Legal Environment of Business Midterm
Closed meetings of the U.S. Bureau of Land Management, a federal administrative agency, are permitted when
1. the subject of the meeting concerns accusing a person of a crime 2. open meetings would frustrate the implementation of future actions 3. the subject of the meeting involves matters relating to future rulemaking.
Equal Protection Clause
14th amendment clause that prohibits states from denying equal protection under the law, and has been used to combat discrimination
corporate social responsibility
A business corporation that acts to ensure its employees are treated fairly and its operations minimally impact the environment is applying the concept of
Code of Hammurabi
A collection of 282 laws. One of the first (but not THE first) examples of written law in the ancient world.
Delegation Doctrine
A constitutional rule that allows Congress to give some of its authority to agencies is referred to as the
Primary Sources of Law
A document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision.
adjudication
A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is
negotiation
A process in which parties attempt to settle their dispute informally, with or without attorneys to represent them.
false
A resident of one state, when in another state, can be denied the privileges and immunities of that state for any reason.
Civil Rights Act of 1964
Among other things, deals with discrimination, equal access, and desegregation.
Securities Act of 1933
Among other things, governs initials sales of stock to investors; prohibits deceit, misrepresentation and fraud; and provides investor protections by requiring information.
Sarbanes-Oxley Act of 2002
Among other things, provided for more internal controls and accountability as well as certain certification and monitoring requirements.
a payment of money or property.
An award of damages is
Securities and Exchange Act of 1934
Applies to securities exchanges and the industry and provides for continuous disclosure.
the supremacy clause
Article VI of the Constitution, which makes the Constitution, national laws, and treaties supreme over state laws when the national government is acting within its constitutional limits.
exhaust all possible administrative remedies
Bath & Kitchen Inc. is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, the firm wants a court to review it. First, however, the firm must
the natural law tradition
Believing that a higher, or universal, law exists that applies to all human beings, and that each written law should reflect the principles inherent in this higher law, is
cross-examination
Bess files a suit against Chet over the sale of Dairy Farm. During the trial, after the plaintiff's attorney is finished questioning the first witness, the witness is subject to
under the minimum-contacts test
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing
the establishment clause
Clause in the First Amendment that says the government may not establish an official religion.
a. the profits. b. the people. c. the planet.
Considering the triple bottom line requires looking at how business decisions impact all of the following
Procedural due process
Constitutional requirement that governments proceed by proper methods; limits how government may exercise power.
arbitration
Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is
true
Corporations enjoy many of the same rights and privileges as natural persons do.
in rem jurisdiction
Court jurisdiction over a defendant's property.
Congress, through enabling legislation.
Data Inc. pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
Foreign Corrupt Practices Act of 1977
Deals primarily with bribery and accountability.
the principle of rights theory
Deciding if something is ethical by looking at how it affects others' rights.
offer her opinions and conclusions
During the trial of a suit concerning liability for an accident involving Cartage Ltd. and Docking Inc., the plaintiff's attorney presents evidence from Emma, a commercial accident reconstruction specialist. With respect to the evidence in the case that falls within Emma's field, she can
Small Business Regulatory Enforcement Act
Federal agencies must prepare guides that explain in plain English how small businesses can comply with federal regulations.
an appellate court
Ginny and Haruto present their case to an Idaho state court for resolution. The court defers to a different Idaho court's findings of fact in the case, and focuses on the application and interpretation of the law to the dispute. The court currently deciding Ginny and Haruto's dispute is
Harvest was notified of the suit.
Grain Farm Inc. files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that
substantial business between Jen and Heyli through Heyli's website.
Heyli is not a resident of Iowa although her website can be accessed by residents of that state. Jen files a suit against Heyli in an Iowa state court. The court is most likely to have jurisdiction over Heyli if Jen's claim arises from
in rem jurisdiction.
Hobbes, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jules, a resident of Kentucky. Jules files a suit against Hobbes in Indiana. Regarding this suit, Indiana has
will be awarded a default judgment
Ihlan initiates a lawsuit against Juno, alleging that Juno has not paid her rent for six months and Ihlan wants her to vacate her apartment. The sheriff serves a summons. Juno does not respond. Ihlan
outside the federal executive departments.
Independent regulatory agencies such as the Federal Communications Commission are
mediation
Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is
Voir dire
Jury selection process of questioning prospective jurors, to ascertain their qualifications and determine any basis for challenge.
the establishment clause
Kansas 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. Lo-Price Stores files a suit to block the law's enforcement. The court would likely hold that this law violates
Kylie
Khloe brings suit against Kylie for defamation, for spreading nasty personal rumors about her that are not true. Kourtney is a witness for Khloe, and Kendall is a witness for Kylie. Kim, who just recently graduated law school and passed the bar exam in California, has been hired by Kylie to represent her in the case. Who is the defendant?
Administrative Procedures Act
Law that specifies the procedural requirements that all federal agencies must follow in their rulemaking, adjudication and other functions.
statutory law
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as
Privacy rights
Liberties protected by several amendments in the Bill of Rights that shield certain personal aspects of citizens' lives from governmental interference, such as the Fourth Amendment's protection against unreasonable searches and seizures.
negotiation
Liz and Moss disagree over the amount due under their contract. To avoid involving a third party in the resolution of their dispute, Liz and Moss could resolve their dispute through
by a preponderance of the evidence
Loni files a civil suit against Meme's Bridal Shop, seeking to recover the amount of a refund for an undelivered wedding dress. To succeed, the plaintiff must prove her case
a federal question is involved.
Maris files a suit against Ngu in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to the state's highest court. After that court's review of Maris v. Ngu, a party can appeal the decision to the United States Supreme Court if
the supremacy clause.
NatGas Corporation obtains a federal license to operate a gas pipeline through a certain area of Oregon. The Oregon state legislature enacts a law that bans gas pipelines in that area. Most likely, the state law violates
U.S. Bureau of Land Management
National agency that is in charge of managing public lands
the state provision will not be enforced
On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
an equitable remedy
Ordering a party to perform what was promised is
symbolic speech.
Power Company creates a t-shirt design to express support for state tax credits favoring the use of energy-efficient products. The firm distributes the t-shirts to many of its customers. The t-shirts are an example of
the principle of rights theory
Ray, the manager of Soy Farm Inc., must decide whether to plant genetically modified seed that could spread to the crop of an adjacent farm, whose owner opposes its use. Not using the seed could cut Soy's production and profitability, impacting its owners, employees, creditors, and others. If Ray considers all of these factors in making his decision, he is likely applying
Freedom of Information Act
Requires federal government to disclose records on request, but denial can be challenged in court.
Government in the Sunshine Act
Requires that "every portion" of every meeting be open to "public observation" with limited exemptions.
an appellate court
Reviews decisions of the lower court
direct examination
Sharp Machine Company files a suit against Tseng Parts Ltd., alleging a defective shipment of goods. During the trial, the plaintiff's attorney calls the first witness and asks questions. This questioning is called
A. Court decisions from a higher court in the jurisdiction. c. Rules and regulations of the Federal Trade Commission. d. A section of the Revised Missouri State Statutes. e. An article of the Missouri Constitution.
Sources of law that courts must follow in deciding a case are called binding authority. Binding authority includes
a peremptory challenge
Sportsfield Inc. files a suit against Tailgate Services. Before the trial, during the jury selection process, Sportsfield's attorney asks, without providing any reason, that one of the potential jurors not be sworn in. This is
general jurisdiction
State trial courts that are called county, district, superior, or circuit courts are most likely to have
standing to sue
Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have
issue a formal complaint.
The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can
a subpoena
The Environmental Protection Agency (EPA) wants Waste Disposal Company to produce certain records for review. The EPA can gain access to the records through
the president.
The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of
publish a notice of the proposed rulemaking.
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is
Which of the following are considered primary sources of American law?
The U.S. Constitution and state constitutions.
a preponderance of the evidence
The burden of proof in a civil case. Refers to when the totality of the evidence exceeds a 50% likelihood that the law was violated.
civil law
The classification of law that concerns the rights and duties that exist between persons and between citizens and their government is
a court trying a case should be in the geographic neighborhood of the incident or parties in dispute
The concept of venue reflects the policy that
the president's veto powers
The executive branch of the government can exercise control over an administrative agency through
standing to sue
The legal requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit.
a remedy
The means to enforce a right or compensate for the violation of a right is
Moral Minimum
The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.
a peremptory challenge
The right of a lawyer during jury selection to have a potential juror dismissed without having to give a reason.
police powers
The state of Florida can regulate building contractors and building codes in the state under its
a deposition
The testimony of a party to a lawsuit or of a witness taken under oath before a trial.
a deposition.
To prepare for a trial between Sky Quest Inc. and Telescope Company, the plaintiff's attorney places the defendant's chief executive officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is
equal protection
To reduce traffic, Market Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of
the case is being heard for the first time
Ty, a citizen of Utah, files a suit in a Utah state court against Vancouver Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that
the plaintiff
When Lara and Mick cannot resolve their dispute amicably, Lara initiates a lawsuit against Mick. Lara is
Regulatory Flexibility Act
Whenever a new regulation will have a "significant impact upon a substantial number of small entities," the agency must conduct an analysis to measure the cost that the rule would impose on small businesses and consider less burdensome alternatives.
Code of Hammurabi
Which of the following is considered to be the earliest forerunner to modern day law?
corporate social responsibility
a business's concern for society's welfare
When profit maximization is the goal
a company does benefit from ethical behavior.
A precedent is
a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.
a subpoena
a court order requiring appearance and/or testimony
the plaintiff
a person who brings a case against another in a court of law.
cost-benefit analysis
a study that compares the costs and benefits to society of providing a public good
the defendant
an individual or group being sued or charged with a crime
Under the full faith and credit clause
any judicial decision in one state with respect to contract rights will be honored and enforced in all states.
Secondary Sources of Law
books and articles that summarize and clarify the primary sources of law
general jurisdiction
court that can hear almost any kind of case
Corporate "citizenship"
involves making decisions beyond just maximizing profits and dividends.
Stare decisis
let the decision stand, a doctrine under which judges follow established precedents.
symbolic speech.
nonverbal communication, such as burning a flag or wearing an armband. The Supreme Court has accorded some symbolic speech protection under the first amendment.
Common law rules develop from
principles underlying judges' decisions in actual controversies.
arbitration
settling a dispute by agreeing to accept the decision of an impartial outsider
police powers
state power to effect laws promoting health, safety, and morals
utilitarianism
the doctrine that actions are right if they are useful or for the benefit of a majority.
A cost-benefit analysis is part of
utilitarianism
The Sarbanes-Oxley Act
was enacted to reduce the number of unethical business decisions by requiring the accountability of publicly traded companies.