WEEK 1 ARTICLE

Question 1

ethics consists of 4 core components

Answer 1

1. structure: what is right or wrong
2. normative: why is it right or wrong
3. analysis: breaks down from different perspectives
4. evaluation: in this context, what is the best option

Question 2

morality consists of 4 core elements

Answer 2

1. norms: rules that depend on context, culture, family etc, what is expected in a given setting?
2. values: deeper beliefs, can conflict
3. virtues: personal traits, developed through education, upbringing and personal growth
4. interests: tangible/intangible resources needed to follow norms

Question 3

structural analysis (Func…)

Answer 3

functionalism: finding out why people disagree by connecting the norms to their values

Question 4

structural evaluation

Answer 4

which value is more important in this context, it’s about prioritizing them
1. possible options
2. identifying values
3. weighing and ranking values
4. making a reasoned moral judgement

Question 5

Ethics and Law

Answer 5

not everything that is legal is ethical. law provides order but ethics evaluates whether the law itself is just

Question 6

Ethics and Theology

Answer 6

Theology connects morality to religion and divine authority, using sacred texts and faith as the basis for what is right or wrong.

Question 7

Example of a theological vs. ethical reason against stealing?

Answer 7

Theological: “Stealing is wrong because God forbids it.”

Ethical: “Stealing is wrong because it harms others and breaks trust.”

Question 8

How does ethics differ from theology?

Answer 8

Ethics uses rational argumentation, logic, and critical thinking, not religious authority, to decide what is right or wrong

Question 9

How do ethics and psychology differ in their goals?

Answer 9

PSYCHOLOGY wants to UNDERSTAND and EXPLAIN behavior.

ETHICS wants to JUDGE and GUIDE behavior based on moral values.

Question 10

Example of how ethics and sociology differ in focus?

Answer 10

Sociology: DESCRIBES Shell’s behavior in a social or corporate context.

Ethics: asks whether Shell’s actions were MORALLY RIGHT OR WRONG.

Question 11

Example of how ethics and economics differ in focus?

Answer 11

Economics: Explains why a company outsources labor to reduce costs.

Ethics: Questions whether it’s morally right to do so, especially if it exploits workers.

Question 12

three internal factors affecting the validity

Answer 12

1. legal capacity: minor
2. unilateral mistake: you should’ve known
3. ostensible authority:someone appears to have the power to act on behalf of someone else, even if they don’t actually have that legal power.

Question 13

external factors affecting the validity of a contract

Answer 13

1. bilateral: Both parties are mistaken about something important in the contract
2. misinterpretation (fraudulent, negligent, innocent)
3. duress

Question 14

Substance

Answer 14

The International Chamber of Commerce made standard rules to decide WHO IS RESPONSIBLE (liable) for what during international shipping between businesses.

Question 15

form

Answer 15

The International Chamber of Commerce adopted ICC Model Contracts, single formats that can be used in different kinds of B-to-B settings

Question 16

What is the difference between how civil law and common law systems handle contract performance?

Answer 16

Civil law: Courts can force performance (e.g., seizure of assets).

Common law: Courts usually award money (damages) instead of forcing performance.

Question 17

What is the difference between civil and common law when a promise in a contract becomes impossible to perform?

Answer 17

Civil law: The person must pay fair compensation.

Common law: The person pays damages, usually as the default solution.

Question 18

whats the difference between who manages the business: general and limited

Answer 18

general: all partners manage together

limited: only general partners manage the business

Question 19

whats the difference between liability: general and limited

Answer 19

general: unlimited

limited: general unlimited and limited only what they invested

Question 20

whats the difference between the contribution: general and limited

Answer 20

general: money, skill, network

limited: money

Question 21

company limited by guarantee

Answer 21

There are no shareholders with shares like in normal companies: there are members (not always investors) who guarantee to pay a small amount only if the company goes bankrupt.

Question 22

in what kind of companies do they have company limited liability

Answer 22

non profit sharing

Question 23

Concern

Answer 23

a mother company with subsidiaries

Question 24

What is a Societas Europaea (SE)?

Answer 24

A European company form that allows businesses in different EU countries to merge and operate under one legal system.

Question 25

nexus OF contracts

Answer 25

corporations bestaan uit a collection of contracts between different parties

Question 26

nexus FOR contracts

Answer 26

A corporation is used as a legal tool that acts as one single "face" (or party) in contracts. Even though there are many people behind the scenes (shareholders, managers, employees), the company itself is the only one legally signing the contracts.

Question 27

who does entity shielding protect: the owner, company, or creditor?

Answer 27

it protects the company’s assets from being taken away because of the owner’s personal debts.

Question 28

creditor

Answer 28

people the company or owner owes money to

Question 29

entity shielding: priority rule and liquidiation protection

Answer 29

PRIORITY RULE: If both the company and the owner have debts, the people the company owes money to (company creditors) get paid first — before the personal creditors of the owner. liquidation rule: Owners can’t just take their share of the company whenever they want. Their personal creditors also can’t force a sale of their share to get money.

Question 30

What does the "Authority – Delegated Management" rule mean?

Answer 30

It defines who has the power to make decisions, sign contracts, and manage company assets on behalf of the company.

Question 31

Why is delegated authority important in a company?

Answer 31

Because a company is not a person, it needs people with legal authority to act in its name.

Question 32

What does the "Procedures" rule mean in corporate law?

Answer 32

It means that the company itself can be sued, not the individual owners.

Question 33

Why is it important that lawsuits are against the company and not owners?

Answer 33

It protects the owners personally and allows the company to function like a separate legal person.