The Legal Environment & Managing Risk

Question 1

Business laws

Answer 1

the system of enforceable rules of a country derived by an authority that regulate the actions of businesses.

Question 2

Civil law

Answer 2

where the legislature or other central body categorizes and consolidates laws.

Question 3

Common law

Answer 3

where judge-made precedent is accepted as binding law

Question 4

Business regulations

Answer 4

are the rules employed in managing a business derived by government departments and administrative agencies that are meant to carry out
specific laws.

Question 5

Government regulations

Answer 5

mandatory and are enforced by a regulatory agency

Question 6

Business regulations

Answer 6

building codes, pollution controls, and minimum wages

Question 7

Business standards

Answer 7

the rules of conduct or technical specifications that are

approved and monitored for compliance by an authoritative agency or professional body as a minimum acceptable benchmark

Question 8

Proprietary standards

Answer 8

developed by an organization and placed in the public

domain for widespread use

Question 9

Voluntary standards

Answer 9

are established by consensus for use by any person, organization, or industry.

Question 10

Business laws

Answer 10

establish enforceable rules, statues, and regulations that businesses must follow, from formation through dissolution, to know what is expected of them

Question 11

Industry Laws and Regulations

Answer 11

Industry laws and regulations govern environmental protection, financial protection, contractual obligations and e-commerce practices.

Question 12

Employment Laws

Answer 12

Employment laws govern employee protections from benefits and wages to discrimination and harassment.

Question 13

Fair Competition Laws

Answer 13

Fair competition laws govern antitrust, improper business practices, or monopolizing of a given market

Question 14

Employees and Contractors

Answer 14

Employees and contractors are protected by

employment laws that govern hiring and contracting, compensation, and safety practices

Question 15

Investors

Answer 15

Investors are protected by laws governing a

company’s financial and reporting obligations

Question 16

Consumers

Answer 16

Consumers are protected by product liability, truth

in advertising and privacy laws

Question 17

Public

Answer 17

The public is protected by environmental laws
that regulate pollutants and hazardous wastes that
can affect the air, water, and soil

Question 18

Business laws that impact managing include:

Answer 18

• Sales Laws
• Contract Laws
• Tort Laws
• Intellectual Property Laws
• Tax and Bankruptcy Laws
• Employment Laws

Question 19

Sales laws

Answer 19

includes laws relating to the transfer of ownership of

property from one person to another for value

Question 20

Contract Law

Answer 20

a legally enforceable agreement between two or more

parties that creates an obligation to do or not do something

Question 21

Contracts must meet four conditions to be considered valid:

Answer 21

• Competency or Capacity
• Consideration
• Mutual Agreement or Assent
• Legality

Question 22

Common Law

Answer 22

developed by judges through decisions or courts

and tribunals

Question 23

Laws of commerce

Answer 23

govern contracts for the sale of goods and

provide specific guidelines that allow for flexibility in contractual terms to facilitate business needs

Question 24

What are the remedies for a contract dispute?

Answer 24

a formal lawsuit in a court of law or by alternative dispute resolution (ADR)

Question 25

Alternative dispute resolution remedies include:

Answer 25

• Mediation

- Arbitration

Question 26

Three outcomes of alternative dispute resolution

Answer 26

• Specific Performance - the party that violated the contract may be required to fulfill the terms of the agreement
• Payment of Damages – the party that violated the contract may be required to pay an amount that would compensate the damaged party for the break of contract and non-performance
• Discharge of Obligation – the party that violated the contract may be released from the obligation, in which case neither party is required to fulfill their obligations under the agreement

Question 27

Tort Law

Answer 27

A tort is a wrongful act that causes injury to a person, reputation, or property

Question 28

Tort resolution

Answer 28

involves compensating the injured party, and in some

instances, a court order to do or not do something

Question 29

Intentional Torts

Answer 29

wrongful acts that cause intentional harm or injury