1. What is the federal system of checks and balances? How would you apply a checks and balances system to a business function? How would you assess the value of the systems on businesses?
The federal system of checks and balances is a system built into the U.S.Constitution to prevent any one of the three branches of the government from becoming too powerful. In business, the system of checks and balances are essential for limiting opportunities for fraud and corruption and maintaining a strong and fair organization.
2. What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment?
All businesses are subject to laws, but in order to maintain a positive image with the public, it is probably best for corporations to build a organization that has a strong ethical mission. The decision made by some corporations effect the society they are surrounded by, for example, if a company decides to dump hazardous wastes in a pond that will clearly kill anything living in that pond. They are not operating under ethical conditions, which may effect their business. Not all feel corporations have a social responsibility. Milton Friedman’s theory states that corporations have only one responsibility and that is to profit for shareholders.
3. Miguel buys a truck in Texas, then moves to Washington. A year later, he is driving his truck in Oklahoma, and causes an accident by running into another car, whose driver is from Florida. In what states will the other driver be able to sue Miguel? State the reasons for your answer.
The driver can sue Miguel either where he lives or where the accident happened. A defendant can be sued where he lives under personal jurisdiction. He can be sued where the accident happened under long arm jurisdiction based on the contact with the state. Each state has a long arm statute giving the courts of that state jurisdiction....
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