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A law passed by Congress or by a state legislature

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Statute

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The principle that precedent, (reffering to past cases and using them as reference), is binding on later cases.

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Stare Decisis

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The difference between criminal law and civil law.

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Criminal Law: concerns behaviour so threatening that society outlaws it altogether. Civil Law: Regulates the rights and duties between parties (primarily what we talk about in Business Law)

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The person who is suing

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Plaintiff

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The person being sued

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Defendant

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A court's decision

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Holding

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The United States Constitution

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The supreme law of the land

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Great Britain

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More US law come from one country than from any other. Which country?

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The states and the people

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Under the United States Constitution, power that is not expressly given to the federal government is retained by:

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What part of the Constitution addresses the most basic liberties?

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The Amendments

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Judges use precedent to create what kind of law?

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Common Law

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This model of business requires business decisions that maximize the owner's return on investment

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Shareholder Model

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Stakeholder Model

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Requires business leaders to consider employees, customers, communities, and other groups when making decisions.

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Utilitarianism

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Viewpoint that requires doing "the greatest good for the greatest number"

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The Shareholder Model

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What kind of model was Milton Friedman a strong believer in?

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Each government has the absolute authority to rule its people and its territory.

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Sovereignty (International Law)

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An agreement between two or more states governed by international law.

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Treaty

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A treaty that reduced trade barriers among Canada, the United States, and Mexico.

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NAFTA

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Equal Protection Clause

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Generally prohibits regulations based on gender, race, or fundamental rights.

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Judicial Review

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The power of federal courts to examine the constitutionality of statutes and acts of government.

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Takings Clause

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The part of the Constitution that requires compensation in eminent domain cases.

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Promulgate

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The act of an administrative agency creating a new rule.

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the process of resolving disputes in court

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Litigation

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Resolving disputes out of court, through formal or informal processes.

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Alternative Dispute Resolution

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A form of ADR in which a neutral third party guides the disputing parties toward a voluntary settlement.

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Mediation

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A form of ADR in which a neutral third party has the power to impose a binding decision.

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Arbitration

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Trial Courts

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First level of courts to hear disputes

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Appellate Courts

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Higher courts, which generally accept the facts provided by the trial courts and review the record for legal errors.

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A pretrial procedure involving oral questions answered under oath.

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Deposition

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When there is no jury. The judge reaches a verdict.

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What is a Bench Trial?

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The very high burden of proof in a criminal trial which demands much more certainty than required in a civil trial.

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Beyond Reasonable Doubt

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A criminal defendant may be prosecuted only once for a particular criminal offense.

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Double Jeopardy

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Trespassing and taking of personal property with the intent to steal it.

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Larceny

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Deception for the purpose of obtaining money or property.

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Fraud

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The malicious use of fire or explosive to damage or destroy real estate or personal property.

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Arson

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The fraudulent conversion of property already in the defendant's possession.

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Embezzlement

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Any of a long list of specified crimes, such as embezzlement, arson, mail fraud, and wire fraud.

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Racketeering Acts

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Using the proceeds of criminal acts to promote crime or conceal the source of the money.

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Money Laundering

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A statute designed to prevent the use of criminal proceeds in legitimate businesses.

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RICO

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A violation of a duty imposed by the civil law

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Tort

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Written defamation

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Libel

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Oral defamation

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Slander

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The intentional restraint of another person without reasonable cause or consent.

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False Imprisonment

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A harmful or offensive bodily contact.

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Battery

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An action that causes another person to fear an imminent battery.

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Assault

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Extreme and outrageous conduct that causes serious emotional harm.

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Intentional Infliction of Emotional Distress

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A tort in which an injury or loss is caused accidentally.

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Negligence

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A promise that the law will enforce.

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Contract

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A contract where both parties make a promise.

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Bilateral Contract

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The legal ability to enter into a contract.

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Capacity

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Restoring an injured party to its original position.

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Restitution

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- Dealing with Land - Cannot be performed within on year - Made by an executor of an estate - Made in consideration of marriage - For the sale of goods of $500 or more

answer

Which contracts must be in writing?

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The maker of the instrument promises to pay a specific amount of money.

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Promissory Note

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The issuer of a promissory note.

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Maker

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Someone who is owed money under the terms of an instrument.

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Payee

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The drawer of this instrument orders someone else to pay money.

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Draft

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An instrument in which the drawer orders the drawee bank to pay money to the payee

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Check

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The person who issues a draft

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Drawer

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The person who pays a draft. In the case of a check, the bank is a drawee.

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Drawee

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The maker of a promissory note or the drawer of a draft

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Issuer

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Someone who has given value for an instrument, in good faith, without notice of outstanding claims or other defenses.

answer

Holder in due course

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An instrument has been transferred to the holder by someone other than the issuer

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Negotiation

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The signature of the payee

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Indorsement

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For order paper, anyone in possession of the instrument if it is payable to or indorsed to her. For bearer paper, anyone in possession.

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Holder

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The holder has already done something in exchange for the instrument.

answer

Value

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deliver the paper.

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In order to negotiate bearer paper, one must:

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it is signed only by the drawee.

answer

An instrument is negotiable unless:

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A three-step process that creates an enforceable security interest.

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Attachment

question

Items that the debtor obtains after the parties have made their security agreement.

answer

After-acquired Property

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An interest taken by the person who sells the collateral or advances money so the debtor can buy it.

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Purchase Money Security Interest

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Someone who buys goods in good faith from a seller who routinely deals in such goods.

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Buyer in Ordinary Course of Business

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The law sets out three rules to establish which creditors have better claims.

answer

Priority

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Any action that disturbs public tranquility and order.

answer

Breach of the Peace

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An unincorporated business owned by one person.

answer

Sole Proprietorship

question

An organization that does not pay income tax on its profits but passes them through to its owners who pay the tax at their individual rates.

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Flow-through Tax Entity

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A corporation with a small number of shareholders whose stock is not publicly traded and whose shareholders play an active role in management - it is entitled to special treatment under state law.

answer

Close Corporation

question

A court holds members of an LLC personally liable for the debts of the organization.

answer

Piercing the Company Veil

question

These organizations pledge to behave in a socially responsible manner.

answer

Social Enterprises

question

An unincorporated association of two or more co-owners who operate a business for profit.

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Partnership

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One of the owners of a general partnership.

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General Partner

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A partnership in which the partners agree in advance how long it will last.

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Term Partnership

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A partnership with no fixed duration - any of the partners may leave it at any time, for any reason.

answer

Partnership at Will

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A disclosure document that a franchisor must deliver to a potential purchaser.

answer

Franchise Disclosure Document

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False

answer

T/F Sole proprietorships must file a tax return.

question

True

answer

T/F Ownership in a partnership is not transferable.

question

False

answer

T/F Benefit corporations are nonprofits

question

False

answer

T/F In both a general partnership and a limited liability partnership, the partners are not personally liable for the debts of the partnership.

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False

answer

T/F Privately held companies that begin as corporations often change to LLCs before going public.

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True

answer

T/F A sole proprietorship requires no formal steps for its creation.

question

100 or fewer stockholders

answer

Assuming all other requirements are met, a corporation may elect to be treated as an S-corporation under the Internal Revenue Code if it has:

question

True

answer

T/F A limited liability company must register with state authorities.

question

Limited liability partnership

answer

What style of business protects the partners from liability for the debts of the partnership?

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Also known as liquidation, this form of bankruptcy mandates that the bankrupt's assets be sold to pay creditors, but the bankrupt has no obligation to share future earnings.

answer

Straight Bankruptcy

question

Someone who cannot pay his debts and files for protection under the Bankruptcy Code.

answer

Bankrupt

question

An official acknowledgement that a debtor is under the jurisdiction of the bankruptcy court.

answer

Order for Relief

question

U.S. Trustee

answer

Oversees the administration of bankruptcy law in a region

question

A form stating the name of an unsecured creditor and the amount of the claim against the debtor

answer

Proof of Claim

question

Prohibits creditors from collecting debts that the bankrupt incurred before the petition was filed.

answer

Automatic Stay

question

The new legal entity created when a bankruptcy petition is filed - the debtor's existing assets pass into the estate.

answer

Bankruptcy Estate

question

When a debtor unfairly pays creditors immediately before filing a bankruptcy petition.

answer

Preferance

question

Occurs when a debtor gives assets to someone other than a creditor for the purpose of hindering, delaying, or defrauding creditors.

answer

Fraudulent Transfer

question

After the termination of a bankruptcy case, creditors cannot make a claim against the debtor for money owed before the initial bankruptcy petition was filed.

answer

Fresh Start

question

The bankrupt no longer has an obligation to pay a debt.

answer

Discharge

question

To promise to pay a debt even after it is discharged.

answer

Reaffirm

question

When a court approves a plan of reorganization over the objection of some of the creditors.

answer

Cramdown

question

A grant by the government permitting the inventor exclusive use of an invention for a specified period.

answer

Patent

question

An invention must be new to be patentable.

answer

Novelty

question

An invention must be unexpected to be patentable.

answer

Nonobviousness

question

An invention must be useful for its stated purpose to be patentable.

answer

Utility

question

The life of the author + 70 years.

answer

How long is a Copyright term?

question

Permits the owner of a copyrighted work to sell it.

answer

First Sale Doctrine

question

Permits limited use of copyrighted material without permission of the author.

answer

Fair Use Doctrine

question

U.S. statute that updated copyright law for the internet age.

answer

Digital Millennium Copyright Act

question

Any combination of words and symbols that a business uses to identify its products or services and distinguish them from others.

answer

Trademark

question

A formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors.

answer

Trade Secret

question

Two or more people owning property at the same time.

answer

Concurrent Estates

question

Two or more people holding equal interest in a property, but with no right of survivorship.

answer

Tenancy in Common

question

A court's equal division of a property among co-tenants.

answer

Partition by Kind

question

Two or more people holding equal interest in a property, with the right of survivorship.

answer

Joint Tenancy

question

Joint tenancy has the rights to survivorship while tenancy in common does not.

answer

What is the difference between Tenancy in Common and Joint Tenancy?

question

Allows someone to take title to land without paying for it, if she meets four specific standards.

answer

Adverse Possession

question

State laws that permits local communities to regulate land use.

answer

Zoning Statutes

question

The power of the government to take private property for public use.

answer

Eminent Domain

question

A court order awarding title of real property to the government in exchange for just compensation.

answer

Condemnation

question

A right to possess real property temporarily.

answer

Lesshold

question

A promise to do or refrain from doing something.

answer

Covenant

question

The right to inhabit the property in peace.

answer

Quiet Enjoyment

question

The duty to keep losses at a minimum.

answer

Mitigation

question

Process under which the original tenant transfers all of his rights and duties to a new tenant.

answer

Assignment

question

the process of taking legal action.

answer

litigation

question

The doctrine of stare decisis means that courts look to past, similar issues to guide their decisions. The past decisions are known as precedent. Precedent is a legal principle or rule that is created by a court decision.

answer

precedent

question

the federal principle or system of government.

answer

Federalism

question

the legislative (having the power to make laws.) body of a country or state.

answer

Legislatures

question

body of cases decided by judges, as they follow earlier cases, known as precedent

answer

common law

question

a direction issued by a court or a judge requiring a person to do or not do something. "in which a judge which place binding obligations on specific people or companies

answer

court orders

question

The rules and decisions made by federal and state administrative agencies.

answer

Administrative laws

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