Legal environment of business chapter 1

The ethical dilemma of Businesses

"What's good for business is good for the country" This former attitude of business is no longer adequate to insure ethical conduct -Businesses have more constituents or stakeholders to answer to internal and external -Balancing all constituents interest to ensure firms long term survival

United States Constitution

-Branches of government: Checks and balances -State government vs federal government -Fundamental rights

Court orders may

-Compel a party to do something -Prohibit a party from doing something

Sources of legal standards

-Constitutions -Judicial Cases -Codes and statues -Administrative regulations

Which of the following represent two of the potential financial costs of reporting unethical behavior?

-Penalties, fines and lawsuits against the company -The loss of top performing employees

Analyzing a case

1. Identify the parties (plaintiff and defendant) 2. Use the legal citation to determine where to find the case in the legal library 3. Review: Review the facts to understand the background of the case 4. Read: Read the holding of the case to determine the court's rationale in the decision.

Challenges for cause:

: A claim that a juror has demonstrated probable bias

Subject Matter Jurisdiction

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

Counterclaim

: A second lawsuit by the defendant against the plaintiff

Diversity jurisdiction

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

closing arguments

: Both lawyers sum up their cases to the jury, interpreting the evidence they have heard

Production of Documents and Materials

: each side may ask the other side to produce relevant items

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

Jurisdiction

A court's power to hear a case

Default judgement

A decision that the plaintiff wins without trial because the defendant failed to answer in time

motion

A formal request to the court that it take some step or issue some order

Which of the following statements are applicable to the doctrine of stare decisis? Choose 2 answers.

A lower court must follow the precedent of a decision made by a higher court in the same jurisdiction. Stare decisis is a principle that arose out of the common law.

Physical and Mental Examination

A party may ask the court to order these

Directed Verdict:

A ruling that the plaintiff has entirely failed to prove some aspect of her case

Checks and Balances

A system that allows each branch of government to limit the powers of the other branches in order to prevent abuse of power congress can override the supreme court

Sources of ethical standards

Actual or positive law Natural law Moral relativism -Situational ethics Religious Beliefs Philosophical Systems

Statutory Law

Agency uses formal rulemaking or investigates certain issues.

Which of the following statements explains the formation and purpose of a federal administrative agency? Choose 2 answers.

An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law. Most federal administrative agencies are subject to the authority of the president, but some are independent.

administrative law judge

An agency employee who acts as an impartial decision maker

Natural Law

An unjust law is no law at all and need not b obeyed. Rule is good to be done and promoted, evil is avoided Belief we are all entitled to certain fundamental rights

Judicial Branch

Authority to interpret laws under article 2 of the constitution. Able to check power of executive and legislative branches Article 3 places supreme court at head of judicial branch

error of law

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

What are two types of challenges an attorney can make during voir dire?

Challenge for cause Peremptory challenges

Civil vs. Criminal Law

Civil laws regulate the rights and obligations between two parties vs criminal laws that regulate wrongs, an individual commits against society.

States Constitutions

Creates state executive, legislative and judicial systems

Criminal Law

Defines an individual's obligations to society as a whole (state suing person) is __________ law

Opening statements

Each attorney makes an opening statement to the jury, summarizing the proof they expect to offer

3 considerations for corporate social responsibility

Environmental impact of a business Issues within the community where a business is located Ethical treatment of employees and suppliers

Legislative Branch

Gives the power to create new laws and creates statues Power arises out of Article 1 of the US Constitution and divides the branch into 2 chambers: The senate and house of reps Also functions to put a check on powers and executive and judiciary branches

Judicial Review

Judges can decide constitutionality of all laws

Court Orders

Judges have authority to issue court orders that place binding obligations on specific people or companies

Which of the following lists the steps of a trial in the correct chronological order from beginning to end?

Jury selection, opening statements, plaintiff's case, defendant's case

Legislative does what? Executive does what? Judicial does what?

Legislative - makes laws Executive - carries out laws Judicial - evaluates laws

stare decisis

Let the decision stand; decisions are based on precedents from previous cases

Treaties

Made treaties with foreign nations, ratified

Utilitarianism

Model that focuses on the outcome of the decision, as opposed to the motives behind the decision

Ethics is the consideration of how one should act based on

Morality, or principles of right and wrong

ethical standards

No concrete sanctions Internal standard Individual guidelines deals with individual behavior

class action

One plaintiff represents the entire group of plaintiffs, including those who are unaware of the lawsuit or even unaware they were harmed

Restatements of the Law

Orderly restatement of the common law areas

Statues

Passed by federal and state legislatures Where congress enacted specific laws May cover any topic as long as they don't conflict with the US constitution.

Motion for Directed Verdict:

Permissible only if the evidence so clearly favors the defendant that reasonable minds could not disagree on it

Executive orders

Presidential directives that create or modify laws and public policies, without the direct approval of Congress.

External

Society, customers, suppliers, overseas

Administrative Law

The body of law created by administrative agencies (in the form of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.

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

What are the benefits of the exhaustion doctrine?

The exhaustion doctrine requires resolution of disputes within the agency without involving the court system, except when necessary.

Legal Realist School

The idea that each person has intrinic biases impact their decisions is a component

appellant

The party filing the appeal

Appellant

The party who takes an appeal from one court to another. Appealing a case

deponent

The person being questioned in a deposition

Voir Dire:

The process of selecting a jury

Peremptory challenges:

The right to excuse a juror for virtually any reason

Ethics

The study of how people ought to act Apart of everyone's personal life Business Ethics concerns ethical decision making in the business environment

Congress has rights to pass laws as long as

They do not conflict with the US constitution.

Cross examine

To ask questions of an opposing witness

adjudicate

To hold a formal hearing about an issue and then decide it

Common Law

a system of law based on precedent and customs the sum of all cases decided by appellate courts

Kant's Categorical Imperative

an act is only ethical if it would be acceptable for everyone to do the same thing

Civil Law

civil law regulates rights and duties between parties ' A private party may sue Some conduct involves criminal and civil laws

What are the constitutional fundamental rights?

constitution grants many basic liberties-most found in amendments to the constitution-first amendment guarantee free speech, press, and religion-4th 5th and 6th protect the rights of anyone accused of crime-other amendments ensure that the government treats all people equally

Administrative Laws

created by government agencies Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of

Which of the following are sources of administrative law?

executive orders agency opinions agency regulations

The U.S constitution impacts state sovereignty by requiring states to honor the public acts of another state through

full faith and credit

soverign

having supreme power within its own territory

Origins of common law

inherited much from British law (unique system) Accumulation of precedent in legal cases makes up the "common law"

Legal realists would claim:

it doesn't matter what the law says but who enforces it

Purposes of Law

keeping order, influencing conduct, honoring expectations, promoting equality, law as the great compromiser

federal law

law passed by Congress, applies to the country as a whole

Depositions

one party's lawyer questions the other party or witness, under oath

Reversed and affirmed

reversed: Nullfied Affirmed: Permitted to stand

Internal

shareholders, employees

Business law consists of

statues (codes), common law, court cases, constitutions, and regulations.

Substantive Law vs. Procedural Law

substantive law: law consists of all laws that define, describe, regulate, and create legal rights and obligations Procedural law: Tells the rule of the law

Executive Branch

the authority to enforce laws under article 2 of the constitution, establishes the president as commander in chief of the armed forces and the head of an executive branch

Positivism

the belief that knowledge should be derived from scientific observation Holds that written law of a government is the highest law

Defendant

the party being sued

appelle

the party opposing the appeal

Plantiff

the party who is suing

jurisprudence

the science or philosophy of law

Difference between general and limited jurisdiction

the subject matter of the cases that the court can decide.

Briefs

written arguments on the case

Interrogatories

written questions that the opposing party must answer, in writing, under oath

Writ of certiorari

•: A petition asking the Supreme Court to hear a case

motion for a protective order

•: Request that the court limit discovery

motion to dismiss

•A request that the court terminate a case because the law does not offer a legal remedy for the plaintiff's problem

Summary Judgement

•A ruling by the court that no trial is necessary because there are no essential facts in dispute

Long arm statue

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

Defendant's Case

•After the plaintiff has rested, Defendant presents his evidence

Plantiff's Case

•Because the plaintiff has the burden of proof, the plaintiff must present its case first

trial courts

•Determine the facts of a particular dispute and apply to those facts the law given by earlier appellate court decisions

Precedent

•Earlier decisions by the state appellate courts on similar or identical issues

Right to Jury Trial

•Generally, both plaintiff and defendant have a right to demand a jury trial when the lawsuit is one for money damages

appeals court

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

writ of certiorari

An order issued by the Supreme Court to a lower court requiring the latter to send it the record of the case for review.

subpoena

An order to appear at a particular place and time. A subpoena duces tecum requires the person to produce certain documents or things

Jurisprudence

Law and morality, justice Positive Law: Law is what is stated as law Natural law: Principles that exist regardless of law Legal Realism: Law is influenced by who enforces it.

Legal Positivism

Law is what the sovereign says Example: A law prohibiting the education of immigrants must be followed even if it is unjust Sovereign: The recognized political power, whom citizens obey

Classification of law

Public law (statutory), Private law, criminal law, civil law, substantive law, procedural law, common law, statutory law, legal action, equitable action

Legal Standards

Sets the minimum level of behavior External standards Concrete sanctions Uniform guidelines Deals with average behavior

Burden of proof:

•Preponderance of the evidence: The plaintiff's burden of proof in a civil lawsuit •Beyond a reasonable doubt: The government's burden of proof in a criminal prosecution

jury jurisdictions

•The judge instructs the jury as to its duty, and the law and burden of proof required for their deliberations

verdict

•The jury deliberates, and announces its decision in open court; some states do not require a unanimous verdict

rules of evidence

•The law determines what questions a lawyer may ask and how they are to be phrased •