Business Law Chapter 1-6 – Flashcards
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Business Law
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Enforceable rules of conduct that govern commercial relationships
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Private Law
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Involves disputes between private individuals or groups
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Public Law
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Involves disputes between private individuals or groups and their government
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Civil Law
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Involves the rights and responsibilities involved in relationships between persons and between persons and their government
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Criminal Law
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Involves incidents in which someone commits an act against the public as a whole
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Ethics
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The study and practice of decisions about what is good or right
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Business Ethics
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The application of ethics to the problems and opportunities experienced by businesspeople
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Ethical Dilemma
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A problem about what a firm should do for which no clear, right decision is available
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Social Responsibility of Business
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Expectations that the community imposes on firms doing business inside its borders
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WPH
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Who, Purpose, How
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WHO (stakeholders)
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consumers, owners or investors, management, employees, community, future generations
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PURPOSE (values)
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freedom, security, justice, efficiency
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Freedom (P)
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To act without restriction from rules imposed by others To possess the capacity or resources to act as one wishes To escape the cares and demands of this world entirely
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Security (P)
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To possess a large enough supply of goods and services to meet basic needs To be safe from those wishing to interfere with your property rights To achieve the psychological condition of self-confidence such that risks are welcome
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Justice (P)
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To receive the products of your labor To treat all humans identically, regardless of race, class, gender, age, and sexual preference To provide resources in proportion to need To possess anything that someone else was willing to grant you
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Efficiency (P)
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To maximize the amount of wealth in society To get the most from a particular output To minimize costs
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HOW (guidelines)
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The Golden Rule, Public Disclosure Test, Universalization Test
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Original Jurisdiction
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The power to hear and decide cases when they first enter the legal system
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Appellate Jurisdiction
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The power to review previous judicial decisions to determine whether trial courts erred in their decisions
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In personam jurisdiction
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The power to render a decision affecting the rights of the specific persons before the court
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Subject-matter jurisdiction
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The power to hear certain kinds of cases
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Steps in Civil Litigation
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The Pretrial Stage: informal negotiations, pleadings, service of process, defendant's response, pretrial motions, discovery, pretrial conference The Trial: jury selection, opening statements, examination of witnesses and presentation of evidence, closing arguments, jury instructions Post-Trial Motions: motion for judgment in accordance with verdict, motion for judgment notwithstanding verdict, motion for new trial
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Alternative Dispute Resolution
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The resolution of legal disputes through methods other than litigation, such as negotiation, mediation, arbitration, summary jury trials, mini-trials, neutral case evaluations, and private trials
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Binding Arbitration Clause
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A provision in a contract mandating that all disputes arising under a contract must be settled by arbitration
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Administrative Law
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Consists of substantive and procedural rules created by administrative agencies
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Administrative Agency
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Any governmental body of the city, county, state or federal government
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Administrative Law Judge
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Presides over administrative hearing; may attempt to encourage parties to settle, but has power to enter binding decision
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Executive Agency
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Generally within executive branch of government, under a "cabinet-level" department; also referred to as "cabinet-level" agency
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Independent Agency
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Governed by board of commissioners appointed by president, with "advice and consent" of U.S. Senate
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Hybrid Agency
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Characteristics of an executive and independent agency
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Limitations on Agency Powers
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political, statutory, judicial, informational
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Political Limitations
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The Senate must approve agency heads' Congress has power over agency budgets
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Statutory Limitations
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Congress may create or eliminate agencies and amend enabling legislation; Congress reviews and may override agency rules
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Judicial Limitations
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Interested parties may challenge administrative rules in the courts which may review the agency's findings of facts, its interpretation of the rule, and the scope of the agency's power in making the rule
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Informational Limitations
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The Freedom of Information Act, Government in Sunshine Act, and Privacy Act of 1974 specify agencies' responsibilities regarding public access to information
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First Amendment
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Protects freedom of religion, press, speech, and peaceable assembly Ensures that citizens have the right to ask the government to redress grievances Not protected by the First Amendment: defamation, obscenity, fighting words
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commerce clause
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The primary source of authority for federal regulation of business States that the U.S. Congress has the power to "regulate Commerce with foreign Nations, and among the several States..." Simultaneously empowers the federal government and restricts the power of state governments
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Equal Protection Clause
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A clause in the 14th Amendment of the U.S. Constitution that prevents states from denying "the equal protection of the laws" to any citizen. This clause implies that all citizens are created equal.
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"actus reus"
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wrongful behavior (guilty act)
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"mens rea"
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Wrongful state of mind, such as purpose, knowledge, recklessness, or negligence (guilty mind)
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Felonies
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Serious crimes punishable by imprisonment for greater than one year, or death
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Misdemeanors
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Less serious crimes punishable by fines, or imprisonment for less than one year
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Perry Offenses
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Minor misdemeanors punishable by small fines or short jail sentences
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White Collar Crime
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A variety of nonviolent illegal acts against society that occur most frequently in the business context
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Bribery
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The offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust
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Extortion (Blackmail)
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The making of threats for the purpose of obtaining money or property
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Fraud
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A variety of means by which an individual intentionally uses some sort of misrepresentation to gain advantage over another person
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Elements of Fraud
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A material false representation made with intent to deceive; A victim's reasonable reliance on the false representation; and Damages
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Embezzlement
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The wrongful conversion of another's property by one who is lawfully in possession of that property
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Computer Crime
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Any wrongful act that is directed against computers, uses computers to commit a crime, or involves computers
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Tort
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A civil wrong or injury to another, other than breach of contract, giving the injured party the right to bring a lawsuit against the wrongdoer to recover compensation for economic and/or physical damages
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Intentional Torts
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Occur when defendant takes action intending that certain consequences will result, or knowing they are likely to result; assault, battery, defamation
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Negligent Torts
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Occur when defendant acts in a careless way that subjects other people to an unreasonable risk of harm
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Strict Liability Torts
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Occur when defendant undertakes an "inherently dangerous" action (an action that cannot be undertaken safely, no matter what precautions the defendant takes)
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Assault
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Situation when one person places another in fear/apprehension of immediate, offensive bodily contact
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Battery
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An intentional, unwanted, offensive bodily contact
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Defamation
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The intentional publication (communication to a third party) of a false statement harmful to an individual's reputation; libel (written) and slander (oral)
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Negligence
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The failure to exercise reasonable care to protect another's person or property, causing an unreasonable risk of harm to others
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Four Elements of Negligence
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duty, breach of duty, causation, damages
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Compensatory Damages
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Designed to compensate the victim for all harm caused by the defendant
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Nominal Damages
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Small amount of money given to recognize that defendant committed a tort, in a case where plaintiff did not experience, or failed to prove, actual damages
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Punitive Damages
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Imposed to punish defendant for extremely outrageous conduct, and to deter the defendant and others from committing similar future offenses
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Proximate clause
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The extent to which, as a matter of policy, a defendant may be held liable for the consequences of his or her at ions. requires that the plaintiff and the plaintiff's damages were foreseeable at the time of the accident; exists if the defendant's actions led to the plaintiff's harm.
