Legal Environment

Question 1

Law derived from the U.S. or state constitutions

6 Types of Law

Answer 1

Constitutional Law

Question 2

Law based on the U.S. Constitution or a state constitution

6 Types of Law

Answer 2

Constitutional Law

Question 3

outlines the structure of government and protects individual rights

6 Types of Law

Answer 3

Constitutional Law

Question 4

it establishes government powers and individual rights

6 Types of Law

Answer 4

Constitutional Law

Question 5

Laws created by legislatures through statutes or codes; federal or state level

6 Types of Law

Answer 5

Statutory Law

Question 6

Law written and enacted by legislative bodies (Congress or state legislatures

6 Types of Law

Answer 6

Statutory Law

Question 7

Law governing the operation and procedures of government agencies

6 Types of Law

Answer 7

Administrative Law

Question 8

Law that governs the structure and procedures of administrative agencies

6 Types of Law

Answer 8

Administrative Law

Question 9

Rules created by agencies under the authority of statutes; they apply to individuals and businesses

6 Types of Law

Answer 9

Regulatory Law

Question 10

Specific rules created by agencies that apply laws to industries, businesses, or individuals

6 Types of Law

Answer 10

Regulatory Law

Question 11

Law established by court decisions; also called precedent

6 Types of Law

Answer 11

Case Law

Question 12

Legal rules developed from judicial decisions and used as precedent

6 Types of Law

Answer 12

Case Law

Question 13

Traditional law developed through court decisions over time, especially from English legal systems

6 Types of Law

Answer 13

Common Law

Question 14

Judge-made law based on tradition and past decisions, not written statutes

6 Types of Law

Answer 14

Common Law

Question 15

Purpose

Resolves disputes between individuals or entities

Civil Law vs. Criminal Law

Answer 15

Civil Law

Question 16

Parties

Plaintiff vs. Defendant

Civil Law vs. Criminal Law

Answer 16

Civil Law

Question 17

Burden of Proof

“Preponderance of the evidence” (more likely than not)

Civil Law vs. Criminal Law

Answer 17

Civil Law

Question 18

Penalties

Usually monetary damages or court orders

Civil Law vs. Criminal Law

Answer 18

Civil Law

Question 19

Examples (Accounting)

Breach of contract, negligence, shareholder lawsuits

Answer 19

Civil Law

Question 20

Purpose

Punishes offenses against society/government

Civil Law vs. Criminal Law

Answer 20

Criminal Law

Question 21

Parties

Government (Prosecution) vs. Defendant

Civil Law vs. Criminal Law

Answer 21

Criminal Law

Question 22

Burden of Proof

“Beyond a reasonable doubt”

Civil Law vs. Criminal Law

Answer 22

Criminal Law

Question 23

Penalties

Jail, fines, probation, community service

Civil Law vs. Criminal Law

Answer 23

Criminal Law

Question 24

Examples (Accounting)

Fraud, embezzlement, insider trading

Civil Law vs. Criminal Law

Answer 24

Criminal Law

Question 25

The people or entities involved in a lawsuit

Answer 25

"parties" in a legal case

Question 26

The final ruling or judgment made by a court

Answer 26

"decision" in a legal case

Question 27

A written explanation of the court’s decision, including its reasoning and legal basis

Answer 27

court "opinion"

Question 28

regulates financial reporting for companies traded on stock exchanges

Answer 28

U.S. Securities and Exchange Commission

Question 29

States have police powers: the authority to regulate for the health, safety, welfare, and morals of their citizens.

Answer 29

regulatory powers of state governments

Question 30

Standards of right and wrong based on professional codes or principles (e.g., integrity, objectivity) | Ethical, Moral, and Legal Issues in Accounting

Answer 30

Ethical

Question 31

Personal beliefs about right and wrong, shaped by culture, religion, upbringing | Ethical, Moral, and Legal Issues in Accounting

Answer 31

Moral

Question 32

What is required or prohibited by law (statutes, regulations, etc.) | Ethical, Moral, and Legal Issues in Accounting

Answer 32

Legal

Question 33

What you are required or prohibited from doing by government rules | Law vs. Ethics

Answer 33

Law

Question 34

What is considered right or wrong based on professional or societal standards | Law vs. Ethics

Answer 34

Ethics

Question 35

Ethics based on rules, principles, or duties regardless of outcome | Duty-Based vs. Outcome-Based Ethics

Answer 35

Duty-Based Ethics

Question 36

Ethics based on the consequences of actions | Duty-Based vs. Outcome-Based Ethics

Answer 36

Outcome-Based Ethics

Question 37

The greatest good for the greatest number | Duty-Based vs. Outcome-Based Ethics

Answer 37

Outcome-Based Ethics

Question 38

The right thing to do, even if the result is bad | Duty-Based vs. Outcome-Based Ethics

Answer 38

Duty-Based Ethics

Question 39

Which ethical theory focuses on fairness and justice over results?

Answer 39

Duty-based ethic