BUSMHR 2000 Chapter 2 Notes
Select the accurate description of a common law system.
A common law system has a degree of flexibility that other legal systems lack.
What should Stephen, the CEO of an athletic clothing company, obtain to prevent competitors from copying the company logo?
A trademark
______ refers to a political system that values the needs of society over that of an individual.
Collectivism
______ law is the body of law that governs oral and written agreements associated with the exchange of goods, services, money and property.
Contract
TimeForce, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should TimeForce consider for entry?
Country D, which has democratic institutions and a market-based economic system.
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
Democracy
Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?
FCPA (Foreign Corrupt Practices Act)
True or False: According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
False
True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.
False
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.
Individualism
______ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the chemical formula for a new drug.
Intellectual
Select the accurate statement about intellectual property laws.
Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.
Which statement BEST describes a totalitarian system?
It is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life.
Who among the following should apply for a copyright?
Jude, a musician who is composing his maiden album
The members of the World Intellectual Property Organization have signed international treaties designed to protect intellectual property, including the oldest such treaty known as the ______, which dates to 1883.
Paris Convention for the Protection of Industrial Property
Which of these statements would Aristotle agree with based on his arguments for individualism?
Private property receives greater care compared to communal property.
______ refers to the process of selling state-owned enterprises to private investors.
Privatization
______ set certain safety standards which a commodity must meet.
Product safety laws
______ rights determine how a resource or economic good is owned and used.
Property
What is one of the tenets of individualism?
The welfare of society is best served by allowing individuals to follow their own economic self-interest.
Which characteristic is typical within a totalitarian country?
There is no questioning of the ruler's decisions.
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
Tribal
In the early 20th century, communists differed from social democrats in that communists believed in
a strategy of revolutionary action.
Social democrats advocate for
achieving socialism through non-violent means.
What is the objective of a pure command economy?
allotment of resources for the overall good of society
In a country governed by a totalitarian system, you would find that
basic civil liberties are denied to citizens.
What two situations are examples of private action and a violation of property rights?
blackmail theft
The United States passed the Foreign Corrupt Practices Act in response to _______ issues between US companies and foreign countries.
bribery
Karl Marx would agree that
capitalists take the value created by workers for their own use.
A ________ economy follows the principles of collectivism as resources are allocated based on "the common good."
command
A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.
common
Members of the legal profession would refer to tradition, precedent, and custom in a(n) ________ law system.
common
Until recently, what was the most common form of totalitarianism in the world?
communist
A(n) ______ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties.
contract
A ______ refers to a legal right that enables the creator of an original work the right to publish and distribute their work as they see fit.
copyright
Political systems that emphasize individualism tend to promote _____.
democracy
What two factors would make a country more desirable to do business with?
democratic political institutions market-based economy
Nations adopting the pure form of democracy would
directly involve citizens in the decision making of the country.
The philosopher Aristotle argued in favor of individualism when he said that
diversity and private ownership are beneficial to society.
AllSpice Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies have agreed to draft the business contract in the Leone Republic. Since the contract will be drafted under a common law framework, what best characterizes the contract?
easy to draft
A country that has lax intellectual property laws will find that
firms will be reluctant to enter into such a country.
In a pure command economy, the prices at which goods and services are sold are planned by the
government
A payment made to expedite or to secure the performance of a routine governmental action is called a
grease payment.
Theocratic totalitarianism is described as a political system
in which rulers govern based on religious rules and principles.
The Declaration of Independence is an ideal example of the tenets of _____ which emphasize the importance of individual freedoms.
individualism
When Aristotle said that private property is more highly productive than communal property, he was advocating for
individualism
Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.
intellectual
The ______ system of a country refers to the rules, or laws that regulate behavior along with the system that enforces them.
legal
The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country.
legal
Product ______ is the area of law that that holds a firm and its officers responsible for injuries caused by their product.
liability
In a pure ______ economy, all productive activities are owned privately -- not by the state.
market
James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of the tools the company has available and send orders to make more tools when supplies run low. This supply and demand form of production is an example of a ________ economy.
market
The _____ often back(s) right-wing totalitarianism governments.
military
Companies wishing to pursue business opportunities in Sweden would find that while some industries are privately owned, others are state-controlled. What type of economy does this represent?
mixed
In a ______ economy, both private enterprise and state ownership co-exist.
mixed
A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
patent
HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement?
patent
Millie, a research associate at an information technology firm, develops a program that allows more than six parties to interface at the same time. In order to prevent the competition from duplicating her invention, the company should apply for a
patent.
The system of government in a nation is called the ______ system.
political
The term ______ refers to the interconnection of the political, economic, and legal systems of a country.
political economy
In a nation where right-wing totalitarianism is present, you would find that
political freedom is restricted, frequently on the grounds that it would lead to the rise of communism.
An energy company based in Houston often deals with piracy issues when exporting fuel in tankers to parts of Africa. This piracy is a form of _____ action.
private
In the last half of the twentieth century, Britain's Conservative Party sold state-owned enterprises to individual investors in order to create a free market economy. What process was Britain using to create this economy?
privatization
Marietta told the management team that the company would have to find a new way to produce the vitamin because the Food and Drug Administration had recently banned "nofon," the key ingredient in their product. The standard set by the FDA is a type of
product safety law.
Levying excessive taxes or requiring expensive permits from property holders are both examples of ______ action.
public
The newspaper story said the city council was corrupt and had recently taken over three businesses without compensating the owners for them. This type of corruption is an example of _____.
public action
The state senator was found guilty of ________ when she tried to extort money from an international business that wanted to open a manufacturing plant in her state.
public action
What are the two ways property rights can be violated?
public action private action
In a(n) ______ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate.
representative
In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a
representative democracy.
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced to
resolve disputes that arise in international trade regarding which country's laws to apply.
Collectivism refers to a political system that
restricts an individual's right to do something on the grounds that it runs counter to the "good of society".
Intellectual property laws are said to
stimulate innovation and creative work.
A nation that fosters individualism would
stress that the interests of the people are more important than the interests of the state.
When describing intellectual property rights, it can be said that they are
subjected to various forms of protection from country to country.
The production of goods in a pure market economy are determined by
supply and demand.
Even though there are many state-owned businesses in China, many Western businesses feel that should still invest in the country because
the nation is moving toward a market-based system.
In a command economy, businesses are owned by _____.
the state
A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism?
theocratic
Under Vladimir Putin, the government of Russia has becoming increasingly _____.
totalitarian
A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark