Exam 4 Flashcards
common law
de facto practices created by precedent torts that have yet to be formalized as statute laws
de facto statute laws
used by govt agencies to force businesses to do things that are beyond the stated legal powers of govt agencies
factors affecting an employers use of the at-will doctrine
explicit contract exceptions implied contract exceptions discrimination suits by protected classes public policy exceptions good faith/fair dealing covenants
good faith and fair dealing covenants
employers must prove “just cause” and the absence of self-interest
natural law theory
the view that eternal human values determine the laws of a society
corporate cronyism
laws are only what people in power want them to be
rent seeking
businesses/professionals band together to haver a state board created whose task is to restrict competition through discriminatory regulations
public-private partnerships
corporations join with local economic development authorities to force private individuals to sell them their land
penumbra of the law
areas where an activity is lawful but in some way harmful or unfair
international law
a collection of contractual arrangements between govts and businesses and between govts and govts
what loophole in the FCPA allows bribery to continue as a practice by American businesses
the law allows for unlimited facilitation payments
facilitation payments
covers both legal and illegal contributions to politicians and bureaucrats in foreign countries to influence their purchasing decisions and their regulatory laws
basic elements in U.S. Federal Sentencing Guidelines for Organizations
penalties apply to corporations, not individuals
fines are based upon a scoring system
corporate officers are to receive formal ethical training
why law alone is not enough
there exists in humanity the idea that one can do anything at which they can’t be caught and if caught, can’t be proven guilty in a court of law
special purpose entities
limited partnerships or companies created to fund or manage risks associated with specific assets
3 key issues in the ethics of accounting and where do they occur?
creative bookkeeping - accounting
conflicts of interest - auditing
hidden fees and an inevitable exposure to higher hidden interest rates - financial
purpose of GAAP
to assure accurate financial statements that present an organization’s true financial stability, operational efficiency, and potential growth
purpose of the sarbanes-oxley act
create a governmental accounting board and mandatory compliance with a broad range of accepted accounting procedures