Exam 1 Halpern Flashcards
(166 cards)
1
Q
What is the relationship between market transactions and legal guidelines?
A
There is no market transaction that occurs outside legal guidelines
2
Q
List the 6 functional areas of business that relate to business law.
A
- Management
- Production
- Transportation
- Marketing
- R&D
- Accounting and Finance
- HR Management
3
Q
What is the purpose of law in business?
A
Rules for what can and can’t be done
4
Q
Differentiate between private law and public law.
A
- Private law: disputes between private individuals or groups
- Public law: disputes between private individuals or groups and their government
5
Q
Provide an example of private law.
A
Business owner can’t pay rent to landlord,
6
Q
Provide an example of public law.
A
Business owner in violation of something
7
Q
What is civil law?
A
Rights and responsibilities between persons and their government
8
Q
What is criminal law?
A
Situations in which someone commits an act against the public as a whole
9
Q
What is constitutional law?
A
General limits and powers of the federal and state governments as stated in their written constitutions
10
Q
Define statutory law.
A
Assortment of rules and regulations put forth by legislatures
11
Q
What are model or uniform laws?
A
Same as statutory but for states
12
Q
What is case law?
A
Collection of legal interpretations made by judges, also known as common law
13
Q
Define precedent.
A
Using past decisions to guide future
14
Q
What does relying on precedent mean?
A
Obeying stare decisis (standing by the decision)
15
Q
What are restatements of the law?
A
Summaries of common laws in a particular area of the law that have been enacted by most states
16
Q
What is administrative law?
A
Collection of rules and decisions made by administrative agencies such as the EPA
17
Q
Define treaties.
A
Binding agreement between 2 states or international organizations
18
Q
What are executive orders?
A
Directives issued by the executive branch
19
Q
What is the idea behind ‘Identification with the Vulnerable’?
A
Society should be fair, with additional attention to the poor, ill, and elderly
20
Q
Describe the Historical School of legal interpretation.
A
Connects future behavior to the behavior of those who previously faced similar problems
21
Q
What is originalism?
A
Theory of interpretation of legal texts
22
Q
Define legal realism.
A
Judges consider more than just the law when ruling a case
23
Q
What is cost-benefit analysis in legal context?
A
Used as a guide for legal change, trying to maximize the ratio of benefits to costs
24
Q
What is the definition of business ethics?
A
Application of ethics to the special problems and opportunities businesspeople experience
Business ethics focuses on the moral principles guiding business conduct.
25
What is an ethical dilemma?
Problem about what a firm should do, for which no clear, right decision is available
## Footnote
Ethical dilemmas often involve complex situations where the best course of action is not evident.
26
Define social responsibility of business.
The expectations the community has for a business that does work in their area
## Footnote
Social responsibility encompasses a business's obligations to act in the interest of society.
27
How does business law relate to business ethics?
Assembling all the facts is the beginning of a thoughtful business decision, next it makes sense to ask if it is legal to go forward with said decision
## Footnote
Understanding legal obligations is crucial for ethical decision-making in business.
28
What can be the consequences of ethical failures in business?
Ethical failures can be bad for business
## Footnote
Such failures can damage reputation and lead to financial losses.
29
True or False: Behavior that looks attractive for profits is always ethical.
False
## Footnote
Attractive profit-making strategies can sometimes be viewed as questionable behavior.
30
Define values in the context of business ethics.
Positive abstractions that capture our sense of what is good or desirable
## Footnote
Values guide ethical discussions and decisions in a business context.
31
What is the challenge businesses face regarding values?
Balancing values and profits is never easy, but can be integral to running a successful business
## Footnote
Companies often struggle to align their operational decisions with their stated values.
32
What does the WH framework stand for in analyzing business decisions?
W = Who, H = How
## Footnote
This framework helps identify stakeholders and the ethical decision-making process.
33
Who are the relevant stakeholders in business decision-making?
* Customers
* Owners
* Management
* Employees
* Community
* Future generations
## Footnote
Recognizing all stakeholders is essential for ethical business practices.
34
What is the universalization test?
Asks us to consider what the world would be like if everyone else made the same decision as us
## Footnote
This test helps evaluate the ethical implications of decisions.
35
What ethical principle does the Golden Rule embody?
Treat others as you would want to be treated
## Footnote
The Golden Rule is a fundamental ethical guideline in business and personal interactions.
36
What is the definition of jurisdiction?
The authority of a court to hear and decide cases.
37
What is the difference between original and appellate jurisdiction?
Original jurisdiction refers to courts that hear cases when they first enter the legal system, while appellate jurisdiction refers to courts that review previous judicial decisions.
38
What are trial courts also known as?
Courts of original jurisdiction.
39
What do appellate courts review?
Previous judicial decisions to determine whether trial courts erred.
40
What does 'in personam jurisdiction' refer to?
Jurisdiction over the person involved in a lawsuit.
41
What is a complaint in legal terms?
A document specifying the factual and legal basis for a lawsuit and what the plaintiff is seeking.
42
What is a summons?
A court order notifying the defendant of the lawsuit and explaining how and when to respond.
43
What is 'service of process'?
The procedure by which courts present legal documents to parties involved in a lawsuit.
44
What are long-arm statutes?
Laws that allow courts to serve defendants outside the state if they have sufficient minimum contacts within the state.
45
What is 'in rem jurisdiction'?
Jurisdiction over a thing, typically property.
46
Define subject-matter jurisdiction.
The court’s power to hear certain kinds of cases.
47
What does 'venue' refer to?
The place where a hearing takes place.
48
What is a forum-selection clause?
A provision in a contract that specifies which court would hear disputes over a breach of the contract.
49
What is standing in legal terms?
The legal right of a person to bring an action in court.
50
What is required for a case to have standing?
The outcome of a case must personally affect the individual bringing the action.
51
What does 'case or controversy' ensure?
That courts do not render advisory opinions.
52
What are the three criteria necessary for a case to exist?
* Relationship between plaintiff and defendant must be adverse
* Actual or threatened actions must give rise to a legal dispute
* Courts must have the ability to resolve the dispute
53
What does 'ripeness' mean in legal terms?
A case is ripe if a judge's decision can affect the parties immediately.
54
What is the purpose of statutes of limitation?
To limit the time during which a plaintiff can file a lawsuit after the cause of action arises.
55
What is the typical time range for civil cases under statutes of limitation?
One to six years.
56
What is the pretrial stage in civil litigation?
The phase where parties attempt to resolve a dispute before formal legal proceedings.
57
What is a default judgment?
A judgment in favor of the plaintiff when the defendant fails to respond to the complaint.
58
What is a counterclaim?
A claim made by a defendant against the plaintiff, included in the answer.
59
What is discovery in civil litigation?
The process enabling parties to learn about facts surrounding the case.
60
What are interrogatories?
Written questions sent by one party to the other to answer under oath.
61
What is a motion for summary judgment?
A request asserting that no factual disputes exist and the law favors the moving party.
62
What is the purpose of a pretrial conference?
To narrow the legal and factual issues and attempt to reach a settlement.
63
What is voir dire?
The process of questioning potential jurors to ensure an unbiased jury.
64
What are peremptory challenges?
Allow parties to challenge potential jurors without giving a reason.
65
What is a directed verdict?
A ruling by the judge in favor of the defendant after the plaintiff has presented their case.
66
What is a motion for a judgment notwithstanding the verdict?
A request for the judge to issue the opposite judgment of the jury's decision.
67
What is appellate procedure?
The process by which a party may appeal a final judgment.
68
What must the losing party argue to be eligible for appeal?
That a prejudicial error of law occurred.
69
What are the four decisions an appellate court can make?
* Affirm the lower decision
* Modify the decision
* Reverse the decision
* Remand for a new trial
70
What does ADR stand for?
Alternative Dispute Resolution.
71
What are the primary forms of ADR?
* Negotiation
* Mediation
* Arbitration
* Summary jury trials
* Minitrials
* Neutral case evaluations
* Private trials
72
What is negotiation in the context of ADR?
A bargaining process where disputing parties meet informally to resolve their dispute.
73
What is mediation?
A process where disputing parties select a neutral party to facilitate the resolution.
74
What is arbitration?
A hearing similar to a trial where an arbitrator provides a decision.
75
What is a summary jury trial?
An abbreviated trial leading to a nonbinding verdict.
76
What is a minitrial?
A process where a neutral advisor spectates arguments and offers an opinion on the likely trial outcome.
77
What is a private trial?
A legally binding judgment offered by a referee selected and paid by disputing parties.
78
What is the primary purpose of criminal law?
Punish offenders
79
Who files charges against a defendant in a criminal case?
Government
80
What is the burden of proof in criminal cases?
Beyond a reasonable doubt
81
What does actus reus refer to?
Guilty act
82
What does mens rea refer to?
Guilty mind
83
What must be proven in a criminal case?
Both actus reus and mens rea
84
What is strict liability?
Liability without fault
85
What are the three classifications of crimes?
Felonies, misdemeanors, petty offenses
86
What is a felony?
Serious crime with minimum imprisonment of 1 year
87
What is a misdemeanor?
Less serious crime, punishable by fines or less than 1 year
88
What are petty offenses?
Minor misdemeanors
89
What is the definition of white collar crime?
Nonviolent illegal acts against society, often in business
90
What is bribery?
Using money to influence a person in a position of trust
91
What is commercial bribery?
Offering payoffs for new information
92
What is extortion also known as?
Blackmail
93
What are the three elements required for fraud?
* Material false representation made with intent to deceive
* Victim’s reasonable reliance on the false representation
* Damages
94
What is stock-option backdating?
Falsifying documents to misrepresent the timing of stock options granted
95
What is false pretense?
Illegal obtaining of property through materially false representation
96
What is forgery?
Fraudulent making or altering of writing affecting legal rights
97
What are some other forms of fraud?
* Health care fraud
* Telemarketing fraud
* Bankruptcy fraud
98
What is embezzlement?
Wrongful conversion of another’s property by someone lawfully in possession
99
What does the term 'computer crimes' encompass?
Any wrongful act directed against or involving computers
100
What is corporate criminal liability?
Corporations can be held criminally accountable for almost any crime
101
What begins criminal proceedings?
An individual being arrested for a crime
102
What must law enforcement obtain before making an arrest?
An arrest warrant
103
What must be read to an individual at the time of arrest?
Miranda rights
104
What is an arraignment?
First appearance after an indictment
105
What is a plea bargain?
Agreement for reduced charges or recommended sentence for pleading guilty
106
What is a bench trial?
A trial where the judge serves as the fact finder
107
What act provides extended penalties for criminal acts as part of a criminal organization?
Racketeer Influenced and Corrupt Organizations (RICO) Act
108
What does the False Claims Act allow employees to do?
Sue employers for fraud against the government
109
What does the Sarbanes-Oxley (SOX) Act of 2002 criminalize?
Specific non-audit services provided by accounting firms to audit clients
110
What is a key difference among state whistleblower protection laws?
To whom the violation may or must be reported
111
What is Administrative Law?
Substantive and procedural rules created by administrative agencies, involving applications, licenses, permits, available information, hearings, appeals, and decision making.
112
Define Administrative agency.
Any body made by the legislative branch that carries out specific duties.
113
What was the first federal administrative agency created by Congress?
Interstate Commerce Commission (ICC).
114
What is the purpose of the Interstate Commerce Commission (ICC)?
To regulate the anticompetitive conduct of railroads.
115
How are administrative agencies created?
Through enabling legislation that specifies the name, functions, and specific powers of the agency.
116
What types of powers do administrative agencies have?
Rulemaking, investigation, adjudication.
117
What is rulemaking in the context of administrative agencies?
The power to issue rules that control individual and business behavior.
118
What are procedural rules?
Rules regarding internal operations of an administrative agency.
119
What are interpretive rules?
Rules explaining how the agency views the meaning of the statutes.
120
What are legislative rules?
Policy expressions that have the effect of law.
121
What executive power is granted to agencies?
The power to investigate potential violations of rules or statutes.
122
What is a subpoena?
An order to appear at a particular time and place and provide testimony.
123
What is a subpoena duces tecum?
An order to appear and bring specified documents.
124
What is adjudication in administrative law?
The power to settle individual disputes that the agency might have with businesses or individuals.
125
What is an Administrative Law Judge (ALJ)?
A judge who presides over an administrative hearing and can issue binding decisions.
126
What is a consent order?
An attempt to reach a settlement.
127
Differentiate between executive and independent agencies.
Executive agencies cover a broad spectrum of industries; independent agencies have narrow authority over particular industries.
128
What is the Administrative Procedures Act (APA)?
Federal legislation that places limitations on how agencies are run and contains specific guidelines on rule making.
129
Describe informal rule making.
An agency publishes a proposed rule, considers public comments, and then publishes the final rule.
130
What is the Federal Register?
The official daily publication for rules, proposed rules, and notices of federal agencies.
131
What is formal rule making?
A process that includes a complete transcript and public hearings as mandated by the enabling statute.
132
What is hybrid rule making?
A combination of formal and informal rule making processes.
133
What is exempted rule making?
Allows an agency to decide whether public participation will be allowed.
134
What is an interpretive rule?
A rule that does not create new rights or duties but explains the agency’s interpretation of an existing law.
135
What are policy statements?
General statements about the directions in which an agency intends to proceed.
136
What is regulated negotiation?
A type of rule making involving mediated bargaining sessions between interest groups and the government agency.
137
What are some limitations on agency powers?
* Political limitations
* Statutory limitations
* Judicial limitations
* Informal limitations
138
What does the Freedom of Information Act require?
Agencies to publish where the public can access information and all records must be published electronically.
139
What does the Government in Sunshine Act require?
Agency business meetings to be open to the public if headed by a collegiate body.
140
What rights does the Privacy Act grant individuals?
* Right to see records about oneself
* Right to amend nonexempt records
* Right to sue the government for violations
141
142
What is a tort?
A wrong or injury to another, other than a breach of contract
## Footnote
The term 'tort' is derived from the French word meaning 'wrong'.
143
What are the three objectives of tort law?
* Provide compensation for injured parties
* Maintain order in society by discouraging private retaliation
* Give citizens a sense of living in a just society
144
Define intentional torts.
Defendant takes an action intending certain consequences will result or knowing certain consequences are likely to result
145
What is a negligent tort?
Defendant acts in a way that subjects others to an unreasonable risk of harm
146
What are strict-liability torts?
Defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, regardless of precautions
147
What are the intentional torts against persons?
* Assault
* Battery
* Defamation
148
What is assault in tort law?
One person places another in fear or apprehension of immediate, offensive bodily contact
149
What is battery in tort law?
Intentional, unwanted, offensive bodily contact
150
What is defamation?
Intentional publication of a false statement harmful to an individual's reputation
151
What distinguishes libel from slander?
Libel is published in a permanent form, while slander is made orally
152
What is food disparagement?
A tort providing ranchers and farmers with a cause of action when someone spreads false information about the safety of food
153
What must be proved to win a negligence case?
* Duty
* Breach of duty
* Causation (actual and proximate)
* Damages
154
What is the reasonable person standard?
Measurement of the way society expects an individual to act in a situation
155
What are the elements of causation in a negligence case?
* Actual cause
* Proximate cause
156
What are compensatory damages?
Damages intended to reimburse a plaintiff for their losses
157
What are punitive damages?
Imposed to punish the offender and deter others from committing the same offense
158
What is gross negligence?
Action committed with extreme reckless disregard for the property or life of another person
159
What is res ipsa loquitur?
A doctrine allowing the judge to infer negligence was the cause of harm despite no direct evidence
160
What must be demonstrated to establish res ipsa loquitur?
* Event ordinarily does not occur in absence of negligence
* Other responsible causes have been eliminated
* Indicated negligence is within scope of defendant's duty
161
What is negligence per se?
Applies when a defendant violates a statute enacted to prevent a certain type of harm from affecting a specific group
162
What is contributory negligence?
Applies where both the defendant and plaintiff were negligent
163
What is the pure comparative negligence defense?
Court determines percentage of fault of the defendant, who is then liable for that percentage of damages
164
What does assumption of the risk mean in negligence claims?
Defendant must prove that the plaintiff voluntarily encountered the risk of the actual harm caused by the defendant
165
What are good Samaritan statutes?
Laws that encourage selfless and courageous behavior by providing legal protection to those who assist others in peril
166
What are the conditions for strict liability?
* Involves a risk of serious harm to people or property
* Inherently dangerous and cannot be safely undertaken
* Not usually performed in the immediate community
