Business Law

Answer no. 4) Profit maximization which basically follows laissez-faire theory of capitalism is concerned about gaining long term profit, circumscribed within the boundaries of law. However it can also be argued that proper allocation of resources should sometimes be sacridized for the social concern that involves the employee, employer, the environment and society as a whole. Even though profit maximization is a prime motive in a free market, but when a firm is hires a an employee then there are several life that are associated to that particular employee, so the firm must take decision based on those social responsibility.

On the other hand, it can also be argued that as in a free market private activities and other business forces one's business to behave in a socially responsible manner; so managers need not to worry about it. Eventually if many do behave more rationally, in a corporate world then it can be made more responsible without the interference of a manger.

Answer no 7) The US tobacco company can justify this case by ethically remaining under the constituency calues wherein tobacco companies makes their product as safe as possible by undergoing various filtration techniques. Moreover they are also socially responsible by letting the public know that "smoking is injurious to health". However, in cases like this whatever is beneficial to one's constituency may be harmful to other.

Chapter 4

Answer no 4) In this case MSN farm is classified as an individual and interstate can exercise power within its territory, whatsoever is beneficial for its people, and Nebraska State used a due process for the adaption of the article so the family farm did not violate any law of equal protection rights.

Answer no 7) Since the state took decision based upon its resource and waste management and to promote resource conservation and conservation of energy, the state will