Legal environment of business exam 1 (Chapters 1-4)

​The Bay City Planning Department, the Coastal County Zoning Commission, the Delaware Environmental Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute

- Administrative law

​In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with

- All of the choices

Fact Pattern 2-1 (Questions 31-33 apply) Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. ​Refer to Fact Pattern 2-1. If Bean and Java resolve their dispute by having a neutral third party render a binding decision, they will have used the method of

- Arbitration

​Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of the case requires Karen to find previ-ously decided cases that, in relation to the case under con-sidera-tion, are

- As similar as possible

What constitutional clause gives the federal government the power to regulate commercial activities among the various states? 87

- Commerce clause

How can business leaders encourage their employees to act ethically? 76

- Create and maintain ethics policies and procedures and by acting ethically in decision making. Management can demonstrate a commitment to ethical practices, must not ignore unethical behavior in their employees,must communicate clearly their standards and expectation for ethical behavior, and provide ethics training programs. establish a procedure for, and a safe environment in which to, address questions and concerns involving ethics. - Business leaders can encourage their employees to act ethically by implementing proper procedures and rules that mandate employees to hold them selves to a higher standard and take accountability for their actions. Leaders and managerial staff most importantly can also lead by example.

What types of ethical issues might arise in the context of international business transactions?

- Cultural differences, worker exploitation, bribery to government officials, sexual harassment, child labor

What are three alternative methods of resolving disputes? 53-55

- Def. Alternative dispute resolution: the resolution of dispute in ways other than those involved in the traditional judicial process, such as negotiation, mediation, and arbitration - Three types: Negotiation, mediation, and arbitration

What are some important differences between civil law and criminal law? 13

- Def. Civil law: The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters - Def. Criminal law: The branch of law that defines and punishes wrongful actions committed against the public

What is the common law tradition? 7

- Def. Common Law: the body of law developed from custom or judicial decisions in English and U.S courts, not attributable to a legislature

What is the Bill of Rights? What freedoms does the First Amendment guarantee? 89

- Def. The first ten amendments to the U.S. Constitution - The First Amendment guarantees the freedoms of religion, speech, and the press and the rights to assemble peaceably and to petition the government

What is a precedent? When might a court depart from precedent? 8-9

- Def. a court decision that punishes an example or authority for deciding subsequent cases involving identical or similar legal principles or facts - If a court decides that a precedent is simply incorrect or that technological or social changes have rendered the precedent inapplicable, the court may rule contrary to the precedent.

What are the four primary sources of law in the United States? 5

- Def. a document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision - Four primary sources: 1. the U.S. Constitution and the constitutions of the various states 2. Statutes, or laws, passed by Congress and by state legislatures 3. Regulations created by administrative agencies, such as the federal Food and Drug Administration 4. Case law (court decisions)

What is discovery, and how does electronic discovery differ from traditional discovery? 46

- Def. a method by which the opposing parties obtain information from each other to prepare for trial - Discovery is the process of obtaining information and evidence about a case from the other party or third parties. Discovery entails gaining access to witnesses, documents, records, and other types of evidence. electronic discovery differs in its subject- that is, e-media, such as e-mail or text messages, rather than traditional sources of information, such as paper documents

What is the difference between remedies at law and remedies in equity? 9

- Def. remedies at law (courts of law): If one person wronged another, the king's courts could award as compensation either money or property. Even though this system introduced uniformity in the settling of disputes, when a person wanted a remedy other than economic compensation, the courts of law could do nothing, so "no remedy, no right" - Def. remedies in equity (courts of equity)

What is judicial review? How and when was the power of judicial review established? 31

- Def. the process by which a court decides on the constitutionality of legislative enactment actions of the executive branch -

What is business ethics, and why is it important? 65

- Def. what constitutes right or wrong behavior and the application of moral principles in business context -

How do duty-based ethical standards differ from outcome-based ethical standards? 71

- Duty based ethical standards derive from religious and person beliefs. Outcome based ethical standards is consequences of actions and benefiting the majority

In Kettle Cafe's suit against Food Services, Inc., the court issues a judgment in Kettle's favor. The judgment can be appealed to an appropriate court of appeals by

- Either party

​Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en-sure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in

- Good faith

Where in the Constitution can the due process clause be found? 98-99

- It can be found in the Fifth and Fourteenth amendments

What is the basic structure of the U.S. government? 86-87

- Legislative branch- branch of government enacts laws - Executive branch- branch of government enforces laws/ responsible for foreign affairs - Judicial branch- branch of government declares laws/actions unconstitutional/ interprets the laws

​Leona enters into a contract with Munchie Bakery to cater a sales conference. When the conference is postponed indefinitely, Leona asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves

- Rescission

What are five steps that a businessperson can take to evaluate whether his or her actions are ethical? 76

- Step 1: Inquiry - Step 2: Discussion - Step 3: Decision - Step 4: Justification - Step 5: Evaluation

What constitutional clause allows laws enacted by the federal government to take priority over conflicting state laws? 88

- Supremacy clause

​The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa-vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion. Standard Business Company appeals a decision against it, in favor of Top Flight Corporation, from a lower court to a higher court. Standard is

- The appellant

​Justin wants to file a suit against Kemel. For a court to hear the case

- The court must have jurisdiction

​Under Ohio's state constitution, the Ohio Environmental Protection Agency issues a new rule, the Polk County Commission approves a new property tax measure, and the professors and students at Ohio Law School publish the results of their most recent legal research. Sources of law do not include

- The results of legal scholars' research

​Hailey, a lawyer on the staff of International Group, always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context. Hailey is applying

- The utilitarian theory of ethics in business contexts

Before a court can hear a case, it must have jurisdiction. Over what must it have jurisdiction? How are the courts applying traditional jurisdictional concepts to cases involving Internet transactions? 35

- To hear a case, a court must have jurisdiction over the person against whom the suit is brought or over the property involved in the suit. The court must also have jurisdiction over the subject matter. Generally, courts apply a "sliding-scale" standard to determine when it is proper to exercise jurisdiction over a defendant whose only connection with the jurisdiction is the internet

What is the difference between a trial court and an appellate court? 41

- Trial court is before - Appellate court is after

​Beth is a victim of Carl's violation of a criminal law. Criminal law is con-cerned with

- Wrongs committed against the public as a whole

The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa-vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion. ​Refer to Fact Pattern 1-1. Bellamy's opin-ion is

- ​A concurring opinion

​Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called

- ​A long arm statute

​Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably filed her suit in

- ​A small claims court

​In a suit against Knut, Leon obtains an injunction. This is

- ​An order to do or to refrain from doing a particular act

​Japan violates an international law. Other countries may take coercive actions, which include

- ​Boycotting Japanese goods

​Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues from management. One of the most important ways to create and maintain an ethical behavior workplace is for management to

- ​Demonstrate a commitment to ethical decision making

​Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. Over this case, the Vermont state courts have

- ​Exclusive jurisdiction

​In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

- ​Fair or just behavior

​Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has

- ​In rem jurisdiction

​With respect to the potential for American Discount Stores, Inc., and any other major corporation to suffer damage to its reputation or loss of profits through negative publicity, the Internet has

- ​Increased the potential

​To Cody, the written law of a particular society at a particular time is most significant. Cody is a

- ​Legal positivist

​Martha brings a suit against SafeCars, Inc. claiming that she was injured during a car crash due to defects in the car she had purchased from SafeCars. There is no evidence that Martha was injured in the accident, but the trial court awards her $1 million in damages. SafeCars appeals the decision. The appellate court will most likely

- ​Modify the trial court's finding of fact because the finding was clearly erroneous

​Lia works for Media Marketing Company. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics consist of

- ​Questions of rightness and wrongness

​Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that

- ​Routinely violates labor and environmental standards

​Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to

- ​The Minnesota Supreme Court

​Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because

- ​The law does not codify all ethical requirements

To initiate a lawsuit, Darla files a complaint against E-Sales Company, which responds with an answer. Together, the complaint and answer are

- ​The pleadings

​Ryan, the owner of SuperMart Stores, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects

- ​The rights of others

​Mary works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of

- ​The same moral principles that apply to non-business activities

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is

- ​The selection of jurors

​In making decisions for Smartt Investments, Rita uses a cost-benefit analysis. This is a part of

- ​Utilitarian ethics

​PriceLess Retail Corporation specifies that its employees should not use social media to damage the company, harm another person's reputation, or violate company policies. An employee who violates these rules may be subject to discipline and could be fired. According to the National Labor Relations Board, this social media policy

- ​Violates federal labor law

​Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio

-​ Is a more convenient location to hold the trial

​Drummond wants to make a federal case out of his dispute with Elena. Federal cases originate in

​- Federal district courts

​Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of Petite Isle, an island in North Rapids River on the border between Canada and the United States. The diversity of the parties' citizenship could serve as a basis for

​- Federal jurisdiction

​Flexo Trucking Company transports hazard-ous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regula-tions permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because

​- Flexo showed reckless disregard for Hill City's residents and others

​A Montana state court can exercise jurisdiction over Endurance Insurance Corporation, an out-of-state defendant, if the defendant has

​- Minimum contacts with the state

​Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

​- Operators, owners, suppliers, the community, or society as a whole

​In business deals, Fiona, the chief executive officer of Snacks n' Bites, Inc., follows duty-based ethical standards. These are most likely derived from

​- Philosophical reasoning

​Bob, research manager for CornAgri Products, Inc., ap-plies utilitarian eth-ics to determine that an action is morally cor-rect when it produces the greatest good for

​- The most people

​Jason files a suit against Maybelline. If Maybelline fails to respond, Jason

​- Will be awarded the remedy sought