Legal Environment Of Business Essay Example

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Substance Law and Procedural Law (a) Define substantive law and procedural law. Substantive law defines the legal relationship of people with other people or between them and the state. Thus, the rules of law governing the creation or enforcement of an intercultural promise are substantive in nature. (Reed Peg. 15) Procedural law deals with the method and meaner by which substantive law is made and administered. (Reed Peg. 15) Sources of Law 1 1 . Federal Law (a) Explain what it meaner to say that constitutions are the "highest laws of the nations. " The U.

S Constitution, which is Supreme law of the Nation. Any law federal or state that conflicts with the Constitution is said to be void and has no legal effect. (Reed peg. .15) 13. Judicial Decisions or Case Law (b) Alex was on a coast-to-coast trip by automobile. While passing through Ohio, Alex has a flat tire. It was fixed by Cam's Turnpike Service Station, and later, while Alex was railing In Inland, teen tire came TOT Ana Alex was Injured. Alex was nonstop in Indiana for the injuries. What rules of substantive law will the Indiana court use to determine if Sam is at fault?

Explain. The court will have to provide proof that Sam failed to use reasonable care while fixing Ale's tire in order to establish the tort of negligence. Chapter 2 Contemporary Business Ethics 1. Ethics and Society Describe the reasons for the rising concern over business ethics. Because of our diverse society, formed by many ethical backgrounds, races, and religions have resulted in few shared ethical values to guide behavior. Public Education

and Family Structure- the decline in public education and the family structure as sources for ethical teaching.

Economic Interdependence-when manufacturers conspire to raise prices of our goods our cost goes up. The sale of dangerous pesticides or impure drugs threatens our health. A management decision to close a plant may threaten our Jobs. News Media and the Internet -Extensive coverage of business decisions and their impact on society makes us more aware than ever of failures of business ethics. What used to be considered private is now public. (Reed Peg. 29-30) 2. Ethics and Government How was government action in recent years encouraged increased business attention to ethical matters?

When a business fails to make ethical decisions when it fails to live up to society expectations for ethical behavior. The government may step in. The government has become increasingly active in regulating business. (Reed Peg. 30) 4. Ethics and Law A marketing consultant to your firm commented that being ethical in business meaner thing more than obeying the law. Discuss. Ethical values are ultimately superior to law in ensuring responsible business behavior. Law sets on the minimum standards acceptable to a society. Ethics Invariably Involves an enlarger, moral Stan ar Two Systems of Ethics 5. Formalism As amended in 1988, the Foreign Corrupt Practices Act prohibits bribery as a practice for U. S. Companies to use in obtaining business in other countries. In passing the act, Congress expressed the concern that bribery was inherently wrong. Which major system of ethical thought does this concern suggest? Explain. Formalism is an approach to ethics that affirms absolute morality. A particular act itself is right or wrong, always

and in every situation. Reed Peg. 34) There are no justifications to bribery, and its wrongness does not depend on the situation in which the bribe was offered. 6. Consequentiality A headline from The Wall Street Journal read "U. S. Companies Pay Increasing Attention to Destroying Files. " The article discussed how many companies are routinely shredding files in the ordinary course of business to prevent future plaintiffs from obtaining the files and finishing incriminating evidence. Is this practice unethical" Evaluate.

Consequentiality concerns itself with the moral consequences of actions rather than with the morality of the actions themselves. Shredding the documents it is not unethical; it is the consequences, or the end result of shredding, that must be evaluated for their ethical implications. It is the lost of trust or harm is done by shredding the documents that is unethical. "The Common Good" is what consequentiality focuses on. (Reed Peg. 36) 8. Legal Regulation Explain how in our society ethical values frequently become law, and how legal exultation can promote change in ethical values.

Describe several common ethical values that are found in law. In our society ethical values frequently become law to prevent workers from being harassed and discriminated against. Certain rules are put forth in business to protect people of color, age, disability, religion and gender. Americans moral sense of the importance of equal opportunity regardless of diversity caught up with the law. (Reed peg. 40) -Respect Tort teen Derider Ana relent AT toners. -The importance of acting in good faith. -The importance of exercising due care. The importance of honoring confidentially. Avoidance of conflicts of interest. Achieving an Ethical Business Corporation

12. The Obstacles a) A Newsweek article on business ethics concludes, "Even in today's complex world, knowing what's right is comparatively easy. It's doing what's right that's hard. " Explain why this statement may be true in modern corporate decision-making. Incorporate America today, making the right decision is hard because of profit. Emphasis on profit alone sometimes conflicts with ethical responsibility. How a profit is made becomes sees important than that it is made. Reed Peg. 50) b) In 2010, average CEO pay was 319 times higher than the average employee's pay, according to the Institute for Policy Studies. In 1980, CEO pay was only 42 times higher. Discuss possible reasons for this tremendous increase in CEO pay and analyze the ethical implications. The control of resources by non-owners plays a huge part in the increase in pay of Coo's. Managerial agents like the president and vice president of large corporations have ethical and legal duties to manage the corporate resources for the benefit of their owners.

But because they control corporate resources, it may be easy to manipulate the resources in their own interest and difficult for others to find out they have done so. In other words, managers may be in an ideal position to infringe on the property interest of the corporate owners. (Reed Peg. 52) 14. The Rewards Why are formal legal rules alone not an adequate ethical system for business? Legal regulation lacks flexibility and is inadequately informed to be the only social guide for business decision-making. Ethics belong in business decision-making, and ultimately from its own source of support. (Reed Peg. 56)