Module 4: Legal Environment Flashcards
Deontological Theories:
ethical obligations regardless of the consequences (principles of being human, natural rules that effect humans, consequences are not the issue, question is what is the right behavior
John Locke’s Natural Rights,
Immanuel Kant categorical imperative
John Locke’s Natural Rights: rights of life, health, liberty, natural intrinsic, universal inalienable. Basis of Declaration of Independence; Immanuel Kant: categorical Imperative: ethical obligations regardless of preferences or consequences- can’t do something bad to someone as a means to a greater good
Consequentialist theories: Utilitarianism:
Jeremy Bentham and John Stuart Mill
Focus on impact rather than motives
An action is justified if it does the greater good for the greatest number of people
Conflicts of Interest
Concurrent Conflict: cannot simultaneously represent two sides of the same lawsuit, or two clients if the representation of one will significantly impair ability to represent another client;
Former conflict: cannot represent a client in the same or substantially similar matter if client’s interests are materially adverse to the former client, unless consent in writing; Cannot have separate business relationship with a client unless reasonable and in writing
Shareholder Primacy versus Stakeholder/Social Entity Theory
Shareholder Primacy Theory: public corporations are designed to maximize shareholder value - period; Stakeholder/Social Entity Theory (more recent concept): corporations are also responsible to community, environment, well-being of their workforce, etc
Claims/Challenges against Administrative Agencies
appear before Administrative Law Judges (ALJs), can appeal with their internal appellate body - then can take action to court after exhausting administrative remedies first; ALJ proceedings have more relaxed evidentiary standards
Administrative Procedure Act
Federal statute that governs agencies and sets their procedures for law-making and adjudication, sets process of developing regulations
Sherman Act
Designed to prevent companies from acquiring or using undue monopoly power, designed to protect consumers; law must determine whether business practices are reasonable or not: Horizontal and Vertical Agreements, Exclusive Distribution, Price Discrimination
Horizontal Agreements (Per Se)
Restricted by Anti-trust law, agreements between competitors: Price Fixing, Production Quotas: limiting supply to drive up prices, Group Boycotts: nominal competitors agree to not sell to or buy from an entity to gain favorable terms, Market Division to form defacto monopolies
Vertical Agreements
restricted by anti-trust law, between producer an buyer: Price-related (per se) agreements,
Tie-in Agreements
Clayton Act
prohibits mergers and acquisitions that reduce competition or create monopolies, must be analyzed by FTC
Hart-Scott-Rodino Act (now section 7a of Clayton Act)
companies planning to merge must notify FTC and Justice Department
Fair Labor Standards Act
sets minimum wage, requires overtime pay, prevents child labor
National Labor Relations Board
Enforces National Labor Relations Act, Protects collective bargaining rights to form unions, bars employers from interfering with forming and taking action via unions
Employee Retirement Income Security Act (ERISA)
Regulates defined benefit contribution pension plans - guaranteed defined amount of money
Title VII of Civil Rights Act of 1964
prohibits discrimination based on race, color, religion, sex, national origin; Applies to hiring, firing, compensation, promotion and retaliation for filing a discrimination complaint; prohibits workplace sexual harassment
Employment At Will Doctrine
Employers can terminate for any non-discriminatory reasons and employees can quit for any reason
Equal Employment Opportunity Commission
federal agency for EEO claims which you would consult first before going to court
Product Liability: Defect Types
Can be Manufacturing Defect, Design Defect, Inadequate Warning Defect
Product Liability: Theories of Liability
Intentional Tort (intentional release of defective product), Negligence, Strict Liability (unreasonably dangerous products provided by commercial suppliers, liable regardless of fault or intent, part of the cost of doing business)
Federal Trade Commission, Department of Consumer Protection, Consumer Financial Protection Bureau
set regulations to protect consumers including deceptive advertising and more recent CFPB protection regarding financial services
Equal Credit Opportunity Act
regulates against discrimination by those who give credit
Gramm-Leach-Bliley Act
when financial services take your information, what they’re required to do to keep it private
Lanham Act
protects consumers with trademark laws that prevent logo/company deception, as well as the company’s reputation attached to that design/logo
International Business Treaties
regulate trade with other countries; supersede state laws as part of Supremacy Clause; interpreted by Int’l Court of Justice
No Foreign Sovereign Immunity
companies involving US commercial activities or dealings with direct impact on US business dealings can sue foreign government in the US
Expropriation Clause
international equivalent of the takings clause, companies can sue to be made whole again
World Trade Organization and GATT
WTO administers General Agreement on Tariffs and Trade (GATT): Four principles: no discrimination against foreign goods, no favored nations, preference for goods from less developed countries, more transparency in setting regulations
Convention on Int’l Sale of Goods
default sales contract for selling/receiving goods with foreign countries
