Business Law Flashcards
Statutory Law
the laws passed by the legislature
Public Law vs. Private Law
Public laws are laws intended for general application, such as those that apply to the nation as a whole or a class of individuals. Private laws are enacted for the benefit of a particular individual or small group, such as claims against the government or individual immigration or naturalization matters
Statute
a formal written enactment of a legislative authority; command or prohibit something, or declare policy
District Court
“small case court”/lowest level of the hierarchy
Appellate Court
the court higher than district court that hears and reviews the appeals from legal cases that have already been heard and ruled on in a lower court; present at both the state and federal levels
Paralegal
a legal assistant; performs tasks that require knowledge of legal concepts but not the full expertise of a lawyer with a license to practice law
Civil Law
the system of law concerned with private relations between members of a community rather than criminal, commercial, or labor affairs
larceny
theft of personal property.
White Collar Crime
financially motivated, nonviolent or non-directly violent crime committed by individuals, businesses and government professionals
Coercion
persuading someone to do something by using force or threats
Crime Vs. Tort
Crimes typically affect and offend society while torts harm, injure, or damage a person (civil wrong)
Negligence per se
a doctrine in US law whereby an act is considered negligent because it violates a statute
Strict/Absolute Liability
a type of liability that does not require proof of fault. This means that the defendant with a case under strict liability is held responsible for the damages, regardless of whether they were negligent or not.
Vicarious Liability
the liability held by a person or entity that is in charge (called the principal) of another person (called the agent). The person, usually an employer, is responsible for the actions of their employee (or other subordinate) if that employee causes harm or injury to another person.
Arbitration
alternative dispute resolution that resolves disputes outside the judiciary courts; a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute
Arbitrator
As impartial third parties, they hear and decide disputes between opposing parties
Mediation
a flexible dispute resolution process in which an impartial third party facilitates negotiations between parties to help them devise their own, mutually acceptable solutions
Mediation vs. Arbitration
The main distinction between the two is who makes the final decision. With mediation, the final decision is a reached agreement between the two conflicting parties, while arbitration calls on an arbitrator to analyze the case details and reach a verdict
Conciliation
the attempted resolution of issues raised by a complaint through informal negotiations (outside of court)
4 main alternative dispute methods
mediation, arbitration, conciliation, negotiation
Notarization
an identity-based, anti-fraud measure performed by a government-authorized person called a notary
S Corp vs. C Corp
The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages, but is limited to 100 share holders and is typical of smaller businesses.
General Partnership vs. Limited Partnership
general partners have full operational control of a business and unlimited liability. Limited partners have less liability and do not take part in day-to-day business operations.
Conglomerate
multi-industry company that consists of several different and unrelated business entities that operate in various industries under one corporate group
Skimming/skim pricing
a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market
FTC/Federal Trade Commision
protecting the public from deceptive or unfair business practices and from unfair methods of competition
market penetration strategy
when a company works towards a higher market share by tapping into existing products in existing markets
Consideration
a legal term used to describe the benefit each party to a contract receives
Offer
part of contract negotiations where a party agrees to do or not do something in exchange for consideration. An offer must be stated and delivered in a way that would lead a reasonable person to expect a binding contract to arise from its acceptance.
Required elements of valid contracts
mutual assent; adequate consideration; capacity; and legality.
Void Contract
a contract that isn’t legally enforceable, starting from the time it was created
Voidable Contract
a valid contract which may be either affirmed or rejected at the option of one of the parties
Unenforceable Contract
a contract that is valid but one that a court chooses not to enforce
Implied Contract
proved by circumstances and the conduct of the parties
Undue Influence
involves one person taking advantage of a position of power over another person; puts the free will of one of the parties entering the contract into question, and therefore leads to the contract being unenforceable and voidable by the victim party.
What is the minor rule in a contract?
minors are considered not to have the legal capacity to enter into the contract, which is why contracts involving minors can be voided. Only the minor, however, has the right to void the contract or decide to honor it.
Statute of Frauds
requires that certain kinds of contracts be memorialized in writing
Specific Performance
an equitable remedy for breach of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract
Rescission
an equitable remedy for breach of contract which allows a contractual party to cancel the contract if they are the victim
Restitution
a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury
Injunction
a remedy that prohibits a party from a particular act
UCC/Uniform Commercial Code
a comprehensive set of laws governing all commercial transactions in the United States. It is not a federal law, but a uniformly adopted state law
Agency Relationships
is created when one person (the principal) consents to another person (the agent) acting on his behalf
Power of Attorney
WRITTEN/express authorization to represent or act on another’s behalf
Broker
a person or firm who arranges transactions between a buyer and a seller
Testator
a person who has made a will
Trustee
In a trust, a party known as a trustor gives another party, the trustee, the right to hold title to and manage property or assets for the benefit of a third party, the beneficiary
Bailee
a person or party to whom goods are delivered for a purpose, such as custody or repair, without transfer of ownership (storage company, dry cleaner)
Employment-at-will
an employment agreement stating that employment is for an undefined period of time and may be terminated either by employer or employee.
Full vs. Limited Warranty
“Full Warranty” means the coverage meets the federal minimum standards for comprehensive warranties, while “Limited Warranty” means the coverage does not
Negotiable Instruments
a signed document that promises a payment to a specie person or assignee (personal checks, money order, CDs, promissory notes)
Primary vs. Secondary Parties
Primary liability refers to an obligation for which a party is directly responsible. Secondary liability, on the other hand, refers to an obligation that is the responsibility of another party if the party that is directly responsible fails to satisfy the obligation.
Lein
a legal claim against assets that can be used as collateral to repay debt
Chapter 7 Bankruptcy
liquidation; most common for individuals; liquidation of all your assets to pay off debts, any remaining unsecured debt is erased
Chapter 11 Bankruptcy
large reorganization; used to reorganize a business or corporation; the come up with a plan for how the business will operate while paying off its debts, both the court and creditors must approve
Chapter 12 Bankruptcy
family farm; similar to chapter 13, allows family farmers and fishermen to avoid having to sell all their stuff
Chapter 13 Bankruptcy
repayment plan; court reorganizes debt and puts you on a strict repayment plan of both secured and unsecured debt
Real Property vs. Personal Property
Real: land or attached to land
Personal: can be moved
Deed vs. Title
deed is evidence of a specific event of transferring the title of the property from one person to another. A title is the legal right to use and modify the property how you see fit
Easement
a right to cross or otherwise use someone else’s land for a specified purpose
Personal Representative
executor; administers the estate of another person
Increasing vs. Decreasing Term Insurance
Increasing: death benefit payout increases every year
Decreasing: death benefit payout decreases every year
Mediation Vs. Negotiation
negotiation involves only the parties, and mediation involves the intervention and assistance of a third party (the mediator)
