Unit 2: Legal and Ethical Environment of Business

Question 1

Law that is based on the U.S. Constitution and the constitutions of the various states

Answer 1

Constitutional Law

Question 2

US Constitution is the supreme law of the land

Answer 2

Supremacy Clause

Question 3

State Constitutions are supreme within state borders to the extent that they do not conflict with the US Constitution

Answer 3

Constitutional Law

Question 4

The body of law enacted by legislative bodies at any level of government

Answer 4

Statutory Law

Question 5

laws passed by a local governing unit, such as a city or a county

Answer 5

local ordinances

Question 6

includes local ordinances

Answer 6

Statutory Law

Question 7

no statute may violate the US Constitution or relevant state constitution

Answer 7

Statutory Law

Question 8

suggested legislation (model statutes) suggested so that every state has the same rules

Answer 8

Uniform Laws

Question 9

facilitates commerce among the states by providing a uniform, yet flexible, set of rules governing commercial transactions

Answer 9

Uniform Commercial Code

Question 10

adopted by all 50 states

Answer 10

Uniform Commercial Code

Question 11

Consists of the rules, orders, and decisions of federal, state, and local administrative agencies

Answer 11

Administrative Law

Question 12

a federal, state, or local government agency created by the legislature to perform a specific function

Answer 12

administrative agency

Question 13

President has the power to appoint and remove officers

Answer 13

Executive Agency

Question 14

Officers serve for fixed terms and cannot be removed without just cause

Answer 14

Independent Regulatory Agency

Question 15

The rules of law announced in court decisions

Answer 15

Case Law

Question 16

interprets statutes, regulations, constitutional provisions, and other case law

Answer 16

Case Law

Question 17

governs all areas not covered by statutory law or administrative law and is part of our common law tradition

Answer 17

Case Law

Question 18

(judge-made law) is the foundation on which our legal system is built

Answer 18

Common Law

Question 19

The body of law (principles and doctrines) developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature

Answer 19

Common Law

Question 20

only govern areas not covered by statuary or administrative law

Answer 20

Common Law doctrines and principles

Question 21

land, items of value, or money

Answer 21

Remedies at law

Question 22

specific performance, injunction, and recission of contractual obligation

Answer 22

Remedies of equity

Question 23

A court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts

Answer 23

precedent

Question 24

judges are obligated to follow the precedents established by a prior court case in their jurisdiction

Answer 24

Stare Decisis

Question 25

Exceptions: ▪ Argue Fact Pattern is different therefore past rule does not apply ▪ Court decides their past ruling were incorrect

Answer 25

Stare Decisis

Question 26

Any source of law that a court must follow when deciding a case

Answer 26

binding authority

Question 27

The process of evaluating how various laws apply to a given situation

Answer 27

legal reasoning

Question 28

The process by which a judge harmonizes his or her opinion with the judicial decisions in previous cases

Answer 28

legal reasoning

Question 29

Basic Steps in legal reasoning

Answer 29

IRAC Method: Issue, Rule, Application, Conclusion

Question 30

1.) Issue: What are the key facts and issues? 2.) Rule: What rule of law applies to the case? 3.) Application: How does the rule of law apply to the particular facts and circumstances of this case? 4.) Conclusion: What conclusion should be drawn?

Answer 30

IRAC Method: Issue, Rule, Application, Conclusion)

Question 31

The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters

Answer 31

Civil Law

Question 32

The branch of law that defines and punishes wrongful actions committed against the public (wrongs against society)

Answer 32

Criminal Law

Question 33

is concerned with wrongs committed against the public as a whole

Answer 33

Criminal Law

Question 34

the party initiating a lawsuit

Answer 34

Plaintiff or Petitioner

Question 35

the party against whom a lawsuit is brought

Answer 35

Defendant or Respondent

Question 36

the party appealing the case (party who lost and is appealing)

Answer 36

Appellant

Question 37

the party against whom the appeal is taken (party who won at trail level)

Answer 37

Appellee

Question 38

A statement by a court expressing the reasons for its decision in a case

Answer 38

Opinion

Question 39

# Written Opinions of the Court (at appellate level) opinion of the court, does not indicate which judge wrote the opinion

Answer 39

*per curiam* opinion

Question 40

# Written Opinions of the Court (at appellate level) opinion of the most judges but not enough for the majority

Answer 40

plurality opinion

Question 41

# Written Opinions of the Court (at appellate level) a court opinion that presents the views of one or more judges or justices who disagree with the majority’s decision

Answer 41

dissenting opinion

Question 42

# Written Opinions of the Court (at appellate level) written by a judge voting with the majority but setting out the judge rational behind his/her/their decision

Answer 42

concurring opinion

Question 43

# Written Opinions of the Court (at appellate level) a court opinion that represents the views of the majority (more than half) of the judges or justices deciding the case

Answer 43

Majority opinion

Question 44

# Written Opinions of the Court (at appellate level) when all the judges (or justices) agree

Answer 44

unanimous opinion

Question 45

A system of government in which the states form a union, and the sovereign power is divided between a central government and the member states

Answer 45

federal form of government

Question 46

the Constitution sets forth specific powers that can be exercised by the national (federal) government.

Answer 46

Federal Powers

Question 47

It further provides that the national government has the implied power to undertake actions necessary to carry out its expressly designated powers

Answer 47

Federal Powers

Question 48

All other powers are expressly “reserved” to the states under what commandment to the US Constitution?

Answer 48

10th Commandment

Question 49

makes the laws

Answer 49

Legislative Branch

Question 50

enforces the laws

Answer 50

Executive Branch

Question 51

interpret the laws

Answer 51

Judicial Branch

Question 52

responsible for foreign affairs, but treaties, must have consent of the senate

Answer 52

Executive Branch

Question 53

can enact laws but executive branch can veto the law

Answer 53

Legislative Branch

Question 54

has the power to hold actions of other branches as unconstitutional

Answer 54

Judicial Branch

Question 55

# Regulatory Powers of the States The Tenth Amendment reserves all powers not delegated to the national government to the states or to the people

Answer 55

State powers

Question 56

# Regulatory Powers of the States Powers possessed by states as part of their inherent sovereignty

Answer 56

Police Powers

Question 57

# Regulatory Powers of the States The power to govern themselves

Answer 57

sovereignty

Question 58

The quality of having independent authority over a geographic area

Answer 58

sovereignty

Question 59

# Provisions concerning relations among the states: Article IV, Section 2 (U.S. Constitution): requires states not to discriminate against one another's citizens

Answer 59

Privileges and immunities clause

Question 60

# Provisions concerning relations among the states: “Full Faith and Credit shall be given in each State to the public Acts, Records, and Judicial Proceedings of every other State.”

Answer 60

full faith and credit clause

Question 61

# Provisions concerning relations among the states: Article I, Section 8 (U.S. Constitution): gives Congress the power to regulate interstate commerce

Answer 61

commerce clause

Question 62

# Provisions concerning relations among the states: provision in Article VI of the U.S. Constitution that provides that the Constitution, laws, and treaties of the United States are “the supreme Law of the Land.”

Answer 62

Supremacy clause

Question 63

# Provisions concerning relations among the states: Article I, Section 8: Congress has power to collect taxes and pay the debts of the country

Answer 63

Taxing and Spending Power

Question 64

# Bill of Rights * freedom of speech * freedom of press, assembly, petition * freedom of religion

Answer 64

First Amendment

Question 65

# Bill of Rights against unreasonable search and seizures (need search warrant)

Answer 65

Fourth Amendment

Question 66

# Bill of Rights Self-incrimination: cannot be forced to give testimony that can result in incriminating self

Answer 66

Fifth Amendment

Question 67

# Bill of Rights Due Process Clause – applies to legal person (individuals and corporations).

Answer 67

Fifth and Fourteenth Amendment

Question 68

right to a notice and opportunity to be heard

Answer 68

Due Process Clause

Question 69

looks at the substance of legislation. Is it fair and reasonable and does it have a legitimate purpose

Answer 69

Substantive Due Process

Question 70

# Bill of RIghts Equal Protection of the Laws – govt cannot enact laws that treat similarly situated individuals differently

Answer 70

Fourteenth Amendment

Question 71

used when dealing with restricting fundamental rights

Answer 71

strict scrutiny

Question 72

used in gender or legitimacy cases

Answer 72

intermediate scrutiny

Question 73

used in matters of economic or social welfare

Answer 73

rational basis test

Question 74

Supreme Court in 1965 ruled that a constitutional right to privacy was implied by the First, Third, Fourth, Fifth, and Ninth Amendments

Answer 74

privacy rights

Question 75

people can request copies of personal information held by the government

Answer 75

Freedom of Information Act

Question 76

protects health information and limits disclosure of this information by health care providers

Answer 76

Health Insurance Portability and Accountability Act (HIPAA)

Question 77

Both are trying to guide human behavior, especially our social behavior to each other

Answer 77

Law and Ethics

Question 78

moral principles and values applied to social behavior

Answer 78

Ethics

Question 79

a consensus of what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting

Answer 79

Business Ethics

Question 80

the minimum degree of ethical behavior expected of a business firm, which is usually defined as “compliance with the law”

Answer 80

The moral minimum

Question 81

The idea that investors and others should consider not only corporate profits, but also the corporation’s impact on people and on the planet when assessing the firm

Answer 81

triple bottom line

Question 82

A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand

Answer 82

Ethical Reasoning

Question 83

An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet

Answer 83

duty-based ethics

Question 84

nearly every religion has principles or beliefs about how one should treat others

Answer 84

religious ethical principles

Question 85

The principle that human beings have certain fundamental rights

Answer 85

principle of rights

Question 86

An ethical philosophy that focuses on the impacts (outcomes) of a decision on society or on key stakeholders, not on the nature of the action itself

Answer 86

outcome-based ethics

Question 87

The concept that corporations can and should act ethically and be accountable to society for their actions

Answer 87

corporate social responsibility (CSR)

Question 88

IDDR Framework

Answer 88

* Inquiry * Discussion * Decision * Review