Free Essay

Lwc1 Final Assessment


Submitted By johanncooray
Words 3875
Pages 16
(1) What is the point at which a legal agreement is said to have occurred?
Intend to contract.
(2) What is the difference between an enforceable, unenforceable, express and implied contract? Unenforceable Agreement occurs when the parties intend to form a valid bar-gain but a court declares that some rule of law prevents enforcing it. Voidable Contract Occurs when the law permits one party to terminate the agreement. Void Agreement is one that neither party can enforce, usually because the purpose of the deal is illegal or because one of the parties had no legal authority to make a contract.
(3) Describe a situation where a breach of contract has occurred. Most contracts are discharged by full performance or sometimes the parties discharge a contract by agreement.
(4) If there is a breach of contract, what remedies are available?
Compensatory Damages (Expectation Interest), Consequential Damages (Special Damages), Incidental Damages (Relatively Minor)
(5) What conditions would constitute a discharge of a contract? A party is discharged when they no longer have any duties under a contract.
(6) Describe the conditions for a discharge of a contractual obligation. Most contracts are discharged by full performance or sometimes the parties discharge a contract by agreement.
(7) Describe types of acceptable performance of a contract.
Strict and Substantial Performance. 1) Strict: requires one party to perform its duties perfectly. 2) Substantial: generally sufficient to entitle the promisor the contract price, minus the cost of defects in the work.
(8) What constitutes a breach of a contract? An unjustifiable failure to perform all or some part of a contractual duty without a valid excuse
(9) What is the definition of remedies? A remedy is the method that a court uses to compensate an injured party.
(10) Describe the various types of remedies in contracts. Expectation interest, (2) Reliance Interest, (3) Restitution Interest, (4) Equitable Interest
(11) What are the Sherman and Clayton Antitrust Acts?
Sherman Act: Regulate competition, standard oil company dissolved, all had to compete. Section 2- illegal to monopolize or attempt to monopolize. Clayton Antitrust Act: Prohibits mergers that are anticompetitive, companies with substantial assets must notify the FTC before merger.
(12) Describe the key provisions of the Sherman and Clayton Antitrust Acts. Section 1 of the Sherman act prohibits all agreements "in restraint of trade". Section 2 of the Sherman act bans monopolization: the wrongful acquisition of a monopoly
(13) Describe the variety of aggressive business actions that are illegal as violations of antitrust regulations Monopolization: under the section 2 of the act, it is illegal to monopolize or attempt to monopolize a market.
*Predatory Pricing: occurs when a company lowers its prices below cost to drive competitors out of business. Tying Arrangements: is an agreement to sell a product on the condition that the buyer also purchases a different product
(14) What is the role of the Federal Trade Commission?
Created to regulate business, although its original focus was on antitrust law, it now regulates a wide range of business activities that affect consumers, everything from advertising to consumer loans to warranties to debt collection practices.
(15) How is consumer credit regulated? Truth in lending act, Fair credit billing act.
(16) What is the Magnuson-Moss Warranty Act?
The Act requires any supplier that offers a written warranty on a consumer product that costs more than $15 to disclose the terms of the warranty in simple, understandable language before the sale.
(17) What government regulations apply to consumer product safety? Consumer Product Safety Commission created by the Consumer Product Safety Act of 1972
(18) What is the role of the Environmental Protection Agency?
The EPA was created by congress to consolidate environmental regulation under one roof. When Congress passes a new environmental law, the EPA issues regulations to implement it. The agency can bring administrative enforcement action against those who violate its regulations.
(19) Describe requirements of the Clean Air Act?
Primary Standards. Secondary Standards. state Implementation Plans (SIPs). Citizen Suits.
States that the EPA must establish nationalize ambient air quality standards for both primary (affects health) and secondary (doesn't necessarily affect your health) pollution. States must produce implementation to meet quality air standards citizens can sue people for not following the clean air act and companies can share emission allowances
(20) Describe requirements of the Clean Water Act?
Industrial Discharges, Water Quality Standards, Sewage, Waste Disposal, Superfund
(21) Identify regulations regarding waste disposal that business must follow? Resource Conservation and Recovery Act. The RCRA establishes rules for treating both hazardous wastes and other forms of solid waste (such as ordinary garbage). Anyone who owns property with an underground storage tank must notify the EPA and comply with regulations leak detectors. Anyone who creates, stores, transports, treats or disposes of a certain amount of hazardous waste must be tracked and have to be disposed of at a certain facility. Any company that generates more than 100 kg of hazardous waste must obtain ID # for its waste. When it ships its waste disposal facility it must send a multi copy manifest that identifies the waste, the transporter and destination. The company must notify the EPA if it does not receive a receipt from the disposal site indicating that the waste has been received.
(22) What government regulations apply to consumer product safety? Consumer Product Safety Commission created by the Consumer Product Safety Act of 1972
(23) Describe alternative dispute resolution techniques.
Arbitration It's any other formal or informal process used to settle disputes without resorting to a trial-Cheaper and faster that litigation
(24) List the advantages and disadvantages of the various alternative dispute resolution options.
Can be unfair - Attorneys are repeat business for big corporations, No Public Record, Not always "Docketed" for easy follow-up, you may have to pay an attorney to help collect settlement, Give up appeal rights (such as bias or fraud), Give up discovery rights
(25) How does the court system function in resolving disputes? Litigation refers to lawsuits, the process of filing claims in court, and ultimately going to trial.
(26) Compare and contrast the legal process for dispute resolution with alternative dispute resolution options. Negotiation Parties: negotiate, whether personally or with lawyers.
Mediation: A neutral person, mediator, attempts to coax the two disputing parties toward a voluntary settlement.
Arbitration: The parties agree to bring in a neutral third party but with a major difference: the arbitrator has the power to impose an award.
Mandatory Arbitration: The parties agree in advance to arbitrate any disputes that may arise.
(27) Describe the Family and Medical Leave Act, COBRA.
Provides that former employees must be allowed to continue their health insurance for 18 months after leaving their job, but they must pay for the costs themselves. (The catch is that employees must pay for it themselves, up to 102 percent of the cost. COBRA applies to any company with 20 or more workers.)

(28) What are actions which would constitute wrongful discharge of an employee? Refusing to Violate the Law - employees may not be discharged for refusing to break the law. Exercising a Legal Right - may not discharge a worker for exercising a legal right if that right supports public policy. Performing a Legal Duty - Courts have consistently held that an employee may not be fired for serving on a jury. Whistle Blowing - employees who disclose illegal behavior on the part of their employer
(29) What are workplace safety requirements under OSHA?
• Employers must comply with specific health and safety standards.
• Employers are under a general obligation to keep their workplace "free from recognized hazards that are causing or are likely to cause death or serious physical harm"
• Must keep records of all workplace injuries and accidents.
• The OSHA may inspect workplaces to ensure that they are safe.
(30) What rights to employees have to privacy in the workplace?
Off-Duty Conduct, Alcohol and Drug Testing, Lie Detector Tests, Electronic Monitoring of the Workplace
(31) What actions by an employer constitute employment discrimination?
Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, Pregnancy Discrimination Act of 1978, Age Discrimination in Employment Act (ADEA) of 1967, Americans with Disabilities Act (ADA)
(32) What are appropriate and inappropriate hiring practices? Inappropriate - not hiring someone due to race, religion, color, creed, age or sex
Appropriate= hiring someone based on their ability to perform the job
(33) What are the rights of union workers and employers in a labor dispute? Free speech for both sides as long as it doesn't interfere with operations
(34) What are legal and illegal actions during a labor dispute between a union and an employer?
Strikes with violence = illegal, Secondary boycotts=illegal, Replacement workers=legal, Picketing=legal, Lockouts (defensive) =legal, Lockouts (offensive) legal (if they reached bargaining impasse)
(35) Describe the concept of collective bargaining.
Precisely defined group of employees who will be represented by a particular union (It is the union's exclusive right to bargain for the unit that gives the organization its power.)
(36) What is an express warranty? Is a warranty that the seller creates with his words or actions (clearly indicates)
(37) What is an implied warranty?
Are those created by the Code itself, not by any act or statement of the seller? (Many states prohibit a seller from disclaiming implied warranties in the sale of consumer goods.)
(38) What is a disclaimer? A statement that a particular warranty does not apply.
(39) What are the limitations on remedies for breach of warranty and product liability?
Parties may limit or exclude the normal remedies permitted under the Code (if a party does breach its warranty, the injured party will not get all of the damages the Code normally allows)
(40) What is negligence and how does that concept apply to a manufacturer? Concerns harm that arises by accident (unreasonable conduct by the defendant; the "unintentional" tort)
(41) What is negligence? Concerns harm that arises by accident
(42) What is strict liability? prohibits defective products whether the defendant acted reasonably or not; holds to a very high standard all who engage in ultra-hazardous activity or who manufacture certain products.
(Liability without fault; a burden created by the law rather than by the parties; the injured person need not prove that the defendant's conduct was unreasonable; must only show that the defendant manufactured a defective product and that it caused harm.)
(43) What are the defenses available to an action for negligence, or an action for strict liability? None: a defendant engaging in an ultra hazardous activity is virtually always liable for any harm that results.
(44) What are the basic provisions of the Sarbanes Oxley Act? • Rights of shareholders, Right to information, Right to vote
(45) What rights do shareholders? • Right to Information, Right to Vote , Right to Dissent, Right to Protection from Other Shareholders, Right to Monitor
(46) What recourse do shareholders have against corporations if shareholder rights are violated? Derivative Lawsuit: Shareholders can sue but all proceeds go to corporation. In turn, shareholders stocks go up.
*Direct Lawsuit: Only if own shareholders rights are harmed, such as denying any rights of the shareholders. Shareholders keep damages.
*Class Action: More than one shareholder files suit at the same time, reduces cost of lawsuit since they all share it.
(000) What are the key provisions of the Securities Act of 1933?
Before offering or selling securities, the issuer must register the securities with the SEC, unless the securities qualify for an exemption.
(47) What are the disclosure requirements of the Securities Act of 1933? Required a onetime disclosure when the company sells stock to the public. In 1934 the amendment to this law required a quarterly and yearly report showing all financial statements, and disclosing all significant developments in the company such as bankruptcy, change of directors, etc.
(48) How did Sarbanes-Oxley change the disclosure requirements of the Securities Act of 1933? Added to the 1934 securities act by requiring CEO and CFO to certify that:
*The information in the quarterly and annual reports is true, The company has effective internal controls, The officers have informed the company's audit committee and it auditors of any concerns that they have about the internal control system.
(49) What are the audit requirements for a publicly traded corporation? In performing their duties, accountants must follow two sets of rules: (1) generally accepted accounting principles (GAAP) and (2) generally accepted auditing standards (GAAS). GAAP are the rules for preparing financial statements, and GAAS are the rules for conducting audits. These two sets of standards include broadly phrased general principles as well as specific guidelines and illustrations. The application and interpretation of these rules require acute professional skill.
(50) How did Sarbanes-Oxley change the audit requirements for a publicly traded corporation?
• Congress established the Public Company Accounting Oversight Board (PCAOB) to ensure that investors receive accurate and complete financial information. The board has the authority to regulate public accounting firms, establishing everything from audit rules to ethics guidelines. All accounting firms that audit public companies must register with the board and the board must inspect them regularly. The PCAOB has the authority to revoke an accounting firm's registration or prohibit it from auditing public companies.
• Reports to Audit Committee. The accountants must inform the audit committee of any: significant flaws they find in the company's internal controls; alternative options that the firm considered in preparing the financial statements; and accounting disagreements with management.
• Consulting Services. SOX prohibits accounting firms that audit public companies from providing consulting services to those clients on topics such as bookkeeping, financial information systems, human resources, and legal issues (unrelated to the audit). Any consulting agreements must be approved by a client's audit committee. Auditing firms cannot base their employees' compensation on sales of consulting services to clients.

(51) How would you define business ethics?
Principles and standards that guide behavior in the world of Business; the application of ethics to the problems and opportunities experienced by business people
(52) How has business ethics developed over time?
• before 1960, (Religious Perspective) - Fair Deal program defined civil rights and environmental responsibilities as ethical issues business had to address. Rise of social issues in Business, Society turned to causes,* culminated the "consumer bill of rights".
• The 1970s, (Enlightenment Begins)Business Ethics emerging as a field
• The 1980s, (Consolidation and Implementation Starts) centers on Business ethics provided publications, courses, and seminars
• The 1990s (Institutionalization of Business Ethics) Government continued to support self-regulation,Federal Sentencing Guidelines for Organizations (FSGO) set the tone for organizational misconduct
(53) What is involved in developing an ethical culture in an organization? * Communicate core values to employees, Create ethics programs, Appoint ethic officers to oversee them
(54) What are three benefits to business of a clear ethical framework? * Employee commitment and trust, Investor loyalty, Customer Satisfaction and trust
(55) What are various stakeholder roles in business ethics?
Stakeholders provide resources that are more or less critical to a firm's long-term success. These resources may be both tangible and intangible. Stakeholders' ability to withdraw—or to threaten to withdraw—these needed resources gives them power over businesses.
(56) What is an accepted definition of social responsibility?
An organization's obligation to maximize its positive impact and to minimize its negative impact on stakeholders (A contract with society, whereas business ethics involves carefully thought-out rules or heuristics of business conduct that guide decision making; Expectations that the community imposes on firms doing business inside its borders)
(57) Describe relationships between stakeholder orientation and social responsibility.
When a business also cares about the well-being of stakeholders, it earns trust and cooperation that ultimately reduce costs and increase productivity.
(58) What should be the role of corporate governance in establishing an ethical climate within an organization?
To remove the opportunity for employees to make unethical decisions, most companies have developed formal systems of accountability, oversight, and control
(59) List the steps involved in implementing a stakeholder perspective in business ethics
Assessing the Corporate Culture, Identifying Stakeholder Groups, Identifying Stakeholder Issues, Assessing Organizational Commitment to Social Responsibility, Identifying Resources and Determining Urgency, Gaining Stakeholder Feedback

(60) Describe ethical issues in the context of organizational ethics. Abusive or intimidating behavior toward employees Lying to employees, customers, vendors, or to the public, A situation that places employee interests over organizational interests, Violations of safety regulations, Misreporting of actual time worked, E-mail and Internet abuse, Discrimination on the basis of race, color, gender, age...etc., Stealing or theft, Sexual harassment, Provision of goods or services that fail to meet specifications, Misuse of confidential information , Alteration of documents, Falsification or misrepresentation of financial records or reports, Improper use of competitors' inside information , Price fixing, Giving or accepting bribes, kickbacks, or inappropriate gifts
(61) How do ethical issues relate to basic values of honesty, fairness, and integrity? Honesty: Reasoning leads many people to conclude that anything is acceptable in business.
Fairness:There are three fundamental elements that seem to motivate people to be fair: equality(how wealth or income is distributed between employees), reciprocity (wage distance) and optimization (trade-off between equity and efficiency).
Integrity:In an organization, it means uncompromising adherence to ethical values. There are substantive or normative constraints on what it means to act with integrity.
(62) Delineate and identify unethical behaviors as business ethics issues.
Abusive or intimidating behavior is the most common ethical problem for employees. The concepts can mean anything—physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness—and the meaning of these words can differ by person.
Lying by commission (puffery in advertising), omission lying (intentionally not informing the channel member of any differences, problems, safety warnings, or negative issues relating to the product, service, or company.
(63) What are three challenges of determining an ethical issue in business?
*A conflict of interest exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group.
* Bribery is the practice of offering something (usually money) in order to gain an illicit advantage.
*Corporate intelligence is the collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends.
(64) How do you distinguish between voluntary and mandated boundaries of ethical behavior?
Voluntary practices include the beliefs, values, and voluntary contractual obligations. Mandated boundaries are the externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements.
(65) What are the key regulatory efforts to provide incentives for ethical behavior?
Regulation of competition, (2) protection of consumers, (3) promotion of equity and safety, (4) protection of the natural environment, and (5) incentives to encourage organizational compliance programs to deter misconduct
(66) What are the ethical standards and requirements established by the Sarbanes-Oxley Act? 1. Requires the establishment of a Public Company Accounting Oversight Board in charge of regulations administered by the SEC
2. Requires CEOs and CFOs to certify that their companies' financial statements are true and without misleading statements.
3. Requires that corporate board of directors' audit committees consist of independent members
(67) What are the components of a comprehensive framework for ethical decision making in business? Ethical-issue intensity, individual factors, and organizational factors such as corporate culture and opportunity.
(68) How can knowledge about ethical decision-making be used to improve ethical leadership?
Ethical decision making within an organization does not rely strictly on the personal values and morals of individuals. Organizations take on a culture of their own, which, when combined with corporate governance mechanisms, have a significant influence on business ethics.
(69) What are leadership styles and habit that promote an ethical culture?
The coercive leader demands instantaneous obedience and focuses on achievement, initiative, and self-control. Although this style can be very effective during times of crisis or during a turnaround, it otherwise creates a negative climate for
Organizational performance.
The authoritative leader—considered to be one of the most effective styles—inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate.
The affiliative leader values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking.
The democratic leader relies on participation and teamwork to reach collaborative decisions. This style focuses on communication and creates a positive climate for
Achieving results.
The pace-setting leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take the initiative.
The coaching leader builds a positive climate by developing skills to foster long-term success, delegate's responsibility, and is skillful in issuing challenging assignments.
(70) How do moral philosophies and values influence group ethical decision making in business?
Moral philosophies present guidelines for "determining how conflicts in human interests are to be settled and for optimizing mutual benefit of people living together in groups," guiding business people as they formulate business strategies and resolve specific ethical issues.
Ethical decisions require a person to evaluate the "rightness," or morality, of choices in terms of his or her own principles and values.
(71) What are the stages of cognitive moral development, and how do those relate to ethical development?
The stage of punishment and obedience. The stage of individual instrumental purpose and exchange. The stage of mutual interpersonal expectations, relationships, and conformity. The stage of social system and conscience maintenance. The stage of prior rights, social contract, or utility. The stage of universal ethical principles.
(72) How does white-collar crime relate to moral philosophies, values, and corporate culture?
White-collar crime can be defined as an individual committing an illegal act in relation to his or her employment, which is highly educated; in a position of power, trust, respectability and responsibility; and abuses the trust and authority normally associated with the position for personal and/or organizational gains.
(73) What is the influence of corporate culture on business ethics?
The term corporate culture is defined as a set of values, beliefs, goals, norms, and ways of solving problems shared by the members (employees) of an organization of any size (for profit or nonprofit).
(74) How does leadership, power, and motivation relate to ethical decision making in organizations?
Leadership—the ability or authority to guide others toward achieving goals—has a significant impact on the ethical decision-making process because leaders have the Power to motivate others and enforce both the organization's rules and policies and their own viewpoints. Sometimes a leader uses power to manipulate A situation or a person's values in a way that creates a conflict with the person's value structure. To create motivation, an organization offers incentives to encourage employees to work toward organizational objectives.
(75) How do work groups influence ethical decision?
Those who have legitimate power are in a position to influence ethics-related activities. The work group and team often sanction certain activities as ethical or define others as unethical.
(76) What is the relationship between individual and group ethical decision making?
If a person believes that his or her personal ethics severely conflict with the ethics of the work group and of superiors in an organization, that individual's only alternative may be to leave the organization.

Similar Documents

Premium Essay

Lwc1 Cos

...LWC1 - Fundamentals of Business Law and Ethics Course of Study Your competence will be assessed as you complete the LWC1 objective assessment for this course of study. This course of study may take up to 10 weeks to complete. Introduction Overview There are the two major subdomains of study within the Fundamentals of Business Law and Ethics Course of Study: business law and business ethics. The exam covers 11 business law and ethics concepts, including the following: contractual relationship government regulation of business dispute resolution labor and employment law hiring and employment practices warranties, negligence, and liabilities Sarbanes-Oxley Act ethical issues in business ethical leadership ethics programs use of company resources You likely have had some experience with the legal system, either through your own encounters or merely through listening to the nightly news, and you have probably read or heard about various ethical and legal issues causing financial upheaval in today's business world. This background will serve you well in this study. Now you can expand on that experience, and perhaps refine and enhance your own views on these issues. Once you complete this course of study, you will have demonstrated a level of competence that you can immediately use in your work setting and career. Outcomes and Evaluation There are 10 competencies covered by this course of study; they are listed in the "Competencies for Fundamentals of Business Law and Ethics...

Words: 8481 - Pages: 34