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Law is a body of enforceable rules governing relationships among individuals and between individuals and their society.
Legal positivists believe that law should reflect universal moral and ethical principles that are part of human nature.
The doctrine of stare decisis obligated judges to follow precedents established in their jurisdictions.
Common law develops from rules of law announced in court decisions.
Statutory law is legislation.
A federal statue takes precedence over the U.S. Constitution.
Congress enacted the Uniform Commercial Code for adoption by the states.
Criminal law covers disputes between persons, and between persons and their governments.
In most states, the same courts can grant legal or equitable remedies.
A citation includes the name of the judge who decided the case.
Taylor is a legal positivist. Taylor believes that
the written law of a society at a particular time is most significant.
In a suit between Best Products, Inc., and Central Sales Corporation, the court applies the doctrine of stare decisis. This means that the court follows rules of law established by
courts of higher rank only.
In a suit between Delta Data Company and Eagle Info, Inc., the court applies the doctrine of stare decisis. This requires the court to find cases that, compared to the case before it, has
similar facts.
In a suit between Retail Outlets Company and Shoppers Mall, Inc., the court orders a recession. This is
an action to cancel a contract and return the parties to the positions they held before the contact’s formation.
In a given case, most courts may grant
equitable remedies, legal remedies, or both.
The U.S. Constitution takes precedence over
a state constitution, statute, and court decision.
Case law includes interpretations of federal and state
administrative rules, statutes, and constitutions.
Civil law concerns
disputes between person, and between persons and their governments.
The sources of international law include
international customs, organizations, and treaties, and national law.
A concurring opinion, written by one of the judges who decides a case before a multi-judge panel, is
a separate opinion that agrees with the court’s ruling but for different reasons.
Ethics is the study of what constitutes right and wrong behavior.
A background in business ethics is as important as knowledge of specific laws.
The minimal acceptable standard for ethical behavior is compliance with the law.
According to utilitarianism, it does not matter how many people benefit from an act.
The best course towards accomplishing legal and ethical behavior is to act responsibly and in good faith.
The ethics of a particular act is always clear.
To foster ethical behavior among employees, managers should apply ethical standards to which they are committed.
If an act is legal, it is ethical.
The roles that women play in other countries can present ethical problems for U.S. firms doing business internationally.
Bribery of public officials is only an ethical issue.
Trent is a marketing executive for Unique Appliance Company. Compared to Trent’s personal choices, his actions in the business world require the application of
the same ethical standards.
Darby, an employee of Equipment Sales, Inc., takes a duty-based approach to ethics. Under this standard, Darby believes that she must
avoid unethical behavior regardless of the consequences.
Mikayla, chief financial officer of Napoli Chocolate Company, adopts religious ethical standards. These involve an element of
Eve, an employee of Sterling Credit Bank, takes an outcome-based approach to ethics. With this approach, Eve believes that she must
achieve the greatest good for the most people
Don is a manager with Engineering Aviation Systems. At a company ethics meeting, Don’s most effective argument against utilitarianism is that it
justifies human costs that many person find unacceptable.
In resolving an ethical problem, in most cases a decision by Oil Production Services, or any business firm, will have a negative effect on
one group as opposed to another.
Ethical standards would most limey be considered violated if Light and Sound Services, Inc., represents to Studio Film Production Company that certain services will be performed for a stated fee, but it is apparent at the time of the representation that
the actual charge will be substantially higher.
Stefanie, the president of Hiway Trucking, Inc., tries to ensure that Hiway’s actions are legal and ethical. To ensure this result, the best course of Stefanie and Hiway is to act in
good faith.
Pew, an executive with Black Spot Corporation, follows that “principle of rights” theory, under which an action may be ethical depending on how it affects
the rights of others.
Tresure Trove, Inc., a U.S. corporation, makes a side payment to the minister of commerce of Tuvalu (an island country in the Pacific Ocean) for a favorable business contract. In the United States, this payment would be considered
illegal and unethical.
Under a long arm statute, a state court can obtain jurisdiction over an out-of-state defendant.
Doing substantial business in a jurisdiction over the Internet can be enough to support a court’s jurisdiction over an out-of-state defendant.
The United States Supreme Court is the final authority for any case decided by a state court.
Suits involving federal questions originate in federal district court.
An answer may admit or deny the allegations in a complaint.
A motion for summary judgment may be supported by sworn statements and other materials.
Only a losing party may appeal to a higher court.
Most lawsuits go to trial.
In mediation, a mediator makes a decision on the matter in dispute.
Most states do not enforce arbitration clauses.
Cris serves a complaint on Dru, who files a motion to dismiss. If the motion is denied
Dru will be given time to file another response.
Tierra Company files a suit agains Undersea Corporation. Before the trial, Tierra can obtain from Undersea
access to related documents in Undersea’s possession.
Enterprise Realty Company, which is based in Florida, owns commercial property in Georgia. A dispute arises over the ownership of the property with Holly, a resident of Idaho. Holly files a suit against Enterprise in Georgia. In this suit, Georgia has
in rem jurisdiction.
Centre Hotels Corporation was incorporated in Delaware, has its main office in New Jersey, and does business in New York. Centre is subject to the jurisdiction of.
Delaware, New Jersey, or New York.
Simplex Packaging, Inc., loses its suit against Tempura Foods Corporation. Simplex’s best ground for an appeal is the trial court’s interpretation of
the law that applied to the issues in the case.
Jon files a suit agains Keyes, and loses. Jon appeals, and loses again. The United States Supreme Court is
not required to hear the case.
USA Corporation, which is based in Texas, advertises on the Web. A court in Illinois would be most likely to exercise jurisdiction over USA if the company
conducted substantial business with Illinois resident through its Web site.
Gabriella files a suit against Huey. Before going to trial, the parties meet with their attorneys to represent them, to try to resolve the dispute without involving a third party. This is
Cobb and Roberts submit their dispute to binding arbitration. A court can set aside the arbitrator’s award if
the award violate public policy.
Jill submits a claim against Ken to LetsSettle.com, an online dispute resolution forum. An appeal of this dispute may be made to a court by
Jill or Ken.
A federal form of government is one in which a central authority holds all power.
The president can hold acts of Congress and of the courts unconstitutional.
Congress can regulate any activity that substantially affects commerce.
A state law that substantially impinges on interstate commerce is unconstitutional.
When there is a direct conflict between a federal law and a state law. the federal law is invalid.
Some constitutional protections apply to businesses.
The Bill of Rights protects against various types of interference by the federal government only.
Any restriction on commercial speech is unconstitutional.
Due process and equal protection are different terms for the same thing.
A right to privacy is not specially guaranteed in the U.S. Constitution.
Of the three branches of the federal government provided by the Consititution, the branch that makes the laws is
the legislative branch.
TriState Business Corporation markets its products in three states. Under the commerce clause, Congress can regulate
any commercial activity in the United States.
Southeast Shipping Company challenges an Alabama state statue, claiming that it unlawfully interferes with interstate commerce. A court will likely
balance Alabama’s interest in regulating the matter against the burden on interstate commerce.
A Nevada state statue bans business entities from making political contributions that individuals can make. A court would likely hold this statute to be
constitutional under the First Amendment.
An Ohio state statute bans certain advertising to prevent consumers from being misled. A court would likely hold this statute to be
constitutional under the First Amendment.
Procedures used in Oklahoma and other states in making decisions to take life, liberty, or property are the focus of constitutional provisions covering
procedural due process.
A Vermont statute that limits the liberty of all persons to engage in a certain activity may violate constitutional provisions covering
substantive due process.
A Harbor City ordinance that restricts most vendors form doing business in a heavily trafficked area might be upheld under constitutional provisions covering
equal protection.
If South Carolina enacts a statute that directly conflicts with a federal law
the federal law takes precedence.
The First Amendment protects Nancy and others from
dissemination of obscene materials and speech that harms their good reputations or violates state criminal laws.

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