LEGS 3010 Exam 2 Flashcards
“Let the buyer beware”; summarizes an attitude that once prevailed in contract law of a lack of protection for a buyer of defective goods
Caveat Emptor
Expressed promise by seller as to the quality, abilities, or performance of a product
Express Warranty
Federal law establishing the FTC and its regulatory role
Federal Trade Commission Act
Federal agency responsible for regulation of unfair and deceptive trade practices, including deceptive advertisements
Federal Trade Commission
Amendment to the FTC Act that permits prosecution under section 5 if a consumer is injured, even though there is no injury to a competitor
Wheeler-Lea Act of 1938
Potential FTC remedy required when ads run by a firm have been deceptive; requires company to run ads explaining previous ads or run a new statement in future ads
Corrective Advertising
Public figures advertising products on the basis of their personal use
Celebrity Endorsements
Term given to advertising technique in which a low-price product is advertised and then the customer is told that the product is unavailable or is talked into a higher-priced product; prohibited by the FTC
Bait & Switch
For administrative agencies, a type of plea bargain; a settlement document for an administrative agency’s charges
Consent Decree
Under the UCC, Article 2, Sales, a warranty that the goods are of average quality; given in every sale of goods by a merchant
Implied Warranty of Merchantability
Warranty given by seller to buyer that promises goods will meet the buyer’s specified needs
Implied Warranty of Fitness for a Particular Purpose
A provision in a contract that eliminates liability such as a warranty disclaimer or a disclaimer of tort liability
Disclaimers
Term used to describe contracts that are grossly unfair to one side in the contract; a defense to an otherwise valid contract
Unconscionable
Direct contractual relationship
Privity
In product liability, a defense based on the plaintiff’s failure to follow instructions or use of a product for improper purposes
Misuse
Private intentional or negligent wrong against an individual
Tort
Civil wrongs against individuals that are committed with a requisite state of mind and intent to harm; includes defamation, false imprisonment, battery, assault, and intentional infliction of emotional distress
Intentional Tort
Tort of accidental wrong committed by oversight or failure to take precautions or corrective action
Negligence
Standard established under the Restatement of Torts that holds product manufacturers and sellers liable for injuries resulting from their products regardless of whether they knew of the danger that caused the injury
Strict Tort Liability
Defamation of a product
Product Disparagement
A defense to defamation; a protection given to legislators and courtroom participants for statements made relating to the proceedings; encourages people to come forward & speak without fear of liability
Absolute Privilege
A defense to defamation available to the media that permits retraction and no liability so long as the information is not printed or given with malice or with reckless disregard for whether it is true
Qualified Privilege
Tort involving a third party’s actions resulting in a valid contract being lost or invalidated; an unfair method of competition
Contract Interference
The intentional tort of retaining someone against that person’s will
False Imprisonment
A defense to the tort of false imprisonment for storeowners; allows reasonable detention of shoppers upon reasonable suspicion of shoplifting
Shopkeeper’s Privilege
Intentional tort in which the defendant engages in outrageous conduct that is psychologically damaging to the plaintiff
Intentional Infliction of Emotional Distress
Federal law that provides protections and procedures for patient privacy
Health Insurance Portability and Accountability Act of 1996 (HIPAA)
He use of someone’s name, likeness, or voice without permission for commercial advantage
Unauthorized Appropriation
In negligence, standard used for determining the level of care required in any given situation
Ordinary and Reasonably Prudent Person
In negligence, an element that requires the plaintiff to show that the defendant’s lack of care cause the plaintiff’s injury
Causation
In negligence, the standard used for determining whether the defendant’s negligence caused the plaintiff’s injury; “but for” the fact that the defendant was negligent, the plaintiff would not have been injured
“But For” Test
An element of negligence that requires a connection between the breach of duty and the type of form of injury/damages that resulted
Proximate Cause
Negligence defense that results when the injured party acted in a negligent way and contributed to her own injuries
Contributory Negligence
In negligence, a defense that allocates responsibility for an accident between the plaintiff and defendant when both were negligent and determines liability accordingly
Comparative Negligence
Defense in negligence cases that prevents an injured party from recovering if it can be established that the injured party realized the risk and engaged in the conduct anyway
Assumption of Risk
Crimes committed in business administration and/or professional capacity; the so-called paperwork crimes
White-Collar Crime
The requirements for proof of a crime
Elements
A wrong against society that carries penalties of imprisonment and/or fines
Crime
Mental intent or state of mind necessary for the commission of a crime
Mens Rea
Term used to apply to CEO and CFO of a company trying to avoid criminal culpability for financial fraud by choosing to avoid understanding or examing the financial statements prepared by others in their companies
Conscious Avoidance
Latin term for the criminal act or conduct required for proof of a crime
Actus Reus
Crime of taking property away from another permanently
Theft
Name for the crime of an employee stealing funds, property or services from his employer
Embezzlement
A crime in which the victim is defrauded by an intentional act of the perpetrator
Criminal Fraud
Provides protection and assurance of privacy; the search and seizure amendment
Fourth Amendment
Provides protection against self-incrimination and ensuring due process
Fifth Amendment
Guarantees the right to a jury trial in criminal cases
Sixth Amendment
Judicially authorized document allowing the search of individuals’ or businesses’ premises
Search Warrant
Statement required to be given to individuals when taken into custody to alert them to their right to remain silent, the fact that statements can be used against them, their right to an attorney, and the right to an appointed attorney if they cannot afford one
Miranda Warnings
Constitutional protection ensuring notice and a fair trial or hearing in all judicial proceedings
Due Process
The speech of business in the form of advertising, political endorsements, or comments on social issues
Commercial Speech
Term given to speech of business related to political candidates or issues; given First Amendment protection
Corporate Political Speech
In constitutional law, the taking of private property by a government entity for a public purpose, with compensation paid to the owner
Eminent Domain
Principle in eminent domain that requires the government entity taking private property to pay the owner a fair amount
Just Compensation
Constitutional protection that gives litigants in civil cases and defendants in criminal cases the right to notice in all steps in the process and the right of participation
Procedural Due Process
Laws that give rights and responsibilities to individuals
Substantive Law
Constitutional right of all citizens to be treated in the same manner and afforded the same rights under law regardless of sex, race, color, or national origin
Equal Protection
In discrimination law, the application of different rules or standards to people of different races, genders, or national origins
Disparate Treatment
