Business Law Chapter 1 & 2
Terms in this set (28)
enforceable rules of conduct that govern commercial relationships
involves disputes between private individuals or groups
involves disputes between private individuals or groups AND the governments
Involves rights and responsibilities involved in relationships between persons and government
When someone commits an act against public as a whole
Federal/State limits to power of government
set forth by Congress or state legislature
(Common Law) legal interpretation made by judges, courts rely on precedent
collection of laws made by Agencies (EPA, SEC)
come from President or State Governor
binding law between two states/countries (negotiated by Executive Branch then approved by 2/3 of Senate)
Purposes of the Law
providing order, serving as an alternative to altercation, facilitating a sense that change is possible, encouraging social justice, guaranteeing personal freedoms, serving as a moral guide
serve as a basis for state law, NCC comes up with these law to help decrease variance among Business Law among states
"standing by their decision", when courts use precedent for rulings. Rulings from higher court become binding precedent in lower courts
Restatements of the law
Summaries of common law rules in a particular area of the law. Restatements do not carry the weight of law but can be used to guide interpretations of particular cases.
A school of jurisprudence that recognizes the existence of higher law, or law that is morally superior to human laws.
Schools of Jurisprudence
Commonly held beliefs which help legislators make law. They are normally rooted deeply within emotions of those lawmakers
The school of jurisprudence which holds that because society requires authority, a legal and authoritarian hierarchy should exist. When a law is made, therefore, obedience is expected because authority created it.
Identification with the Vulnerable
The school of jurisprudence of pursuing change on the grounds that some higher law or body of moral principles connects all of us in the human community.
The school of jurisprudence which dictates that context must be considered as well as law. Context includes factors such as economic conditions and social conditions.
An economic school of jurisprudence in which all costs and benefits of a law are given monetary values. Those laws with the highest ratios of benefits to costs are then preferable to those with lower ratios.
The study and practice of decisions about what is good or right.
The use of ethics and ethical principles to solve business dilemmas.
Social Responsibility of Business
The responsibility of firms doing business within a community to meet the expectations that the community imposes on them.
WHP Process of Decision Making
A set of ethical guidelines that urges us to consider whom an action affects, the purpose of the action, and how we view its morality
The groups of people affected by a firm's decisions:
Owners or shareholders.
The general community where the firm operates.
Positive abstractions that capture our sense of what is good and desirable.
The Golden Rule
this guideline urges us to be aware that other people—their rights and needs—matter.