1 9 Legal environment & managing risk Flashcards
Statutory law
Star and federal constitutions, legislative enactments, treaties of fed gov and ordinances in short WRITTEN LAW
US business law
The rules, statues, codes, and regulations that provide a legal framework for the conduct of business and that are enforceable by court action
Common law
The body of law that comes from decisions handed down by courts; also referred to as unwritten law
Precedent
Decisions judges have made in earlier cases that guide the handling of new cases
Administrative agencies
Federal or state institutions and other gov organizations created by congress or state legislatures with delegated power to create rules and regulations within their mandated area of authority.
Ex Securities Exchange Commission SEC
Tort
A wrongful act that causes injury to another person’s body, property or reputation
Negligence
In tort law, behavior that causes unintentional harm or injury
Product liability
Part of tort law that holds businesses liable for harm that results from the production, design, or use of products they market.
Strict product liability
Legal responsibility for harm or injury caused by a product regardless of fault. Even if company did not know of defect at time of sale
Patent
A document that gives inventors exclusive rights to their imventions for 20 years
Copyright
A document that protects a creator’s right to materials such as books, articles, photos, paintings and cartoons
Contract
A legally enforceable agreement between two or more parties
Contract law
Set of laws that constitutes a legally enforceable agreement
Consideration
Something of value; consideration us one of the requirements of a legal contract
Conditions to make a co teact legally binding
1 An offer is made 2 There is voluntary acceptance of offer 3 Both parties give consideration 4 Both parties are competent 5 The contract covers a legal act 6 The contract is in proper form. Ex sales above 500 usd in written
Breach of contract
When one party fails to follow the terms of a contract
Damages
The monetary settlement awarded to a person who is injured by a breach of contract
antitrust
The federal law that forbid businesses for monopolizing a market or restraining free trade
Consumerism
A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers
Deregulation
Gov withdrawal of certain laws and regulations that seem to hinder competition. Has created problems in some industries like airlines
Risk
The chance if loss, the degree if probability of loss, and the amount of possible loss.
Speculative risk
A chance of either profit or loss
Pure risk
The threat of loss with no chance for-profit
Self insurance
The practice if setting aside money to cover routine claims and buying only “catastrophe” policies to cover big losses
