In True/False
False- regards to the Reviewing Ethics and Business Decision Making case at the end of chapter 4, the CEOs
decisions to keep the drugs potential side effects confidential would clearly meet her fiduciary duties to the
company, since those decisions protect the companys short-run profits.
True- The US Constitutions First Amendment does not protect commercial speech as extensively as
noncommercial speech.
False- The US federal government generally enforces agreements to arbitrate disputes between private parties.
Multiple-Choice
Halley, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts.
Utilitarianism focuses on
a.
moral values.
b.
c.
d.
religious beliefs.
the consequences of an action.
the nature of an action.
Home Development Company employs llya to buy property for a future residential development. Ilya secretly
buys some of the property and sells it to Home Development at a profit. Ilya has breached
a.
b.
c.
d.
no duty.
the duty of accounting.
the duty of loyalty.
the duty of notification.
Pixie files a suit against Quiver. Before going to trial, the parties meet, with their attorneys to represent them, to
present their dispute to a third party who is not a judge but who imposes a legally binding resolution on the
parties. This is
a.
b.
c.
d.
arbitration.
mediation.
negotiation.
not a legitimate form of dispute resolution.
Chapter 1: Business and Its Legal Environment
1. Schools of Jurisprudential Thought (2)
The Natural Law of School
The Positivist School
The Historical School
Legal Realism
2. Business Activities and the Legal Environment (4)
Many Different Laws May Affect a Single Business Transaction
Ethics and Business Decision Making
3. Sources of American Law (6)
Constitutional Law
Statutory Law:
o Uniform Laws
o The Uniform Commercial Code
Administrative Law:
o Federal Agencies
o State and Local Agencies
Case Law and Common Law Doctrines
4. The Common Law Tradition (7)
Early English Courts:
o Courts of Law and Remedies at Law
o Equitable Maxims
Legal and Equitable Remedies Today
The Doctrine of Stare Decisis:
o Case Precedents and Case Reporters
o Stare Decisis and the Common Law Tradition
o A Typical Scenario
o Departures from Precedent
o When There is No Precedent
Stare Decisis and Legal Reasoning:
o Basic Steps in Legal Reasoning
o Forms of Legal Reasoning:
Deductive Reasoning
Linear Reasoning
Reasoning by Analogy
There Is No One Right Answer
5. The Common Law Today (13)
The Continuing Importance of the Common Law
Restatements of the Law
6. Classification of Law (14)
Civil Law and Criminal Law
Cyberlaw
7. How to Find Primary Sources of Law (15)
Finding Statutory and Administrative Law
o United States Code
o State Codes
o Administrative Rules
Finding Case Law
o State Court Decisions
Regional Reporters
Case Citations
o Federal Court Decisions
o Unpublished Opinions
o Old Case Law
8. How to Read and Understand Case Law (21)
Case Titles
Terminology
o Parties to Lawsuits
o Judges and Justices
o Decisions and Opinions
Unanimous, Concurring, and Dissenting Opinions
Other Types of Opinions
A Sample Court Case
o Background of the Case
o Editorial Practice
o Briefing Cases
Chapter 2: The Court System
1. The Judiciarys Role in American Government (30)
2. Basic Judicial Requirements (31)
Jurisdiction
o Jurisdiction over Persons or Property
Long Arm Statutes
Corporate Contacts
o Jurisdiction over Subject Matter
General and Limited Jurisdiction
Original and Appellate Jurisdiction
o Jurisdiction of the Federal Courts
Federal Questions
Diversity of Citizenship
o Exclusive versus Concurrent Jurisdiction
Jurisdiction in Cyberspace
o The Sliding-Scale Standard
o International Jurisdictional Issues
Venue
Standing to Sue
3. The State and Federal Court System (37)
State Court Systems
o Trial Courts
o Appellate, or Reviewing, Courts
o Highest State Courts
The Federal Court System
o U.S. District Courts
o U.S. Courts of Appeals
o U.S. Supreme Court
Appeals to the Supreme Court
Petitions Granted by the Court
4. Judicial Procedures: Following a Case through the Court (41)
Procedural Rules
Consulting with an Attorney
o Types of Attorneys Fees
o Settlement Considerations
Pretrial Procedures
o The Pleadings
The Plaintiffs Complaint
Service of Process
Method of Service
Waiver of Formal Service of Process
The Defendants Response
Affirmative Defenses
Counterclaims
o Dismissals and Judgments before Trial
Motion to Dismiss
Motion for Judgment on the Pleadings
Motion for Summary Judgment
o Discovery
Deposition and Interrogatories
Requests for Admission
Requests for Documents, Objects, and Entry upon Land
Request for Examinations
Electronic Discovery
o Pretrial Conference
o The Right to a Jury Trial
o Jury Selection
The Trial
o Opening Statements
o Rules of Evidence
Evidence Must Be Relevant to the Issues
Hearsay Evidence Not Admissible
o Examination of Witnesses
Potential Motion and Judgment
Defendants Evidence
o Closing Arguments, Jury Instructions, and Verdict
Posttrial Motions
o Motion for a New Trial
o Motion for Judgment N.O.V.
The Appeal
o Filing the Appeal
o Appellate Review
o Higher Appellate Courts
Enforcing the Judgment
o Requesting Court Assistance in Collecting the Judgment
o Availability of Assets
Chapter 3: Alternative and Online Dispute Resolution
1. The Search for Alternatives to Litigation (63)
Politics and Law
New Methods Arrangements
2. and Negotiation and Mediation (64)
Negotiation
o Preparation for Negotiation
o Assisted Negotiation
Mediation
o Advantages of Mediation
o Disadvantages of Mediation
3. Arbitration (65)
The Federal Arbitration Act
State Arbitration Statutes
The Arbitration Process
o Submission
o The Hearing
o The Award
Enforcement of Agreements to Submit to Arbitration
o The Issue of Arbitrability
o Mandatory Arbitration in the Employment Context
Setting Aside an Arbitration Award
o Fact Findings and Legal Conclusions
o Public Policy and Illegality
o Defects in the Arbitration Process
o Waiver
o Conflicts of Law
o Choice of Law
Disadvantages of Arbitration
4. The Integration of ADR and Formal Court Procedures (77)
Court-Annexed Arbitration
o A Fundamental Difference
o The Role of the Arbitrator
o Which Rules Apply
o Waiver
Court-Related Mediation
Summary Jury Trials
5. ADR Forums and Services (78)
Nonprofit Organizations
For-Profit Organizations
6. Online Dispute Resolution (78)
Negotiation and Mediation Services
Arbitration Programs
7. International Dispute Resolution (79)
Forum-Selection and Choice-of-Law Clauses
Arbitration Clauses
Chapter 4: Ethics and Business Decision Making
1. Business Ethics (84)
What is Business Ethics?
Why is Business Ethics Important?
Common Reasons Why Ethical Problems Occur
o Short-Run Profit Maximization
o Determining Societys RulesThe Role of Corporate Influence
The Importance of Ethical Leadership
o Attitude of Top Management
o Behavior of Owners and Managers
2. Approaches to Ethical Reasoning (88)
Duty-Based Ethics
o Religious Ethical Standards
o Kantian Ethics
o The Principle of Rights
Outcome-Base Ethics: Utilitarianism
Corporate Social Responsibility
o Stakeholder Approach
o Corporate Citizenship
Creating Ethical Codes of Conduct
o Providing Ethics Training to Employees
o The Sarbanes-Oxley Act and Web-Base Reporting Systems
3. How the Law Influences Business Ethics (91)
The Moral Minimum
o Excessive Executive Pay
o Determining the Legality of a Given Action
The Law Cannot Control All Business Behavior
o Breaking the LawBackdating Stock Options
o Misleading RegulatorsThe Case of OxyContin
Gray Areas in the Law
4. Making Ethical Business Decisions (95)
5. Business Ethics on a Global Level (96)
Monitoring the Employment Practices of Foreign Suppliers
The Foreign Corrupt Practices Act
o Prohibition Against the Bribery Foreign Officials
o Accounting Requirements
o Penalties Violations
Chapter 5: Constitutional Law
1. The Constitutional Powers of Government (106)
A Federal Form of Government
o The Regulatory Powers of the States
o Delineating State and national Powers
Relations Among the States
o The Privileges and Immunities Clause
o The Full Faith and Credit Clause
Separation of the National Governments Powers
The Commerce Clause
o The Expansion of National Powers under the Commerce Clause
o The Commerce Power Today
o Medical Marijuana and the Commerce Clause
o State Actions and the Dormant Commerce Clause
The Supremacy Clause and Federal Preemption
o Preemption of State Laws
o Preemption and State Regulation Aimed at Global Warning
The Taxing and Spending Powers
2. Business and the Bill of Rights (112)
Limits on Both Federal and State Governmental Actions
Freedom of Speech
o Reasonable Restrictions
o Corporate Political Speech
o Commercial Speech
o Unprotected Speech
Obscene Speech
Online Obscenity
Subsequent Attempts to Regulate Online Obscenity
Freedom of Religion
o The Establishment Clause
o The Free Exercise Clause
Searches and Seizures
o Search Warrants and Probable Cause
o Searches and Seizures in the Business Context
o Border Searches of Computers
Self-Incrimination
3. Due Process and Equal Protection (120)
Due Process
o Procedural Due Process
o Substantive Due Process
Equal Protection
o Strict Scrutiny
o Intermediate Scrutiny
o The Rational Basis Test
4. Privacy Rights (122)
Federal Statutes Affecting Privacy Rights
o Medical Information
o The Patriot Act
Other Laws Affecting Privacy
Chapter 8: International Law in a Global Economy
1. International Law (175)
Sources of International Law
o International Customs
o Treaties and International Agreements
o International Organizations
Common Law and Civil Law Systems
International Principles and Doctrines
o The Principle of Comity
o The Act of State Doctrine
When A Foreign Government Takes Private Property
Doctrine May Immunize a Foreign Governments Actions
o The Doctrine of Sovereign Immunity
2. Doing Business Internationally (178)
Exporting
Manufacturing Abroad
o Licensing
o Franchising
3. Regulation of Specific Business Activities (179)
Investing
Export Controls
Import Controls
o Quotas and Tariffs
o Antidumping Duties
Minimizing Trade Barriers through Trade Agreements
o The European Union
o The North American Free Trade Agreement
o The Central America-Dominican Republic United States Free Trade
4. U.S. Laws in a Global Context (182)
The Sarbanes-Oxley Act
Antidiscrimination Laws
International Tort Claims
Chapter 18: Corporations
4. Directors, Officers, and Shareholders (452)
Role of Directors
o Committees of the Board of Directors
o Corporate Officers and Executives
Duties and Liabilities of Directors and Officers
o Duty of Care (457)
o Duty of Loyalty (458)
Chapter 19: Agency
3. Duties of Agents and Principals (485)
Agents Duties to the Principal
o Performance
o Notification
o Loyalty
o Obedience
o Accounting