LES 305 Test 1 Questions
with Correct Answers
Enlightened Self-Interest School of Social Responsibility - Answer-Advises managers to
be responsible to shareholders by being responsive to the larger society.
Inherence School of Social Responsibility - Answer-Advises managers to serve
shareholders and to act only with shareholders' interests in mind
Invisible Hand School of Social Responsibility - Answer-Role of business is to serve
larger society and it does so best when serving shareholders only.
Morals Clause - Answer-Part of a contract for actors, athletes and others that prohibits
private conduct that would subject that person to public ridicule
Shareholders - Answer-Owners of Stock in a company
Social Responsibility School of Social Responsibility - Answer-Role of business is to
serve larger society, so it should serve the needs of the larger society
Stakeholders - Answer-Groups who are impacted by a company's business decisions
including customers, suppliers, and the government.
Steroids - Answer-Prescription medication often used illegally to increase the
performance of competitive athletes
"Toes to the Line" philosophy - Answer-Doing no more than what is required under the
law while violating the spirit (or intent) of the law.
Acts of state doctrine - Answer-Each country's governmental actions are not subject to
judicial review by the courts in other countries
Affirm - Answer-When the appellate court upholds the lower court's decision
Appellant (or petitioner - Answer-The Party who appeals a lower court's decision
Appellate Court - Answer-A court of review that reviews the trail court proceedings for
errors of law and procedure
, Attorney-client privilege - Answer-An attorney cannot disclose statements or information
given by the client
Bilateral Treaty - Answer-In international law, a treaty between two nations
Civil Law - Answer-These are laws affecting the private rights of individuals. They are
enforced by the individuals who are harmed.
Common Law - Answer-The legal customs from England that were adopted by the
courts which are now considered to be judicial precedent in the US
Concurrent Jurisdiction - Answer-Authority of more than one court to hear a case.
Consititution - Answer-Document that contains an individual's basic rights in a society
and the structure of the government
Contentious Jurisdiction - Answer-Consensual jurisdiction of a court that is consented to
when the parties have a dispute; for example, UN courts.
Court of Justice of European Communities - Answer-The court of dispute settlement for
the nations of the European Community
Criminal Laws - Answer-Wrongs against society that are enforced by the government
Defendant - Answer-Party who is alleged to have committed a wrong in a civil lawsuit;
the charged party in a criminal prosecution
Diversity of citizenship - Answer-A requirement for federal court jurisdiction whereby the
plaintiff and defendant must be citizens of different states. [Note that the amount in
controversy must be $75K or more as well]
Equity - Answer-That portion of the law that originated to give remedies when money
damages were not appropriate or adequate
European Court of Human Rights - Answer-A noncommercial court dealing with
disputes over the treatment of a country's citizens.
Federal Circuits - Answer-Geographic groupings of the federal district courts for
purpose of appeallate jurisdiction
Utilitarian Theory - Answer-Greatest good for the greatest number of people
Rights Theory - Answer-Everyone has a set of rights and it is the role of government to
enforce those rights
with Correct Answers
Enlightened Self-Interest School of Social Responsibility - Answer-Advises managers to
be responsible to shareholders by being responsive to the larger society.
Inherence School of Social Responsibility - Answer-Advises managers to serve
shareholders and to act only with shareholders' interests in mind
Invisible Hand School of Social Responsibility - Answer-Role of business is to serve
larger society and it does so best when serving shareholders only.
Morals Clause - Answer-Part of a contract for actors, athletes and others that prohibits
private conduct that would subject that person to public ridicule
Shareholders - Answer-Owners of Stock in a company
Social Responsibility School of Social Responsibility - Answer-Role of business is to
serve larger society, so it should serve the needs of the larger society
Stakeholders - Answer-Groups who are impacted by a company's business decisions
including customers, suppliers, and the government.
Steroids - Answer-Prescription medication often used illegally to increase the
performance of competitive athletes
"Toes to the Line" philosophy - Answer-Doing no more than what is required under the
law while violating the spirit (or intent) of the law.
Acts of state doctrine - Answer-Each country's governmental actions are not subject to
judicial review by the courts in other countries
Affirm - Answer-When the appellate court upholds the lower court's decision
Appellant (or petitioner - Answer-The Party who appeals a lower court's decision
Appellate Court - Answer-A court of review that reviews the trail court proceedings for
errors of law and procedure
, Attorney-client privilege - Answer-An attorney cannot disclose statements or information
given by the client
Bilateral Treaty - Answer-In international law, a treaty between two nations
Civil Law - Answer-These are laws affecting the private rights of individuals. They are
enforced by the individuals who are harmed.
Common Law - Answer-The legal customs from England that were adopted by the
courts which are now considered to be judicial precedent in the US
Concurrent Jurisdiction - Answer-Authority of more than one court to hear a case.
Consititution - Answer-Document that contains an individual's basic rights in a society
and the structure of the government
Contentious Jurisdiction - Answer-Consensual jurisdiction of a court that is consented to
when the parties have a dispute; for example, UN courts.
Court of Justice of European Communities - Answer-The court of dispute settlement for
the nations of the European Community
Criminal Laws - Answer-Wrongs against society that are enforced by the government
Defendant - Answer-Party who is alleged to have committed a wrong in a civil lawsuit;
the charged party in a criminal prosecution
Diversity of citizenship - Answer-A requirement for federal court jurisdiction whereby the
plaintiff and defendant must be citizens of different states. [Note that the amount in
controversy must be $75K or more as well]
Equity - Answer-That portion of the law that originated to give remedies when money
damages were not appropriate or adequate
European Court of Human Rights - Answer-A noncommercial court dealing with
disputes over the treatment of a country's citizens.
Federal Circuits - Answer-Geographic groupings of the federal district courts for
purpose of appeallate jurisdiction
Utilitarian Theory - Answer-Greatest good for the greatest number of people
Rights Theory - Answer-Everyone has a set of rights and it is the role of government to
enforce those rights
