Chapter 5

Question 1

Ruel of Law

Answer 1

The legal principle that law should govern a nation, as opposed to being governed by arbitrary decisions of individual government officials

Question 2

Purposes of law:

Answer 2

1.) Establish Standards
2) Maintain Order
3.) Resolve Disputes
4.) Protect liberties and rights

Question 3

Statutory law

Answer 3

Law created and written by a legislative body

Question 4

Common Law

Answer 4

Law created by courts and judges

Question 5

Stare Decisis and Precedent

Answer 5

Stare Decisis: similar facts will yield similar results

Precedent: Judges make decisions based on the decisions made in similar past cases

Question 6

Tort

Answer 6

A civil wrong that unfairly causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act

Question 7

Negligence

Answer 7

Conduct that falls below regulations and causes harm to the plaintiff

Question 8

Compensatory Damages

Answer 8

Special (economic damages) or General (Mental/emotional) damages that require payment to plaintiff in compensation

Question 9

Punitive Damages

Answer 9

Damages that requirement payment to be spent reforming the defendant and deterring others from pursuing a course similar to theirs

Question 10

Strict Liability

Answer 10

A rule where the plaintiff can assert that the defendant is liable without needing to prove that they were negligent or intentional. (The action that the defendant caused the plaintiff was inherently dangerous, plaintiff could not have been more cautious)

Question 11

Product Liability

Answer 11

Product manufacturers, distributors, and sellers are held responsible for the injuries caused by their products

Question 12

Methods of protecting intellectual property

Answer 12

1.) Patents: protects inventions and innovations
2.)Copyright: protects authorship and creative works
3.) Trademark: Protects any device used to identify a seller (Protects their brand)

Question 13

Expressed V.S. Implied Warranty

Answer 13

Express: Warranty Expressed in writing

Implied: Warranty that arises from the nature of the transaction and the inherent understanding between buyer and seller

Ex:
Warrant of Merchantability: Warranty is implied unless goods are listed being sold “As Is”

Warranty of fitness for a particular purpose: Warrant is in effect as long as consumer uses the product for its purpose

Question 14

Caveat Emptor

Answer 14

“buyer beware”

Question 15

Contract

Answer 15

A voluntary arrangement between two or more parties that is enforceable as a binding legal agreement.

Question 16

Four Elements of a Contract

Answer 16

1.) Offer and Acceptance (Must have and agreement)
2.)Consideration (must be an exchange of values)
3.) Competent Parties (18+, Sober, Sound of Mind)
4.) Legal Purpose (Agreement must be lawful)

Question 17

Breach of Contract:

Answer 17

When one party fails to perform their obligations
Result:
1.)Special Performance: Court order party to fulfill obligation
2.) Pay damages
3.) Discharge of Duties: Both parties are relieved of their obligations

Question 18

Consumer Protection Laws

Answer 18

1.) Fair Credit Reporting Act: Protects accuracy and privacy of people’s credits and ensure them the ability to view their credit once per year
2.) Fair Debt Collection Practice: Debt Collectors can harass debtors
3.) Federal Food, Drug, and Cosmetics: Ensures that these products are safe for public use
4.) Uniform Deceptive Trade Practices Act: Outlaws business from trying to deceive consumers

Question 19

Antitrust Legislation

Answer 19

1.) Sherman Act: Bans Monopolies
2.) Federal Trade Commission Act: bans unfair or deceptive competitive practices
3.)Clayton Act; Expands on Sherman, banning specific practices that the Sherman act doesn’t enumerate