Business Law Midterm review

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Sources of law
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laws in this country are created at all three levels of government- federal, state, and local. The forms that these laws can take include statutes, case law, and administrative law.
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Civil law
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a group of laws that allows individuals to seek legal remedies for wrong done to them
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Criminal law
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the citizens’ right to live in peace is violated by a crime
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6 essential elements of a contract
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1) Offer and acceptance 2) Genuine assent 3) Legality 4) Consideration 5) Capacity 6) In writing
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Types of contract
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bilateral contract and unilateral contact
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Bilateral contract
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requires the offeree to accept by communicating the requested promise to the offeror
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Unilateral contract
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the offeror requires that the offeree indicate acceptance by performing his or her obligations under the contract
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Breach of a contract
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failure to provide complete performance of contractual obligations
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Types of insurance
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life, fire, casualty, social, marine, inland marine, and fidelity insurance
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Life insurance
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insurance that pays the beneficiary a set amount upon the death of a specified person
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Term insurance
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A type of life insurance that is written for a certain number of years (one, five, or ten); relatively inexpensive type of life insurance
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Whole life insurance
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a type of life insurance that requires the insured to pay premiums for as long as the insured lives or until the age 100
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Endowment life insurance
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type of life insurance that requires the insurer to pay the beneficiary the policy’s face amount if the insured dies within the period of coverage
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Fire Insurance
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insurance that idemnifies for loss or damage due to fire (an usually smoke as well); may be increased to cover loses due to perils such as rain, hail, earthquake, and windstorm
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Casualty Insurance
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provides coverage for a variety of specific situations in which intentional, negligent or accidental acts of others or mere chance may result in loss
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Social Insurance
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under the provisions of the Social Security Act and related acts, millions of Americans insure themselves against unemployment, disability, poverty, and medical expense problems
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Marine Insurance
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indemnifies loss of or damage to vessels, cargo, and other property exposed to the perils of the sea
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Inland Marinie Insurance
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type of insurance that indemnifies for loss to most personal property while it is being transported across land or inland waterways
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Fidelity Insurance
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provides coverage for financial loss caused by dishonesety, such as embezlement or failure to perform a legal obligation
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Liability Insurance
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insurance that provides protection from claims arising from injuries or damage to other people or property
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Automobile Insurance
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insurance against loss due to theft or traffic accidents; pays med bills, lost wages, even pain and suffering for personal injury in auto accident
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Collision Insurance
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protects against direct and accidental damage to the whicile caused by colliding with another object, such as a tree or bridge abutment and overturning (upset)
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Comprehensive Insurance
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coverage idemnifying insureds for damage to their own vehicle
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No- fault Insurance
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requires they parties of an automobile accident be idemnified by theur own insurance company regardless of whose fault it is
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Benificiary
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the recipient of the amount to be paid
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Policy
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the written contract of insurance
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Premium
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the consideration for a contract of insurance
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Bailment
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the transfer of possession and control of personal property subject to an agreement to return the property or deliver it to a thrid party
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Real Property
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defined as rights and interests in land, buildings, and fixtures
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Personal property
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defined as rights and interests in anything that is not real property, can be tangible (physical) or intangible
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Intellectual Property
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intangiable property created by the intellect and includes copyrights, service marks, trademarks, patents, and trade secrets
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Crime
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punishable offence against society
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Felony
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a crime punishable by confinement for mote than a year in a state prision or by a fine of more than $1,000 or both; can even be death
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Misdemeanor
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a crime punishable by up to one year in jail, a fine less than $1,000 or both
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tort law
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Private or civil wrong for which the law grants a remedy
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Assult
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intentional threat to physically or offensively injure another
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Battery
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harmful or offesive touching
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Defamation
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false statement that injures one’s reputation
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Negligence
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most common tort based on carelessness
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Product liability
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the fixing of responsibility to compensate buyers, users, and bystanders for injuries caused by a defective property
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Will
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legal epression by which a person directs how his or her property is to be distributed after death
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Trusts
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legal document used to transfer the immediate contriol of property to another party
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Living will
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a term used for a document directed to attending physicians regarding a person’s choices about the use of life- support systems in treatement for terminal illness or vegetative state
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Power of attorney
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any writing that appoints someone as an agent
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Marriage
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a legal union of a man and a woman as husband and wife; at least 18 without parental consent
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Common-law marriagaes
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occured when a single woman and a single man lived together, shared common property and held themselves as husband and wife over a prolonged period of time (usually 10 years or longer)
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Civil union
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offers the same rights, duties and benefits as marriage; often refered to as same-sex marriage
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Marital consortium
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the law recognizes procreation, raising children, and filling sexual, economic and companionship needs as marital duties of husband and wife
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Adoption
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legal process that creates a parent- child agreement
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Prenuptual agreement
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legal contract resolving property and other claims that might result from a marriage
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Annulment
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court order that cancels a marriage because of a problem rhat existed from the beginning of the marriage
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Voidable Marriage
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valid marriage that can be terminated by one or both parties due to improper grounds
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Void Marriage
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marriage considered invalid from the beginning
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Bigamist
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a person who marries a second spouce while still married to the first
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Divorce
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court action terminating a marriage
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Dissolution
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step in termination of a partnership that precedes the winding-up process; also, term for divorce or the ending of a marriage in some states
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No-fault Divorce
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a marriage ended by no fault by either spouse
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Seperation
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stage of divorce process in which the spouses maintain thier marital rights and obligations but do not live together
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Child Custody
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care and control of a minor
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Child Support
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money paid by a parent to provide a child with economic maintenance
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Alimony
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the support paid by the wage earner of the family to the other spouse
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Sole- proprietorship
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form of business owned by one person who has total unlimited control and liability
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Partnership
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association of two or more persons, as co- owners, to carry on a buisness for profit
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Corporation
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legal emtity treated as an artificial person by the law and created by authority of federal or state law
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Garnishment of Wages
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court- ordered procedure by which a prortion of the deliquent debtor’s wages are paid to satisfy the debt
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Finance Charge
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total added cost when one pays in installments for goods or services
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Credit rating
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evaluation of a party’s ability to pay debts
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Bankrupcy
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legal proceedings discharging debts and distributing assets
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Creditor
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party to whom a debt is owed
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Debtor
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person or business that owes money, goods, or service to another
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Employment
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contractual relationship in which one party engages another to work for pay under the supervision of the party paying
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Employer
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party who engages another to work for pay
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Employee
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party who works under the supervision of another for pay
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Independent Contractor
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one who contracts to do something for another but is free of the latter’s direction and control
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Doctrine of Employment at will
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employment relationship whereby employment may be discharged at any time because no agreement was made about length of employment’ alternately, employee may quit the job at any time without liability for breach of contract
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Wrongful Discharge
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firing an employee in retaliation for reporting violations of law by the company
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Law vs. ethics
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rules of conduct needed to keep order in society vs. the was to determine values of society (not always legally right)
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Landlords
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one, who though a lease, transfers to another exclusive possessions and control of real property
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Tenants
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one who, through a lease, is given possession of real property
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Lease
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agreement in which one party receives temporary possession of another’s real property in exchange for rent

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