Business Law Exam 1 Flashcards
1
Q
What is Law?
A
- Rules of civil conduct commanding what is right prohibiting what is wrong. “Blackstone’s definition”
- It is a governmental rule prescribing conduct and carrying a penalty for violation.
2
Q
What are the 2 bodies of Law?
A
- Criminal Law
* Civil Law
3
Q
Criminal Law
A
- Laws dealing with crimes and the punishment of wrong doers
* Laws dealing with offense against society
4
Q
Crime
A
- Is a criminal offense which is injurious to society as a whole
- Punishable offense against society
5
Q
What are the 2 classifications of Crimes?
A
Felony
Misdemeanor
6
Q
Felony
A
- Criminal offense punishable by confinement in prison or by death
- Murder
- Bank robbery
7
Q
Misdemeanor
A
- Criminal offense which is neither treason nor a felony
- Speeding ticket
- Running a stop sign
8
Q
Civil Law
A
- Legal proceedings concerned with the rights of public citizens
- Laws dealing with the enforcement or protection of private rights
9
Q
What are the 2 types of Civil Law?
A
Tort Law
Contract Law
10
Q
Tort Law
A
- Private or civil wrong, either intentional or caused by negligence, for which there may be action for damages
- Private wrong for which damages might be recovered
11
Q
Basis for Tort Liability
A
Intentional
Negligence
Strict Liability
12
Q
Intentional
A
• Deliberate and intentional action to cause harm
13
Q
Negligence
A
- Failure to exercise or ordinary care
- “Act of omission”
- “Act of commission”
14
Q
Strict Liability
A
- Liability for injury regardless of negligence or intent
- Product liability in which seller is liable for any and all defective or hazardous products which threaten a consumer’s personal safety
15
Q
Act of Omission
A
- Failing to do something which a reasonable prudent person would do under ordinary circumstance
- Is negligence
16
Q
Act of Commission
A
- Doing something which a reasonable and prudent person would not do under ordinary circumstances
- Is negligence
17
Q
Contract Law
A
- Laws dealing with making contracts
- Business Law
- Property Law
18
Q
Business Law
A
- Rules of conduct prescribed by a government and its agencies, in regulating business transactions
- Rules of conduct for the performance of business transactions.
19
Q
Property Law
A
• Rules of conduct prescribed by a government and its agencies, in regulating transactions related to real and personal property
20
Q
What are the 2 types of property?
A
Real property
Personal property
21
Q
Real property
A
- Land and objects permanently attached to land
- Also known as REAL ESTATE
- Land, buildings, fences, trees, ect.
22
Q
Personal property
A
- All property which is not real
* Car, furniture, jewelry, insurance, stocks, bonds, ect.
23
Q
“The Pyramid of Law”
A
Stare Decisis Case Law Ordinances Administrative Law Police Power Statutory Law Constitutional Law Common Law
24
Q
Common Law
A
- Customs which have become recognized by the courts as binding on the community
- Forms the historical foundation of United States Law
- Based on human experience and the “Common good” of all members of society
- Rooted in English and early colonial law
- “If it makes sense, it must be good law”
25
Constitutional Law
* Written document containing fundamental principles of a government
* It determines the powers and duties of a government
* Guarantees certain rights to the people
* “Law of the Land”
* Examples
* Federal Constitution of the U.S. of America
* Individual state constitutions
26
Statutory Law
* Laws enacted by legislative bodies
* Also know as: STATUTES
* Legislative bodies include federal, state, and local governments
* Federal Statutes
* U.S. Congress
* State Statutes
* Individual state legislatures
27
Police Power
* Inherent power of every government to make reasonable laws to protect the safety, health, morals, and general welfare of its citizens
* Mortuary Law
* Licensure
* Health standards
* Business operations
28
Administrative Law
* Body of law created by federal and state administrative agencies to implement their powers and duties in the form of rules, regulations, orders, and decisions
* Occupational Safety and Health Act (OSHA)
* Federal Trade Commission (FTC)
* Texas Funeral Service Commission (TFSC)
29
Ordinances
* Laws enacted by local municipalities
* Village, town, or city
* Parking ordinances
* No Smoking in public buildings
* Levels of Music
30
Case Law
* Court decisions that establish precedent principles
* Laws based on a court’s interpretation of federal, state, and local laws
* Determines “constitutionality” of the law
31
Stare Decisis
* Principle that decisions of a court should serve as a guide or precedent and control the decision of a similar case in the future
* Reliance on authority of established law
* “LIKE CASES ARE DECIDED IN LIKE MANNER”
* Applicable to mortuary law and court cases
32
Jurisdiction
* Authority of a court to hear a case
| * Related to the subject matter and person(s) involved in a court case
33
Function of Courts
• To interpret and apply law to a given situation
34
Federal Courts
* Have exclusive jurisdiction over
* Bankruptcy
* Claims against U.S.
* Patent & Copyright cases
* District courts
* Federal (circuit) courts of appeal
* U.S. Supreme court
* Special courts
35
District Courts
• Trial courts of the federal court system
• Largest class of federal courts
• Deal only with criminal cases involving violation of federal law
• Or civil suits that meet specified criteria
o Cases brought by the U.S. Government
o Cases arising under the
• U.S. Constitution
• Federal Laws
• Treaties
36
Federal (Circuit) Courts of Appeal
* Courts that hear appeals in the federal court system
* 12 federal judicial districts
* Hear appeals from cases originating in federal district courts
* Or federal administrative agencies and departments within its circuit
* Decisions have precedence over lower courts
37
U.S. Supreme Court
* Highest court in the United States
* Court of original jurisdiction in cases involving ambassadors, public ministers, consuls, and cases in which a state is a party
* As well as cases appealed from federal courts of appeal
* Supreme decision over all lower courts
38
Writ of Certiorari
* Order to produce the record of a case
| * Only such cases will be heard by the U.S. Supreme Court
39
Federal Special Courts
• Federal trial courts with limited jurisdiction
• Limited by laws of Congress creating them
o Bankruptcy court
o Tax court
o Court of International Trade
o U.S. Court of Federal Claims
40
State Courts
* Inferior courts
* Courts of original general jurisdiction
* Appellate courts
* Special Courts
41
Inferior Courts
* Trial courts that hear only cases involving minor criminal offenses and disputes between citizens
* DISTRICT, MAGISTRATE, COUNTY, MUNICIPAL, SMALL CLAIMS, JUSTICE, TAX COURTS
42
Courts of Original General Jurisdiction
* Court in which a case is first heard
* Maintain an official record of all proceedings
* Broad jurisdiction over disputes between two or more parties
* Criminal offenses against the state
* Hear witnesses
* Receive evidence
* Try a case
* TRIAL COURT, COURT OF RECORD, CIRCUIT COURT, DISTRICT COURT, SUPERIOR COURT.
43
Appellate Courts
* Courts hearing cases appealed from lower state courts
* COURTS OF APPEAL
* STATE SUPREME COURT
44
State Special Courts
* Courts with limited jurisdiction
* Probate courts
* Juvenile courts
* Domestic relations courts (family)
45
Courts may be classified according to their function
* Trial courts
| * Appellate courts
46
Procedural Law
• Laws specifying how actions are filed and what trial procedure to follow
47
Attorney/ Lawyer
• Person licensed to represent others in court
48
Complaint
* Written request initiating a civil suit
| * PETITION
49
Court Procedures consist of?
Summons
Answer
Judgment
Execution
50
Summons
* Notice of complaint given to a defendant defining the complaint and a time frame in which a response, or answer, must be filed
* Serves the purpose of conferring personal jurisdiction over the defendant
* PROCESS
51
Answer
* Response of the defendant to a complaint
| * MOTION
52
Judgment
• Decision of a court
53
Execution
• Carrying out or completion of some task
54
Plaintiff
• Individual who initiates a civil action
55
Defendant
• Person against whom legal action is brought
56
Contract
o Agreement between two or more competent persons (parties) which is enforceable by law
57
Classification of contracts are based on
* Formation
* Performance
* Enforceability
58
What are the 4 contract types of Formation
o Express
o Implied
o Formal
o Simple
59
Express Contract
o Parties express their intentions, either orally or in writing, at the time of the agreement
o ORAL CONTRACT
o WRITTEN CONTRACT
60
Implied Contract
o Terms of the contract are implied by acts or conduct of the parties
o Also called:
• Contract Implied In Fact
o Example is:
• A “First Call” when the family makes the first call requesting the services of the funeral home staff
61
Formal Contract
o Those with a special form or produced in a certain way
o Contract “under seal”
o Today, most contracts are “formal contracts”
• Real Estate Contracts
• Negotiable Instruments
62
Simple Contract
o Any contract which is not a formal contract
63
Classification of Contracts Performance
```
o Unilateral
o Bilateral
o Executory
o Executed
• By Stages
```
64
Unilateral Contract
o Calls for an act in consideration for a promise
o One promise is given in exchange for an act
o You find my lost dog; I pay you $100
65
Bilateral Contract
o Mutual exchange of promises
o Exchange a promise for a promise
o You agree to buy my car for $5,000
o Car is your when you give me the money
66
Executory Contract
o Terms of the contract have not been completely executed or fulfilled by the parties
67
Executed Contract
o Those contract in which the terms have been fulfilled by the parties
• Fully performed contract
68
Types of enforceability
o Valid
o Void
o Voidable
o Unenforceable
69
Valid Contract
o A contract which will be enforceable by the court
| • Contract enforceable by law
70
Void Agreement
o Agreement with no legal effect
o Contract to rob a bank
o Sometimes referred to as a: Void Contract
71
Voidable Contract
o Contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties
o Party to a contract is declared “mentally incompetent”
o Adult contracts with a minor
o Minor contracts with another minor
72
Unenforceable
o Agreement which is not in the form required by law, but can be made so by the parties
• A contract that is not currently binding
o Simple contract made into a formal contract
