Legal Concerns For The Business Decision Maker Flashcards
There are four types of law that relate to business
- Contract law
- Tort law
- Fiduciary relationships
- Statutory or regulatory law
What are the restrictions on contracts?
- Contracts must have legal purpose in that the contract doesn’t result in legal harm
- Contracts can only be negotiated by parties who are of legal age and have legal capacity
- Contracts must have mutual obligations and cannot have all the obligations on one side
What is the law of agency?
An agency relationship exists when one party appoints another party to enter into contracts with third parties on the principle’s behalf
Property law is
A key feature of the private enterprise system
What is tort law?
The law, through the legal precedent of court decisions, recognizes that there are duties in the world of commerce (such as the duty to keep a story clear from any danger to customers)
What is a fiduciary relationship?
When one party has the trust of another and is to act in the other’s best interest, then there is a fiduciary relationship
Chapter 7 bankruptcy
Eliminates all debt
Chapter 13 bankruptcy
Sets up a payment plan as designed by the court
Chapter 11 bankruptcy
Allows a firm to reorganize and develop a plan to repay its debt
