Intro To Bus Chapter 2

Front 1

Under new post... ENRON legislation....

Back 1

the company CEO may be charged and JAILED... even if he/she had no personal knowledge of infractions... and even if he/she never ordered or "approved" of the wrong doings.

Front 2

Corporate Responsibility

Back 2

* Both the corporation and the responsible employee/ officer are legally liable for violations a company commits
* The government now places the responsibility for controlling and preventing misconduct squarely on the shoulders of top management.

Front 3

Lost Leader Pricing

Back 3

selling an item to a consumer below the store cost

Front 4

Business Ethics

Back 4

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Front 5

Social Responsibility

Back 5

business obligation to maximize its positive impact and minimize its negative impact on society

Front 6

Laws and Regulations

Back 6

* encourage businesses to conform to society's basic standards, values, and attitudes.
* Sarbanes-Oxley Act, 2002
* Troubled Assets Relief Program

Front 7

Role of Ethics

Back 7

growing concerns about legal and ethical issues in business

* antitrust violations
* accounting fraud
* cyber crimes
* unfair competitive practices
* tax fraud

Front 8

Ethical Issue

Back 8

* an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

* Helps to build trust, promote confidence, and validate relationships

Front 9

Judge Ethics

Back 9

* Examine the situation from the stakeholders' position, including customers and competitors
* People often need years of experience to accurately recognize and react to ethical situations
* ethical situations vary by culture

*** Highly Ethical Companies are generally more profitable!!!!

Front 10

Conflict of Interest

Back 10

* Advance personal interest over other's interest

* Benefit self at the expense of the company
* "A decision that you are empowered to make can have the effect of enriching you."

Front 11

Bribes

Back 11

Represent a conflict of interest because they benefit an individual at the expense of an organization or company

Front 12

Most Common Misuse of Company Resources

Back 12

* time theft
* use of personal email and social networking sites at work is a growing problem
* stealing office supplies
* unauthorized use of software and programs

Front 13

Fairness and Honesty

Back 13

* are the heart of business ethics

* how employees use resources


Front 14

Ethical Concerns

Back 14

* false/misleading advertising

* deceptive personal selling tactics

* truthfulness in product safety and quality

* unsubstantial claims

* product labeling


Front 15

Plagarism

Back 15

the act of taking someone else's work and presenting it as your own without mentioning the source

-major problem is schools and businesses

Front 16

Code of Ethics

Back 16

formalized rules and standards that describe what a company expects of its employees

Front 17

Whistleblowing (tattletale)

Back 17

occurs when an employee exposes an employers' wrong doing to outsiders.

Front 18

4 Dimensions to Social Responsibilities

Back 18

1. Economic
2. Legal
3. Ethical
4. Voluntary

Front 19

Corporate Citizenship

Back 19

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

- if you open a business citizens in that town expect you to give back to the community

Front 20

Shareholders

Back 20

* an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation

* primarily concerned with profit or ROI (return on investment)
* financial community at large

Front 21

Employees wants from employer

Back 21

* a safe workplace
* fair treatment
* adequate compensation
* listen to grievances

Front 22

Consumerism

Back 22

* activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
* critical issue is businesses responsibility to customers to provide satisfying, safe products and to respect their rights as consumers

Front 23

Kennedy's Consumer Bill of Rights

Back 23

1. the right to safety
2. the right to be informed
3. the right to choose
4. the right to be heard

Front 24

Sustainability

Back 24

conducting activities in a way that allows for the long-term well-being of the natural environment in mind.

Involves: nature, individuals, organizations, polution (land, water, and air), waste, and disposal; future of energy and alternative energy

Front 25

Business Law

Back 25

Rules and Regulations that govern the conduct of business
Important because....

* promises are made but not always kept
* misunderstandings occur
* expectations were not made clear
* Individuals & corporations sometimes take advantage of others
* And thus, we need an "arena" for a fair fight to resolve disputes

Front 26

Criminal Law

Back 26

* certain activites or behaviors are prohibited by statute
* the "state" is the aggrieved party, and the wrongdoer is prosecuted
* remedy? jail and/or fines

Front 27

Civil Law

Back 27

(no prosecution/no one is arrested)

* establishes that persons have right. the violation of which is a "civil" wrong
* the wronged party must "SUE" in his own name and at his own expense
* Remedy? Damage$$

Front 28

Going to Trial

Back 28

A court trial MAY be avoided by

* mediation (not binding)
* arbitration (binding)
* mini trial
* private court system


---Case begins in a court house having jurisdiction
---May be appealed to an Appellate Court

Front 29

Administrative & Regulatory Agencies

Back 29

* have the authority to issue rules and regulations and to enforce them.
* Examples: FTC, CPSC, EEOC, OSHA, and EPA
* These may conduct investigations and give fines/penalites on their own authority.

Front 30

N.A.L.

Back 30

Notice of Apparent Liability

Front 31

F.T.C.

Back 31

Federal Trade Commission

* enforces laws and guidelines regarding business practices, take action to stop false and deceptive advertising and labeling.

Front 32

C.P.S.C.

Back 32

Consumer Product Safety Commission

* Ensures compliance with the Consumer Product Safety Act; protects the public from unreasonable risk of injury from any consumer product not covered by other regulatory agencies.

Front 33

E.E.O.C.

Back 33

Equal Employment Opportunity Commission

* Investigates and resolves discrimination in employment practices.

Front 34

O.S.H.A.

Back 34

Occupational Safety and Health Administration

* Develops policy to promote worker safety and health and investigates infractions.

Front 35

E.P.A.

Back 35

Environmental Protection Agency

* Develops and enforces environmental protection standards and conducts research into the adverse effects of pollution.

Front 36

F.D.A.

Back 36

Food and Drug Administration

* Enforces laws and regulations to prevent distribution of adulterated or misbranded foods, drugs, medical devices, cosmetics, veterinary products, and particularly hazardous consumer products.

Front 37

I.C.C.

Back 37

Interstate Commerce Commission

* Regulates franchises, rates, and finances of interstate rail, bus, truck, and water carriers.

Front 38

F.C.C.

Back 38

Federal Communications Commission

* Regulates communication by wire, radio, and television in interstate and foreign commerce.

Front 39

F.E.R.C.

Back 39

Federal Energy Regulatory Commission

* Regulates rates and sales of natural gas products, thereby affecting the supply and price of gas available to consumers; also regulates wholesale rates for electricity and gas, pipeline construction, and U.S. importsand exports of natural gas and electricity.

Front 40

F.A.A.

Back 40

Federal Aviation Administration

* Oversees the policies and regulations of the airline industry.

Front 41

F.H.A.

Back 41

Federal Highway Administration

* Regulates vehicle safety requirements.

Front 42

S.E.C.

Back 42

Securities and Exchange Commission

* Regulates corporate securities trading and develops protection from fraud and other abuses; provides an accounting oversight board.

Front 43

The Uniform Commercial Code

Back 43

* Meant to provide uniformity in laws governing business, the UCC has been enacted by the Federal Government and by 49 of 50 states. (Louisiana is the exception)

* Primarily deals with contracts and sales

Front 44

Torts

Back 44

* a civil wrong, where one party has caused "injury" to another

* "injury" is more than physical--ECONOMIC
* The injured party may sue the one who "injured" him.

Front 45

Fraud

Back 45

an act of deception that, again, injuries another party

Front 46

Negligence

Back 46

* includes Product Liability
* A Failure to exercise a required level of care.

Front 47

Contract

Back 47

Mutual agreement between two or more parties that can be enforced in a court if one party chooses not to comply with the terms of the contract.

"Virtually every business transaction is carried out by means of a contract."

Courts will enforce every single legally-valid contracts, in all cases, all the time.

Legally-valid--- contains all of the elements required

Front 48

Breach of Contract

Back 48

failure to abide by, or carry out your agreement- has penalties that the court will enforce

* monetary damage$
* specific performance

*** If no money changes hands, you do not have all the elements required; therefore, you have no valid contract.

Front 49

Agent

Back 49

one who acts on behalf of, and in the interests of another party, his principal

-an agent may make legally binding agreements on behalf of his principal

Note: a corporations' officers act as its agent(s)

Front 50

Power of Attorney

Back 50

standard "agency creating" documentation

Front 51

The Law of Property

Back 51

property rights mean "ownership"

* the right to use, possess, and enjoy... and to prevent others from using, possessing, and enjoying
* anyone that uses your property without your permission has committed a tort and the property owner can sue for damage$

Front 52

Three types of Property

Back 52

1.) real property
2.) personal property
3.) intellectual property

Front 53

Bankruptcy

Back 53

begins when a company (or person!) become insolvent

Definition: your liabilities exceed your assets and you can't repay your debts.

* In court preceeding, your assets are seized and sold to pay off your creditors
* As a consequence, all debts are discharged

Front 54

Three types of Bankruptcy

Back 54

1.) chapter 7
2.) chapter 11
3.) chapter 13

Front 55

Chapter 7 Bankruptcy

Back 55

"straight bankruptcy"

Front 56

Chapter 11 bankruptcy

Back 56

"corporate reorganization"

Front 57

Chapter 13 Bankruptcy

Back 57

only available to individuals; "wage earner plan" (5 years to pay off)

Front 58

Laws Directly Affecting Business

Back 58

1.) Sherman Antitrust Law
2.) Clayton Act (crime of fixing prices)
3.) Federal Trade Commission Act
4.) Wheeler Lee
5.) Lanham Act

Front 59

Sherman Antitrust Act 1890

Back 59

The first measure passed by the U.S. Congress to prohibit trusts.

Front 60

The Clayton Act

Back 60

Designed to prevent companies from creating monopolies through mergers and acquisition

Front 61

Federal Trade Commission Act

Back 61

* created regulatory agency helping businesses determine whether actions acceptable
* launch prosecutions against unfair trade practices

Front 62

Wheeler Lee Amendment

Back 62

expanded powers of FTC to include unfair or deceptive acts/practices

Front 63

Lanham Act

Back 63

Provides protections for and regulations of brand names, brand markes, trade names and trademarks

Front 64

S.R.P.

Back 64

Suggested Retail Price