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LST 240 study guide for Exam 1

by: Sydney Hunt

LST 240 study guide for Exam 1 LST 240

Marketplace > Murray State University > Business > LST 240 > LST 240 study guide for Exam 1
Sydney Hunt
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Chapters 1-6: Introduction to Law Business Ethics Civil Dispute Resolution Constitutional Law Administrative Law Criminal Law
Business Law/Legal Environment
Dr. Alkhatib
Study Guide
business, Law
50 ?




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This 10 page Study Guide was uploaded by Sydney Hunt on Wednesday May 11, 2016. The Study Guide belongs to LST 240 at Murray State University taught by Dr. Alkhatib in Spring 2016. Since its upload, it has received 19 views. For similar materials see Business Law/Legal Environment in Business at Murray State University.


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Date Created: 05/11/16
1 Q I Study Guide # 1 – LST 240 Chapter 1 1. How is law different from morality and ethics? Explain. Law is a civil rule and has sanctions. Moral is something you should do, but isn’t enforced by law. 2. What is a higher standard for behavior, the legal or the ethical standard? Explain. Ethical standard is a higher standard for behavior, it is base off the right thing to do. 3. What is judicial review? The authority of the Supreme Court to determine if laws or acts follow the constitution. Also telling the President/Congress a law is unconstitutional. 4. What is a treaty? If there is a conflict between a federal statute and a treaty provision, which of the two would control? Why? A treaty is an agreement that the U.S. enters with another nation or nations. If there is a conflict between federal statute and a treaty provision the last in time controls. A treaty can replace a federal statute and a federal statute can replace a treaty. 5. What is the difference between the court’s decision and the court’s opinion? Which one do attorneys consider more important? Why? The court’s decision is the court’s ruling, who won and what needs to be done by the person. The court’s opinion is a statement released after a case is tried, summary of facts and why they won. Attorneys think that the court’s opinion is more important, it can be used in cases later. 6. What is the IRAC method? Explain. Issue(s) Rule(s) Analysis and Conclusion 2 Identify the issue(s)/rule(s). Apply the rule to the facts of the case. Conclude we have a case or not, there is liability or not. Chapter 2 1. What is business ethics? Business ethics is the study of what is right and what is wrong in a business setting. 2. What are Kohlberg’s stages of moral development? A person who is guided by the pursuit of rewards and the avoidance of punishment is operating at what level of moral development? Pre-Conventional (childhood) self-avoid punishment and/or seek reward, however, employees sometimes fall into this category. Conventional (adolescents) conform to the group norms. Post –Conventional (adulthood) universal-internalizing principles and morals. 3. Why is there business regulation? Business regulation is to preserve the competitive process, and achieve social goals of being most efficient with resources. 4. Does Milton Friedman believe that corporations have a social responsibility? Why? Is he absolutely against corporations furthering the public good? Explain Milton Friedman is against social responsibility, his main goal of business is to make a maximum profit, its responsibility is to stockholders and too much corporate involvement in social affairs might distort the process of governance. He approves of philanthropy but only if it is in the self-interest of the company. 5. Name the six stakeholders of the business corporation? Whose interest does the law focus solely on? Stockholders Community Mangers Customers Employees Suppliers The law requires corporate business decisions to be in the best interest of the shareholders/stockholders. Stakeholders have a legitimate interest in the business. Chapter 3 1. What are federal trial courts called? Federal appeals courts? Trial courts are called district courts. Appeals courts are called circuit courts. 2. What outcomes can a case have on appeal? Reverse is when a lower court’s decision is set aside. Remand is sending the case back to the lower courts. Modify the lower court’s decision. Affirm is an agreeance with the lower court’s decision. The strategic move to an appeal, settle lower with the opposing side. 3. Which federal judicial circuit is Kentucky in? California? Kentucky is in the 6 circuit court while California is in the 9 circuit court. 4. How is it possible that the rights of a citizen or a corporation in Kentucky, as to federal law, be different from the rights of a citizen or corporation in California? Federal trial courts are bound by that circuits decisions. 5. Which courts do small businesses usually get sued in? What makes such a court attractive to unhappy consumers? Small claims court doesn’t allow lawyers so there is no lawyer fee, the decision can be appealed and a new trial can take place in a trial court while the old decision is thrown out. 6. What is jurisdiction? Explain the two types. Jurisdiction is the authority to hear and decide a case. The two types are personal and subject. 7. Give examples of exclusive federal jurisdiction? Federal crimes, bankruptcy and copyrights 8. After filing a suit, what does the plaintiff have to do? The plaintiff must serve the defendant with the summons and complaint. 9. Who issues the summons? Who has to serve the defendant? The clerk issues the summons. The plaintiff usually pays the court to have the sheriff serve the complaint and the summons on the defendant. 10.What happens if the defendant does not file an answer? The plaintiff can ask for a default judgement to be entered against the defendant. 11.What is discovery? Why is it important? Discovery is the exchange of information. Both sides are able to learn the strength of the case of the other side. 12.What is a pretrial conference? Why is it held? The judge and attorneys attempt to settle without a trial. 13.How is collection handled after a judgment is obtained against a defendant? A judge signs a writ of execution to intercept the money from the bank or from tax returns. 14.What are the two alternatives to court adjudication? Describe them and compare them to adjudication? During mediation a third-party tries to get parties to reach an agreement. Arbitration is a contract that legally binds parties to the agreement. Chapter 4 1. What does it mean to say that we live under a system of dual sovereignty? Dual sovereignty mean that both the state and federal government are sovereign and can pass their own laws. 2. What is the Supremacy Clause? The Supremacy Clause states that federal law is the highest law of the land. 3. Which constitutional power has enabled the federal government to establish extensive regulation of the national economy? The power to regulate interstate commerce enables the federal government to establish extensive regulation of the national economy. 4. Which article and section list the powers of the Congress? Constitution, Article 1: Section 2 5. What is eminent domain? Can the government take one property from one private party and give it to another? How? Power of government to take private property for public use upon payment of fair compensation and to better the community. 6. Do corporations have first amendment rights? st Corporations have the 1 amendment right to political speech and commercial speech. Chapter 5 1. What is administrative law? Administrative law are laws made by the executive branch. 2. What is an administrative agency? What are other terms used to refer to administrative agencies? An administrative agency is a government entity that does the work of executive branch, and has the authority to affect right of private parties. Commission, board, department, agency, bureau are all terms referring to an administrative agency. 3. How do administrative agencies make “law”? Administrative agencies make “law” by issuing rules 4. What does the APA require an agency to provide when exercising its rulemaking power?  Prior notice of proposed rule  Opportunity for interested parties to participate in rulemaking  Publication of final draft at least 30 days before the effective date 5. What is required before a party can bring court action against an agency? A party sue after they have exhausted all administrative agencies, when no other avenues of internal agency appeals or review of the decision. 6. Which questions of law are asked by a court reviewing the activities of an administrative agency?  Did the agency violate the constitution/ properly interpret the applicable law/violate legal procedure?  If the agency has a procedure, did the agency follow procedure/procedural constitutional? 7. How do the legislative and executive branches exercise control over administrative agencies? Congress has power over budget, amend enabling statutes, enact guidelines, and eliminate an agency or starve it of resources by cutting its budget drastically. 8. What is a FOIA request? Freedom Of Information Act gives public access to most records in the files of administrative agencies. Request public records based on the authority of FOIA. Chapter 6 1. What is a crime? Crime is an act or omission of public law and is punishable by the government. 2. What is vicarious liability? Can an employer be vicariously liable for the criminal acts of their employees? Vicarious liability is liability imposed on one for acts of another. Employers are vicariously liable for authorized criminal acts of their employees if the employer directed, participated in, or approved of the act. 3. Can a corporation be found criminally liable? What kind of punishment/s does the corporation get? Corporations can be indicated/criminally charged. The corporation has to pay fines as punishment. 4. Why have many corporations set up a compliance program? What are the elements of an adequate compliance program? Compliance programs help reduce risk of employee law breaking. Elements of an adequate compliance program include:  Standards and procedures  Personnel screening  Training  Auditing  Non-retaliatory internal reporting system  Incentives and discipline to promote compliance  Reasonable steps to respond to violations 5. What is white- collar crime? White-collar crimes are non-violent crimes involving deceit, corruption, or breach of trust. 6. How do popular police shows perpetuate biases against minority groups and the poor? 7. What is the Sarbanes –Oxley Act? When was it passed? Why was it passed? 8. How did the Act seek to prevent future corporate scandals? What new penalties were added? 9. What is cybercrime? What makes prosecuting cybercriminals difficult? Cybercrimes are crimes committed by or with a computer. Cybercrime is hard to fight because criminals can be anywhere in the world. 10.What is RICO? Why was it enacted? What is a controversial issue concerning RICO? Rocketeer Influenced and Corrupt Organizations Act, is intended to stop organized crime from infiltrating legitimate business. It is controversially used against legitimate businesses who the government accused of engaging in a pattern of criminality. 11.How is extortion different from bribery? Extortion is making money to obtain property while bribery is offering to a public official to influence to officials position. 12.Explain and distinguish the defenses of “Defense of person or property.” “Defense of person or property” the right to stand your ground and use force to defend yourself or your property. Force has to be reasonable, deadly force is never reasonable to defend property. 13.Explain the defense of entrapment. A person would not have done so without the persuasion of the police official. 14.What are the steps in criminal prosecution?  Being charged with the crime  Arrested/asked to turn self in  (bond hearing) Arraignment: appear before judge, plead guilty/not guilty  Preliminary exam: probable cause hearing (evidence)  Pretrial: try to settle 15.What are the 4 , 5 and 6 amendment and how do they relate to criminal prosecution? 4 Amendment: protects individuals against unreasonable search and seizure th 5 Amendment: protects against self-incrimination, double jeopardy 6 Amendment: provides accused with the right to a speedy trial, public trial, and right to council


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