midterm business law Flashcards
What is the Hammurabi Code?
Collection of Laws (282 laws and some are still in use today)
Hammurabi was a King/Scholar in 1972 B.C., Mesopotamian (Babylonian) and likely based on the 10 Commandments.
What is common law?
A legal system in which instead of relying solely on written laws or statutes, judges made rulings based on past decisions and customs
Common law is flexible and modifies codes more frequently compared to Civil Law systems.
List countries that follow common law.
- United Kingdom
- United States
- Canada
- Australia
- India
- New Zealand
- Pakistan
These countries shape their laws through judicial rulings and interpretations.
What is civil law?
Legal system derived from the Roman Empire, based on codes enacted by legislature
Civil law systems include state and code sources of law.
List countries that follow civil law.
- Russia
- China
- France
- Germany
- Italy
- Nicaragua
- Spain
- Portugal
- Netherlands
- Belgium
- Austria
These countries have governing rules outlined in codes.
How many constitutions are there in the U.S.?
50 state constitutions and 1 federal constitution
Each state constitution addresses local issues, while the federal constitution addresses national issues.
What is the difference between state and federal constitutions?
State constitutions address state-specific issues; federal constitution addresses national issues
State constitutions can be easily amended, while federal amendments are difficult.
What is the structure of the federal court system?
- District federal
- U.S. District court
- U.S. Courts of Appeals
Federal judges are appointed for life by the president.
What is the structure of the state court system?
- Lower trial courts (non-limited jurisdiction)
- Trial court general jurisdiction
- Intermediate appellate court
- Highest supreme court
State judges are typically elected.
What does ADR stand for?
Alternative Dispute Resolution
ADR includes various methods to resolve disputes without litigation.
List types of ADR.
- Litigation
- Negotiation
- Mediation
- Arbitration
Each type has its own advantages, such as cost-effectiveness and speed.
What is business ethics?
Principles companies should follow regarding treatment of workers and customers
Business ethics guides corporate behavior.
What is social responsibility?
The responsibility of companies toward society, including community actions like recycling
Social responsibility emphasizes corporate citizenship.
What are the characteristics of a sole proprietorship?
Owned by one entrepreneur; owner is personally liable for lawsuits
This structure is the simplest form of business entity.
What are the characteristics of a corporation?
Limited liability for owners; corporation itself is sued, not the owners
Corporations provide a shield against personal liability.
What is stakeholder capitalism?
Economic system where companies consider the interests of all stakeholders, including employees and customers
Stakeholders can influence company decisions.
What is shareholder capitalism?
Economic system where companies are financed by shareholders, who own a proportion of the company
Shareholders’ influence is based on the number of shares held.
What is criminal liability?
Determines if a company is accountable for the acts of its employees
Includes penalties like fines and imprisonment.
What are white-collar crimes?
Non-violent crimes involving deceit or violation of trust, often in business settings
Examples include Ponzi schemes and embezzlement.
What are blue-collar crimes?
Crimes that involve direct violence or force
Examples include robbery and assault.
What is Mens Rea?
Latin for ‘guilty mind’; intent or knowledge of wrongdoing
Relevant in both criminal and civil law contexts.
What is Actus Rea?
The physical act of committing a crime
In civil law, it refers to harmful acts or omissions.
What is the burden of proof in civil law?
Preponderance of the evidence (50.1% certainty required)
This is the standard for civil cases.
What is the burden of proof in criminal law?
Beyond a reasonable doubt (99.9% certainty required)
This standard is higher than that of civil law.
Who can initiate a criminal case?
Only the federal or state government
Known as the prosecution.
Who can initiate a civil case?
Private parties, including individuals, groups, or businesses
They pursue cases when they feel harmed.
What are the roles in a criminal case?
Prosecution (government) vs. Defendant
The prosecution presents the case against the accused.
What are the roles in a civil case?
Plaintiff (initiator) vs. Defendant
The plaintiff seeks compensation for perceived injuries.
How can a person be punished in a criminal case?
Incarceration, fines, or death penalty
Punishments vary based on the severity of the crime.
How can a person be punished in a civil case?
Compensation for injuries or damages
Civil cases focus on restitution rather than punishment.
What does the tort system consist of?
Private wrongs, including intentional torts and negligence
Examples include assault, battery, and defamation.
What is an example of an intentional tort?
Assault
Intentional torts cannot be argued as unintentional.
What is vicarious negligence?
Liability of one person for the negligent actions of another
Example: A company being liable for an employee’s wrongful act.
What is strict liability?
Liability without intent; the defendant is liable regardless of intent
Examples include product defects and abnormally dangerous activities.
