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Statutory Law 2 parts

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1.actual law 2. court interpretation

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Contract Law

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Biggest portion of business law, Contracts Create Legal Rights & Duties that did not exist before

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Breech of Contract

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-If you promise to pay & don't -Give a service and don't

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3 Certain Elements of a Contract

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1. mutual assent a.offer & acceptance 2. Consideration 3. No K defenses a. In a contract both sides have to give something 99% of time it happens b. Gift is not a contract

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Marriage is a contract

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-offer and acceptance (introduction to wedding) -consideration (vows + ring presentation) -contract defense (blockage of marriage by audience)

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Basic Definitions

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B = Business C = consumer B2B - electronic or wet signature - Changes are always electronicB2C - amazon electronic commerce C2C - EBay

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-bi-lateral contract

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promise exchanged for other promises, -parallel, liked by courts

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-unilateral contract

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promise on one side in exchange for action on another ex. a reward if someone has started an action, then they have to finish

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Express Contract

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all contract terms are found in language with, contract conditions written or spoken

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Implied Contract

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contract terms come from conduct

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Quasi Contract (K)

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-legal fiction-situation where something wrong w/ 1,2 or 3rd part of contract

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4 Prong Test of Contract Validity

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1.One party conferred to benefit on another 2.Reasonable expectation of compensation3.Benefits came at the express or implied request of someone4.Would it amount to unjust enrichment for hometown

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Leading in the alternative (Leading someone to do something wrong?)

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Void agreements, cannot be a contract-ex. agreement to commit a crime-voidable contract -situation where one side can get out of deal & maybe both example. contract entered by a minor, If minor exits contract before 18th birthday they can get out of it

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Two categories of contracts

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1. Necessity contract, Clothing, Healthcare -Contract can be voided if fraud is proven-Contract over $500 is not enforceable if not in writing-offeror / offeree -valid offer until offeree knows about it

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-Unless offeror is directing the sign at the interested party, there is no contract. For example

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Sign for Car Sale to SLU student but neighbor is interested. No contract until neighbor is included in interest target party. -if offer is coming from other direction-second element consideration-legal detriment to promisee -benefit to me as the promisor

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promisor hat

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-giving up legal rights is contract if it is illegal then not giving up rights

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Promissory Estoppel

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substitute for consideration, pledges to non-profits such as NPR or PBS are not contracts. Same for charitable contributions. Hold them to their promise in a promissory estoppel.

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3 Things that can go wrong

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-if contract is something that is illegal, judge cannot enforce it-pay money to play a game such as gambling Licensing Requirement: physicans lawyers, electricians etc. protects the public If not a license cannot perform profession -Situation, where statute is a form of tax does not protect public, than it won't mater

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Blue laws

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-bible belt states -cannot contract on Sunday-laws been ignored

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Usury Statutes

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-another kind of statutes that impacts a contract -how high interest can be charged on a contract-state statutes -Hamurabi code

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3 pieces of information in usury statutes

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1. who is leader2. who is borrower3. what is the purpose of the loan

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Public policy

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is in a sense anything the judge wants it to be

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Non compete contract

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cannot work for competitor within certain time/geographic range, cannot create own product-Reasonable geographically -Reasonable time wise-what is justification for the non-compete -found in employment contracts on sale of business

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Trade Secrets

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-information company has that is not public that keeps them competitive-These are only known by employees on a need to know basis -copy of the non-compete clause is given to lawyers Example; all your customers list -sued for stealing trade secret, this is a TORT regardless of if a non compete exists

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Exculpatory clause

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part of a contract that you are not going to be responsible for something

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Hazards

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If known about by company or store, then they may have liability. If not known about such as parking lot shopping carts, then not liable.

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Negligence

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is when an exculpatory clause is valid

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Two types of Guardians

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Guardian of Money, Guardian of Person Example: If a person is incompetent and sells their car, then contract did not happen legally

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Intoxication

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can get you out of a contract because contract cannot be valid until person is sober and a little bit of time afterward.

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Five Elements of Fraud

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1. False representation2. Of a material fact3. Made w/scienter 4. Justifiable Reliance- reasonable person fooled 5. Damages - paid too much

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Example

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Drive a car from 25k to 100K miles, lie or change mileage on the car than that is false representation

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Statutes of Frauds

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An act for prevention of frauds & perjury's comes from English common law

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Types of Contracts

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1. Sale of goods (in writing over $500) 2. Land3. One-year rule 4. Debts of others 5. Damages 6. Agreements creating non possessory security interests or property7. Sale of intangibles

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-Deed

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is a writing agreement for a plot of land

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-Lease

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is rental agreement for a home

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-1-year rule

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is possibility of being done in a year, must be in writing

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Leases

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1) Surety/co-signer a. joint and several liability b. lender can sue both parties, or separately at their discretion 2) Guarantor if X doesn't pay, I will a. must sue x first b. then can sue guarantor

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Examples of in writing

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-put deed in bank for land-get married

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How much risk

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If bank does not physically have the car, owner of the car must sign it to the bank if they cannot pay, This is separate or part of car loan document

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Mortgage

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non-possessory security interest document, this document is signed by home buyer to secure a loan

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intangibles

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Stocks, Bank accounts

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Kings Courts

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-monetary, -courts of law

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5 types of damages

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1. compensatory (actual pain and suffering)-fact of how much damages cost (actual), -pain & suffering (emotional impacts ,-most cases have this ,-comparative negligence , -one of the facts is how much at fault was each party, put a number on the portion of at fault of each party2. indirect - consequential -if people know that the consequence would happen then they will consider it under this category-sometimes courts do not want to deal with consequential damages 3.punitive -if something is done, the punishments will be the results-burden of proof is between criminal and civil burden-cannot be covered by insurance -someone has done something extra bad to warrant punitive damages4. nominal- Minimal money damages awarded to an individual in an action where the person has not suffered any substantial injury or loss for which he or she must be compensated.-moral victory 5. Liquidated- (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance). -party's themselves negotiated ahed of time the result

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-Prenup

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marriage if you are to split it up the pot, pre negotiated deviation of assets

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Gore V. BMW

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-$40000 car repainted-jury determined cars value diminished by $4000 (10%) -punitive damage originally $2,000,000 this was appealed

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State Farm V. Campbell 2003

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1st lawsuit - loses law suit for killing family2nd lawsuit - 145 million in punitive damages for giving him "bad lawyer"-Supreme court was asked to determine whether punitive damages were reasonable1) reprehensibility of defendant's conduct2) ratio between actual and punitive damages3) looking at the bad act, if it was criminal what would the punishment be? 4) actual 9X less than punitive, will not pay attention to the case

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Equedistical Courts

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Courts of Equity 1. Injunction: custom written court order, written in negative, cannot do something rights of one part vs. another 2. An accounting: court goes in and supervises all proceedings

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Torts

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A Civil Wrong -Maryland Walmart put super glue on toilet seat, another man sat down and got glued. -someone snatches a tupaj off someone else's head-bakes brownies with laxitives , -42% of tort litigation is automobile liability (100 mph 1-ton car)-21% premises liability is someone gets hurt on your property may be sued if you own a place where someone got hurt -16% mal practice any professional can be sued for this example; mortician lost person for a funeral-4% product liability cases example; passive tobacco smoke is considered a carcinogen by government , Crime Taking place on someone's property

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1. Direct Liability

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if someone did the action, a. Action is within scope of urgency control by principle, agent is employee b. Independent criminal liabilityc. Store clerk drops heavy box on someone's foot -i. Must sue sales clerk first -ii. Then sue corporation such as Sears (this would allow for vicarious liability) d. Against property owner e. Example: sue Burger King for not having proper preparation f. Negligent hiring: bring in evidence of criminal past

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2. Vicarious/indirect liability

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experience through someone else, Show agency relationship Vicarious/Indirect liability a. Agency b. Realm/scope of agency improper security

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In Loco Parentis

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Local Parents: Examples: -student slides down hill at University of Alaska (parents sued university)-train at Princeton University falls off train almost killed (sued university for train line being there)-Soap dish lawsuit over negligent installation

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Torts Types

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1. Specific intended goal 2. Transferred something interferes with very same intent 3. General on purpose that a person would know this causes damage4. Negligence 5. Strict Liability

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Tort Definition

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A wrongful act of infringement of a right leading to civil legal liability.

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Battery

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Offensive touching or touching without permission -medical mal practice is one example of this -assault is a similar offense-Merchant protection statutes or shop keepers privilege -can detain person and call for police immediately -Security Firm has Vicarious Liability

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misappropriation of rights to publicity

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-state law varies from state to state-have different rights in regard to how their picture is used

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Defamation

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telling untruths or lies that hurts their reputation

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Trade Disparagement

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Lying about product or service which hurts company

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Fraud

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1. Interference with contractual relations a. Inprivitey: involved in contract2. Misrepresentation

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Example

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stealing trade secrets -former VP GM, works for VW does business like GM sued by GM 100 million

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4 Elements

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1. Duty2. Breach 3. Proximate clause4. Damages

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Measurement is reasonable person, lawyer, doctor etc.

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Reasonability

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Good Samaritan Statutes

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What reasonable person does in medical professional situation. Only applies to medical professions. Probable Cause1) Cause and Fact 2) Foreseeability

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Types of Negligence

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1. Contributory negligence 2. Comparative negligence 3. Assumptions of risk (Back to English common law)

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Negligence Defenses

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1. Plaintiff can be at fault 2. Puts % of blame on each party plaintiff 5% defendant 95%, reduce damages by 5% 3. You know something is harmful/dangerous but do it anyway

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Assumption of Risk

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certain things no matter how you do them, they are dangerous

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Strict Liability

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if it falls in this category only defense is assumption of risk

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Wild Animals

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Anything except cat or dog. If it harms a person or property than you can be sued under strict liability. a. Can be sued for attack by cats or dogs b. Natural disaster

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Chipotle case

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unsafe food, this fell under strict liability

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Product Liability

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Sub category of torts, -part of contract law until late 1960's -product law is American law not English common law-rest of world views product liability differently-caveat emptor: let the buyer beware -not all good law, not all bad law

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Market share Liability

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-if someone is hurt by a product and we cannot determined the company then you charge the company board on their percentage of the market share of this product

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6 Theories of negligence

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1. Intent 2. Negligence3. Strict liability4. Breach of express contract warranty or contract origination 5. Breach of implied warranty 6. Violation of statutes (boat load of statutes on safety regulations)

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Tylenol Murders

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Someone takes Tylenol off shelves puts cyanide in them. -CEO tells public not to take Tylenol-settle up with the store-set gold standard on how product liability should be handled

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Negligence

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Design defect, basic plan is faulty so they are all bad defect 1. Manufacturing defect 2. Packaging defect3. Failure to warn

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Strict Liability

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-Big Deal in product law -402A liability not written by law makers -legal scholars thought this was a good idea. Consumer protection statutes just began to come in. -If you are a merchant seller of a certain type of good. If it leaves your store defective, condition unreasonably dangerous. Then we will hold you liable. When it became law, products got safer.-Unreasonable Dangerous

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-Reasonably dangerous

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-knives, vaccines

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