Final Exam Flashcards
1
Q
What is capitalism?
A
An economic and political system in which a country’s trade and industry are controlled by private owners for profit rather than by the state
2
Q
What is democratic capitalism?
A
US, japan, Denmark- favors business to create wealth and government to regulate as needed
3
Q
What is state capitalism
A
Russia, China, Saudi Arabia- employs the market to build wealth which in turn is controlled and distributed by the state for its political purposes
4
Q
What are socialism ideas?
A
Rejects communist totalitarianism, embraces democracy- calls for aggressive government intervention
5
Q
What are 2 major approaches to making ethical decisions?
A
Teleology- concerned with the consequences of an act rather than the act itself.
Deontology- directed toward what ought to be, what is right rather than good
6
Q
What type of social responsibility did Enron have?
A
(Profit maximization)
7
Q
What is the highest law?
A
US constitution
8
Q
Which branch of government writes the federal law?
A
Legislative
9
Q
Which branch of government enforces the laws?
A
Executive
10
Q
What is subject matter jurisdiction?
A
Where the case can be tried based on what the case is about (subject matter)
11
Q
What is personal jurisdiction?
A
Judicial authority over someone.
1. Defendant is a resident of that state 2. Personally present in that state
12
Q
Name a type of federal subject matter jurisdiction?
A
Those involving federal question, diversity of citizenship, over 75k
13
Q
What does a motion for summary judgment ask?
A
The party filing the motion is claiming that no facts are in dispute therefore the judge may make a ruling about the law without taking the case to trial
14
Q
What happens if a motion for summary judgment is overturned on appeal?
A
Remanded back to trial court where the trial court will hear the facts
15
Q
What are the differences between mediation and arbitration?
A
Mediation-a neutral third party is introduced into the resolution process
Arbitration- a neutral third party is given the power to determine a binding resolution of the dispute
16
Q
What is the purpose of the commerce clause?
A
Constitution provides for shared powers among national, state, and local government-the division of authority between the federal governments
17
Q
What does the due process clause of the fourth amendment protect?
A
The right of the people to be secure in their persons, houses, papers, and effect against unreasonable searches and seizures, shall not be violated and no warrant shall issue but upon probable cause
18
Q
Name the 3 type of permissible government taking of land allowed under the 5th amendment?
A
- Total taking: providing just compensation
- Exaction/Mitigation: allows taking of land if development if the owner dedications property interest (E) or money (M)
- Partial takings: government can take land in order to expand a road, install a bike path, etc.
19
Q
What does the 14th amendment due process clause protect?
A
Forbids the government to deprive citizens of life, liberty, or property without due process of law
20
Q
Can you commit slander or libel if no one hears or reads the falsehood?
A
No, to be slander or libel you must…
- Make a false statement
- Harm the victims reputation
21
Q
Is intent necessary for negligence?
A
No
22
Q
What is the difference between implied warranty and an expressed warranty?
A
E: exist if a seller of goods states a fact or makes a promise regarding the character or quality of the goods I: arise by operation of law when a seller enters a contract for the sale of the good
23
Q
Is there a strict liability claim if the consumer uses the product in a manner not intended?
A
yes
24
Q
What clause in the constitution that give congress the power to regulate business?
A
commerce clause
25
Name 4 functions of federal agencies?
Control of Supply- control entry into certain economic activities (FDA decides what drugs enter the market)
Control of Rates- sets prices to be charged for services offered within their jurisdiction (federal energy regulatory commission) Control of Conduct- information (Must disclose information that normally would have been kept private)
Standards (ladder might be required to safely hold at least a specific weight)
Product banishment
26
What was the name of the act that bailed out the banks?
Troubled Asset Relief Program (TARP)
27
What did the Dodd Frank Wall Street reform act do consumer protection act require banks to do?
Have larger capital holdings and required disclosure of the relationship between executive compensation and financial performance of the company
28
Name 4 types of business entities?
Corporation (S & C), Sole Proprietorship, Partnership, Limited Liability Corp.
29
What is a S Corp?
Uses tax returns of the owner, issues shares of stock, must file paperwork w/ secretary of state, owners do not have liability other than investment in the business but can only issue 100 shares of stock and is not double taxed
30
Piercing the corporate vail?
Holding a share holder responsible for acts of a corporation due to a shareholders domination and improper use of the corporation.
31
What is the Dodd Frank Act?
Created after the financial disaster that requires corporations to disclose executive compensation
32
1933 securities act?
Seeks to 1) ensure full disclosure of all material facts about the investment opportunity to offerees (potential investors) before they invest 2) to eliminate fraudulent conduct in the markets
33
What is a tender offer?
A public bid to the shareholders of a firm offering to buy shares at a specific price for a defined period of time
34
Name 4 reasons why antitrust laws were passed?
1. Preservation of competition 2. Preservation of democracy 3. Preservation of small businesses or more generally the preservation of the American dream 4. An expression of political radicalism
35
Name 2 acts the Sherman Antitrust Act Forbids
1. Restraint of trade 2. Monopolization, attempts to monopolize, and conspiracies to monopolize
36
4 activities the Clayton Act forbids
1. Price discrimination
2. Exclusive dealings
3. Tying arrangements
4. Requirements contract
37
What is tying?
Dealer agrees to sell or lease a product (the tying product) only on the condition that the buyer also purchases or leases another product (the tied product)
38
What is the test for tying?
1. Existence of separate products
2. A requirement that the purchase of one of the products (the tying product) is conditioned on the purchase of another product (the tied product)
39
What is price discrimination?
Selling of goods of like grade and quality to different buyers at different prices without justification where competition harm results
40
What is the test of a monopoly?
1. Possession of monopoly power in the relevant market and… 2. The willful acquistitiion or maintenance of that power as distinguished from growth or development as consequence of a superior product, business acumen or historic accident
41
4 advantages of mergers
1. Permits the replacement of inefficient management, and the threat of replacement disciplines managers to be more productive 2. May permit stronger competition with previously larger rivals 3. May improve credit access 4. May produce effaces including economies of scale 5. Frequently offer a pool of liquid assets for the use in expansion and in innovation 6. Offer tax advantages 7. Growth by merger is often less expensive than internal growth 8. Help satisfy the personal ambitions and needs of management
42
Under the act of state doctrine, can a judge rule on another country’s action if the actions occurred in the judge’s country?
No
43
What is the type of contract where one party pays to hold off signing the contract and the other party waits for the first party?
Option contract
44
What does UCC stand for?
Uniform Commercial Code
45
What types of transactions does the UCC govern?
- Body of rules designed to render commercial law consistent across the 50 states – developed by National Conference of Commissioners on Uniform State Laws and the American Law Institute developed
- Divided into a series of articles addressing the multitude of potential problems that arise in complex commercial practice
46
What are the elements necessary for a contract?
```
Agreement
Consideration
Capacity
Genuineness of assent
Legality of purpose
```
47
A 401k plan is what type of retirement plan?
Define Contribution
48
Name 2 problems with mergers?
1. too much power is being concentrated in too few hands
2. may trigger a merger movement among industry competitors
3. higher market concentration may lead to higher prices
4. innovation may be harmed
5. some companies are so larger that they can significantly shape political affairs
6. some companies may have become so large that we cannot allow them to fail
49
3 types of mergers
Horizontal: firms that are in direct competition and occupy the same product and geographic markets
Vertical: 2 or more firms at different levels of the same channel of distribution
Conglomerate: involves firms dealing in unrelated products
50
Describe a horizontal merger
direct competitors seek to join together
1. coordinated effect/collusion: will the merger facilitate cooperation so that the parties might fix prices, reduce output, reduce quality, or otherwise cordinate their activities rather than competing against each other
2. Unilateral Effects: will the merger allow a firm to unilaterally raise prices, resist output, or control innovation
51
What is the difference between an employee and an independent contractor?
degree of control is the dominate test
where an employer controls or has the right or ability to control the workers performance, the worker is likely to be considered an employee
52
What agency is responsible to ensure work place safety
OHSA (Occupational Safety and Health Administration)
53
FMLA
entitles eligible employees of covered employers to take job protected, unpaid leave for certain family related or medical reasons
entitled to 12 weeks of fmla leave in a 12 month period for the birth, adoption, or foster care placement of a child, to care for a child, spouse, parent who has a serious medical condition.
Employees taking leave are entitled to reinstatement to the same or equivalent job
54
What did the foreign corrupt practices act cover and why was it passed?
Chief federal weapon against bribery abroad. Enacted in 1977 in response to disclosure of wide spread bribery abroad by American firms.
55
What is corporate social responsibility?
Decision makers are obligated to take actions which protect and improve the welfare of society as a whole along with their own interests
56
What are 3 approaches to social responsibility and explain
Profit Maximization: dominant concern lies in maximizing shareholders interest
Long term company interest: recognize the imperative of a strong return on the shareholders’ investment but they also believe that achieving that return may require heightened sensitivity to the welfare of employees, consumers, and the community
Triple Bottom Line: recognizes the necessity for financial success but also argues that social and environmental responsibilities are of equal importance and that corporations giving close attention to those social and economic duties have a powerful and competitive advantage that will contribute to both organizational and societal sustainability
57
What is an injunction?
Court order that may either require or forbid a party to perform a specified act (papers signed that forbids you to join a competitor)
58
What is federalism
constitution provides for shared powers among national, state, and local governments
the division of authority between the federal government and the states to maintain workable cooperation while diffusing political power
59
What makes adequate consideration
parties have clearly agreed on token or nominal consideration in an effort to present the transaction as a contract rather than a gift
60
What is an executory contract
not finished until all parties fully perform
61
Name 3 situations when contracts must be written to avoid the statue of fraud? (Legal Rule)
collateral contract
the sale of land
promises that cannot be performed in a year
contracts for the sale of goods at a price of $500+
contracts in the consideration of marriage
executor/administrator's promise
62
Give a situation when a contract is unenforceable?
fail to fulfill some other legal rule (Oral contract about sale of land)
63
What is the difference between product liability and strict liability?
P:refers to legal responsibility of manufactures and sellers to compensate buyers, users, and in some cases bystanders for the harm from defective products
S:civil wrong springing from defective and unreasonably dangerous products where responsibility automatically attaches without proof of blame or fault
64
Assumption of Risk
an affirmative defense in a negligence case in which the defendant seeks to bar recovery by the plaintiff knowingly exposed him or herself to the danger that resulted in injury
65
What is the difference between duress and undue influence?
D: genuine assent is not secured and a contract may be rescinded because one of the parties is forced to agree
U: the first party to an apparent contract can escape its terms by demonstrating that the second party so dominated her that she did not act independently (example:old or infirm lose there independence of thought)
66
What is an LLC
hybrid of limited partnership and corporation receiving partnership tax treatment with the operating advantages of a corporation
67
Hostile Takeover
the acquisition of a formerly independent business where the acquired business resists the union
68
What is horizontal restraint of trade
competitors that collude, conspire, or agree among themself
69
What act governs horizontal restraints of trade?
Section 1 of the Sherman Act
70
Civil Rights Act of 1964- Title VII
Forbids discrimination in employment on the basis of race, color, religion, sex or national origin
Private clubs and religious organizations are exempt
Forbids discrimination in hiring, firing, and all aspects of the employment relationship
71
What organizations are not included in Title VII
Private clubs and religious organizations
72
What is necessary for disparate treatment?
```
Plaintiff Belongs to a protected class
plaintiff applied for a job for which the defendant was seeking applicants
plaintiff was qualified for the job
the position remained open, and the employer continued to seek applicants
```
73
What is disparate impact
employment discrimination theory in which a facially neutral employment practice (such as requires a high school diploma) results in unfair and adverse impact on a disparate class
74
Name 3 exemptions to title VII
seniority
employee testing
bona fide occupational qualification
75
What are exceptions to the equal pay act?
1. seniority system
2. merit system
3. a system that measures earnings by quantity or quality of production
4. a differential based on any factor other than sex
76
2 types of sexual harassment
Quid Pro Quo: this for that, sexual favor in exchange for keeping ones job
Hostile work environment: a work place rendered offensive and abusive by such conduct as sexual comments, pictures, jokes, sexual aggression, and the like where no benefits are gained
77
What is ADA?
includes everyone wit precieved disabilities
78
chapter 13 bankruptcy
for individuals
79
Lemon Laws
law designed to provide recourse for consumers whose new vehicles turnout to be defective such that they cannot be repaired after a reasonable effort
80
What agency assure the safety of food, drugs, and medical devices
Food and Drug Administration (FDA)
81
What are the requirements for the TILA to apply
1. Debitor must be a natural person rather than an organization
2. creditor must be regularly engaged in extending credit and must be the person to whom the debt is initially payable
3. purpose for the credit must be "primarily for personal, family, or household purposes" not in excess of $25000 but consumer real property transactions
4. the credit must be subject to finance charge or payable in more than 4 installments
82
What does the EFT act provide
remedies for lost or stolen cards, billing errors, and other such problems dealing with ATMs
Electronic debit transaction fees charged to merchants by card networks must be reasonable
83
What does chapter 11 bankruptcy do for a business?
Reorganization
used by both individuals and businesses
keeps creditors from the debtors assets while the debtors, under the supervision of the court, works out a financial reorganization plan and continues to pay creditors
84
What are the requirements for the Fair credit reporting act
Retailers and employers are provided with consumers’ detailed credit histories to compute credit score
Fair Credit Reporting Act(FCRA) provides these protections:
Anyone taking adverse action based on CRA info must notify you and provide source of information
A CRA must give you requested information
CRA must investigate claims of inaccurate information and provide a written report
All inaccurate information must be corrected or removed from the file
Negative info, more than 7 years old, must not be reported
CRA cannot provide info to your employer without written consent
You can sue for damages for violation of rights
85
What act protects consumers from credit abuse
Truth in Lending Act (TILA)
86
What does the consumer product safety commission do
federal agency charged with protecting us from "unreasonable risk of injury or death" from consumer products
87
What are the three classifications of laws?
Substantive: create, define, regulate legal rights and obligations (Civil Rights Act of 1964 forbids discrimination in employment)
Procedural: embraces the systems and methods available to enforce the rights specified in substantive law.
Administrative: deals with public regulations
OR
Constitutions, statues, and regulations
