Intro to Business - Chapter 2

social responsibility

a business's obligation to maximize its positive impact and minimize its negative impact on society

mediation

a form of negotiation to resolve a dispute by bringing in one or more third-party mediators, usually chosen by the disputing parties, to help reach a settlement

contract

a mutual agreement between two or parties that can be enforced in a court if one party chooses not to comply with the terms of the contract

mini-trial

both parties agree to present a summarized version of their case to an independent third party

product liability

business's legal responsibility for any negligence in the design, production, sale, and consumption of products

agency

common business relationship created when one person acts on behalf of another and under that person's control

sustainability

conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities

real property

consists of real estate and everything permanently attached to it

code of ethics

formalized rules and standards that describe what the company expects of its employees

ethical issue

identifiable problem, solution, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

implied warranty

imposed on the producer or seller by law, although it may not be a written document provided at the time of the sale

arbitration

involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision is usually final

sustainability

involves the assessment and importance of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment

private court system

may be formal or informal depending upon the parties involved; businesses typically agree to have their disputes resolved in this type of court to save time and money

lawsuit

one individual or organization takes another to court using civil laws

bribes

payments, gifts, or special favors intended to influence the outcome of a decision

plagiarism

presenting someone else's work as your own without mentioning the source

tort

private or civil wrong other than a breach of contract

intellectual property

property that is generated by a person's creative activities (i.e. artwork, books, etc.)

fraud

purposefully unlawful act to deceive or manipulate to damage others

express warranty

stipulates the specific terms the seller will honor

consumerism

the activities that independent individuals, groups, or organizations undertake to protect their rights as consumers

corporate citizenship

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders

breach of contract

the failure or refusal of a party to a contract to live up to his or her promises

jurisdiction

the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case

agent

the one who acts on behalf of the principal to accomplish the task in an agency relationship

principal

the one who wishes to have a specific task accomplished in an agency relationship

business ethics

the principles and standards that determine acceptable conduct in business organizations

business law

the rules and regulations that govern the conduct of business

appellate court

type of court that deals solely with appeals relating to the interpretation of the law

whistleblowing

when an employee exposes an employer's wrongdoing to outsiders (i.e. the media)