American Legal Systems and Business Law

Comprehensive vocabulary flashcards covering the hierarchy of American law, constitutional principles, litigation procedures, torts, contracts, and business entities.

A corporate executive decides to cut costs by using cheaper materials in their product, which is likely to compromise safety standards. The executive believes this is acceptable because it will boost profits and shareholder value. This is an example of (circle one) a. ethical fading b. self-serving bias c. corporate culture d. moral disengagement

A set of rules created and enforced by government that regulates behavior and resolves disputes.

An attorney is aware that their client committed perjury during a trial. Instead of reporting this to the court, the attorney allows the false testimony to go unchallenged, rationalizing their decision by stating that everyone lies in court sometimes. This illustrates (circle one) a. ethical relativism b. slippery slope theory c. rationalization d. situational ethics

The hierarchical "pecking order" of law, often visualized as a pyramid with the U.S. Constitution at the top.

During a negotiation, a manager presents information that makes their position appear stronger than it is, misleading the other party. Afterward, they justify this tactic by saying that it's common practice in negotiations. This can be classified as (circle one) a. ethical justification b. competitive bias c. illusion of transparency d. integrity blindness

The supreme law of the land

A project manager consistently favors contractors who are friends, even if their proposals are not the best. The manager believes their loyalty to friends overrides the professional duty to choose the most qualified candidate. This scenario is an example of (circle one) a. conflict of interest b. favoritism c. nepotism d. confirmation bias

Laws passed by legislative bodies, such as Congress (federal) or state legislatures.

A marketing team decides to exaggerate the benefits of a health product in advertisements, believing that it will lead to more sales and benefit consumers. They justify their actions by claiming it’s better for the company’s bottom line. This situation represents (circle one) a. ethical fading b. self-justification c. overconfidence bias d. complicit behavior

Detailed rules issued by administrative agencies (like the EPA) under the authority granted to them by a statute.