Legal Environment

Legal Ethics

Rules governing the conduct of lawyers

Malpractice

Actions for negligence against lawyers for improper or unethical conduct or for violating ethics rules

Attorney/Client Privilege

Things a client tells attorney can’t be revealed without consent

Conflicts of Interest

attorney can’t silmutaneously represent two clients if representig one impairs ability to represent others

Shareholder Primacy Theory

corporation’s job is to increase shareholder value

Stakeholder or Social Entity Theory

Corporations have obligations not only to other shareholders but to stakeholders (workers, community, environment)

Administrative Agencies

carry out specific governmental functions delegated by the legislature through enabling acts

Administrative Law Judges (ALJs)

adjudicate claims related to the agency

Administrative Procedure Act

sets procedures for agency rule-making and adjudication

Antitrust Law (Sherman Act)

Trust is a group of company that combines together to ehance their market power. A monopoly is a trust that dominates an industry (prevents this). Sherman Act regulates trusts that hurt consumers

Horizontal Agreements (Per Se Violations)

Acts of antitrust: Price fixing, Production Quotas, Group boycotts, Market Division

Vertical Agreements

Acts of antitrust: Price-related agreements, tie-in agreements, exclusive distributor agreements, exclusive dealing agreements, Price discrimination

Clayton Act

Prohibits merger and acquisition that reduce competition and create monopolies

Types of Product Liability

Manufacturing Defect , Design Defect, Inadequate warning defect

Theories of Liability

Intentional Tort, Negligence, Strict Liability (for commercial suppliers providing unreasonably dangerous products)

Treaties (Bi-Lateral and Multi-Lateral)