Unit 1 (ch. 1, 2, 3, & 6)

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

-how the corporation can best fulfill any ethical duty to society -the effect on corporate profits of ignoring any ethical duty to society -whether the corporation owes any ethical duty to society

Federal courts of limited or special jurisdiction include:

-the court of appeals for the federal circuit -US bankruptcy courts -US court of international trade -US court of federal claims

In Ed's suit against First National Bank, the discovery phase would include all of the following except

Ed's complaint

Business ethics is not more complicated than personal ethics (T/F)

False

Crime can be committed only against persons (T/F)

False

King's courts (curiae regis)

How were disputes settled before the Norman conquest?

To assist in detecting illegal bribes, Cut Rite Contractors Inc, and all US companies, must

Keep records that "accurately and fairly" reflect their financial activities

Which of the following statements is true?

Law imposes structure on society by limiting activities that hurt the "public interest"

Betty files a suit against carly. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without involving a third party. This is

Negotiation

Civil law is:

Non-criminal law concerning the rights and duties that exist among individuals to each other, or to the state

Plantiff

One who initiates a lawsuit

Any decision by the management of Fast-Food franchise corporation may significantly affect its

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

Both state and federal court systems have lower courts of ________, where disputes are first brought and tried

Original jurisdiction

According to the view that New Allied Manufacturing Corporation is a "citizen", New Allied is expected to:

Participate in bettering communities and society

The objective of criminal law is to

Punish the wrongdoer for wrongs against the gov't

Unlike federal judges, most state judges:

Serve for a fixed term

Private law:

Sets forth rules governing the legal relationships among members of society

The constitution intends for the judiciary to have:

Significant independence from other parts of the gov't

Laws that define and establish legal rights and regulate behavior are referred to as

Substantive laws

Constitutional law

The body of law derived from the U.S. Constitution and the constitutions of the various states

Common Law

The body of law developed from custom or judicial decisions on English and U.S. courts, not attributable to a legislature

Statutory Law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law)

Halley, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business context. Utilitarianism focuses on

The consequences of an action

In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is

The principle of rights

Case Law

The rules of law announced in court decisions. case law interprets statutes, regulations, constitutional provisions, and other case law

Compliance with the law does not necessarily fulfill all ethical obligations (T/F)

True

Ethics is concerned with the fairness or justness of an action (T/F)

True

The role played by women may present some difficult ethical problems for firms doing business internally (T/F)

True

-Lower courts must follow decisions of higher courts -Courts should not overturn their own decisions unless there is strong justification for doing so

What are the 2 main principles of Stare Decisis?

Portions of significant decisions from each year were gathered together and recorded in books in the late 19th & early 14th centuries

What are yearbooks?

Constitutions, statutes, and regulations that govern the issue being decided, as well as court decisions that are controlling precedents within the jurisdiction

What do binding authorities include?

Principles of common law based largely on traditions, social customs, rules, and cases dating back to 1066 A.D.

What is much of the American legal system based on?

16th century. Other reports of cases became available

When were yearbooks discontinued?

State Decisis ("to stand on decided cases")

A common law doctrine under which judges are obligated to follow the precedents established in prior decisions; the principle of "precedent"

Lynn files a suit against Karl. Karl denies Lynn's charges and sets forth his own claim that Lynn breached their contract and owes Karl money for the breach. This is

A counterclaim

Precedent

A court decision that furnishes an example or authority for decidign subsequent cases involving identical or similar legal principles or facts

Primary Source of Law

A document that establishes the law on a particular issue, such as a constitution, a statue, an administrative rule, or a court decision

Uniform Laws

A model law developed by the national conference of commissioners on uniform state laws for the states to consider enacting into statute

Secondary Source of Law

A publication that summarizes or interprets the law, sch as a legal encyclopedia, a legal treatise, or an article in a law review

Ordinance

A regulation enacted by a city or county legislative body that becomes part of that state's statutory law

In response to declining public image and to internal problems, most corporations now have:

A written code of ethics

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price? A practical method to investigate and solve this question involves all of the following steps except

Absolution

Jurisdiction

An area in which a court or courts have the power to apply the law

Binding Authority

Any source of law that a court must follow when deciding a case

-Courts of law (awarding money damages) -Courts of equity (non-monetary relief) based on "notions of justice and fair dealing"

At common law, there were 2 separate court systems. What were they?

Areas of the law that may affect business decision making

Contracts, sales, negotiable instruments, creditors' rights, intellectual property, E-Commerce, Product liability, torts, agency, business organizations, professional liability, courts and court procedures

Morals:

Correct rules of conduct within the standards of society

Subject-matter jurisdiction is:

Created by a constitution or statute on the disputes a court can resolve

The US Supreme Court is primarily:

an appellate review court

Persuasive authority

any legal authority or source of law that a court may look to for guidance but need not follow when making its decision

The judiciary

applies the common law

Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a 3rd party who's not a judge but who renders a legally binding decision. This is

arbitration

State constitutions:

are the highest form of law within each state

Law

a body of enforceable rules governing relationships among individuals and between individuals and their society

Which of the following is an accepted definition of law?

a body of rules of action or conduct prescribed by controlling authority, and having binding legal force

Administrative agency

a federal, state, or local gov't agency established to perform a specific function

Statutory law is:

a law enacted by a legislative body

Carol files a suit against Downwind Boat Corporation. Downwind responds that it appears from the pleadings the parties do not dispute the facts and the only question is how the law applies to those facts. Downwind supports this response with witnesses' sworn statements. This is

a motion for summary judgement

Citation

a reference to a publicaiton in which a legal authority-such as a statute or court decision- or other source can be found

Federal courts can review statutes passed by Congress to ensure: a. that the statutes do not violate the US Constitution b. that the statutes do not violate women's rights c. that the statutes are fair d. that the statutes do not violate previously passed statutes e. none of the above

a. that the statutes do not violate the US Constitution

Original jurisdiction means power to:

accept a lawsuit, try it an pass judgement

An important source of US law affecting the legal environment of business are regulations, opinions, and orders from:

administrative agencies

In an orderly society, law and the legal systen help to:

all of the answers are pat of the role of law

To prepare for a trial between Large Lots Development Corporation(LLDC) and MiniMansion Construction Company (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of the attorney's questions and the officer's answers. This is: a. cross-examination b. a deposition c. an imposition

b. a deposition

In a suit against Owen, Phil obtains specific performance. This is a. an order to do or refrain from doing a particular act b. an order to perform what was promised c. a payment of money or property as compensation d. the cancellation of a contract

b. an order to perform what was promised

What do laws do?

establish rights, duties, & privileges that are consistent with the values and beliefs of a society or its ruling group

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a comany in a developing nation that

exploits its workers

Uniform Commercial Code (UCC)

facilitates commerce among the states by providing a uniform, yet flexible, set of rules governing commercial transactions

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

good faith

If the US Supreme court accepts a case on appeal it:

grants a writ of certiorari

Ethics, in the context of business practitioners:

has to do with rules or standards governing the conduct of members of a profession and how standards are put into action within an organization

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of:

its employees, owners, consumers, the community, and society

The party bringing a lawsuit must choose a court with:

jurisdiction over the subject matter

The term "common law" refers to:

law made and applied by judges

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

legal positivist

With respect to the relation between morality and legality:

legality doesn't always imply morality

Federal judges are appointed for a term of:

life

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon". Guidelines for judging individual actions include all of the following except:

loopholes in the law or company policies

Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A 3rd party helps them to reach an agreement. This is

mediation

the supreme court is composed of how many justices?

nine

In business deals, Felipe, the chief executive officer of Glazed Donuts Inc, followed duty-based ethical standards. These are most likely derived from: a. a corporate ethics code b. a cost-benefit analysis c. philosophical reasoning d. the law

c. philosophical reasoning

Diversity of citizenship cases are:

creates fed subject matter jurisdiction only if the amount in controversy is over 75k -always concurrent fed-state but if the plantiff chooses to file in state court, there can be no appeal to Supreme Court (unlike fed question cases)

The value of precedence in legal decisions under the common law is: a. consistence in the legal system enhances the ability of persons and business to plan b. parties will be confident that the rule will apply to future disputes that may arise c. it helps to neutralize the prejudices of individual judges d. the other three specific choices are correct e. none of the other specific choices are correct

d. the other three specific choices are correct

The doctrine of judicial immunity means judges may:

not be sued for damages that result from their judicial acts

A common ethical dilemma faced by the management of General Holdings corporation involves the effect that its decision will have on

one group as opposed to another

At the highest legal authority, the US Constitution

overrides any state or federal laws that go beyond what the constitution permits

Besides judges, the doctrine of judicial immunity also applies to:

parties who perform services that are related to the performance of judicial functions

The United States Constitution

provides that the judicial power (the court system) is in one Supreme Court and in lower courts as Congress may establish

Chuckie, president of DrinkUp Fresh Beverages Inc, does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it:

tends to justify human costs that many find unacceptable

Federal judges are nominated by:

the President

If one of the parties to the litigation is not satisfied with a federal district court's decision, it has the right to appeal to the court of appeals for the circuit in which that district court is located. The one exception to this is:

the US gov't may not appeal a verdict in a criminal case

In an action against Elin, Frank obtains a remedy. This is

the legal means to recover a right or to redress a wrong

A court's jurisdiction defines:

the limits within which it may declare, administer, or apply the law

The federal Rules of Civil Procedure govern:

the procedures of the litigation process and relevant motions

Remedy

the relief given to an innocent party to enforce a right or compensate for the violation of a right

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

Liability

the state of being legally responsible (liable) for something, such as a debt or obligation

Procedural law specifies

the steps that must be followed in enforcing those rights and liabilities (i.e. once taht contract is formed, you have rights to enforce that contract, and the steps)

The Constitution intends for the judiciary to have significant independence from the other parts of the government as part of:

the system of checks and balances

The doctrine of stare decisis can be defined as:

the use of a prior decision as guidance in resolving later disputes

Bribery of foreign gov't officials is both an ethical and legal issue (T/F)

true

Which of the following are part of the federal court system

-district courts -Courts of appeals -the supreme court

Federal courts have the judicial power to hear many cases involving:

-federal questions -diversity of citizenship -treaties with other nations -a dispute between two states

Small claims courts:

-have less formal procedure than regular court -have dollar limits on the kinds of cases they can hear -are generally quicker to hear cases than regular district courts -do not require the use of lawyers

Federal trial courts are called:

District courts

Criminal law:

concerns legal wrongs or crimes committed against the state

The fundamental law of the nation is the

constitution

To help create an improved internal ethical environment many companies now use:

corporate compliance programs

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the US, this is

illegal and unethical

The US Constitution provides that the judicial power (the court system) is:

in one Supreme Court and in lower courts as Congress may establish

Breach

the failure to perform a legal obligation

Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This requires that the employees

weigh the consequences that would follow if everyone acted the same

Administrative Law

written rules established by local, state, or federal agencies