MANAGMNT 260 Lecture Notes - Lecture 2: Precedent, Categorical Imperative, Legal Realism

• School: UMASS-Amherst
• Department: Management
• Course: MANAGMNT 260
• Professor: Frank Caruso

Document Summary

Adaptability through overruling laws or choosing precedent to apply. Consider public policy and morality in legal interpretation. Lawyers involved in business planning help avoid legal problems. Certain human rights are fundamental and must be respected. Calculate costs and benefits for every member of society. Sacrifice your own interest for the collective good. Focus is on maximizing profits for the long-run. Legal system must prohibit undesirable corporate conduct that could create significant public dissatisfaction. Limits on the law"s ability to control corporations: Rational actors may decide breaking the law is worth the risk if penalties are light or chances of being caught is low. Unexpected side effects or dangers could arise. Risky shift- groups take more risks than individuals. The sarbanes-oxley act requires corporations to reveal whether they have a code of ethics. Codes of conduct often prohibit accepting gifts and set hiring practices.