Business Law Master Term List

A collection of key business law concepts, ethical terms, and legal definitions to assist with exam preparation.

Business Ethics

The application of ethical principles to business decision-making.

Duty-based Ethics

An ethical philosophy guided by religious values or principles, evaluating acts as unethical regardless of the outcome.

Kantian Ethics

An ethical philosophy based on human reasoning, moral integrity, and universal moral laws.

Utilitarianism

An ethical philosophy focused on consequences; an act is ethical if it produces the greatest good for the greatest number.

Moral Integrity

The idea that human beings possess an inherent capacity for morality and can apply reason to their actions.

Collective Action Test

In Kantian ethics, the test that asks whether an action would still be acceptable if everyone engaged in it.

Greatest Good for the Greatest Number

The central standard of utilitarianism.

Short-term Profit Maximization

A business focus on maximizing profits in the short run, potentially overlooking ethical responsibilities.

Capitalism

An economic policy that seeks to maximize profits, which can lead to ethical pitfalls if too narrowly focused on short-term gains.

Doctrine of the Moral Minimum

The idea that merely following the law represents only the lowest possible ethical standard.

Moral Compass

A person's internal sense of right and wrong, necessary because not every ethical situation is codified by law.

Lawful but Not Ethical

The concept that some conduct may be legal yet still morally wrong.

Corporate Social Responsibility (CSR)

Making business decisions based on the interests of both shareholders and stakeholders, not just profit alone.

Stakeholders

People or groups with a non-financial interest in what a business does.

Sarbanes-Oxley Act (2002)

A federal law designed to influence business conduct with strong ethical components.

Interstate Commerce

Commerce 'among the several states,' linked to federal regulation of business.

Appellate Court

A court that reviews decisions made by trial courts for legal error.

Discovery

The mandatory pretrial exchange of relevant information and evidence between parties.

Alternative Dispute Resolution (ADR)

Alternatives to full litigation such as negotiation, mediation, or arbitration.

Pro Se Litigant

A person who represents themselves in court without an attorney.

Tort Law

The area of civil law providing remedies for wrongful conduct causing injury to another.

Negligence

The main unintentional tort arising from failure to exercise reasonable care.

Strict Liability

A separate tort category where responsibility for damages is assigned without fault.

Punitive Damages

Damages awarded beyond compensatory damages to punish the tortfeasor and deter others.

Intentional Tort

A tort involving intent to engage in conduct deemed wrongful.