own wheat reduces market demand for wheat and could affect interstate commerce.

Tort is French for _________.

Wrong

Define categorial imperative

a Kantian principle under which an action is evaluated in terms of what would happen if anybody else in the same situation acted the same way EX: Other companies in your field are investing in a new farming machine, that has massive ecological impact. Does this decision to invest in it make the world a better place?

Define short-run profit maximizaiton

a company may increase profits through unethical means for short-term profit

Define triple-bottom line:

a measure that focuses on a corporation's profits, it's impact on people, and it's impact on the planet

Define cost-benefit analysis

a technique that weighs the costs of a given action against the benefits

Protected Interests: Personal physical safety

acts that cause physical injury or interfere with freedom of movement

Define federal form of government

system of government in which the states form a union and power is divided between central government and member states

Define preempt

take precedence over

Define equal protection clause

the government cannot enact laws that treat similarly situated individuals differently. In the 14th Amendment

Define utilitarianism

the idea that an action is evaluated in terms of its consequences in terms of those whom it will affect. A "good" action that results in the greatest good for the greatest amount of people

Define litigation

the process of taking legal action