186 Midterm 2 Study Guide Spring 2019

Find the terms that match the following definitions from the chapter notes.

Chapter 5

  1. 1978 U.S. Supreme court case in which the free-speech rights of corporations were defined for the first time.
  2. accountability, not for a particular past action, but for the care, welfare, or treatment of others as derived from the specific social role that one plays.
  3. Business should refrain from undesirable conduct and contribute actively and directly to the social good.
  4. capacity for making moral or rational decisions on one’s own.
  5. Corporate executives lack the moral and social expertise to make any decisions other than economic ones.
  6. Designing effective regulations requires expertise government might not have.
  7. Enforcement can be expensive and time consuming.
  8. Business should be regulated to ensure that it acts in a socially responsible and useful way.
  9. holding people morally accountable for some past action.
  10. If corporations and their officials are permitted to stray from strictly economic matters, they will impose their values on all of society.
  11. Many, like controls on the disposal of toxic waste, are passed only after the damage has been done.
  12. members of the corporation are financially liable for corporate debts only up to the extent of their investment.
  13. society has the right to expect corporations not to cause harm, to take into account the external effects of their activities, and whenever possible to act for the betterment of society.
  14. The only responsibility of business is to make money for its owners.
  15. thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit, and who are able to consign part of their property to the corporation for ventures of limited liability.
  16. If corporations are permitted to maximize their profits without taking society’s interests into account, then the greatest economic good for everyone in the society will result.

Chapter 6

  1. add to the cost of products and raise the issue of legal paternalism because they prevent individuals from choosing to purchase a riskier but less expensive product.
  2. aim to persuade by appealing to human emotions and not to either reason or evidence.
  3. changed the legal precedent from Due Care to Strict Liability
  4. Continental Baking Company said that eating Profile bread would lead to weight loss, but that’s because they sliced their pieces of bread more thinly, otherwise by ounce they were not less caloric.
  5. Contractual Relationship between producer and consumer is exchange of money for a commodity of a certain description
  6. Created in 1972. Its job is to “protect the public against unreasonable risks associated with consumer products.”
  7. derives from the fact that citizen-consumers are completely dependent on business to satisfy their needs.”
  8. Let the buyer beware
  9. manufacturers have an obligation above and beyond any contract, to exercise appropriate caution to prevent the consumer from being injured by defective products.
  10. protect consumers.
  11. replaced the doctrine of caveat emptor with that of “due care”
  12. Shell advertised that its gasoline had “platformate” but did not inform the consumer that all other brands of gasoline also had “platformate”.
  13. The manufacturer of a product has legal responsibilities to compensate the user of that product for injuries suffered due to a defective aspect of the product, even though the manufacturer has not been negligent in permitting the defect to occur.
  14. The public does not have the expertise to inspect and evaluate items purchased and so must be protected by the manufacturer.