MGT 2050 - Business Law and Ethics - Midterm 1 ACTUAL UPDATED QUESTIONS
AND CORRECT ANSWERS
What phrase is key to understanding legal and ethical "It Depends"
systems?
What are two systems for prescribing appropriate Law and Ethics
behavior in various contexts?
What are some business pros? Economic growth, jobs, fill needs, longer, easier, and more productive lives
What are some business cons? Destroy livelihoods, negatively impact social and physical environment
Why is knowledge of societal context of business It helps inform the impact of individual business decisions
important?
What is the basis of all laws in the USA? The Constitution
What is the US court system modelled after? European system
, How did "stare decisis" begin? Judges represented the monarch and settled disputes, then wrote down rulings to
be used later.
What is Law? (in a democratic society) body of rules of action or conduct prescribed by
controlling authority and having legal binding force
What are some functions of the law? (there are 7 in the Keep the peace, enforce rules to maintain order, facilitate planning, promote
textbook) social justice, prevent undesirable behavior, settle private and public disputes,
provide clear rules on how institutions should be run
What the requirements for laws to be effective and Must be fair, equally applied, and responsive to changing situations
respected?
What is one of the most important intersections between Risk assessment
business and law?
Define risk management Evaluation of risks and how to minimize those risks
What happens when businesses take risk management to They seldom engage in profitable strategy
either extreme?
How can people create value from the risk they are Consulting with an attorney. They are trained to think through worst case
exposed to? scenarios and minimize risk.
Define Jurisprudence Study and theory of law
What are the two schools of thought for theories of law? Natural law and legal positivism
Define Natural Law ( jus naturale) -There exists a higher, supreme universal law that can be found and studied, which
governs all humanity.
-All persons have inalienable, natural rights that may never be taken away, only
violated and unrecognized.
-Laws are inherently moral and should be followed
Who were some key figures of Natural Law? Aristotle- Father of natural law. Laws come from nature.
Thomas Aquinas- Introduced religious natural law. Law given by God and can be
discovered through religion and science.
AND CORRECT ANSWERS
What phrase is key to understanding legal and ethical "It Depends"
systems?
What are two systems for prescribing appropriate Law and Ethics
behavior in various contexts?
What are some business pros? Economic growth, jobs, fill needs, longer, easier, and more productive lives
What are some business cons? Destroy livelihoods, negatively impact social and physical environment
Why is knowledge of societal context of business It helps inform the impact of individual business decisions
important?
What is the basis of all laws in the USA? The Constitution
What is the US court system modelled after? European system
, How did "stare decisis" begin? Judges represented the monarch and settled disputes, then wrote down rulings to
be used later.
What is Law? (in a democratic society) body of rules of action or conduct prescribed by
controlling authority and having legal binding force
What are some functions of the law? (there are 7 in the Keep the peace, enforce rules to maintain order, facilitate planning, promote
textbook) social justice, prevent undesirable behavior, settle private and public disputes,
provide clear rules on how institutions should be run
What the requirements for laws to be effective and Must be fair, equally applied, and responsive to changing situations
respected?
What is one of the most important intersections between Risk assessment
business and law?
Define risk management Evaluation of risks and how to minimize those risks
What happens when businesses take risk management to They seldom engage in profitable strategy
either extreme?
How can people create value from the risk they are Consulting with an attorney. They are trained to think through worst case
exposed to? scenarios and minimize risk.
Define Jurisprudence Study and theory of law
What are the two schools of thought for theories of law? Natural law and legal positivism
Define Natural Law ( jus naturale) -There exists a higher, supreme universal law that can be found and studied, which
governs all humanity.
-All persons have inalienable, natural rights that may never be taken away, only
violated and unrecognized.
-Laws are inherently moral and should be followed
Who were some key figures of Natural Law? Aristotle- Father of natural law. Laws come from nature.
Thomas Aquinas- Introduced religious natural law. Law given by God and can be
discovered through religion and science.
