Legal Environment Ch. 1-5

What did John Rawls theorize?

*Contrast based approach -notion of the Original Position, a hypothetical situation that everyone negotiates from a Veil of Ignorance -ppl must negotiate their own ethical rules and principles for themselves

What did Kant theorize?

*Principle-based ethics -That rights imply duties and that the duty to respect others' rights was paramount in acting morally. -The notion of categorical imperatives is a central themes in Kant's work.

What are factors of Alternative Dispute Resolution (ADR) ?

-conducted in private with no public record required (reduces risk of accidental disclosure of info) -focuses on preserving business relationships -costs are lower than costs of litigation -less time consuming than litigation

What is the Ethical Decision Making process?

1. Define the dilemma 2. Identify impact 3. Apply standards 4. Develop choice & discuss impact w various constituencies 5. Implement, evaluate, monitor

The Bill of Rights consists of the Constitution's first...?

10 amendments

Managers who adopt the style proposed by Adam Smith's invisible hand theory are likely to believe that...?

A deliberate amorality in corporate decision making is required note: "the common good is best served when individuals and their economic institutions pursure not the common good or moral purpose, but rather the competitive advantage"

Differentiate between codes of conduct and codes of ethics

Codes of conduct specify actions in the workplace, and codes of ethics are general guides to decisions about those actions

Congress's broadest powers are derived from the...?

Commerce Clause note: Congress is given the power to "regulate Commerce among the several states."

Joan is on trial for first-degree murder. It is a jury trial in which she is pleading not guilty. Presently, the plaintiff's attorney is asking questions of the witnesses on the plaintiff's list. This is known as ______________.

Direct examination note: occurs after the opening statement

Depositions and interrogatories occur during the ____________ stage of litigation.

Discovery note: used to gather information

True or False Arbitration clauses are rarely used in the context of labor and employment disputes.

False

True or False Business ethics is simply an understanding of what is right or wrong in the workplace, regardless if the ultimate course if action.

False

True or False Federal trial courts within a certain state may not rule on state law issues even in cases where the federal court has jurisdiction.

False

True or False If parties in a dispute have not reached an agreement at the end of a mediation activity, the mediator makes the decision for them, this decision is binding on the parties.

False

True or False In an ideal ethical organization, integrity in the decision-making process is not always considered important.

False

True or False Managing values in the workplace legitimizes managerial actions and strengthens the coherence and balance of the organization's culture. However, it does not cultivate greater sensitivity to the impact of the enterprise's values and messages.

False

True or False Ongoing attention and dialogue regarding values in the workplace builds resistance to openness, integrity, and community.

False

True or False Sending a single e-mail is sufficient to establish personal jurisdiction.

False

True or False State courts cannot have concurrent jurisdiction with federal courts.

False

True or False The increasing integration of advanced technology in product and service delivery has reduced the importance of jurisdiction and venue in planning done by business managers and owners.

False

True or False The legal environment of business is certain; laws are always obeyed, and laws are always enforced.

False

True or False The time spent in alternative dispute resolution (ADR) is much more than that spent in discovery, a civil jury trial, and possible appeal

False

True or False It is not burdensome for a business to comply with the law.

False Because legal rules often have gaps or grey areas, because legal compliance is costly, and because laws are not always perfectly enforced, the legal environment of business in the real world is essentially a strategic environment

True or False Statutory law is the foundation for all other law in the United States and is the supreme law of the land.

False Constitutional law*

True or False Mary sues Moe and wins the case, recieving a court judgement entitling her to the amount of $42,000 from Moe. In this case, Moe is most likely to become the judgment creditor.

False Mary* (the one getting credited $)

True or False Congress may not tax activities or property that it might not be authorized to regulate directly under any of the enumerated regulatory powers.

False May*

True or False In rem jurisdiction when a court uses its quasi in rem jurisdiction to compel a litigant to appear in court by attaching property that belings to the litigant.

False Quasi in rem occurs when a court uses in rem*

True or False The federal government has the inherent power to protect the general welfare of the citizenry.

False States*

True or False Congress may tax only those activities or property that is authorized to regulate directly under any of the enumerated regulatory powers.

False The power to tax is an independent source of federal authority. that it might not be authorized*

True or False A bill is a federal statute passed by Congress and signed into law by the president.

False When Congress is drafting a federal statute, but has not yet passed it or had the executive's concurrence, it is known as a bill

True or False Independent business owners who approach attorneys for resolving their business-related disputes are referred to as counsel.

False Working closely with a business will result in business opportunies. Attorneys, in a business context, may be referred to as a counsel

True or False The Federal Arbitration Act is a statute in which Congress has endorsed the use of mediation as the preferred dispute resolution method in matters governed by federal law.

False arbitration*

True or False When a remedy at law (i.e., money damages) is fully sufficient to bring justice, equitable remedies are permitted.

False are NOT permitted* ...but if inadequate, an injured party may also obtain a remedy at equity

True or False If arbitration is nonbinding, the arbitrator's decision is final unless both parties in the dispute agree to have the case reopened.

False binding*

True or False Values management programs do little to align employee behaviors with the ethical vaues of the organization's top-level management.

False help to align*

True or False Wilma hires Fred, a contractor, to paint her house. When Fred finishes, Wilma refuses to pay him and states that the quality of the job done is not satisfactory. If Fred sues Wilma for breach of contract in a trial court, Fred would be the defendant.

False note: Fred is the plaintiff

True or False The Due Process Clause of the Fifth and Fourteenth Amendments ensure that individuals accused of committing crimes are not subjected to the due process of law.

False note: The Due Process of the 5th & 15th protects individuals from being deprived of "life, liberty, or property" without due process of law

True or False A corporation may be searched by a government agency at any time and for any reason.

False note: a search or seizure conducted by the government is illegal without a warrant

True or False Fundamentally, state trial courts rule on certain points of state law and render a decision. That decision is binding on the parties, and on everyone else.

False note: binding on the parties, but no one else*

True or False In a business context, legal counsel is not only a primary and important source of info and advice but is also solely responsible for making decisions about how to resolve a dispute.

False note: business managers and owners are responsible for decisions regarding how to resolve a dispute

True or False The checks and balances in the U.S. Constitution ensure that the executive branch of the government is always dominant over the other two branches.

False note: checks and balances act as a seperation of powers (equal power)

True or False The Trolley Problem is an exercise in ethical decision-making. The principles there provide a mandated approach to business ethics.

False note: the trolley problem is a thought experiment in ethics

True or False The state trial court in Nevada issued a decision in which a party was found guilty of fraud. Should a case arise in the future with the same basic fact situation, Nevada courts will be bound by precedent to follow the reasoning and decision of thus prior decision.

False note: trial courts do not set precedents. appellate courts set precedents.

True or False Secondary stakeholders of a business generally feel a direct impact of the decisions made by the management of the business.

False primary*

Understanding which primary and secondary stakeholders will be affected is part of the ____________ stage of the ethical decision-making process.

Identifying impact

Ted is on trial for murder. The prosecution must provide ____________ evidence in order to secure Ted's conviction.

Inculpatory note: inculpatory evidence is evidence that tends to prove a criminal offense or civil wrong

____________ is the notion that federal courts have the right to invalidate state or federal laws that are inconsistent with the U.S. Constitution in some way.

Judicial Review

_________________ , roughly defined as the science and philosophy of law, defines several schools of thought that are used to describe various approaches to the appropriate function of law and how legal doctrines should be developed and applied.

Jurisprudence

What is the difference between litigation and trial?

Litigation is broader than that of trial and includes pretrial events as well

What case created judicial review?

Marbury v. Madison

The power granted by the supremacy clause to override a state law is called ____________ ?

Preemption note: for preemption to occur, the federal law must be directly in conflict with the state law to point where the two laws cannot coexist

______________ grants a court specific authorization or jurisdiction over an out-of-state defendant due to the defendant's conduct or other circumstances.

State long-arm statute

Tom believes that adhering to laws and statutes passed by courts of law will make his pesticide manufacturing company socially responsible. In his company, business decisions are simply made to avoid breaking the law. Which theory of corporate social responsibility does Tom most likely follow?

The government hand theory note: ppl of this theory believe that the regulatory hands of the law and the political process provide the basis for ethical decision making

Which of the ethical theories is adopted by a company that strives to act as ethically as possible, even at the expense of some additional profits, as long as the business remains profitable?

The moral minimum theory

What is the primary purpose of state long-arm statutes?

To authorize personal jurisdiction over nonresident defendants

What is the form of appeal in which an appeals court conducts a new trial as if the original trial had never occured?

Trial de Novo

True or False A very simplistic approach to consider when deciding whether a manager or a company is acting in an ethical manner is to apply a "broadcast news test."

True

True or False Adjudicating disputes is one of the primary roles of the U.S. judiciary.

True

True or False Civil litigation is the term used to describe a dispute resolution process in which the parties and their counsel argue their virws of a civi (noncriminal) controversy in a court of law.

True

True or False Courts are guided in their decision not only by the letter of the law but also on the basis that one seeking the aid of a court must come to the court with hands that are unstained by bad faith, misrepresentation, or deceit. This is referred to as the clean hands doctrine.

True

True or False Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.

True

True or False Ethics addresses how one should act, in a given situation, as defined by society.

True

True or False In U.S. v. Jones, 132 S.Ct. 945 (2012), the Court held that a law enforcement agency's use of a GPS device to monitor an individual's movements constiuted a search in violation of an individual's Fourth Amendment rights.

True

True or False Political spending by corporation is a form of protected speech under the First Amendment.

True

True or False Summary jury trials are used primarily in federal courts but have occasionally been used by state courts when there are complex issues to be litigated.

True

True or False The Constituion is composed of a preambke, 7 articles, and 27 amendments

True

True or False Venue is a determination of the mosf appropriate court location for litigating a dispute.

True

True or False When making a business decision, business owners and managers should consider how the decision might affect the company's stakeholders.

True

True or False Decisions of trial reviewed by appellate courts.

True Appellate courts review the decisions of trial courts and have the authority to overturn decisions if they are inconsistent with the current state of the law.

True or False Litigation is likely to have an adverse effect on the business relationship between parties.

True note: litigation, by nature, is adversarial. allegations and defenses may turn antagonistic ADR focuses on preserving the business relationship

True or False One of the general functions of the U.S. Constitution is to provide procedural protections for U.S. citizens from wrongful government actions.

True note: look back at the 3 general fx of constitution

True or False Civil laws are designed to compensate parties for losses as a result of another's conduct.

True note: these "losses" are known as damages

Critics of ____________ argue that the approach amounts to a mathematical formula to decide how ethical decisions affect individuals.

Utilitarianism note: U considers an action to be ethically sound if it produces positive results for most people

Canada applies the country of origin principle in international jurisdiction for Internet transactions. Which of the following is likely to be true of Canada in terms of its jurisdiction standards? a. it applies the law of the country in which the defendant's servers are located b. it makes it difficult for courts to apply a rule of thumb to determine choice of law c. it requires managers to have a fundamental knowledge of the laws of each individual country d. it involves a greater risk of noncompliance to a business

a. it applies the law of the country in which the defendant's servers are located note: the U.S. , Canada, & the E.U. governments have agreed to apply this. This principle allows courts an easy rule of thumb to determine choice of law

Which of the following statements is NOT true of the Federal Arbitration Act (FAA)? a. it spells out specific procedures and formats for conducting arbitration proceedings b. it provides grounds for setting aside arbitrators' rulings c. it offers a means for enforcing arbitration agreements d. it provides a means for enforcing arbitrators' decisions through the use of federal courts

a. it spells out specific procedures and formats for conducting arbitration proceedings

Which of the following is an executive power granted by the U.S Constitution? a. the power to enter into treaties and carry foreign policies b. the power to tax citizens and business and the spending of government funds c. the power to regulate bankruptcy, patents, and copyrights d. the power to invalidate state or federal laws that are inconsistent with the U.S. Constitution

a. the power to enter into treaties and carry foreign policies note: b & c is congressional power d is judicial review

In private arbitrations...? a. the two parties agree to arbitrate b. the arbitrators are federal judges c. the losing party has to get approval of the winning party to appeal to a trial court d. the arbitrator's decision is considered the final decision by both the parties

a. the two parties agree to arbitrate

Which of the following is an application of the power granted to the U.S. Congress by the Commerce Clause? a. to ban discrimination in places of public accomodation such as restaurants b. to invalidate any state law that is in direct conflict with a federal law c. to make all laws necessary for carrying out its enumerated powers d. to tax citizens and businesses and the spending of government funds

a. to ban discrimination in places of public accomodation such as restaurants

Which equitable maxim favors those who exercise caution in pursuing their claims and disfavors those who rest on their legal rights by failing to act to protect their rights in a reasonable period of time? a. substance over form b. equity aids the vigilant c. doctrine of stare decisis d. clean hands doctrine

b. equity aids the vigilant

Which of the following sources of law has a higher priority than the others in the hierarchy of primary sources of federal and state law? a. federal common law b. federal administrative law c. state administrative law d. state common law

b. federal administrative law note: primary sources of law are applied consistent with hierarchy in which one source may trump another source if the two sources conflict. this is preemption

Which of the following statements is true about the USA Patriot Act? a. it regulates health care providers, plans, and plan administrators in gathering, storing, and disclosing medical information about individuals b. it provides increased authority for government officials to access individual and corporate financial records c. it contains appropriate safeguards to prevent invasion of privacy d. it does not create an infrastructure that is designed to prevent government overreaching and protect individual privacy

b. it provides increased authority for government officials to access individual and corporate financial records note: USA Patriot Act was passed after the terrorist attack of 9/11

Black Inc. , a successful shoe manufacturing company, follows the moral minimum ethical philosophy. Which of the following actions is Black most likely to take in compliance with this philosophy? a. it will permit only those unethical practices that are likely to ensure profit for the company b. it will avoid using certain harmful manufacturing processes, even though the processes ensure cost reduction and greater profits c. it will initiate actions that could damage the environment if the actions result in increased productivity for the company and lower costs d. it will give up its ethical codes and ethical ideas to gain a bigger market share and maximize its profits

b. it will avoid using certain harmful manufacturing processes, even though the processes ensure cost reduction and greater profits note: moral minimum theory —> "do no harm"

When compared to the country of origin principle, the country of reception approach to the jurisdiction of Internet transactions...? a. decreases the risk of noncompliance to a business b. requires business managers to have more knowledge of the laws of other countries c. allows an easy rule of thumb to determine the choice of law d. applies the law of the country in which the defendant's servers are located

b. requires business managers to have more knowledge of the laws of other countries note: increase risk of noncompliance

Which of the following is a congressional power granted by the U.S. Constitution? a. the power to enter into treaties b. the power to regulate commerce c. the power to carry out foreign policy d. the power to appoint federal officers and judges

b. the power to regulate commerce note: a, c, & d are executive powers

In which of the following situations does a federal coury have exclusive jurisdiction over cases? a. when the defendant corporation is located in the state b. when the U.S. is a party in the litigation c. when the defendant is a nonresident and owns property in the state d. when either one of the parties does business with an entity outside the state

b. when the U.S. is a party in the litigation (lawsuit)

Law serves as an important catalyst for commerce by... a. removing all legal impositions on international trade b. mandating that business-related crimes are not punishable c. giving some degree of reliability in business planning d. emphasizing the perpetuation of domination

c. giving some degree of reliability in business planning

Which of the following is true of subject matter jurisdiction on the basis of diversity of citizenship? a. a diversity-of-citizenship situation involves only those issues pertaining to countries that recognize dual citizenship b. in a diversity-of-citizenship case, the amount in controversy must not exceed $75,000 c. in a diversity-of-citizenship case, a federal court will apply state law d. a diversity-of-citizenship situation involves issues governed by federal statutes or federal common law

c. in a diversity-of-citizenship case, a federal court will apply state law

In the Dread Pirate Roberts case, U.S. Ulbricht, 31 F. Supp. 3D 54D, one if the issues that the court addressed was whether bitcoin is currency for purposes of the money laundering statutes. In this case, the court... a. dismissdd the part of the case relating to money laundering because it would be unfair to hold the defendant liable for somethjng that was not directly covered in the statute b. did not address the money laundering issue because the defendant's other activities would produce a significant fine and jail sentence c. ruled that someone can violate the money laundering statute by using bitcoin d. ruled that bitcoin is not currency for purposes of the money laundering statute

c. ruled that someone can violate the money laundering statute by using bitcoin

Which of the following is an example of equitable relief? a. a fine imposed for speeding b. a breach of contract c. specific performance d. a statutory scheme

c. specific performance note: remedies- take the form of money damages equity remedy- take the form of an injunction or restraining order

Which of the following is a constitutional restriction on the state regulation of commerce? a. states are free to regulate commerce only if the state law is in direct opposition to the federal law b. states are free to regulate commerce as long as the state law imposes tax on out-of-state businesses c. states are free to regulate commerce as long as the state law is a legitimate effort to regulate health, safety, and welfare d. states are free to regulate commerce only if the commercial activity is interstate and not intrastate

c. states are free to regulate commerce as long as the state law is a legitimate effort to regulate health, safety, and welfare

In the Supreme Court case, Goodyear Dunlop Tires Operation v. Brown, 131 S.Ct. 2846 (2011), the Court found that the foreign subsidiaries of the U.S. parent company...? a. are subject to jurisdiction in the same courts that the U.S. company would be b. had sufficient minimum contacts to be subject to jurisdiction in North Carolina c. were not subject to jurisdiction in North Carolina due to the outer limits on a state court's authority set by the Due Process Clause of the 14th Amendment d. are, under no circumstances, subject to the jurisdiction of a U.S. state court

c. were not subject to jurisdiction in North Carolina due to the outer limits on a state court's authority set by the Due Process Clause of the 14th Amendment

Courts use a 2-prong test to determine whether it has personal jurisdiction over an out-of-state defendant. Which of the following questions is likely to be asked in the 2nd prong that deals with meeting constitutional requirements of fairness and due process? a. does the plaintiff transact business within the state's borders? b. is the court's jurisdiction authorized by a state long-arm statute? c. did the negligent act that resulted in a loss to another party occur within the state? d. does the defendant have some level of minimum contacts with the state?

d. does the defendant have some level of minimum contacts with the state? note: another question asked: has the defendant purposefully availed herself by some affirmative directed to that specific state?

In which of the following circumstances is a court likely to have personal jurisdiction over an out-of-state defendant? a. if the defendant's actions involving an entity of the court's state was unintentional b. when the court's jurisdiction is not authorized by a state long-arm-statute c. when the defendant transacts business outside the state's borders d. if the parties agree to litigate in a specific court

d. if the parties agree to litigate in a specific court

Attorneys who are part of the executive or midlevel management team of large companies are known as.. a. corporate lawyers b. litigator counsel c. business lawyers d. in-house counsel

d. in-house counsel

Which of the following is a secondary source of law? a. stare decisis b. precedent c. federal common law d. restatements of the law

d. restatements of the law note: the most important secondary sources of law (1.) the restatements of the law (2.) various sets of model state statutes drafted by legal experts as a model for state legislatures to adopt in their individual jurisdiction

Which of the following is a type of informal alternative dispute resolution (ADR)? a. arbitration b. mediation c. expert evaluation d. settlement agreement

d. settlement agreement

Which of the following is always true of litigation and arbitration? a. both sides are represented by an attorney b. opening statements are made c. rules of evidence apply d. the hearing is conducted in a formal setting

d. the hearing is conducted in a formal setting

The _______________ is the principle that similar cases with similar facts and issues should have the same judicial outcome.

doctrine of stare decisis note: this allows individuals and businesses to have some degree of confidence that the law will remain reasonably constant

If a state in the U.S. enacts a statute that affects the rights of children born out of wedlock and it is challenged, the courts will most likely examine the constitutionality of the statute applying...?

intermediate-level scrutiny note: courts have used this review when government actions were based on gender or birth status

A ______________ is a type of alternative dispute resolution (ADR) in which a condensed version of the case is presented to the top management from both sides, and proceedings are conducted by a neutral party.

mini-trial