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95 Cards in this Set

  • Front
  • Back
The law and public policy does what four things?
Promotes economic growth, protects workers, promotes consumer welfare, promotes public welfare
How does the law promote economic growth?
protects private property rights, enforces private agreements, allocates risks, facilitates the raising of capital, creates incentives to innovate, promotes liquid and skilled labor markets, provides subsidies, tax incentives, and infrastructure, and promotes free trade in the global markets
How does the law protect workers?
regulates certain terms and conditions of employment, requiring the employer to provide certain benefits, and protecting worker's civil rights.
How does the law promote consumer welfare?
encouraging the sale of safe and innovative products and services at a fair price.
How does the law promote public welfare?
ensuring the effective administration of justice, collecting taxes and spending money, protecting fundamental rights, and protecting the environment.
law provides the "___ __ ___ ____" managers can make their own private law by...
rules of the game.

entering into contracts
the five forces by; prof michael porter are
buyer power, supplier power, the competitive threat posed by current rivals, the availability of substitutes, and the threat of new entrants
law affects the internal organization of the firm including...
the choice of business entity, and its resources and capabilities
law affects the external relationships with...
customers, suppliers, competitors, and complementors, that is, those players who cause customers to value another firms products and services more.
noncompliance is not an option. name two companies that did not comply
Drexel Burnham was in the wake of the insider trading scandals in the 80s. the disintegration of the once venerable accounting powerhouse Arthur Andersen.
name three situations in which companies experienced very negative monetary returns
TAP Pharmaceuticals - $875 mil

Texaco paid penzoil $3 bil for interfering with its agreement to buy getty oil

Cendant paid $3.19 bil to settle security fraud cases against it arising out of its fraudulent financial reporting
the law does not forbid...
all bad behavior
Bammert v. Don's Super valu,, inc.

Does the public policy exception to the employment-at-will doctrine apply when an at-will employee is fired in retaliation for the lawful actions of her nonemployee spouse?
Bammert v. Don's Super valu

The supreme court of wisconsin declined to expand the public policy exception to the employment-at-will doctrine and affirmed the dismissal of Bammert's complaint, leaving her with no legal recourse
who plays the most significant role in instilling a sense of ethics throughout the organization?
why did Dennis Kozlowski, CEO of tyco internation, fall?
charges with tax evasion after allegedly having art he bought in NY shipped out of the state to avoid paying $1 mil in NY sales tax
John Rigas, CEO of Adelphia Communications Corp, and his son timothy were convicted of what?
defrauding investors out of billions of dollars by looting adelphia
Phil Condit, CEO of Boeing, resigned why?
during investigation regarding deals with air force and NASA
Dick Grasso, former chair of the NYSE, left his position why?
controversy over his compensaiton
define teleological theory
concerned with consequences. the ethical good of an action is to be judged by the effect of the action on others.
Deontological theory
focuses more on the motivation and principle behind the action than on the consequences
kantian theory
immanuel kant's categorical imperative looks to the form of an action rather than the intended result, in examining the ethical worth
distributive justice
focuses on how the burden and benefits of a particular system are distributed
compensatory justice
aims at compensating people for the harm done by others
retributive justice
concerned with the harm people do to others, focusing on how to deter them from inflicting further harm
issues of social responsibility arise in..
product safety, advertising campaigns, client conflicts of interest, anticompetitive practices, customer service, sweatshops and child labor, workplace conditions, pensions and employee benefits, and the environment
meinhard v. stalmon respresents what principle in the book
the role of the law
meinhard v. stalmon

Did Salmon, as Meinhards joint venturer, have a relationship of trust to Meinhard that obligated him to give Meinhard the opportunities to be included in a new lease covering property that was originally leased by Salmmon on behalf of the joint venture?
meinhard v. stalmon

The judgement for the plantiff, Meinhard, was affirmed. he was granted one half of the interest in the new lease between salmon and gerry
difference between trial decision citation and appellate decision citation?
when a lawsuit is originally filed, the case name appears as plantiff v. defendant.

if the case is appealed it appears as appellant (the person who is appealing the case or seeking a writ of certiorai) vs. appellee.

sooo if the defendant loses and appeals, their name appears first
name 6 things in a case citation
1. the plantiff's name
2. the defendants name
3. the volume number and title of the reporter in which the case is reported
4. the page number at which the case begins
5. the court that decided the case
6. the year in which the case was decided
federal question exists when a dispute concerns:
a) federal common law
b) federal statutes
c) federal administrative regulations
d) treaties of the united states
federal courts are courts of what kind of jurisdiction?
limited subject matter jurisdiction
what are the three diff methods federal courts have jurisdiction?
1. there is federal question jurisdiction
2. diversity jurisdiction
3. US is a party. wooohoo
diversity jurisdiction exists in lawsuits:
1. between citizens of different states


2. the amount in controversy (exclusive of interest) exceeds $75,000
citizenship is based on:
a) natural person citizenship is legal residence or domicile or
b) corporations may have dual citizenship based on
nerve center test, place of operations test, or total activity test
what is the nerve center test?
to find a nerve center consider:

1) where the executive and administrative offices are located

2) where the income tax return is filed

3)where the directors and shareholders meet
what is the place of operations test?
requires locating the majority of the corporations physical operations such as its manufacturing facilities or offices
what is the total activity test?
considers all aspects of corporate entity, including the nature and scope of the companys activities.
what does the "erie doctrine" set forth in Erie railroad v. tompkins require?
federal courts that have diversity jurisdiction to apply the appropriate state law, NOT federal law
diversity jurisdiction means that the case is a
___ ___ ___
state law claim
to bring a suit to federal court u must have 2 basic things:
subject matter jurisdiction and the plantiff must have standing
what are 3 ways the plantiff has standing
1) the plantiff is the proper party to bring the suit
2) plantiff has a personal interest in the outcome of the suit
3) plaintiff will benefit from a favorable ruling
what principle did national credit union administration v. first national bank illustrate?
that the plantiff must have standing
describe federal court system
-district courts (94 districts)
-u.s. courts of appeals ( decisions of tiral courts within territory. 2. review decisions of certain administrative agencies and commissions, 3. to issue writs or orders to lowe courts or litigants)

- supreme court (cases on appeal from court of appeals. hears state appeals when tje case concerns constitution or fed law)

others include bankruptcy, tax, fed trade commission
state courts consist of what jurisdiction?
limited and general subject matter jurisdiction
courts of limited smj decide:
minor criminal matters, small civil suits up to $5000, and other specialized legal disputes
state courts can exercise jurisdiction when the state court has:
both smj AND either:

1) personal jurisdiction


2) jurisdiction over property
to have personal jurisdiction (in personam) ...
a) the plaintiff and defendant live within the jurisdiction of the court

b) long arm statute must satisfy minimum contacts test
state courts consist of:
-state trial courts
-state appellate courts (usually consists of a panel of 3 judges that reviews trial court rulings for harmful errors of law or procedure)
-state supreme court
in order to decide how to rule on a case, courts look to
-federal and state constitutions
-common law (previous court rulings)
define stare decisis
means "to abide by decided cases"

is a doctrine in law used to guide judicial decisions
when could a court not follow precedent?
1) set out side of its jurisdiction
2) within its jurisdiction
3) unworkable
4) avoid serious inequity
5) doctrinal anachronism
6) premise of fact changed to make the central holding irrelevant
lawrence v. texas

stare decisis
lawrences v. texas

in light of the holding in bowers v hardwick that the u.s. constitution does not confer a fundamental right to engage in sodomy and the doctrine of stare decisis, is the texas statute constitutional?
lawrence v. texas

the conviction was reversed
board of education of independent school district no. 92 of pottawatomie county v. earls

looking to constitution to rule a case
board of education of independent school district no. 92 of pottawatomie county v. earls

does requiring a drug test without any suspicion of drug use violate the fourth amendment?
board of education of independent school district no. 92 of pottawatomie county v. earls

in a 5 to 4 decision the supreme court of the supreme court ruled that the random drug testing of student athletes was constitutional
6 steps of trial process?
1. file a claim
2. discovery
3. pretrial activity
4. trial
5. post-trial motions
6. appeal
to filing a claim involves what 3 things
1. complaint
2. summons
3. answer
the complaint briefly states a grievance and makes allegations of:
1. the particular facts giving rise to the dispute
2. the legal reason why the plaintiff is entitled to a remedy
3. the prayer, or request for relief
the summons officially notifes the defendent that...
a lawsuit is pending against it in a particular court and that it must file a response to the complaint within a certain number of days
the defendent's answer may...
admit or deny the various allegations in the complant. if the defendent believes it lacks sufficient information to assess the truth of an allegation, it should state this.
discovery includes what 3 things
depositions, interrogatories, requests for production of documents
a motion to dismiss seeks to..
terminate the lawsuit on the ground that the plaintiff's claim is technically inadequate
a judge will grant a motion to dismiss if...
1) the court lacks jurisdiction over the subject matter or parties involved

2) the plaintiff failed to properly serve the complaint on the defendent

3) the plaintiff has failed to state a claim on which relief can be granted
a judge will grant a summary judgement only if
all of the written evidence before the court clearly establishes that there are no disputed issues of material fact and that the party who requested the summary judgement is entitled to recover as a matter of law
three diff pretrial activity
motion to dismiss
summary judgement
pretrial conference
pre-trial conference
the attorneys for the litigants meet with the judge to discuss the progress of their case
trial involves 4 steps
1 selection of jury
2 presentation of case - plaintiff, then defendent
3 motion for directed verdict
4 jury verdict
post trial motions include
-judgement nothwithstanding the verdict (reverses the jury verdict on the ground that the evidence of the prevailing party was so weak that no reasonable jury could have resolved the dispute)

-new trial
(serious errors in trial process)
appellate court will not review...
the facts de novo and will reverse a judges findings of fact only if they are clearly erroneous
(reviews how judge applied the law)
attorney-client privilege
communiations that are intended to be confidential, only revealed between the client and the attorney
limitations of attorney client privilege
privilege does not protect communications that are made to further a crime or illegal act. the communication must regard legal advice
in united states v frederick
the attorney could not act as both tax preparer and attorney
corporate clients - attorn/client priv.
any employee-counsel communication is protected if the subject matter of the communication relates to the employees duties and the communication is made at the direction of a corporate superior
the decision to sue - depends on 7 things
1. likelihood of recovery
2. recovery vs. cost of litigation
3. risk of non-payment of judgement
4. likelihood of counterclaim
5. public image - "ill will" of customers, suppliers and so forth
6. where does one sue (jurisdiction and venue)
7. the use of a decision tree
in diversity cases, how do they choose which state law to apply?
generally the law of the state with the most contacts to the litigants or most interest to the litigation will be applied
in contract cases, a state court will look to...
1. where the contract was signed (regardless if citizenships)

2. what the law the contract agreed to

3. the parties specified the forum to litigate in a contract
what is a motion for non conveniens?
defendents may request a specific court on the grounds that the jurisdiction chosen by the plaintiff poses a hardship
to decide if the forum the plaintiff selected poses a problem, courts look to...
a. location of the event giving rise to the suit
b. where the witnesses reside
c. where the parties reside
dawdy v. union pacific RR co.

change of forum
dawdy v. union pacific railroad co.

under what circumstances should a court require a plaintiff to litigate a case in the forum presented by the defendant?
dawdy v. union pacific railroad co.

the illinois supreme court reversed the lower court and ordered the trial be moved to macoupin county
sarbanes oxley demands that attorneys...
report corporate financial malfeasance.
SEC requires attorneys to...
make noisy withdrawls if nothing is done to remedy wrongdoing
ABA rules direct attorneys to...
report up the ladder and permit breaches of confidence
why did a class action lawsuit pose difficulties in Amchem Products inc. v. Windson
the members experienced different medical problems and had different interests
companies defending a class action suit see it as...
"a strategic management tool" to reduce or limit the damages
what percent of all civil suits settle before trial?
over 90%
what are three things that should be done during pre-trial preparation?
1. the company should create a "cost benefit" budget for litigation

2. executives should develop a "document retention strategy"

3. no employee should discuss the suit with family or friends
litigation strategies for defendants
- never let lawsuit go unattended. respond to complaints

- internal preparation

-understand the plantiff

-prepare for trial
when should companies destroy corporate documents?
in the ordinary course of business. not selectively. must cease any destruction upon notice of lawsuit
managers must ask themselves these 6 questions to determine the best alternative to litigation
1. how are the disputants represented?
2. who makes the final decision?
3. how are facts found and standards of judgement set?
4. what is the source of the standard for resolution?
5. how will any decision be enforced?
6. who will pay for the dispute resolution procedure?