Introduction to Law Chapter 1

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Questions and Answers

What is a primary responsibility of corporate managers according to Milton Friedman?

To prioritize corporate social responsibility

To maximize employee satisfaction

To serve the interests of the owners of the company (correct)

To promote ethical practices above profit

Which ethical theory focuses on the outcomes and benefits of decisions?

Utilitarian ethics (correct)

Deontological ethics

Rawlsian ethics

Moral universalism

What is the effect of the doctrine of stare decisis in the common law system?

Future courts are bound by precedent established by earlier cases (correct)

Only federal courts can establish binding precedents

Future courts have the flexibility to ignore past decisions

State courts have greater authority than federal courts in legal decisions

Which of the following represents a common ethical trap for individuals in decision-making?

Money Signup and view all the answers

What does the Good Samaritan law protect individuals from when they assist others in emergencies?

Being sued by the person they helped, if their actions cause harm Signup and view all the answers

What is the primary function of the doctrine of stare decisis in legal proceedings?

To bind courts to previous legal precedents Signup and view all the answers

Which type of court is considered the highest level in the judicial hierarchy?

Supreme court Signup and view all the answers

In the Pub Zone vs. Karl case, what was the reason the trial court initially ruled in favor of Pub Zone?

The owner had no knowledge of any danger Signup and view all the answers

What does administrative law primarily concern?

Regulations created by government agencies Signup and view all the answers

What was the outcome of the appeal in the Pub Zone vs. Karl case?

The appellate court ruled in favor of the plaintiff Signup and view all the answers

Why did Wells Fargo face legal repercussions in 2016?

For opening unauthorized accounts under customers' names Signup and view all the answers

What type of legal obligation do court orders create?

Binding obligations for compliance Signup and view all the answers

How many nutrients does the FDA require baby food to contain at a minimum?

9 nutrients Signup and view all the answers

What is the main purpose of the law in Dallas regarding walking on medians that measure six feet or less?

To enhance public safety Signup and view all the answers

What was a significant concern regarding the Federal Trade Commission's (FTC) non-compete rule change?

It was considered unconstitutional for being too broad Signup and view all the answers

What are statutory changes primarily characterized by?

Laws passed by legislative bodies that modify common laws Signup and view all the answers

Why do new bills get proposed in legislative sessions?

To address new societal issues and concerns Signup and view all the answers

What function does administrative law serve?

It encompasses rules and regulations with legal force Signup and view all the answers

What constitutes battery in tort law?

An unwanted touching that is harmful or offensive Signup and view all the answers

Which element is NOT required to win a defamation case?

The statement must be based in truth Signup and view all the answers

What is the legal definition of fraud?

Deliberate deception causing injury to another person Signup and view all the answers

Which of the following represents a breach of duty of care?

A business owner acts unreasonably under similar circumstances Signup and view all the answers

Which of the following accurately describes assault?

An action that puts someone in fear of imminent battery Signup and view all the answers

In negligence cases, which element is NOT part of proving negligence?

Intent to injure Signup and view all the answers

What is a key characteristic of independent federal agencies?

They are run by multiple people and can only be fired for good cause. Signup and view all the answers

What is the purpose of punitive damages?

To deter and punish misconduct Signup and view all the answers

Which part of a negligence claim assesses how a reasonable person would act?

Duty of care Signup and view all the answers

Which of the following best explains the political controls over executive agencies?

Congress controls budgets and can amend enabling legislation. Signup and view all the answers

What does the Freedom of Information Act (FOIA) provide to the public?

Transparency in agency spending and actions. Signup and view all the answers

In the context of alternative dispute resolution, which option describes mediation?

A structured dialogue aimed at resolving disputes outside of court. Signup and view all the answers

What is a distinguishing feature of arbitration compared to other dispute resolution methods?

It involves a private ruling by third parties and is binding. Signup and view all the answers

What defines a tort in legal terms?

A wrongful act that leads to a legal liability. Signup and view all the answers

Which of the following best describes intentional torts?

They are actions taken with the intent to cause harm. Signup and view all the answers

What does statutory control over agency power entail?

Legal requirements and restrictions established by enabling legislation. Signup and view all the answers

Study Notes

Doctrine of Stare Decisis

Precedent requires courts to follow previous legal decisions.
Court hierarchy: Trial courts (lowest), Appellate courts, Supreme Court (highest).

Administrative Law

Regulations created by government agencies.
Binding obligations imposed through court orders.
Courts can issue injunctions for equitable outcomes.

Case Analysis: Pub Zone vs. Karl Kuehn

Case reveals negligence on the part of the Pub Zone owner regarding safety.
Plaintiff: Karl Kuehn; Defendant: Pub Zone owner.
Owner accepted customers with gang affiliations despite prior warnings.
Initial judgment favored Pub Zone; appellate court later ruled they had a duty to ensure safety.

Wells Fargo Scandal

Multiple fake accounts created impacting existing customers from 2002-2016.
Wells Fargo ordered to pay over $2 billion for consumer redress and a $1.7 billion civil penalty.
Customers experienced unexpected fees and unexplained credit accounts.

Baby Food Regulations

FDA regulates infant food, ensuring 30 nutrients with a minimum of 9 required.
Selling unhealthy options without FDA approval is legal.

Shien Labor Practices

Company linked to exploitation of child labor, with workers enduring 70-hour weeks.
Unregulated manufacturing resulted in pollution and waste.

Ethics Theories

Milton Friedman suggested corporate managers should prioritize owners' interests.
Utilitarian ethics: Decision-making for the greater good.
Deontological ethics: Focus on decision-making rationale.
Rawlsian ethics: Prioritize benefits for the least advantaged.
Moral universalism vs. relativism: One absolute right vs. context-dependent morals.

Ethical Traps

Factors leading to unethical decisions include:
- Money, competition, rationalization, conflicts of interest, and conformity.

Companies are encouraged to contribute positively to society.

Common Law and Statutory Changes

Common law relies on precedent, ensuring future courts are bound by past decisions.
Bystander laws imply no duty to intervene in emergencies; Good Samaritan laws protect helpers from liability.
Statutory changes necessitate legislative discussion, often due to evolving societal issues or unpopular judicial rulings.

Administrative Law Framework

Enabling legislation governs agency activities, outlining their authority and limitations.
Agencies operate independently or under executive control, with statutory and political oversight.
Freedom of Information Act (FOIA) promotes transparency in agency operations.

Alternative Dispute Resolution

Negotiation: Direct settlement between parties.
Mediation: Facilitated dialogue to resolve issues outside court.
Arbitration: A formal process where an arbitrator decides, with binding outcomes.

Intentional Torts

Tort: A wrongful act causing harm.
Types include battery (harmful touching), assault (fear of battery), false imprisonment, and emotional distress.
Defamation: Protects reputation through libel (written) and slander (spoken).

Negligence

Different from intentional torts; involves failure to meet a duty of care.
Key elements of negligence include:
- Duty of care: Adherence to a standard of reasonable behavior in specific circumstances.
- Breach: Failing to meet the standard expected of a reasonable person.

Legal Case Example

A woman sued after slipping in an unmarked puddle, raising questions of negligence and inadequate warnings of hazards.

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Description

Explore the foundational concepts of law in this quiz covering Chapter 1. Learn about the doctrine of stare decisis, levels of courts, and administrative law. Understand the significance of court orders and equity in the legal system.