Critical Thinking
Find the premise and conclusion:
The world will end in 2045 because my dad said so
The premise is "my dad said so." The conclusion is "the world will end in 2045."
What are the three ethical traditions?
Utilitarianism, deontology, and virtue ethics.
What does IRAC stand for?
Issue, Rule, Application, Conclusion.
What is limited liability?
Shareholders can lose only what they invested, not their personal assets.
What are the four requirements of a valid contract?
Agreement, consideration, capacity and legality.
Is Please clean the kitchen a statement? Why or why not?
No. It's a command, and a statement has to be capable of being true or false.
What is the triple bottom line?
Measuring a company's performance based on various factors.
What are the four sources of American law?
Constitutions, statutes, administrative regulations and case law.
What is fiduciary duty?
A fiduciary duty is a legal obligation requiring one party to act solely in the best interests of another.
Someone asks if you would ever sell your car for 5000 dollars. Is that an offer?
No. It's an inquiry or invitation to negotiate, not an offer.
Is this deductive or inductive?
All humans are mortal and Socrates is human so Socrates is mortal.
Deductive
A company lays off 100 workers so 10000 customers get lower prices. Would a utilitarian support this?
Yes, because it creates the greatest good for the greatest number.
The EPA makes a new pollution rule. What type of law is this?
Administrative law.
A company goes bankrupt. Can the shareholders lose their homes?
No. Limited liability protects their personal assets.
What is consideration?
The mutual exchange of something of value between the parties involved.
A company says its product is the best because millions of people buy it. What fallacy is this?
Appeal to popularity
True or false
A manager lies to a client to close a big deal. Deontology say this is bad?
A state law conflicts with a federal law. Which one wins?
Federal law wins, under the Supremacy Clause.
A director secretly sells her own land to the company for too much money. Which duty did she break?
The duty of loyalty.
What is the difference between void and voidable?
A void contract is never valid and cannot be enforced, like an illegal agreement; a voidable contract is valid until one party chooses to cancel it, like a minor's agreement.
Sales went up after a new CEO was hired. Does that prove the CEO caused it?
No. Correlation does not prove causation.
A CEO donates company money to his favorite charity. How would Friedman react?
He would object. It's the shareholders' money, and the business's only responsibility is to make profit.
A lower court disagrees with a Supreme Court ruling. What does it have to do?
It has to follow the Supreme Court ruling,
A board makes a smart but risky bet that fails. Are the directors liable?
No. The business judgment rule protects informed, good-faith decisions.
You offer to sell your laptop to a friend and then sell it to someone else. Is the offer still open?
No. Selling the laptop to someone else ends the offer, as long as your friend finds out about the sale before accepting.