Intro to Business - Chapter 2
social responsibility
a business's obligation to maximize its positive impact and minimize its negative impact on society
mediation
a form of negotiation to resolve a dispute by bringing in one or more third-party mediators, usually chosen by the disputing parties, to help reach a settlement
contract
a mutual agreement between two or parties that can be enforced in a court if one party chooses not to comply with the terms of the contract
mini-trial
both parties agree to present a summarized version of their case to an independent third party
product liability
business's legal responsibility for any negligence in the design, production, sale, and consumption of products
agency
common business relationship created when one person acts on behalf of another and under that person's control
sustainability
conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities
real property
consists of real estate and everything permanently attached to it
code of ethics
formalized rules and standards that describe what the company expects of its employees
ethical issue
identifiable problem, solution, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
implied warranty
imposed on the producer or seller by law, although it may not be a written document provided at the time of the sale
arbitration
involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision is usually final
sustainability
involves the assessment and importance of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment
private court system
may be formal or informal depending upon the parties involved; businesses typically agree to have their disputes resolved in this type of court to save time and money
lawsuit
one individual or organization takes another to court using civil laws
bribes
payments, gifts, or special favors intended to influence the outcome of a decision
plagiarism
presenting someone else's work as your own without mentioning the source
tort
private or civil wrong other than a breach of contract
intellectual property
property that is generated by a person's creative activities (i.e. artwork, books, etc.)
fraud
purposefully unlawful act to deceive or manipulate to damage others
express warranty
stipulates the specific terms the seller will honor
consumerism
the activities that independent individuals, groups, or organizations undertake to protect their rights as consumers
corporate citizenship
the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders
breach of contract
the failure or refusal of a party to a contract to live up to his or her promises
jurisdiction
the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case
agent
the one who acts on behalf of the principal to accomplish the task in an agency relationship
principal
the one who wishes to have a specific task accomplished in an agency relationship
business ethics
the principles and standards that determine acceptable conduct in business organizations
business law
the rules and regulations that govern the conduct of business
appellate court
type of court that deals solely with appeals relating to the interpretation of the law
whistleblowing
when an employee exposes an employer's wrongdoing to outsiders (i.e. the media)
