Business Law 1-30 ((Business Law 8th ed. Henry Cheeseman)) – Flashcards
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Stare Decisis
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[Latin word for "stand by decision" Adherence to precedent.] Promotes uniformity of law within a jurisdiction, makes the court system more efficient, makes the law more predictable for individuals and businesses. ((Business Law 8th ed. Henry Cheeseman))
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Long-Arm Statute
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[A statute that extends a state's jurisdiction to nonresidents who were not served a summons within the state.] In most states, a state court can obtain jurisdiction in a civil lawsuit over persons and businesses located in another state or country. The nonresident defendant in the civil lawsuit must have had some minimum contact with the state such that the maintenence of that lawsuit in that state does not offend traditional notions of fair play and substantial justice. ((Business Law 8th ed. Henry Cheeseman))
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Mediation
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[A form of alternate dispute resolution in which the parties use a mediator to assist to possibly reach a settlement of their dispute.] The mediator is a neutral third party who is usually an expert person in the area such as a lawyer or retired judge. ((Business Law 8th ed. Henry Cheeseman))
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Procedural Due Process
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[A category of due process that requires that the government give a person proper notice and hearing of the legal action before that person is deprived of his or her life, liberty, or property.] Example: If the federal governement or a state government brings a criminal lawsuit against a defendant for the alleged commision of a crime, the government must notify the person of its intent (by charging the defendant with a crime) and provide the defendant with a proper hearing (a trial). ((Business Law 8th ed. Henry Cheeseman))
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Chain of Distribution
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[The chain of manufacturers, distributors, wholesalers, retailers, lessors, subcomponent manufacturers, and others who distribute a defective product.] All parties of a defective product are strictly liable for the injuries cause by that product. ((Business Law 8th ed. Henry Cheeseman))
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Battery
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[Unauthorized and harmful or offensive direct or indirect physical contact with another person that causes injury.] The interest protected here is each person's reasonable sense of dignity and safety. Direct or indirect physical contact as long as injury results. ((Business Law 8th ed. Henry Cheeseman))
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Reverse Engineering
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[Taking apart and examining a rival's product or re-creating a secret recipe.] A competitor can lawfully discover a trade secret by performing reverse engineering. A competitor who has reverse engineered a trade secret can use the trade secret but not the trademarked name used by the original creator of the trade secret. ((Business Law 8th ed. Henry Cheeseman))
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Utility Patent
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[A patent that protects the functionality of the invention.] Only certain subject matter may be patented. Abstractions and scientific principles cannot be patented unles they are part of the tangible environment. ((Business Law 8th ed. Henry Cheeseman))
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Unreasonable search and seizure
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[Protection granted to people and businesses by the Fourth Amendment to the U.S. Constitutions against unreasonable search and seizure by the government.] It permits people to be secure in their persons, houses, papers, and effects. ((Business Law 8th ed. Henry Cheeseman))
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Felony
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[The most serious type of crime; inherently evil crime. Most crimes against persons and some business-related crimes and felonies] Usually punishable by imprisonment. In some jurisditions, certain felonies are punishable by death. Each degree earns different penalties. Serious violations of regulatory statutes are also felonies. ((Business Law 8th ed. Henry Cheeseman))
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Quasi Contract (Implied-in-law Contract)
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[An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enrichment and unjust detriment.] A quasi-contract is imposed where: (1.) one person confers a benifit on another, who retains the benefit, and (2.) it would be unjust not to require that person to pay for the benefit received. ((Business Law 8th ed. Henry Cheeseman))
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Advertisements
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[An invitation to make an offer, or an actual offer.] ((Business Law 8th ed. Henry Cheeseman))
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Promissory Estoppel (Detrimental Reliance)
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[An equity doctrine that permits a court to order enforcement of a contract that lacks consideration.] Prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise. ((Business Law 8th ed. Henry Cheeseman))
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Undue Influence
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[A situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into contract or make a will; the persuasion by the wrongdoer must overcome the free will of the innocent party.] ((Business Law 8th ed. Henry Cheeseman))
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Parol Evidence
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[Any oral or written words outside the four corners of a written contract.] By the time a contract is reduced to writing, the parties usually have engaged in prior or contemporaneous discussions and negotiations or exchanged prior writings. ((Business Law 8th ed. Henry Cheeseman))
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Condition Precedent
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[A condition that requires the occurence of an event before a party is obligated to perform a duty under a contract.] ((Business Law 8th ed. Henry Cheeseman))
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Anticipatory Breach/Repudiation
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[A breach that occurs when one contracting party informs the other that he or she will not perform his or her contractural duties when due.] This type of material breach can be expressly stated or implied from the conduct of the repudiator. ((Business Law 8th ed. Henry Cheeseman))
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Liquidated Damages
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[Damages that parties to a contract agree in advance should be paid if the contract is breached.] To be lawful, the actual damages must be difficult or impracticable to determine, and the liquidated amount must be reasonable in the circumstances. An enforceable liquidated damages clause is an exclusive remedy, even if actual damages are later determined to be different. ((Business Law 8th ed. Henry Cheeseman))
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License
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[A contract that transfers limited rights in intellectual property and informational rights.] Intellectual property and information rights are extremely important assets of many individuals and companies. Patents, trademarks, copyrights, trade secrets, data, software programs, and such constitute valuable intellectual property and information rights. ((Business Law 8th ed. Henry Cheeseman))
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Firm Offer Rule
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[A UCC rule that says that a merchant who (1) makes an offer to buy, sell, or lease goods and (2) assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time.] ((Business Law 8th ed. Henry Cheeseman))
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Shipment Contract
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[A contract that requires the seller to ship the good to the buyer via a common carrier.] The seller is required to (1) make proper shipping arrangements and (2) deliver the goods into a carrier's hands. Title passes to the buyer at the time and place of shipment. ((Business Law 8th ed. Henry Cheeseman))
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Warranty Disclaimer
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[A statement that negates express and implied warranties.] Warranties can be disclaimed, or limited. If an expressed warranty is made, it can be limited only if the warranty disclaimer and the warranty can be reasonably construed with each other. All implied warranties of quality may be disclaimed. ((Business Law 8th ed. Henry Cheeseman))
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Negotiable Instrument (Commercial Paper)
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[A special form of contract that satisfies form of contract that satisfies the requirements established by Article 3 of the UCC.] Negotiable instruments are important for the conduct of business and individual affairs. In this country, modern commerce could not continue without them. Examples of negotiable instruments: checks and promissory notes. ((Business Law 8th ed. Henry Cheeseman))
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Holder in Due Course or HDC
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[A holder who takes a negotiable instrument for value, in good faith, and without notice that it is defective or is overdue.] ((Business Law 8th ed. Henry Cheeseman))
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Fictitious Payee Rule
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[A rule that states that a drawer or maker is liable on a forged or unauthorized indorsement of a fictitious payee.] ((Business Law 8th ed. Henry Cheeseman))
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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[A federal statute that reorganizes federal government supervision of the banking system, regulates previous unregulated financial products and institutions, and adds a new consumer protection agency to protect consumers from abusive lending and banking practices.] ((Business Law 8th ed. Henry Cheeseman))
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Deficiency Judgment
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[A judgment of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.] ((Business Law 8th ed. Henry Cheeseman))
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Floating Lien
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[A security interest in property that was not in the possession of the debtor when the security agreement was executed.] ((Business Law 8th ed. Henry Cheeseman))
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Discharge
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[A court order that relieves a debtor of the legal liabilty to pay his or her debts that were not paid in the bankruptcy proceeding.] Certain debts are not dischargeable in bankruptcy. ((Business Law 8th ed. Henry Cheeseman))
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Exempt Property
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[Property that may be retained by the debtor pursuant to federal or state law that does not become part of the bankruptcy estate.] ((Business Law 8th ed. Henry Cheeseman))
