Principles of Business, Marketing, and Finance - Chapter 3: Business Law and Ethics

Vocabulary flashcards covering business contracts, regulatory agencies, workplace law, business ethics, and social responsibility from Chapter 3 of Principles of Business, Marketing, and Finance.

contract

Legally binding agreement between two or more people or businesses.

offer

Element of a contract that is a proposal to provide a good or service.

acceptance

Element of a contract stating that all parties involved must agree to the terms of contract.

consideration

Element of a contract stating that something of value must be promised in return.

capacity

A person is legally able to enter into a binding agreement.

contract law

Regulates how contracts are written, executed, and enforced.

breach of contract

When one or more parties do not follow the agreed terms of a contract without having a legitimate reason.

sales and service contract

Lists the goods or services provided by a business and the price the customer paid in exchange.

lease

Contract to rent something.

employment contract

Describes the terms of employment between a business and an employee.

employer identification number (EIN)

Number assigned by the IRS for businesses to use when preparing income tax returns and forms.

Consumer Bill of Rights

Basic expectations of fair treatment of consumers.

recall

Order to remove or repair unsafe products in the market.

Environmental Protection Agency (EPA)

Governmental agency that enforces federal laws regarding human health and the environment.

business ethics

Principles that help define appropriate behavior in a business setting.

confidentiality agreement

An agreement typically stating that the employee will not share any company information with those outside the company, and which can prevent former employees from working for a competitor for a specified length of time.

Federal Trade Commission (FTC)

Governmental agency that enforces laws that uphold truth in advertising and works to prevent unfair competition and deceptive acts or practices in business.

ethics

Rules of behavior based on a group's ideas about what is right and wrong.

integrity

Honesty of a person's actions.

morals

Individual's ideas of what is right and wrong.

code of ethics

Document that dictates how business should be conducted.

code of conduct

Handbook that outlines expectations of employee behavior.

confidentiality

Specific information about a company or its employees is never shared, except with those who have clearance to receive it.

proprietary information

Any work created by company employees on the job that is owned by that company.

trade secret

Confidential information a company needs to keep private and protect from theft.

false advertising

Overstating the features and benefits of products or making false claims about them.

social responsibility

Behaving with sensitivity to social, environmental, and economic issues.

corporate social responsibility

All the actions taken by a business to promote social good.

corporate culture

How the owners and employees of a company think, feel, and act as a business.

philanthropy

Promoting the welfare of others.

Consumer Product Safety Commission (CPSC)

Government agency in charge of protecting consumers from products that pose unreasonable risks of injury or death.

variable

In algebra, a letter that stands in place of an unknown number.

variable expression

An expression that appears when a variable is combined with numbers and signs for adding, subtracting, multiplying, or dividing.