acct2150 study guide

business law

law vs ethics vs jurisprudence

law: what can i do

ethics: what should i do

jurisprudence: philosophy of law

what is law

binding rules created by governing authority defining rights/responsibilities and enforcement/consequences

what is statutory law?

written law passed by a legislature (state or federal)

what is administrative law?

law made by government agencies via regulations/rules

what is common law?

judge-made law developed over time through decisions/precedent

what is precedent?

a holding/ruling from a court decision that guides later similar cases

what is stare decisis?

doctrine that courts generally follow precedent unless justice requires departure

what is the highest source of federal law?

U.S. Constitution

What happens if valid federal law conflicts with state law?

federal law prevails

substantive law vs procedural law

substantive: creates rights/obligations

procedural: provides methods to enforce/restrict those rights

civil law vs criminal law

civil: non-criminal disputes

criminal: defines crimes and enforced by government

plaintiff vs defendant

plaintiff (petitioner): initiates lawsuit

defendant (respondent): accused/defends

justice vs judge

justice: Supreme Court

judge: generally presides in other courts

majority vs unanimous vs concurring vs dissenting opinions

majority: most agree

unanimous: all agree

concurring: agrees with result for different reasons

dissenting: disagrees

remedy at law vs equitable remedy

remedy at law: money damages

equitable remedy: court orders (recission, specific performance, injunction)

recission definition

to undo a contract

specific performance definition

court orders a party to do what was promised

injunction definition

court order to stop/refrain from an act

4-step ethical decision process

1. identify dilemma

2. gather facts/opinions/parties/consequences

3. choose/implement

4. evaluate & create safeguards

utilitarianism definition

outcome-based ethics: greatest good for greatest number of people (cost/benefit analysis)

Kant’s categorical imperative (basic idea)?

ask: what if everyone acted this way?

what is the stakeholder approach?

consider effects on key stakeholders when choosing an action

positive law vs natural law

positive law: comes from a higher authority

natural law: “God’s law”

integrity in business ethics

being honest, fair, and consistent in applying moral beliefs about right/wrong

Bernard Madoff case significance (lecture)?

largest Ponzi scheme; SEC investigated twice but missed it

Coase theorem (basic idea)

parties bargain for the outcome they want

internal controls examples

tone at top; periodic reviews; separate responsibilities; physical controls; review safeguards/risks

what is corporate governance?

how a corporation governs operations and decision-making processes

Iowa state court structure (high level)?

Supreme Court (7)

Court of Appeals (9)

District Courts (trial)

Federal court structure (high level)

U.S. Supreme Court

Courts of Appeals (13)

District Courts (94)

Court of Federal Claims

Writ of Certiorari

Supreme Court order to review a lower court case record

Rule of Four

Four Supreme Court justices must vote to grant cert

jurisdiction definition

court’s authority to hear and decide a case

minimum requirements to hear a case (lecture formula)?

personal (or in rem) jurisdiction + subject matter jurisdiction

personal jurisdiction definition

authority over the defendant (person/organization)

in rem jurisdiction definition

authority based on property located in the state

subject matter jurisdiction definition

authority over the type of dispute/controversy

4 common bases for personal jurisdiction

resident, found/served, consent, long-arm + minimum contacts

long arm statue (general idea)

let’s courts reach nonresidents whose actions relate to the state; still needs minimum contacts/fairness

jurisdiction in cyberspace (3 website types)

passive (view-only)

commercial (repeated transactions)

interactive (depends on activity)