legal and social environment of business exam 1

Moral relativism

A belief that a decision may be right even if it is not in keeping with one's own ethics standards

Moral universalism

A belief that some acts are always right or always wrong

Optimism bias

A belief that the outcome of an event will be more positive than the evidence warrants

Federal Question

A case in which the claim is based on the U.S. Constitution, a federal statute, or a federal treaty

Personal jurisdiction

A court's authority to bind the defendant to its decisions

Subject matter jurisdiction

A court's authority to hear a particular type of case

Jurisdiction

A court's power to hear a case

Kant would say it was wrong. Mill would say the study helped save the eyesight and lives of lots of other children.

A group of medical schools conducted a study on very premature babies—those born between 24 and 27 weeks of gestation (instead of the normal 40 weeks). These children face a high risk of blindness and death. The goal of the study was to determine which level of oxygen in a baby's incubator produced the best results. Researchers did not tell the families that being in the study could increase their child's risk of blindness or death. The study made some important discoveries about the best oxygen level. These results will benefit many children. What would Mill and Kant say about this decision not to tell the families?

Statute

A law created by a legislature

Writ of certiorari

A petition asking the Supreme Court to hear a case 4 of the 9 justices have to agree to hear the case before the writ will be granted Supreme Court gets thousands of requests a year They accept less than 100

Long-arm statute

A statute that gives a court jurisdiction over someone who commits a tort, signs a contract, or conducts "regular business activities" in the state

Kantian Evasion or palter

A truthful statement that is nonetheless misleading

Moral licensing

After doing something ethical, many people then have a tendency to act unethically

Corporate social responsibility

An organization's obligation to contribute positively to the world around it

Ethics Decision

Any choice about how a person should behave that is based on a sense of right and wrong

Diversity Jurisdiction

Applies when (1) the plaintiff and defendant are citizens of different states and (2) the amount in dispute exceeds $75,000

Error of Law

Because of this, the appeals court may require a new trial

The Constitution grants many of our most basic liberties Most of these are found in the amendments to the Constitution The First Amendment guarantees the rights of free speech, free press, and the free exercise of religion The Fourth, Fifth, and Sixth protect the rights of any person accused of a crime Other amendments ensure that the government treats all people equally and that it pays for any property it takes from a citizen

Fundamental Rights

Appeals Courts

Higher courts that review the trial record to see if the court made errors of law

50

How many systems of courts does the U.S. have?

D

If Congress creates a new statute with the president's support, it must pass the idea by a majority vote in the House and the Senate. If the president vetoes a proposed statute and the Congress wishes to pass it without his support, the idea must pass by a majority vote in the House and Senate. A. simple; simple B. simple; two-thirds C. simple; three-fourths D. two-thirds; three-fourths

Regulations

In such a large and diverse society as ours, the executive and legislative branches of government cannot oversee all aspects of commerce, so they create government agencies These agencies have the power to create laws called what?

Common law

Judge-made law

Court Order

Judges have the authority to issue __________ __________ that place binding obligations on people or companies

Money, rationalization, conformity, following orders, lost in a crowd Loyalty, exit, voice

Senate investigators found that executives at JPMorgan Chase lied to investors and the public. Also, traders, acting with the knowledge of top management, changed risk limits to facilitate more trading and then violated even these higher limits. Executives revalued the bank's investment portfolio to reduce apparent losses. The bank's internal investigation failed to find this wrongdoing. Into what ethics traps did these JPMorgan employees fall? What options did the executives and traders have for dealing with this wrongdoing?

unjust

St. Thomas Aquinas argued that an __________ law is no law at all, and need not be obeyed

True

T/F/ Impeachment is a reason to believe to try the president, not kicking him out of office

True

T/F? A company with a good reputation can pay employees less and charge consumers more

True

T/F? Cases that are similar to other cases typically bring on the same ruling by looking back at previous rulings

True

T/F? Society as a Whole Benefits from Ethical Behavior Ethical behavior builds trust, which is important in all of our relationships

True

T/F? The Constitution gives the U.S. Congress the power to pass laws

C

The United States Constitution is among the finest legal accomplishments in the history of the world. Which of the following influenced Ben Franklin, Thomas Jefferson, and the rest of the Founding Fathers? A. English common-law principles B. The Iroquois's system of federalism C. Both A and B D. None of the above

Life Prospects

The circumstances into which we are born

Law in the US

The colonists brought with them a basic knowledge of English law, some of which they adopted as their own But other parts, such as religious restrictions, were abhorrent to them And some laws were irrelevant or unworkable in a world that was socially and geographically so different

Summons

The court's written notice that a lawsuit has been filed against the defendant

Pleadings

The documents that begin a lawsuit, consisting of the complaint, the answer, and sometimes a reply

This is a civil lawsuit

The father of an American woman killed in the Paris terrorist attacks sued Twitter, Facebook, and YouTube, alleging the sites knowingly allowed ISIS terrorists to recruit members, raise money, and spread extremist propaganda. The sites defended themselves by saying that their policies prohibit terrorist recruitment and that, when alerted to it, they quickly remove offending videos. What type of lawsuit is this—criminal or civil? What responsibilities, if any, should social media sites have for the spread of terrorism?

B

The following statement is true: A. Most people are honest the vast majority of the time. B. Even people who do not believe in God are more likely to behave honestly after reading the Ten Commandments. C. Most people are accurate when comparing themselves to others. D. People make their best ethical decisions when in a hurry.

Cases

The heart of the law

Defendent

The party being sued

Appellant

The party filing the appeal

Appellee

The party opposing the appeal

Plaintiff

The party who is suing

Stare Decisis

The principle that precedent is binding on later cases is called _________ __________, which means, "let the decision stand" based on the desire for predictability; people must know what the law is

Life principles

The rules by which you live your life

Veil of ignorance

The rules for society that we would propose if we did not know how lucky we would be in life's lottery

The Securities Act of 1933 is a statute

The stock market crash of 1929 and the Great Depression that followed were caused, in part, because so many investors blindly put their money into stocks they knew nothing about. During the 1920s, it was often impossible for an investor to find out what a corporation was planning to do with its money, who was running the corporation, and many other vital things. Congress responded by passing the Securities Act of 1933, which required a corporation to divulge more information about itself before it could seek money for a new stock issue. What kind of law did Congress create?

Precedent

The tendency to decide current cases based on previous rulings

Legal Positivism

This philosophy is simply stated, "Law is what the sovereign says it is" The primary criticism of this is that it seems to leave no room for questions of morality

1. Slow down 2. Do not trust your first instinct 3. Remember your Life Principles

Three ways of Avoiding Ethics Traps

True

True or False? The state and federal courts have different judges and hear different kinds of cases Each has special powers and certain limitations

False, Some conduct involves both civil and criminal laws

True or false? Conduct involving both civil and criminal laws never occur?

False, he is both

True or false? If Jimmy is a stakeholder, he is not a customer

D

Union organizers at a hospital wanted to distribute leaflets to potential union members, but hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas open to the public. The National Labor Relations Board (NLRB), a government agency, ruled that these restrictions violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop. What kind of law was NLRB creating? A. A statute B. Common law C. A constitutional amendment D. Administrative regulation

cultural and individual

What are the two types of moral relativism

- Branches of government - Checks and balances - Fundamental rights

What did the federal Constitution establishe

- Loyalty - Exit - Voice

What do we do when we are faced with unethical behavior - Three choices:

it is void

What happens to any law that conflicts with the U.S. Constitution

- US Growth - Power - Social change - Technological change

What has raised new legal issues

the writing of the U.S. Constitution

What is America's greatest legal achievement

C

Which of the following believed that the dignity of human beings must be respected and that the most ethical decisions are made out of a sense of obligation? A. Milton Friedman B. John Stuart Mill C. Immanuel Kant D. John Rawls

D

Which of the following parts of the modern legal system are "borrowed" from medieval England? A. Jury trials B. Special rules for selling land C. Following precedent D. All of these

B

Which of the following wrote the book Utilitarianism and believed that ethical actions should "generate the greatest good for the greatest number"? A. Milton Friedman B. John Stuart Mill C. Immanuel Kant D. John Rawls

Briefs

Written arguments on the case

Legal Realists

____________ _____________ say it does not matter what is written as law. What counts is who enforces that law and by what process it is enforced

The law

______________ dictates how a person must behave

Ethics

_______________ examines how people should behave

Article I

creates Congress, comprised of a Senate and a House of Representatives

Article II

makes the president the Commander-in-Chief

Article III

places the Supreme Court at the head of the judicial branch

Criminal law

prohibits certain behavior for the benefit of society The government will sue for violations

Civil Law

regulates the rights and duties between parties A private party may sue

The doctrine of precedent

requires that judges decide current cases based on previous rulings These decisions constitute the common law

Stakeholder

someone who can be affected by the decisions of the corporations

Executive power

the authority to enforce laws

law case

the decision a court has made in a civil lawsuit or criminal prosecution

true

true or false? When someone in authority issues orders, even to do something clearly wrong, it is very tempting to comply

False, not always the case

true or false? if people own a company, they have money

Front Page Test

you ask yourself what you would do if your actions were going to be reported publicly

categorical imperative

you should not do something unless you would be willing to have everyone else do it too Immanuel Kant

The government will prosecute Bill for dealing in drugs. If convicted, he will go to prison. The government will take no interest in Diane's dispute. However, if she chooses, she may sue Freddy for $500, the amount he promised her for the water. In that civil lawsuit, a court will decide whether Freddy must pay what he promised; however, even if Freddy loses, he will not go to jail.

Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water. Bill meets a stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to Katrina who then flashes a badge and mentions how much she enjoys her job at the Drug Enforcement Agency. Diane, heading back to camp with the water, meets Freddy, a motorist whose car has overheated. Freddy is late for a meeting where he expects to make a $30 million profit; he's desperate for water for his car. He promises to pay Diane $500 tomorrow if she will give him the pail of water, which she does. The next day, Bill is in jail and Freddy refuses to pay for Diane's water. Explain the criminal law/civil law distinction and what it means to Bill and Diane. Who will do what to whom, with what results?

The president can veto Congressional legislation Congress can impeach the president The Supreme Court can void laws passed by Congress The president appoints judges to the federal courts, but they must be approved by the Senate Congress (with the help of the 50 states) can override the Supreme Court by amending the Constitution The president and Congress influence the Supreme Court by controlling who is placed on the court in the first place

Checks and Balances

Trial Courts

Determine the facts of a particular dispute and apply to those facts the law given by earlier appellate court decisions use witnesses to help resolve fact disputes

D

Dr. Martin Luther King, Jr., wrote "An unjust law is no law at all." As such, "One has ... a moral responsibility to disobey unjust laws." Dr. King's view is an example of: A. legal realism. B. jurisprudence. C. legal positivism. D. natural law.

facts

Economist Milton Friedman famously argued that a corporate manager's primary responsibility is to the owners of the organization, that is, to shareholders Others have argued that corporations should instead consider all company stakeholders, not just shareholders

Money Competition Rationalization The fudge factor I did it for someone else The slippery slope Inability to be objective about ourselves Moral licensing Conflicts of interest Conformity Following orders Euphemisms and reframing Lost in a crowd Short-term perspective Optimism bias Blind spots

Ethics Traps

D

Kant believed that: A. it is ethical to tell a lie if necessary to protect an innocent person from great harm. B. it is ethical to tell a lie if the benefit of the lie outweighs the cost. C. it is ethical to make a true, but misleading, statement. D. it is wrong to tell an outright lie or to mislead.

The civil case will be brought by the victim, and the outcome of a successful case against Lance would be some type of monetary award such as restitution. The criminal case will be brought by state prosecutors and the outcome would be imprisonment for Lance.

Lance, a hacker, stole 15,000 credit card numbers and sold them on the black market, making millions. Police caught Lance, and two legal actions followed, one civil and one criminal. Who will be responsible for bringing the civil case? What will be the outcome if the jury believes that Lance was responsible for identity thefts? Who will be responsible for bringing the criminal case? What will be the outcome if the jury believes that Lance stole the numbers?

society

Law is also essential to every ____________

Slippery Slope

Means you take that first step and "it's just this once" but it ends up you keep doing it and you'll end up in a lot of trouble

A

Milton Friedman was a strong believer in the __________ model. He _____ argue that a corporate leader's sole obligation is to make money for the company's owners. A. shareholder; did B. shareholder; did not C. stakeholder; did D. stakeholder; did not

Reversed

Nullified

federal

One nationwide system of _____________ courts serves the entire country

Affirmed

Permitted to stand

Difference principle

Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole

treaty

an agreement between two or more sovereign countries

Deontological

believe that the ends do not justify the means. Rather, it is important to do the right thing, no matter the result. Immanuel Kant

Utilitarian

believe that the right decision maximizes overall happiness and minimizes overall pain. John Stuart Mill

Legislative power

gives the ability to create new laws

Judicial power

gives the right to interpret laws and determine their validity