Business Law Final Exam Flashcards
What is the Federal Trade Commission Act?
Unfair methods of competition. Regulates the words “sale” and “going out of business”
What is the Sherman Act?
Restraints of trade and monopolization
What is the Clayton Act?
Deals with mergers
What is Per Se?
Courts look at the benefits that might outweigh its anticompetitive effects
What is the Rule of Reason?
Courts weigh the anticompetitive effects against the pro competitive effects to determine whether the agreement is a reason to trade
Vertical Restraints
A company at one stage of production acquires a company at a HIGHER or LOWER stage of production
Horizontal Restraints
Between firms that compete with each other in the SAME market
Conglomerate
Between firms that DO NOT compete with each other because they are in different markets
What is negligence?
Based off fault, Causation & Duty Breached
What is an economic expense?
Out of pocket expense, Lost Wages, Medical Expenses
What are non-economic expenses?
Pain & Suffering. Up to $750,000 in TN
Workers Comp. is what?
Wage replacement, medical expense, injury must arise out of the employment. Incurred on the clock. In TN you must have both “arise” and “incurred”
What is the Civil Rights Act, Title VII?
Act protecting people based off their race, sex, religion……
American Disabilities Act (ADA) is what?
Protects discrimination against people with a disability
Age Discrimination Employment Act (ADEA)
Protects people 40 years and older. If hiring a 45 year old and a 55 year ld, the ADEA will protect the 55 not 45.
What are the three kinds of discrimination?
Treatment, Impact, and Harassment
What is BFOQ?
Bona Fide Occupational Qualifications. Only age and gender NOT race.
1933 Securities Act does what?
Applies to initial offerings (when stock is offered to the public). Securities have to be registered unless you are selling it to a select group of people
What is the 1934 Securities Exchange Act?
Applies to secondary trading (after it’s been sold the first time)
In Section 16b, an Insider is what?
An officer, director, or somebody that owns 10% in stock. Engages in two transactions, one of which is a purchase and other is a sale in 6 months
Rule 10b-5 is what?
One transaction needed to breach duty, non public information is used. You know the stock will go up, you buy, then sell it once the price goes up. Personal gain!
Torte law has three conducts. What are they?
Intent, Reckless, and Negligence
What is Intent Conduct?
Done on purpose
ex. Ramming your car into your ex’s house
What is Reckless Conduct?
Don’t intend anybody to be hurt but the certainty that somebody will get hurt is greater. ex. Texting while driving
What is Negligence Conduct?
Was duty breached? Did that cause an injury? Duty - Breach - Causation - Injury
What is “breach”?
Actual - But - For: Because you sent this text, you knew the accident could happen
Proximate - Foreseeability: Could you see this accident happen because of an action
What is strict liability?
Workers Comp, Harassment, Section 16b
What are Punative Damages?
Only intent and maybe reckless. Punish defendant. Limited to $750,000 in TN
What is the goal of the Federal Trade Commission?
Maximize the consumers position by regulating commission and the relationships with the business and their merchant
What is deception?
A representation (express or implied) material, likely to mislead a reasonable consumer
What is consent order?
We think you are doing something wrong, if you stop/fix it they they will let you go
What is a Cease and Desist Order?
Order from a judge to tell you to stop doing something
What is a Multiple Product Order?
A line of products but only one product was wrong, this would jump from product to product.
Counter Advertising and Corrective Advertising is what?
Ads that correct a misconception from a previous ad
What is horizontal price fixing?
When two companies come together and determine a price that both will charge their customers
Is the Per Se Rule horizontal or vertical?
Horizontal
the Sun rises on the HORIZON
Is the Rule of Reason horizontal or vertical?
Vertical
What is Intra-brand Competition?
When two franchises of a single business are in competition.
ex. McDonalds
What is Inter-brand Competition?
competition between dealers or suppliers who are selling different brands of the same or equivalent goods
ex. Sam’s and Cosco
Having monopoly power is not a violation of the __________ ___. However, monopolization is.
Sherman Act
