Business Ethics & CSR
While the law represents the minimum legal floor, ethics represents this moral boundary.
Moral Ceiling
The ethical test that evaluates choices based on creating the "greatest good for the greatest number of people".
Utilitarian Test
Taking a business dispute through the public court system with judges and lawyers is known by this term.
Litigation
Direct discussion between two opposing parties to reach an agreement without any third party present.
The primary goal of this legal branch is to compensate the victim and "make them whole" rather than send someone to prison.
Civil Law
The step in IRAC where you state the specific legal standard, statute, or contract term that applies.
Rule
In "The Unsigned Gym Contract," Jordan left this specific line blank, proving there was no legal acceptance.
Signature Line
An individual or institution that strictly owns stock/shares in a corporation and seeks financial returns.
Shareholder
This evaluation test asks: "How would our executive team feel if this choice was posted on social media or reported on the news tomorrow?"
Front-Page Test (Publicity Check)
One major downside of going to court is that trial proceedings are that they are this, meaning the news media can view them.
Public
A neutral third party who acts as a guide to help both sides reach a compromise, but CANNOT force a decision.
Mediator
In a civil court case, the injured party filing the lawsuit against a defendant is called this.
Plaintiff
The final step in the IRAC formula where you state the final verdict or outcome.
Conclusion
In "The Unsigned Gym Contract," the court concluded the gym owed Jordan a full refund because of this legal reality.
No valid contract was ever formed
Anyone affected by a company's decisions, including workers, customers, suppliers, and local communities.
Stakeholder
True or False: If a corporate action is completely legal under government regulations, it is automatically ethical.
False
Court cases can take years to resolve, making traditional litigation very slow and extremely this.
Expensive
A neutral third party who acts like a private judge, hears evidence, and makes a legally binding decision.
Arbitrator
In a criminal case, this government attorney brings charges against the defendant.
Prosecutor
The letter I in the IRAC formula stands for this core element.
Issue
True or False: A single incident, like a distracted driver causing a crash, can trigger BOTH a criminal ticket and a civil lawsuit.
True
The business concept that companies have a moral duty to help society and the environment beyond what the law forces them to do.
Corporate Social Responsibility
Selecting a cheaper, silent fix for a known product defect to protect annual earnings primarily favors this specific group.
Shareholders
A major risk of taking a long business dispute through aggressive public litigation is that it often destroys these.
Business Relationships
Unlike a mediator, the decision made by an arbitrator is legally this, meaning both sides must follow it.
Binding
The standard of proof in a civil trial, visualized as a scale tipped just past 50% ("more likely than not").
Preponderance of the Evidence
The step in IRAC where you explain step-by-step how the specific facts of a case fit or break the legal rule.
Application
If a company chooses to stay silent about a known product flaw to avoid financial loss, it prioritizes shareholders over this broader group.
Stakeholders
Voluntarily spending money on environmental filters beyond federal requirements is an example of CSR, rather than strict legal this.
Compliance
Issuing a full public product recall to protect customer safety prioritizes this broad group over short-term profits.
Stakeholders
This general acronym stands for methods of resolving legal fights outside of the public court system.
ADR
Name two major reasons why corporations prefer Arbitration over going to trial in public court.
What are it is faster/cheaper, private, and preserves business relationships (any two)?
The strict burden of proof required in a criminal case that requires near 100% certainty from a jury.
Beyond a Reasonable Doubt
tating "That's totally unfair!" is an emotional response, whereas an IRAC response requires pointing to a specific legal this.
Rule
When a corporation voluntarily spends profits to fix a non-dangerous product flaw beyond what government safety regulations require, it is prioritizing CSR over short-term this.
Profit (or Shareholder Earnings)