A consensus as to what constitutes right or wrong behavior in business and the application of moral principal to situations that arise in a business setting
Business ethics
Minimum degree of ethical behavior expected of a business firm which is usually defined as compliance with the law
Moral Minimum
The purchase of shares of a companys own stock by that company on the open market
Stock buyback
An agreement that grants the owner the option to buy a given number of shares of stock usually within a set time period
Stock option
A reasoning process where an individual links his or her moral convictions or ethical standards to the situation on hand
Ethical reasoning
Developed by Immanuel Kant
Decides whether an action is right or wrong desirable or undesirable a person should evaluate the action in terms of what would happen if everybody acted the same way
Categorial imperative
Human beings have certain fundamental rights and people who adhere to this believe that a key factor in determining whether a business decision is ethical is how the decision affects the rights of various groups
Principle of rights
An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it rather than on the basis of any absolute ethical or moral values
A good decision is one that results in the greatest good for the greatest number of people
Utilitarianism
A decision making technique that involves weighing the costs of a given action against the benefits of that action
Cost benefit analysis
The idea that corporations can and should act ethically and be accountable to society for their actions
Corporate social responsibility
A system of government in which the states form a union and the sovereign power is divided between the central gov and member states
Federal form of government
Where is the commerce clause located?
Article 1 section 8
Gives congress the power to regulate interstate commerce
Commerce clause
Powers possessed by the states as part of their inherent sovereignty
They may be exercised to protect or promote the public order health safety morals and general welfare
Police powers
Where is the supremacy clause found?
Article 6
Provides that the constitution laws and treaties of the USA are the supreme law of the land
State and local laws that directly conflict will be invalid
Supremacy clause
A doctrine under which certain federal laws preempt or take precedence over conflicting state or local laws
Preemption
What amendment deals with police powers?
10
Freedom of speech religion press and the rights to assemble and petition
1 amendment
Well regulated militia and right to bear arms
2 amendment
Prohibits lodging of soldiers
3 amendment
No unreasonable searches and seizures
4 amendment
Right to indictment by grand jury
Due process
Fair payment
No self incrimination
No double jeopardy
5 amendment
Right to speedy and public trial
Right to cross examine witnesses
6 amendment
Right to trial by jury in civil case more than 20 dollars
7 amendment
No cruel and unusual punishment
8 amendment
People have rights + constitution
9 amendment
Establishes powers not delegated to the states
10 amendment
Nonverbal expressions of beliefs that include gestures movements and articles of clothing
Symbolic speech
Meta tag
Key word
Where is the establishment clause?
1 amendment
Where is the free exercise clause?
1 amendment
Prohibits gov from establishing any state sponsored religion or favoring one religion over the other
Establishment clause
Prohibits the gov from interfering with peoples religious practices or forms of worship
Free exercise clause
Where is due process found?
5 and 14 amendments
Guarantees that no person shall be deprived of life liberty or property without due process of law
Due process clause
Where is the equal protection clause found?
14 amendment
Guarantees that no state will deny to any person within it's jurisdiction the equal protection of the law
State gov must treat similarly situated people in a similar matter
Equal protection clause
An administrative agency rule that carries the same weight as a congressional enacted statute
Legislative rule
Doctrine based on article 1 section 8 which has been construed to allow congress to delegate some of it's power to make and implement laws to administrative agencies
Delegation doctrine
APA
Administrative procedure act
Actions undertaken by administrative agencies when formally adopting new regulations or amending old ones
Notifying the public of proposed rules or changes and receiving and considering public comments
Rulemaking
A procedure in agency rulemaking that requires notice, opportunity for comment, and a published draft of the final rule
Notice and comment rulemaking
Rendering a judicial decision
In admin process the proceeding in which an admin law judge hears and decides on issues that arise when an admin agency charges person or firm with violating law or regulation
Adjuducation
An agencies deposition in a matter other than a rulemaking
Becomes final unless appealed
Initial order
The final decision of an administrative agency on an issue
If no appeal it becomes final order of the agency
Final order
A civil wrong not arising from a breach of a legal duty that causes harm or injury to another
Tort
Monetary amount awarded by a court in civil action to compensate a plaintiff for injury or loss
Damages
Compensatory damages
Money award equivalent to the actual value of injuries or damage sustained by aggrieved party
Punitive damages
Monetary damages that may be rewarded to a plaintiff to punish defendant
One who commits a tort
Tortfeasor
Any word or action inteded to make another person fearful of immediate phyiscal harm
A reasonably believable threat
Assault
The unprivileged intentional touching of another
Battery
A reason offered and alleged by a defendand in an action or suit as to why the plaintiff should not revcover or establish what she or he seeks
Defense
Capable of serving as the basis of a lawsuit.
One of these claims can be persued in a lawsuit or other court action
Actionable
Anything published or publicly spoken that causes injury to another's good name, reputation, or character
Defamation
Defamation in writing or other form having the quality of permancence
Ex. Digital Recording
Libel
Defamation in Oral form
Slander
A legal right, exemption, or immunity granted to a person or class of persons. In context of defamation, an absolute privilege immunizes the person making teh statements from a lawsuit, regardless of whether the statements were malicious.
Privilege
The deliberate intent to cause harm, which exists when a person makes a statement either knowing that it is false or showing a reckless disregard for whether it is true.
In defamation, a statement made about a public figure normally must be made with this for the plaintiff to recover damages
Acutal Malice
In tort law, the use by one person of another person's name, likeness, or other identifying characteristic without permission and for the benefit of the user
Appropriation
Any misrepresentation, either by misstatement or by omission of a material fact, knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment
Fraudulent Misrepresentation
A salesperson's often exaggerated claims concerning the quality of property offered for sale.
Ex. Opinons rather than facts and are not considered to be legally binding promises or warranties
Puffery
Business behavior that is undertaken with the intention of unlawfully driving competitors out of the market
Predatory Behavior
The entry onto, above, or below the surface of land owned by another without the owner's permission or legal authorization
Trespass to land
The unlawful taking or harming of another's personal property
Interference with another's right ot the exclusive possession of his or her personal property
Trespass to personal property
Wrongfully taking or retaining possession of an individuals personal property and placing it in the service of another
Conversion
An economically injurious falsehood made about another's product or property
A general term for torts that are more specifically referred to as aslander of quality or slander of title
Disparagement of Property
The publication of false information about another's product, alleging that it is not what its seller claims
Slander of quality
The Publication of a statement that denies or casts doubt on another's legal ownership of any property, causing financial loss to that property's owner
Slander of Title
The failure to exercise the standard of care that a reasonable person exercise in similar circumstances
Negligence
The duty of all persons as established by tort law to exercise a resonable amount of care in their dealings with others.
Failure to exercise due care which is normally determined by the reasonable person standard, constitutes the tort of negligence
Duty of Care
The standard of behavior expected of a "reasonable person"
The standard against which negligence is measured and that must be observed to avoid liability for negligence.
Reasonable Person Standard
A person such as a customer or a client who is invited onto business premisis by the owner of those premisis for buisness purpose.
Business Invitee
Professional misconduct or the lack of the requisite degree of skill as a professional.
Negligence on the part of a professional, such as a physician, is commonly referred to as this.
Malpractice
An act or omission without which an event would not have occurred.
Causation in Fact
Legal cause.
Exists when the connection between an act and an injury is strong enought to justify imposing liability
Proximate cause.
A doctrine under which a plaintiff may not recover for injuries or damage suffered form risks he or she knew of and voluntarily assumed.
Assumption of Risk
A rule in tort law that completely bars the plaintiff from recovering any damages if the damage suffered is partly the plaintiffs own fault.
Used in a minority of states.
Contributory Negligence
A rule in tort law that reduces the plaintiffs recovery in proportion to the plaintiffs degree of fault, rather than barring recovery completly.
Used in majority of states.
Comparative Negligence
A doctrine under which negligence may be inferred simply because an event occured, if it is the type of event that would not occur in the absence of negligence. Literally meaning the facts speak for themselves.
Res Ispa Loquitur
An action or failure to act in violation of a statutory requirement.
Negligence Per Se
A state statute stipulating that persons who provide emergency services to, or recue, someone in peril cannot be sued for negligence unless they act recklessly, thereby causing further harm.
Good Samaritan Statute
A state statute that imposes liability on the owners of bars and taverns as well as those who serve alcholic drinks to the public, for injuries resulting from accidents caused by intoxicated persons when the sellers or servers of alcholic drinks contributed to the intoxication
Dram Shop Act
A network of computers that have been apporopriated without the knowledge of their owners and used to spread harmful programs via the internet.
Botnet
Liability regardless of fault.
In tort law, strict liability is imposed on a manugacturer of seller that introduces into commerce a good that is unreasonably dangerous when in a defective condition.
Strict Liability
The legal liablilty of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.
Product Liability
A seller's or lessor's oral or written promise, ancillary to an underlying sales agreement, as to the quality, description, or performance of the goods being sold or leased
Express Warranty
An implicit promise made by a seller of goods that the goods are fit for the reasonably fit for the general purpose for which they are sold, are correctly packaged and labeled and are of proper quality
Implied Warranty of Merchantability
An implicit promise made by a seller of goods that teh goods are fit for the particular purpose for which the buyer will use the goods. The seller must know the buyer's purpose and be aware that the buyer is relying on the seller's skill and judgement to select suitable goods.
Implied warranty of fitness for a particular purpose.
In product liability, a product that is defective to the point of threatening a consumer's health and safety. It must be
-Dangerous beyond the expectation of the ordinary customer
-A less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.
Unreasonly Dangerous Product
Basically, a statue of limitations that is not dependent on the happening of a cause of action.
These generally begin to run at an earlier date and run for a longer period of time then statutes of limitations
Statute of Repose
Commercial and non commercial activities that affect interstate commerce.
Part of the commerce clause.
Affectation doctrine.
Do states have authority to regulate interstate commerce?
___ speech may be regulated by federal government.
All
Better to let someone speak then provide remedy then to not let them speak at all.
Overarching principle (Prior Restraint)
Promotes commerce
Valuable info to the public
Why commercial speech is protected
Fighting words
Speech which offends community moral standards (porn)
Clear and present danger (FIRE)
Exceptions for first amendment speech.
Can't be denied life, liberty, property.
Due Process
Determining whether the substance of a law is fair and whether it provides fundamental rights.
Substantive Due Process
Where is equal protection located?
14th amendment
Laws that draw distinction between groups of people
Equal Protection
3 tests for equal protection?
1. Rational Basis
2. Intermediate Scrutiny
3. Strict Scrutiny
Who usually wins in rational basis test?
The defendant
Smoking Ordinance
21 Ordinance
Rational Basis Examples
Gender, Varnum
Example of Intermediate Scrutiny
Challenged law involves fundamental right.
Race, Religion, Nationality.
Internment of Japanese Americans.
Examples of Strict Scrutiny
Is there a explicit right to privacy in the constitution?
No.
Most regulation that effects business comes from....
Administrative Law
Who passes enabling legislation?
Congress
1. Name of agency
2. Composition
3. Powers of agency
Enabling legislation
1. Rulemaking
2. Enforcement by
-Investigation
-Adjuication
Administrative power
Administrative Procedures Act (APA) dictates process to be followed depending on two different types of rules.
How an administrative rule gets made.
One type of administrative rule:
-Just a notice and comment
Most common form of rulemaking.
Informal
One type of administrative rule:
-Rulemaking on record
Formal.
A type of agency rule that isn't binding on the courts.
Interpretative
A type of agency rule that is binding.
Internal.
Procedural
Notices, Statements of purpose, and Opportunity for comment, are all forms of this type of rulemaking.
Informal
You publish this type of rule in the federal register which business look at all the time, and there could be a more formal hearing for a comment process.
Formal.
Agencies can inspect, issue subpoenas, or search and seize in this step of enforcing administrative rules.
Investigation
An agency can investigate, negotiate a settlement, file a formal complaint and answer in this step of enforcing administrative rules.
Adjudication
Tort law involves:
Legal duty owed to plaintiff.
A breach of that duty.
Injury resulting from that breach.
Damages that compensate you for your injury
Compensatory
Damages that discourage other businesses to do the same thing.
Get a lot of press.
Punitive
You meant to do what you did OR
You knew it could happen OR
You should have known.
Intentional torts
Consent
Self Defense
Defense for Assault and Battery
For a tort to be that of defamation it needs these 4 things:
Words likely to hurt reputation
False
Communicated to a 3rd party
Injury
Opinion
Public Personalities
Privilege
Truth
Defenses to Defamation
Commercial Exploitation
Intrusion
False Light
Disclosure of embarrassing private facts
Privacy Torts
Taking someone's property and making it your own
Conversion
Using something that belongs to someone without their permission
Trespass to personal property
Injure someone's property economically
Disparagment
In negligence, a plaintiff must prove by a preponderance of the evidence that...
1. Legal duty of care owed
2. Breach of that duty
3. Legally recognized injury
4. The breach caused that injury
A defense to Negligence
Plaintiff knew the injury could result
Plaintiff took the chance with knowledge
Assumption of Risk
A defense to negligence
Unforeseeable intervening event
Superseding cause
A defense to negligence
Plaintiff had the last opportunity to avoid injury but didn't
Creeper van story/roadrunner
Last Clear Chance
A defense to negligence
Plaintiff waited too long to bring case
Starts when plaintiff should have known of injury
Statute of Limitations
Res Ipsa Loquitur
Thing speaks for itself/ the fact that it happened
The concept of insuring human rights through law is based primarily in which school of law
NATURAL
One belief that is consistent among all of the various schools of law is that once a law is validly passed,
all citizens have an obligation to follow the law, regardless of an
individual’s personal beliefs or conscience.
True or False
FALSE
If you receive a ticket for jaywalking (i.e. crossing against the traffic light) at a corner in downtown
Iowa City, your best argument in court would be based on which of the following
schools of law?
REALISM=How people behave!
Although stare decisis is the preferred decision model, judges are not
obligated to follow this principle when making decisions on cases.
True or False?
FALSE
The U.S. Code sets out all decisions of the U.S. Supreme Court and other important federal court
decisions.
True or False?
FALSE, US Code=statutes.
Our reliance on case law refers
to our use of trial court decisions as precedent.
True or False?
FALSE, appellate not trial
The Uniform Commercial Code is
an example of federal law that is applied to all states.
True or False?
FALSE, state law
In certain cases defined by the Constitution, the U.S. Supreme Court must take
original jurisdiction; that is they must hear the case in the first place.
True or False?
TRUE
"An Unjust law is no law at all!"
NATURAL
The reliance on stare decisis
is important to facilitate our ability to change laws with some frequency as
our views on various subjects change over time.
True or False?
FALSE
Texting while driving, then accidentally running into someone's car is a:
Unintentional or Intentional tort?
Unintentional
Calling someone and falsely telling them a family member died, resulting in an injury to them is an example of:
Intentional Infliction of emotional distress
Spilling hot coffee and receiving 3rd degree burns can result in a lawsuit involving...
Product liability
When a pet polar bear escapes from its cage and reeks havoc on your neighbor you are ______ for the damages even though you took precautions to keep it from escaping.
Strict liability
Polar bear ownership laws could be found in....
Statutes passed by congress and state legislatures
What amendment allows U of I to allow anyone to speak on the pentacrest anytime?
First
Only the legislative branch can veto a law...
True or False
FALSE
When there is a conflict between a federal and state law, which article applies?
Supremacy Clause
A manufacturer will NOT be liable for a design defect under a theory of strict liability as long as it shows it took reasonable precautions in its design process...
True or False?
FALSE
Is gender a suspect classification for purposes of the Equal Protection Clause?
NO
Fairness is still an important factor in determining whether government action violates the due process clause...
True or False
TRUE
How are administrative agencies created?
Enabling legislation
FTC is an executive agency?
NO
To begin litigation, one must first...
Determine which court to bring the action
Mandatory class action waivers are a valid way to prevent consumers from joining together in class action lawsuits...
True or False
FALSE
The constitution guarantees a person must be read his or her rights immediately upon arrest...
True or False
FALSE
If a law is challenged as violating a first amendment right the court will use:
Strict Scrutiny
Generally, constitutional restrictions apply only to governmental actions...
True or False
TRUE
Laws which discriminate against a person on the basis of race are always absolutely unconstitutional....
True or False
FALSE
5-3-1 decision means...
5 Majority
3 concurring
1 dissent
In order for the Supreme Court to declare a case unconstitutional the challenged las must be unconstitutional on ...
Face and Applied
The constitution does not give private citizens to sue private citizens for constitutional violations...
True or False?
TRUE
In this case from lecture, this guy argued that the judged erred in giving the jury instructions of the difference between voluntary and involuntary intoxication.
The judge argued that it wouldn't matter.
Marin Appeal
Who brought the Varnum Case?
6 gay couples who were denied marriage
Who was the defendant in the Varnum case?
The State of Iowa, Brien
What amendment did the Varnum case deal with?
14th amendment...equal protection
Other issues of the Varnum Case...
Substantive due process
Similarly situated people
What was the decision in the Varnum case?
Unanimous, appellees won
How did Iowa's history effect the decision of the Varnum case?
Iowa has been the first state to allow people to do things