Business Law Flashcards
Comply with the spirit and intent of laws and regulations
Follow the purpose of laws
1. protect individual rights from abuse
2. safety
Vocab: Business Law
E.g. tax loopholes don’t follow intent of laws even though they are legal
Discuss the nature of law and sources of law in the United States.
Nature: laws are rules of action, criminal and civil
Sources of law:
1. Administrative agencies - administrative law (regulations from federal and state agencies)
2. judicial branch (common law aka case law from precedent)
3. statutes (laws passed by legislature, signed by president)
4. Constitution - Constitutional Law
5. Treaties
Vocab: Business Law
Describe the United States’ judicial system
The Judicial branch interprets the laws. The Judiciary is made up of courts – Supreme, Circuit, the magistrate (county) and municipal (city) courts.
In an adversarial system, litigants present their cases before a neutral party. The arguments expressed by each litigant (usually represented by lawyers) are supposed to allow the judge or jury to determine the truth about the conflict. Besides presenting written or oral arguments, evidence and testimony are collected by litigants and their lawyers and presented to the court.
Describe methods used to protect intellectual property.
Copyright: A written document that gives the owner the right to copy,modify, distribute, and display the work. Can be used to protect literary works, musical works, dramatic works.
Patents: Patents protect processes, methods and inventions that are “novel,” “non-obvious” and “useful.” If granted, a patent gives you a 20-year monopoly on selling, using, making or importing an invention into the United States.
Trademarks: A trademark is like a brand name. It is any word(s) or symbol(s) that represent a product to identify and distinguish it from other products in the marketplace.
Trade Secrets: intellectual property (IP) rights on confidential information which may be sold or licensed
Licensing: granting a license to select individuals, businesses, or organization
Describe legal issues affecting businesses
Tax obligations, OSHA- workplace safety rules,
Employees:
Minimum wage, benefits and paid leave, Equal Opp. Employment, harassment / discrimination, immigration audits
Employee protection laws- hiring, training, and firing,
Truth-in-advertising laws, Antitrust laws, Industry federal regulations, product safety, licensing, maintain competition
IP Issues, Environmental protection
SEC Securities Exchange Commission- regulates sale of stocks/bonds (avoid fraud)
Basic Torts Relating to Business Enterprises
A tort is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability. In the context of torts, “injury” describes the invasion of any legal right, whereas “harm” describes a loss or detriment in fact that an individual suffers.
Negligence- unlawful and unintentional, careless, failing to adhere to standards, most common; slip/fall, car accidents, medical malpractice
Intentional- unlawful; fraud, defamation, theft
Strict Liability- intent doesn’t matter; e.g. defective products
Wrongful Interference- interfering w/ prospective opportunities, draw customers away, defendant knows about contract and made attempt to cause breach
Unfair Competition- similar to ™ infringement, confusingly similar product, false advertising, sole purpose to run someone out
Disparagement- slander and false statements about another company, trade libel (published)
Computer- damage to hardware or software, negligence
Conversion- personal property taken from owner and given to someone else, does not require intent to permanently deprive
Appropriation- without permission, using another person’s name/likeness to benefit; use a celebrity ambassador; commercial exploitation
Conspiracy/Collusion- alliance of 2 or more parties, everyone involved is liable
Intrusion- invading privacy
Duty of Care- expects individuals to exhibit socially responsible behavior by using caution to prevent harm and watching out for one another
Misappropriation- embezzlement, theft of valuables entrusted to someone else
Describe the nature of legally binding contracts (BL:002) (SP)
A contract that is legally binding is considered valid and enforceable in a court of law. A contract is a clear outline of an agreement between at least two parties. Usually contracts define each party involved and any terms used within the agreement, the duration and/or timelines of the contract, payment terms and provisions that protect each party. Legally binding contracts are required to have “consideration” which means both parties are willingly entering into the agreement and are not being coerced.
Describe the nature of legal procedure (BL:070) (SP)
Rules governing all aspects of how a court case is conducted. Applies to both criminal and civil cases. The purpose is to make certain that every case is treated justly and consistently. Prescribes the formal steps to be taken in enforcing legal rights.
Due Process- respecting individual’s rights; fair and speedy trial, attorney, etc.
Procedural/Substantive Due Process- ensure chance to present evidence before penalty imposed/prevent fundamental (life, liberty, privacy)
Discuss the nature of debtor-creditor relationships
Debtors owe Creditors money.
Voluntary- credit card, mortgage, loans
Involuntary- child support, judicial decisions
Both parties suffer if both don’t hold up their ends
Essential to economic growth so laws protect both
accounts receivable / payable
Explain the nature of agency relationships (BL:072) (SP)
A relationship where the principal delegates decision-making authority to the agent. The principal and agent can be entities or individuals.
Fiduciary relationships- involves trust and confidence
Agent acts on behalf of Principal and is obligated to act in best interest of the Principal b/c they create legal obligations for them
Express- Both sides agree orally or written
Implied- Conduct has intent to create this relationship
Examples: shareholders electing board of directors
Discuss the nature of environmental law (BL:073) (SP)
EPA - Environmental Protection Agency
Laws that exist to protect the environment
federal, state, local laws
Banks provide loans, insurance and other forms of financing to fossil fuels companies. In doing so, they prop up those extracting coal and burning oil, which pump enormous amounts of greenhouse gas into our atmosphere.
Banks are indirectly responsible
Discuss the role of administrative law (BL:074) (SP)
Branch of law that addresses the rules and regulations established by gov’t agencies
Agencies are established by the legislative branch, who give authority to the executive branch to regulate these agencies.
- Office of the Comptroller of the Currency (OCC)
fair treatment of customers, fair access to financial services, compliance with laws and regulations
Explain types of business ownership (BL:003) (CS)
There are three main types of business ownership: sole proprietorship, partnership and corporation. A sole proprietor owns and operates a business by oneself. A partnership is owned and operated by two or more people and is jointly responsible for the businesses outcomes. A corporation is operated by several people and owned by stockholders.
Extra: XYZ is an LLC
Explain the nature of import/export law (BL:145) (SP)
Regulate what goes in and out of the country, product inspections
mostly cargo ships (cheapest)
Describe the nature of customs regulations (BL:126) (SP
The laws and regulations concerning the importation, exportation, and transit of goods
Duties, taxes or any other charges are applied, quotas
They protect the country’s economy, people, and environment. They also monitor the flow of goods across international borders.
