Glossary of Terms for Business Law and Ethics

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1 Glossary of Terms for Business Law and Ethics MBA 625, Patten University Abusive/Intimidating Behavior Physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness. Adjudicate To render a judicial decision, in the administrative process, adjudication is the trial-like proceeding in which an administrative law judge hears and decides issues that arise when an administrative agency charges a person or a firm with violating a law or regulation enforced by the agency. Administrative Agency A federal or state government agency established to perform a specific function. Administrative agencies are authorized by legislative acts to make and enforce rules in order to administer and enforce the acts. Administrative Law The body of law created by administrative agencies (in the form of rules, regulations, orders and decisions) in order to carry out their duties and responsibilities. Administrative Law Judge (ALJ) One who presides over an administrative agency hearing and has the power to administer oaths, take testimony, rule on questions of evidence, and make determinations of fact. Alternate Dispute resolution The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation, mediation, and arbitration. Answer Procedurally, a defendant's response to the plaintiff s complaint. Arbitration The settling of a dispute by submitting it to a disinterested third party (other than a court) who renders a decision that is (most often) legally binding. Arbitration Clause A clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court. Assault Any word or action intended to make another person fearful of immediate physical harm; a reasonably believable threat.

2 Bankruptcy Court A federal court of limited jurisdiction that handles only bankruptcy proceedings, which are governed by federal bankruptcy law. Battery The unexcused, harmful or offensive, intentional touching of another. Bill of Rights The first ten amendments to the US Constitution Binding Authority Any source of law that a court must follow when deciding a case. Binding authorities include constitutions, statutes, and regulations that govern the issue being decided, as well as court decisions that are controlling precedents. Breach The failure to perform a legal obligation. Business Ethics What constitutes right or wrong behavior and the application of moral principles within a business context. Business Tort Wrongful interference with another's business rights Case Law The rules of law announced in court decisions. Case law includes the aggregate of reported cases that interpret judicial precedents, statutes, regulations. Categorical Imperative An ethical guideline developed by Immanuel Kant under which an action is evaluated in terms of what would happen if everybody else in the same situation, or category, acted the same way. Checks and Balances The principle under which the powers of the national government are divided among three separate branches- the executive, legislative, and judicial branches- each of which exercises a check on the actions of others. Citation A reference to a publication in which a legal authority, such as a statue or a court decision, or other source can be found Civil Law The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters Civil law systems A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies. In the United States, Louisiana, because of its historical ties to France, has, in part, a civil law system.

3 Commerce Clause The provision in Article I, Section 8, of the US Constitution that gives Congress the power to regulate interstate commerce. Common Law The body of law developed from custom or judicial decisions in English and the US courts, not attributable to a legislature. Compensatory Damages A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party. Complaint The pleading made by plaintiff alleging wrongdoing on the part of the defendant; the document that, when filed with a court, initiates a lawsuit. Concurrent Jurisdiction Jurisdiction that exists when two different courts have the power to hear a case. For example, some cases can be heard in federal or a state court. Conflict of Interest When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group. Constitutional law The body of law derived from the US Constitution and the constitutions of the various states. Core Practices Documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations. Corporate Intelligence The collection and analysis of information on markets, technologies, customers and competitors, as well as on socioeconomic and external political trends. Cost-Benefit Analysis A decision-making technique that involves weighing the costs of a given action against the benefits of that action. Counterclaim A claim made by a defendant in a civil lawsuit against the plaintiff. In effect, the defendant is suing the plaintiff. Criminal Law Law that defines and governs actions that constitute crimes. Generally, criminal law has to do with wrongful actions committed against society demands redress. Cyber Tort A tort committed in cyberspace

4 Cyberlaw An informal term used to refer to all laws governing electronic communications and transactions, particularly those conducted on the internet. Damages Money sought as a remedy for a breach of contract or a tortious action Default Judgement A judgement entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiffs claim. Defendant One against whom a lawsuit is brought; the accused person in a criminal proceeding Defense A reason offered Diversity of Citizenship Under Article III, Section 2, of the US Constitution, a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states, (2) A foreign country and citizens of a state or of different states, or (3) citizens of a state and citizens or subjects of a foreign country. The amount in controversy must be more than $75,000 before a federal district court can take jurisdiction in such cases. Docket The list of cases entered on a court's calendar and thus scheduled to be heard by the court Enabling Legislation A statute enacted by Congress that authorizes the creation of an administrative agency and specifies the name, composition, purpose and powers of the agency being created Equitable principles and Maxims General propositions or principles of law that have to do with fairness (equity) Establishment Clause This provision in the first amendment to the US constitution that prohibits the government from establishing any state sponsored religion or enacting any law that promotes religion or favors one religion over another. Ethical Dilemma Problem, situation, or opportunity that requires an individual, group, or organization to choose among several wrong or unethical actions. Ethical Issue Problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. Ethical Reasoning

5 A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand. Ethical Relativism A system of ethical thought that says there is no objective or absolute standard of right and wrong. Ethics Moral principles and values applied to social behavior. Exclusive Jurisdiction Jurisdiction that exists when a case can be heard only in a particular court or type of court. Facilitation Payment Small payments made to obtain or retain business or other improper advantages do not constitute bribery payments. Federal form of government A system of government in which the states form a union and the sovereign power is divided between the central government and the member states. Federal Question A question that pertains to the US Constitution, acts of Congress, or treaties. A federal question provides a basis for federal jurisdiction. Filtering Software A computer program that is designed to block access to certain websites, based on their content. The software blocks the retrieval of a site where URL or key words are on a list within that site. Free Exercise Clause The provision in the First Amendment to the US Constitution that prohibits the government from interfering with peoples religious practices or forms of worship. Historical School A school of legal thought that emphasizes the evolutionary process of law and looks to the past to discover what the principles of contemporary law should be. Intellectual Property Property created by the intellect, such as inventions, software and books. Patents, copyright and trade secrets are examples. Intentional Tort A wrongful act knowingly committed International Law The law that governs relations among nations. National laws, customs, treaties, and international conferences and organizations are generally considered to be the most important sources of international law.

6 Interpretive Rule An administrative agency rule that is simply a statement or opinion issued by the agency explaining how it interprets and intends to apply the statues it enforces. Such rules are not binding on private individuals or organizations. Judicial review The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch. Jurisdiction The authority of a court to hear and decide a specific case. Jurisprudence The science or philosophy of law. Justiciable controversy A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case. Law Rules of conduct established by the government of a society to maintain stability and justice in that society. Laws cannot make people do what is right, but can punish. At times ethics and law will conflict. A body of enforceable rules governing relationships among individuals and between individuals and society. Legal Positivism A school of legal thought centered on the assumption that there is no law higher than the laws created by a national government. Laws must be obeyed, even if they are unjust, to prevent anarchy Legal Realism A school of legal thought of the 1920s and 1930s that generally advocated ales abstract and more realistic approach to the law, an approach that takes into account customary practices and the circumstances in which transactions take place. This school left a lasting imprint on American jurisprudence. Legislative Rule An administrative agency rule that carries the same weight as a congressionally enacted statute Litigation The process of resolving a dispute through the court system Long Arm Statute A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain "minimum contacts" with that state for the statute to apply. Mandated Boundary The externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements.

7 Mediation A method of settling disputes outside the courts by using the services of a neutral third party, who acts as a communicating agent between the parties and assists them in negotiating a settlement Meta Tag A key word in a document that can serve as an index reference to the document. On the Web, search engines return results based, in part, on these tags in Web documents. Moral Minimum The minimum degree of ethical behavior expected of a businessperson, which is usually defined as compliance with the law. Motion for judgement on the pleadings A motion by either party to a lawsuit at the close of the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute. Motion for summary judgement A motion requesting the court to enter a judgement without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute. Motion to Dismiss A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is, has no basis in law) or that there are other grounds on which the suit should be dismissed. Although the defendant normally is the party requesting a dismissal, either the plaintiff or the court can also make a motion to dismiss the case. National Law Law that pertains to a particular nation (as opposed to international law) Natural Law The belief that government and the legal system should reflect universal moral and ethical principles that are inherent in human nature. The natural law school is the oldest and one of the most significant schools of legal thought. Negotiation A process in which parties attempt to settle their dispute informally, with or without attorneys to represent them Online Dispute Resolution The resolution of disputes with the assistance of organizations that offer dispute resolution services via the internet Ordinance A regulation enacted by a city or county legislative body that becomes part of that states statutory law Persuasive Authority

8 Any legal authority or source of law that a court may look to for guidance but on which it need not rely in making its decision. Persuasive authorities include cases from other jurisdictions and secondary sources of law. Plaintiff One who initiates a law suit. Pleadings Statements made by the plaintiff and the defendant in a lawsuit that details the facts, charges, and defenses involved in the litigation. The complaint and answer are part of the pleadings. Police Powers Powers possessed by the states as part of their inherent sovereignty. These powers may be exercised to protect or promote the public order, health, safety, morals, and general welfare. Precedent A court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts Preemption A doctrine under which certain federal laws preempt, or take precedence over, conflicting state or local laws Primary Source of law: A document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, a treaty, an Executive Order, or a court decision. Principle of Rights The belief that human beings have certain fundamental rights. Whether a business action or decision is ethical depends on how it affects the rights of various groups, such as owners, employees, consumers, suppliers, the community, and society. Privacy Issue The monitoring of employees' use of available technology and consumer privacy. Reciprocity An interchange of giving and receiving in social relationships. Also called quid pro quo. Probate Court A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased persons estate Procedural Law Law that establishes the methods of enforcing the rights established by substantive law Punitive Damages Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future Question of Fact

9 In a lawsuit, an issue that involves only disputed facts, and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury) Question of Law In a lawsuit, an issue involving the application or interpretation of a law. Only a judge, not a jury, can rule on questions of law Remedy The relief given to an innocent party to enforce a right or compensate for the violation of a right. Reply Procedurally, a plaintiff's response to a defendants answer Rule of Four A rule of the United States Supreme Court under which the court will not issue a writ of certiorari unless at least four justices approve the decision to issue the writ. Rulemaking The process undertaken by an administrative agency when formally adopting a new regulation or amending an old one. Rulemaking involves notifying the public of a proposed rule or change and receiving and considering the public's opinion. Secondary Source of Law A publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review. Small Claims Court A special court in which parties may litigate small claims (such as $5,000 or less). Attorneys are not required in small claims courts and, in some states, are not allowed to represent the parties. Sociological thought A school of legal thought that views the law as a tool for promoting justice in society Standing to Sue The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury. Stare Decisis A common law doctrine under which judges are obligated to follow the precedents established in prior decisions. Statute of limitations A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced. Statutory law The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law). Stock Buyback The purchase of shares of a company's own stock by that company on the open market.

10 Stock Option An agreement that grants the owner the option to buy a given number of shares of stock at a set price, usually within a specific time period. Substantive law Law that defines, describes, regulates and creates legal rights and obligations. Summary Jury Trial A method of settling disputes, used in many federal courts, in which a trial is held, but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately follow the summary jury trial. Summons A document informing a defendant that a legal action has been commenced against her or him and that the defendant must appear in court on a certain date to answer the plaintiffs. Supremacy Clause The requirement in article VI of the US Constitution that provides that the Constitution, laws, and treaties of the United States are "the supreme Law of the Land" Under this clause, state and local laws that directly conflict with federal law will be rendered invalid. Symbolic Speech Nonverbal expressions of beliefs. Symbolic speech, which includes gestures, movements, and articles of clothing, is given substantial protection by the courts. The Golden Rule "Treat others the way you want to be treated." The Greatest Good Principle For the greatest number of affected people by an action. The more bad that results, the less. Tort A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability. A civil wrong not arising from a breach of contract; a breach of contract; a breach of legal duty that proximately causes harm or injury to another. Tortfeasor One who commits a tort. Uniform law A model law created by the national conference of commissioners on uniform state laws and/or the America Law institute for the states to consider adopting. Each state has the option of adopting or rejecting all or part of a uniform law. If a state adopts the law, it becomes statutory law in that state. Utilitarianism

11 An approach to ethical reasoning in which an action is evaluated in terms of its consequences for those whom it will affect. A "good" action is one that results in the greatest good for the greatest number of people. Venue The geographic district in which legal action is tried and from which the jury is selected Writ of Certiorari A writ (document) from a higher court asking a lower court for the record of a case

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