Exam 3

Question 1

The ancient Greek philosophers often questioned the claim that statute laws really represent a society’s values. This questioning created a discipline now known as the

Answer 1

Philosophy of Law

Question 2

The view of Socrates

in Plato’s Republic

Answer 2

Laws derive from man’s

innate sense of justice.

Question 3

the view that morality is inherently rational and objective

Answer 3

Moral Intellectualism

Question 4

the view that eternal human values determine the laws of a society

Answer 4

Natural law theory

Question 5

The view of Thrasymachus

in Plato’s Republic

Answer 5

Laws are only what people in power want them to be.

Question 6

the view that rulers create moral principles so their society can be controlled

Answer 6

Voluntarism

Question 7

This term captures the essence of the view of Thrasymachus

in Plato’s Republic

Answer 7

Corporate Cronyism

Question 8

The five historic forms of power potentially available to one individual

Answer 8

1. guns & muscle (e.g. personal guards)
2. expertise (e.g. a law degree)
3. economic power (land, stocks, cash, etc.)
4. political power (the ability to rally a large number of individuals)
5. military power (all of the above)

Question 9

In this, businesses or professionals band together to have a state board created whose task is to restrict competition through discriminatory regulations.

Answer 9

Rent Seeking

Question 10

The 1943 Parker Case

Answer 10

In this, the Supreme Court held that private parties acting in concert with state government are not constrained by Federal anti-trust laws.

Question 11

In this, Corporations join with local Economic Development Authorities (EDAs) to force private individuals to sell them their land.

Answer 11

Public-Private Partnerships.

Question 12

Kelo v. City of New London

Answer 12

In this case the Supreme Court ruled that the general benefits a community enjoys (trans. greater good) from economic growth qualified private redevelopment plans as a permissible “public use” under the Takings Clause of the Fifth Amendment.

In this the Supreme Court ruled that a business, if in partnership with government, can use eminent domain; if it can be proved the outcome will raise the amount of collectible property taxes

Question 13

Corporate cronyism most often takes the form of lobbying for laws that serve to deprive consumers of the right of consent. This can take an otherwise legitimate business to a gray area called:

Answer 13

The penumbra of the law

Question 14

The accepted norms

of one’s society

Answer 14

Ethos

Question 15

The study of word origins

Answer 15

Etymology

Question 16

The study of rules relating to interpersonal relationships

Answer 16

Morality

Question 17

A set of principles, virtues, and values governing social interactions which sustains accepted fundamental rights for all.

Answer 17

Moral Philosophy

Question 18

The process of deciding what is fair and not fair with respect to people you know

Answer 18

Moral Judgment

Question 19

4 key aspects of Morality

Answer 19

1. More culturally based
2. More often involves private matters
3. Contract violations are personal
4. Religion supplies the codes of conduct

Question 20

4 key aspects of Integrity

Answer 20

1. More universal and professionally based
2. More often involves public matters
3. Contract violations are institutional
4. Profession supplies the codes of conduct

Question 21

These are governed by the unwritten rules of decorum and ethos.

Answer 21

Conformity expectations

Question 22

The willingness and ability to conform to the standards of hygiene, dress and behavior culturally expected for the situation at hand.

Answer 22

Decorum

Question 23

The set of informal shared values, norms, behavioral standards, and expectations that influence the ways in which individuals, teams, and groups interact to achieve company goals.

Answer 23

Organizational Culture

Question 24

a tendency to bow to peer pressure even when it goes against one’s better judgment

Answer 24

Acceptance Dependency

Question 25

In this, two or more parties establish the rules by which they will interact with each other.

Answer 25

Contract law

Question 26

In this, though both parties legally have equal rights, one is in some way disadvantaged

Answer 26

Contractual Inequality

Question 27

For businesses and professionals these are defined by conformity expectations and one’s organizational culture.

Answer 27

Implicit contracts

Question 28

This takes place when one holds to two contractual obligations, either explicit or implicit, one to each of two competing parties

Answer 28

Conflict of Interest

Question 29

As used in contract law, this term refers to important information necessary to one's ability to make a proper decision

Answer 29

Material

Question 30

One where the contractor fully discloses all material information to the client

Answer 30

Fair Contract

Question 31

A Big Boy Letter

Answer 31

Def. 1: A pre-sale agreement [ esp. a private sale of publicly traded securities] not to sue over non-disclosure of material information. Def. 2: These arise when a contract covers many complex issues in which both parties have expertise

Question 32

The doing of all one can | do to prevent harm

Answer 32

Due Diligence

Question 33

This process of methodically communicating with customers to ensure the collection of accounts receivable is considered to be unethical when it takes on the form of harassment

Answer 33

Dunning

Question 34

a term in contract law that describes a declaration by the promising party (client) to a contract, that he or she does not intend to live up to his or her obligations under the contract if unforeseen circumstances arise

Answer 34

Anticipatory repudiation

Question 35

a voluntary breach with payment of damages by a party who concludes that they would incur greater economic loss by performing under the contract

Answer 35

efficient breach of contract

Question 36

Anyone who is bound by the contract at hand.

Answer 36

Contractor

Question 37

The three most common causes of a breach of contract claim

Answer 37

1 a failure to supply goods or fulfill services 2 a post-signing altering of terms 3 the presence of fraud

Question 38

The three kinds of contractual fraud

Answer 38

1 Misrepresentation of facts 2 Misrepresentation of laws 3 Silence with regard to material facts

Question 39

One who holds esoteric knowledge in something

Answer 39

Scienter

Question 40

Knowledge belonging only to the most educated in a given field

Answer 40

Esoteric

Question 41

The three primary kinds of damages (money amount) awarded in contractual fraud cases

Answer 41

1 compensatory – this reimburses a direct loss (financial or otherwise) to the victim. (the wedding dress was never delivered $800.00) 2 Consequential – often called special damages, this reimburses an indirect loss (financial or otherwise) to the victim (the caterer had to be paid $3,000 for nothing because the wedding had to be called off.) 3 nominal – this assesses a small amount against the defendant where a misrepresentation is not material, but a point needs to be made. (A roofing contractor failed to thoroughly clean up the yard of a client after the job was completed and was sued by the homeowner)

Question 42

a wrongful act, either intentional or unintentional, for which the courts might award compensatory damages

Answer 42

Tort

Question 43

a term referring to those improper behaviors or acts that have crossed the line from something inappropriate to being a breach of contract, a tort, or a crime

Answer 43

Actionable

Question 44

A defendant in a tort (lawsuit)

Answer 44

Tortfeasor

Question 45

In this a business knowingly engages in conduct that causes physical harm, psychological harm, or loss of property

Answer 45

Intention

Question 46

These are awarded when harm by a professional or company is accompanied by ethical misconduct.

Answer 46

Punitive Damages

Question 47

In this, a business causes harm through a failure in Due Care

Answer 47

Negligence

Question 48

Doing all one can do to prevent an accident, act of discrimination, or other harm

Answer 48

Due Care

Question 49

A legal concept that means a manager or business owner can be held personally responsible for injury or damage caused by an employee because managers are responsible for employee conduct in the workplace.

Answer 49

Vicarious Liability

Question 50

A threat to employers created by the use of office computers by employees as a device to engage in activities harmful to others.

Answer 50

Cyber Liability

Question 51

Torts from cyber liability are most often based on:

Answer 51

Defamation Breach of privacy Stalking Harassment

Question 52

an area of tort law carrying liability for compensatory damages where the linkage to harm done is based merely upon participation in a product’s supply chain.

Answer 52

Strict liability

Question 53

This arrangement has investors buy into a non-territorial franchise of some kind and then make their money by selling franchises to other investors.

Answer 53

Pyramid scheme

Question 54

This arrangement has investors buy into an investment pool, whose profits appear to come from the fund’s success but in fact come from come from the cash inputs of other investors. In this investors don’t know the game

Answer 54

Ponzi scheme

Question 55

The four factors common to most Ponzi schemes

Answer 55

1. Its prime agent is charismatic with excellent “people skills.” Bernie Madoff is a former chairman of NASDAQ 2. Promises of a financial return are unusually high. 3. Early investors realize the promised return, encouraging others to invest. 4. The “profits” of early investors mostly come from the cash inputs of later investors.

Question 56

The formal laws of a | politically defined society

Answer 56

Statute Law

Question 57

Something that is actual, not by statute but by practical necessity or outcome

Answer 57

De facto

Question 58

De facto practices created by precedent torts (well known cases used by judges in their decision making) that have yet to be formalized as statute laws.

Answer 58

Common Law

Question 59

An employer’s common law right to terminate employment

Answer 59

At-will Employment

Question 60

Oral statements or employee handbook statements stating that employment termination will be done according to principles of due process

Answer 60

Implied contract exceptions

Question 61

With these, discharge is subject to state laws protecting employees circumstantially affected

Answer 61

Public Policy Exceptions

Question 62

a collection of contractual arrangements between governments and businesses and between governments and governments.

Answer 62

international law

Question 63

The Foreign Corrupt Practices Act (FCPA)

Answer 63

FCPA is enforced jointly by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The Act encompassed all the ‘secondary’ measures that were currently in use to prohibit such behavior by focusing on two distinct areas: *Disclosure – the Act required corporations to fully disclose any and all transactions conducted with foreign officials and politicians, in line with the SEC provisions. *Prohibition – the Act incorporated the wording of the Bank Secrecy Act and the Mail Fraud Act to prohibit the movement of funds overseas for the express purpose of conducting a fraudulent scheme

Question 64

This politically correct term covers both legal and illegal contributions to politicians and bureaucrats in foreign countries to influence their purchasing decisions and their regulatory laws.

Answer 64

Facilitation Payments

Question 65

This is created by the reception of unsolicited gifts which could have the effect of bribery

Answer 65

Passive Corruption

Question 66

This is created by the giving of solicited or unsolicited gifts with the intent to have the effect of bribery

Answer 66

Active Corruption

Question 67

There are three basic elements in the U. S. Federal Sentencing Guidelines for Organizations

Answer 67

1. Penalties apply to corporations, not individuals. 2. Fines are based upon a scoring system. 3. Corporate officers are to receive formal ethical training.

Question 68

This voluntary entity, founded in 1976, promotes ten elements common to many Business Codes of Conduct

Answer 68

The OECD

Question 69

``` The Organization for Economic Cooperation and Development (OECD) has 10 divisions ```

Answer 69

(they will not be on the exam)

Question 70

``` The Organization for Economic Cooperation and Development (OECD) has 10 divisions ```

Answer 70

The UN Global Compact

Question 71

The UN Global Compact This entity, founded in 1999, promotes international “good corporate citizenship” by promoting:

Answer 71

1. human rights 2. fair labor standards 3. environmental protection 4. a rejection of corrupt practices

Question 72

To do more than required

Answer 72

Supererogation

Question 73

McGregor’s | Theory X and Theory Y.

Answer 73

Theory Y – Managers assume people are inherently motivated and will feel unfulfilled if they do not have the opportunity to achieve Theory Y Managers tend to be much more successful at motivating employees than Theory X Managers.

Question 74

“The Big Five” personality traits belonging to highly motivated people.*

Answer 74

1. Extraversion: outgoing – high sociable – talkative – assertive 2. Agreeableness: good natured – cooperative – Trustful, slow to express feelings of jealousy 3. Conscientiousness: achievement oriented – responsible – persevering – dependable 4. Openness: adventurous – intellectual – imaginative - cultured 5. Emotional Stability: calm – poised

Question 75

Workplace motivation and de-motivation are based on psychological factors

Answer 75

Herzberg’s Two Factor Theory