Legal Environment of Business
Utilitarianism is associated with which major, normative theory of ethics?
Conequentialism.
Ethical approaches generally fall under the following two categories:
Consequentialism and non-consequentialism
The Wisconsin state legislature enacts a statute that prohibits all forms advertising of all video games "because video games might be harmful to minors." Despite this new statute, the president of Nintendo, Inc., orders Nintendo marketers to place ads for the latest Mario Kart racing game in various media. When a Nintendo ad appears on YUTV, a local television station, Nintendo is charged with violating the statute. In response, Nintendo argues that the statute is an unreasonable restriction on its' freedom of speech. 45-46 All but which of the following questions will be asked by a court in determining the legality of Wisconsin's law?
Does the law consider whether the average person would find the speech in question violated contemporary community standards?
Assume Ward and June execute a 1-year contract for building maintenance services (i.e., cut grass, wash windows, etc.). Both Ward and June are residents of Texas and the building is located in Austin, Texas. Six months into the contract, Ward is behind on payments and June files suit against Ward alleging breach of contract. In his answer to the suit, Ward files a motion to dismiss based on the presence of a clause on page six of the contract requiring mandatory, non-binding arbitration of all disputes. June responds to the motion and points out that, under Texas law, an arbitration clause is not enforceable unless it is printed on the first page of a contract. 43-44 Will the Texas court compel arbitration
No, because the contract does not involve interstate commerce and the Federal Arbitration Act will not apply.
Is the court likely to uphold the statute?
No, because the law does not satisfy all three prongs of the test mentioned above.
Neville files a suit against Olina. If Olina fails to respond,
Olina will have a default judgment entered against her.
Suppose Beatrice decides to file her claim in a Texas court (either a state or federal court). May she do so?
Yes, because Larry has sufficient minimum contacts with Texas
Alyson alleges that Chuck breached a contract between the two of them and decides to bring a claim against Chuck to non-binding arbitration. After the arbitrator issues his decision, Alyson decides she does not agree with it and files her claim in the state trial court. May she do so?
Yes, because neither party is bound by a non-binding arbitration award.
Suppose the parties agree to arbitrate their dispute and Ward is successful. If June disagrees with the outcome, may she ignore the arbitrator's decision and continue her suit in court?
Yes, because the contract specified non-binding arbitration
Beatrice owns a trucking company in Texas, and is looking for a few new trucks to add to her fleet. She executes a contract with Larry, a resident of Arkansas, for the purchase of three trucks, for a total prince of $150,000. However, when Beatrice receives the trucks, it is obvious that they are in disrepair and not at all what she ordered. 41-42 Beatrice would like to file her claim in federal court. Can she do so? Explain your response.
Yes, because there is diversity of citizenship among the parties.
Posy brings a lawsuit against Quisa over a sale of 350 acres of farmland. During the trial, Quisa's attorney asks questions of the plaintiff's witness Raina. This is
a cross-examination.
To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executive officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is
a deposition.
After the state's highest court's review of Martin v. Nichelle, a party can appeal the decision to the United States Supreme Court if
a federal question is involved
The Charleston City Planning Commission, the South Carolina Department of Health and Environmental Control (DHEC) and the U.S. Bureau of Land Management issue regulations. These rules constitute
administrative law.
Martin files a suit against Nichelle in a state court over payment due on a short-term employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. 28-30 After its review of Martin v. Nichelle, the appellate court upholds the lower court's verdict. The appellate court has
affirmed the case
Orson files a suit against Portia. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who still has the authority to impose a resolution on the parties. This is
arbitration.
Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case
by a preponderance of the evidence.
The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of
certiorari.
Court decisions create which type of law?
common law
Utah enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by a court to be
constitutional under the First Amendment.
The view that businesses have responsibilities beyond making profit for their owners is identified by the term
corporate social responsibility.
Freedoms guaranteed under the Bill of Rights have been held to limit
federal and state actions.
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest, alleging damages of $100,000. The diversity of citizenship between these parties means that
federal and state courts have concurrent jurisdiction.
Juan is a judge. How Juan and the judges in other courts interpret a particular statute determines
how that statute will be applied.
Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to examine certain documents in Sunrich's possession. A legitimate reason for this examination is that the documents contain
information that is relevant to the case.
Selena's Fajitas, a national fast food chain, files a suit against the state of Texas, claiming that a Texas state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on
interstate commerce.
Delia files a suit against Eduardo in a Gainesville, Florida state court over the ownership of a boat docked in a Miami harbor. While Delia lives in Gainesville, Eduardo is a resident of Miami. Eduardo could ask for a change of venue on the ground that Miami
is a more convenient location to hold the trial.
As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as
judicial review.
Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in comparison with noncommercial speech, the protection given these ads is
less extensive.
A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has
minimum contacts with the state.
Bob's Big Burgers n' Shakes Restaurant brings a suit, seeking a remedy at law. A remedy at law is typically in the form of:
monetary damages.
Sweet Home Tours, an Alabama company and Nothing Could be Finer Productions, a South Carolina company, enter into a contract that with a forum-selection clause that identifies the Alabama state trial court. Litigation between Sweet Home and Nothing Could be Finer over a dispute involving this contract may occur in
only in a state court of Alabama.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may
order a party to submit to arbitration
A judge hearing a case in South Carolina regarding the enforcement of the state's loitering ordinance is told by counsel for the prosecution that North Carolina courts have upheld similar ordinances. The South Carolina judge would consider the North Carolina court decision as:
persuasive precedent.
Congress enacts a law prohibiting toys made in Indonesia from being sold in the United States. The Washington state legislature enacts a law allowing the sale of Indonesian-made toys. Washington's law will most likely be
rendered invalid under the supremacy clause.
If the appellate court determines that a mistake was made at the trial level but can't be sure that it would have resulted in a different outcome, the appellate court will likely
reverse and remand the case for retrial
Arnold loses his suit against Buffy in a Colorado state trial court. Arnold appeals to a state intermediate court of appeals and loses again. Arnold would appeal next to
the Colorado Supreme Court.
A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged
the U.S. Constitution, not the state provision, will be enforced.
Operational Processes, Inc., appeals a decision against it, in favor of Precision Manufacturing Corporation, from a lower court to a higher court. Operational Processes is
the appellant.
In an effort to reduce traffic, Bay City enacts an ordinance that allows only a few specific street vendors to operate in certain areas (e.g., food vendors allowed; merchandise vendors banned). A court would likely review this ordinance under the principles of
the equal protection clause.
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-Lo Mart files a suit to block the law's enforcement. The court would likely hold that this law violates
the establishment clause.
A person who follows a Deontological view of morality/ethics would be most concerned with
the morality of the action itself.
Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jill fails to deliver the roses. Jane files a suit against Jill, asking the court to order Jill to refund Jane's payment. Jane is
the plaintiff.
Before the trial of Soft Drink Soda Corporation's suit against TimeOut Convenience Stores, Inc., their attorneys engage in voir dire. This is
the selection of jurors.
Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services. The document that informs Concessions & Tailgate that it must file an answer within a specified time period is
the summons.
The U.S. Congress enacts a new federal statute that imposes liability on businesses hiring employees without verifying their citizenship status. This statute applies
to all businesses in all states.
According to Milton Friedman, the social responsibility of a business is:
to use its resources and engage in activities to increase its profits.
Beth is a victim of Carl's violation of a criminal law. Criminal law is concerned with
wrongs committed against the public as a whole.
