Appendix II

Question 1

laws

Answer 1

codified rules of behavior enforced by a society

Question 2

types of law

Answer 2

common law
statutory law
regulatory
deregulation

Question 3

common law

Answer 3

body of decisions handed down by courts ruling on individual cases

Question 4

statutory law

Answer 4

law created by constitutions or by federal, state, or local legislative acts

Question 5

regulatory law

Answer 5

law made by the authority of administrative agencies

Question 6

deregulation

Answer 6

elimination of rules that restrict business activity

Question 7

trial court

Answer 7

general court that hears cases not specifically assigned to another court

Question 8

appellate court

Answer 8

court that reviews case records of trials whose findings have been appealed

Question 9

contract

Answer 9

agreement between two or more parties enforceable in court

Question 10

parts of a contract

Answer 10

agreement
consent
capacity
consideration
legality
proper form

Question 11

capacity

Answer 11

competence required of individual entering into a binding contract

Question 12

consideration

Answer 12

item of value exchanged between parties to create a valid contract

Question 13

tort

Answer 13

civil injury to people, property, or reputation for which compensation must be paid

Question 14

intentional tort

Answer 14

tort resulting from the deliberate actions of a party

Question 15

compensatory damages

Answer 15

monetary payments intended to redress injury actually suffered because of a tort

Question 16

punitive damage

Answer 16

fines imposed over and above any actual losses suffered by a plaintiff

Question 17

negligence

Answer 17

conduct that falls below legal standards for protecting others against unreasonable risk

Question 18

product liability

Answer 18

tort in which a company is responsible for injuries its products

Question 19

strict product liability

Answer 19

principle that liability can result not from a producer’s negligence but from a defect in the product itself

Question 20

property

Answer 20

anything of value to which a person or business has sole right of ownership

Question 21

tangible real property

Answer 21

land and anything attached to it

Question 22

tangible personal property

Answer 22

any moveable item that can be owned bought, sold, and leased

Question 23

intangible personal property

Answer 23

property that cannot be seen but exists by virtue of written documentation

Question 24

intellectual property

Answer 24

property created through a person’s creative activity

Question 25

copyrights

Answer 25

exclusive ownership right belonging to the creator of a nook, article, design, illustration, photo, film, or musical work

Question 26

trademark

Answer 26

exclusive legal right to use a brand name or symbol

Question 27

patent

Answer 27

exclusive legal right to use and license a manufactured item or substance, manufacturing process, or object design

Question 28

restrictions on property rights

Answer 28

eminent domain

Question 29

eminent domain

Answer 29

government may claim private land for public use by buying at a fair price

Question 30

agent

Answer 30

individual or organization acting for and in the name of another party

Question 31

principal

Answer 31

individual or organization authorizing an agent to act on its behalf

Question 32

express authority

Answer 32

derived from written agreement to bind a principal to a certain course of action

Question 33

implied authority

Answer 33

derived from business custom, to bind a principal to a certain course of action

Question 34

apparent authority

Answer 34

based on principal's compliance to bind a certain course of action

Question 35

uniform commercial code

Answer 35

body of standardized laws governing the rights of buyers and sellers in transactions

Question 36

warranty

Answer 36

seller's promised to stand by its products or services if a problem occurs after the sale

Question 37

express warranty

Answer 37

warranty whose terms are specifically stated buy the seller

Question 38

implies warranty

Answer 38

warranty, dictated by law, based on the principle that products should fulfill advertised promises and serve the purposes for which they are manufactured and sold

Question 39

main factors of bankruptcy

Answer 39

increased credit availability "Fresh start" provisions growing acceptance of bankruptcy

Question 40

involuntary bankruptcy

Answer 40

initiated by the creditors of an indebted individual or organization

Question 41

voluntary bankruptcy

Answer 41

initiated by an indebted individual or organization

Question 42

ways of filing business bankruptcy

Answer 42

liquidation repayment plan reorganization

Question 43

international law

Answer 43

general set of cooperative agreements and guidelines established by countries to govern the actions of individuals, business and nations

Question 44

liquidation plan

Answer 44

cease to exist

Question 45

repayment plan

Answer 45

works out new payment method

Question 46

reorganization plan

Answer 46

explain sources for financial difficulties | propose new plan for the remaining business