Business Law

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The characteristics of the law is that the law is:
Powerful, Important, & Fascinating
The sources of contemporary law is the:
US Constitution, State Constitution, Statute, Common Law, Administrative, Treaties and Executive order
The reason why one bothers with ethics is because:
Society as a whole benefits by encouraging economic competition.
People feel better when they behave ethically.
Unethical behavior can be costly.
Not a stakeholder
A business competitor
The issue in Kuehn v Pubzone was
Did the bar have a duty to protect its patrons?
What is the purpose of a corporation per Milton Friedman?
1)Make the shareholders money.
2) Comply with the law.
Of the philosophies of ethics which one did owner of malden Mills Factory exhibit?
Utilitarianism
Which philosophies of ethics did John Stump CEO of Wells Fargo exhibit?
Consequentialist
What is business law?
Encompasses all of the laws that dictate how to form and run a business.
Of the ten law subjects that are included in business law, identify three.
Torts, Contracts, Criminal law, Bankruptcy, Employment law, Labor law, Consumer Law, Environmental law, Cyber Law, & Real property law.
In comparing the classifications of criminal law and civil law name one difference for each one
Criminal Law: Guilt is determined
Civil Law: Guilt is not determined
What is a shareholders model and who does it include?
The primary responsibility of corporations is not only to take care of shareholder but also its employees, customers and communities, even if it makes less profit.
Of the seven steps in decision making name three steps?
Identify the decision.
Gather relevant information
Identify Alternatives
Of the ethics philosophies which one supports the use of risk management?
Utilitarianism
Examples of Agents
Diane – shoe salesperson for retail store
Tim – real estate broker for large real estate company
Craig – Telephone marketing employee
What is considered a common area of danger
Fire, Earthquake, Stock market crash, Violent storms
What is not required of an agency relationship
Consideration
Layout of the plant, interconnectivity of roads and proximity of the fire station.
Risk exposure to data
An agency relationship can be created:
by the conduct of the parties
the process of identifying a risk is
Review common dangers
Identify specific preventions that are available
Chose a prevention that benefits the organization at a reasonable cost
What is a principle and the two duties to an agent
A principal is the person whom such an act is done or who is so represented.
Duties:
To Reimburse the agent for responsible expenses
Duty to coroporate
Nam the five steps in risk management process
Establish the context
Identify the Risk
Analyze the Risk
Evaluate the Risk
Treat the Risk
What is an employee
works regularly for an employer and receives standard employment benefits.
What is an independent contractor
A person or business which preforms services for another person or entity under a contract between them, with the terms spelled out such as duties, pay, the amount and type of work and other matters.
Differences between independent contractors and employees
Employees: receive health, life, dental and disability insurance form employer; funded retirement plans; paid vacation and maternity leave
Contractors: pays his/hers social security, income taxes without payroll deduction, has no retirement or health plan rights.
Name three of the Multi – Disciplinary personnel involved with Risk management
Insurance managers
Fire engineers
Statisticians
Risk level management
All levels of management
Of the seven types of risk, identify three in Malden Mills
Compliance Risk
Operational Risk
Material Risk
Financial Risk
Advantages of Alternative Dispute Resolution include
ADR is faster than litigation
ADR keeps the parties talking rather than fighting
ADR is less expensive than litigation
The fastest growing method of dispute resolution in the U.S.
mediation
Jurisdiction
the authority of a court to decide a particular type of case
Federal jurisdiction based upon a federal question includes cases based on
The united states constitution
a federal statute
a federal treaty
under which of the following does the insured have a right to borrow against his policy
Whole life policy
a policy that makes payments to the owner monthly for her entire life is called
an annuity
Health insurance plans that specify that the patient can be treated only by doctors in the organization
Health Maintenance Organization
What is Umbrella Insurance
insurance that protects you when accidents happen and your current insurance can’t cover all the expenses so it will pick up where your coverage lacks
What rights does the other insurer have if it found that the insured has misrepresented important facts
Insurers have the right to void a policy if during the applications process the insured conceals a material fact or misrepresents something
What is an insurable interest and why is it important?
An insurance contract is not valid unless the owner has an insurable interest in the subject matter of the policy.
What are the courts included in the states court system
Trial courts, Appellate Courts, State Supreme Courts.
The law teaches us
how to behave properly and inform us of the rules we must all follow
Law affects
all people from CEOs to children
Helping a hurt person is required by moral standard but not by
the law
there is no strong evidence that ethical behavior
increases profits or unethical behavior decreases profits
Top executives do not have an effect on ethics throughout an organization
false
Agency
An employee relationship in which the agent agrees to preform a task for and under control of the principal
As a general rule an agent is liable on contracts entered into on behalf of a fully disclosed principal
False
Risk Management
the potential of gaining or losing something of value
An agent cannot disclose nor use for their own benefit
any information they learn during the agency
John Stuart Mills would have been supportive of
Risk Management
One of the problems facing employees in the Gig Economy
Is misclassification as an independent contractor
Insurance
a contract on which one person for a fee agrees to guarantee another against a specific loss
Disability insurance is important because
the average person is seven times more likely to be disabled for at least 90 days than to die before 65
An insurance policy must meet all the common law requirements for a contract
true
Primary methods of alternative dispute include litigation and mediation
false
generally, mandatory arbitration provisions in a contract are valid
true
summary judgement is appropriate when there are no essential facts in dispute.
true
Categories: Business Law