Unit 3 Flashcards
Contract
a legally binding agreement between 2 or more people or businesses
offer
a proposal to provide a good/service
Acceptance
all parties involved agree to the terms of the contract
Consideration
something of value must be promised in return
Elements of a Contract
Offer, Acceptance, Consideration, intention
Capacity
a person is legally able to enter into a binding agreement
Contract of Law
regulates how contracts are written, executed and enforced
breach of contract
when 1 or more parties don’t follow (break) the terms agreed terms of a contract w/o having a legitimate reason
employment contract
the terms of employment between a business and an employee
Employer Identification Number (EIE)
a number assigned by the IRS for businesses to use when preparing federal tax returns and forms
Consumer Bill of Rights
basic expectations of fair treatment of customers
ex. right to: safety, be informed, choose freely, be heard, satisfy basic needs, redress, consumer edu., a healthy government
recall
an order to remove or repair unsafe product in a market
Integrity
the honesty of a person’s actions
ethics
rules of behavior based on a group’s ideas about what is right and wrong.
Morals
individuals ideas of what is right and wrong
code of ethics
a document that dictates how business should be conducted
code of conduct
typically a handbook that outlines the expectations of employee behavior
confidentiality
specific information about a company or its employees is never shared, except with those who have clearance to receive it
proprietary information
any work created by company employees on the job that is owned by the company
trade secret
proprietary information; it is confidential info a company needs to keep private and protect from theif.
False advertising
overstating features & benefits of product or making false claims about them
social responsibility
behaving with sensitivity to social, environmental, and economic isssues
corporate social responsibility
includes all the actions taken by a business to promote social good
corporate culture
how the owners and employees of a company think feel and act like a business
Philanthropy
promoting the welfare of others
