Legal Realism - ️️Judges should consider more than just the law; consider factors
such as social and economic conditions
Common Law - ️️Collection of legal interpretations made by judges, and are law
unless revoked by new statutory law
Cost Benefit Analysis - ️️If law yields more be...
BUL 4421 Gendler Midterm Review FAU
Legal Realism - ✔️✔️Judges should consider more than just the law; consider factors
such as social and economic conditions
Common Law - ✔️✔️Collection of legal interpretations made by judges, and are law
unless revoked by new statutory law
Cost Benefit Analysis - ✔️✔️If law yields more benefits than costs then we saved
resources we can use to obtain more goods and services
Historical School - ✔️✔️Following tradition or custom to shape the law, closely linked
with the doctrine of stare decisis
WPH Framework for Business Ethics - ✔️✔️- Who would this decision affect?
- What is the Purpose of the decision?
- What are the guidelines on How to make the decision?
Natural Law - ✔️✔️Describes certain ethical laws and principles believed to be morally
right and "above" the laws devised by humans
Relevant areas of business law are applicable to - ✔️✔️Human Resource Management
Private Law - ✔️✔️Regulates disputes between private individuals or groups
Public Law - ✔️✔️Regulates disputes between private individuals and government
Civil Law - ✔️✔️Delineates the rights and responsibilities implied in relationships
between persons and between persons and their government
Criminal Law - ✔️✔️Regulates incidents which someone commits an act against the
public as a whole
Hierarchy of Laws - ✔️✔️1. US Constitution
2. Federal Statutes
3. State Constitution
4. State Statutes
5. Common Law
,Precedent - ✔️✔️Past decisions in similar cases that guide later decisions thereby
providing greater stability and predictability to the law
Stare Decisis - ✔️✔️In which rulings made in higher courts become binding precedent
for lower courts
"Standing by their decision" - ✔️✔️Stare Decisis
When courts rely on precedent, they are obeying the principle of - ✔️✔️Stare Decisis
Restatement of the Law - ✔️✔️Summaries of common law rules in a particular area of
the law that have been enacted in most states
Relevant areas of business law - ✔️✔️1. Agency Law
2. Contracts
3. Employment and Labor Law
4. Employment Discrimination
Schools of Jurisprudence - ✔️✔️Natural Law, Legal Positivism, Historical School, Legal
Realism and Cost Benefit Analysis
Legal Positivism - ✔️✔️Sees our proper role as obedience to duly authorized law, and
the law is distinct from morality
Business Ethics - ✔️✔️The application of ethics to the special problems and
opportunities experienced by business people
Minimal Standards for firms to be ethical - ✔️✔️- The legality of the decision in
choosing a method of production
- How to compete with competing firms
- Social responsibilities of the firm
The "WPH" in WPH Framework for Business Ethics stands for - ✔️✔️Who, Purpose
and How
Stakeholders - ✔️✔️The many groups of people affected by the firm's decisions
Who are stakeholders of a firm? - ✔️✔️- Owners or shareholders
- Employees
- Customers
, - Management
- The general community where the firm operates
- Future generations
When we think about the ultimate reason or purpose for why we make decisions in a
business firm, we turn to the basic unit of business ethics, which is - ✔️✔️Values
Values - ✔️✔️Positive abstractions/notions that capture our sense of what is good or
desirable
Values are _____ that underlie conversations about business ethics - ✔️✔️Ideas
We derive our ethics from the - ✔️✔️Interplay of values
Values represent our understanding of the purposes we will fulfil by - ✔️✔️Making
particular decisions
Golden Rule - ✔️✔️Do unto others as you would have them do unto you
Public Disclosure - ✔️✔️If the public knew about this decision, how would you decide?
Warren Buffet's example of a Public Disclosure - ✔️✔️Newspaper Test
Universalization Test - ✔️✔️What would the world be like were our decision copied by
everyone else?
Theories of Business Ethics - ✔️✔️Ethical Realism, Absolutism, Consequentialism,
Utilitarianism, Principle of Rights, Virtue Ethics
Ethical Realism - ✔️✔️A theory of ethics that denies the existence of objective
standards, instead individuals must evaluate actions based on what they feel is best for
themselves
Absolutism - ✔️✔️Requires that individuals defer to a set of rules to guide them in the
ethical decision-making process
Consequentialism - ✔️✔️Requires inquiry about the consequences of the decision
when addressing ethical dilemmas
Utilitarianism - ✔️✔️Managers should take actions that provide the greatest good after
having subtracted the harm associated with the action in question
Principle of Rights - ✔️✔️Whether a business decision is ethical depends on how the
decision affects those involved
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