TF B – Flashcards
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Laws and government regulations affect almost all business activities.
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The U.S. Constitution is the basis of all law in the United States.
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The U.S. Constitution reserves to the federal government all powers not granted to the states.
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The Uniform Commercial Code has been adopted in all fifty states.
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Federal agency regulations take precedence over conflicting state agency regulations.
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Common law is a term for the laws that are familiar to most of us.
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Decisions by higher courts are not binding on lower courts.
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Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
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Courts are not obligated to follow precedents.
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In most legal controversies, there is one single correct result.
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Although cases may be similar, no two cases are ever identical in all respects.
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Each judge had his or her personal beliefs and philosophy, which shape the legal reasoning process.
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Clearly, a judge's function is to make the laws.
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The courts, in interpreting statutory law, often rely on the common law as a guide to what the legislators intended.
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A jury's good sense and careful consideration of consequences is known as jurisprudence.
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Procedural law consists of all laws that outline the methods of enforcing rights.
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B17. A citation identifies the publication in which a legal authority can be found.
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B18. The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships.
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B19. The party against whom a lawsuit is brought is the plaintiff or petitioner.
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B20. When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court.
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Laws would be meaningless without the courts to interpret and apply them.
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The federal courts are superior to the state courts.
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Because corporations are not considered legal persons, courts use different principles to determine whether it is fair to exercise jurisdiction over a corporation.
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Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-state defendants.
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B5. A court can exercise jurisdiction over property that is located within its boundaries.
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B7. The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.
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B6. For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principal place of business is located.
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To have standing to sue, a party must have complaining sufficient stake in a matter to justify seeking relief through the court system.
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Small claims courts are inferior trial courts.
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Courts of appeals conduct new trials in which evidence is submitted to the court and witnesses are examined.
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U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions.
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The United States Supreme Court can review any case decided by any of the federal courts of appeals.
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Litigation is the process of resolving a dispute through the court system.
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In mediation, the mediator proposes a solution and makes a decision resolving the dispute.
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A court's review of an arbitrator's award may be restricted.
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Mandatory arbitration clauses in employment contracts are generally enforceable.
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A mini-trial is a private proceeding in which each party's attorney argues the party's case before the other party.
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The verdict in a summary jury trial is not binding.
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International treaties never stipulate arbitration for resolving disputes.
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The United States will not enforce a foreign court's decision.
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In a federal form of government, the national government does not share sovereign power with the states.
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The term police powers encompasses just the enforcement of criminal laws.
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The full faith and credit clause prevents a state from imposing unreasonable burdens on citizens of another, particularly with regard to means of doing business.
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The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.
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Under the U.S. Constitution, the judicial branch interprets the laws.
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The states can establish laws and regulations that would interfere with trade and commerce among themselves.
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The breadth of the commerce clause permits the government to legislate only in areas in which Congress has explicitly been granted power.
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Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting state or local law or regulation on the same general subject.
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Congress may tax some states and exempt others.
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The Bill of Rights protects individuals, but not business entities, against various types of interference by the government.
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Traditionally, the courts have protected the right to free speech to the fullest extent possible.
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Expression—oral, written, or symbolized by conduct—is not subject to restrictions.
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According to the United States Supreme Court, the First Amendment prevents limits from being placed on independent political expenditures by corporations.
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The First Amendment does not require a complete separation of church and state.
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To obtain a search warrant, law enforcement officers must convince a judge that they have reasonable grounds to believe a search will reveal evidence of a specific illegality.
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Generally, government inspectors do not have the right to enter business premises without a warrant.
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Substantive due process limits what the government can do in its legislative and executive capacities.
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A law that prohibits or inhibits only some persons from exercising a fundamental right will be subject to "strict scrutiny" by the courts.
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Pretexting is the process of obtaining information by false means.
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State laws protect individuals' privacy rights, often to a significant degree.
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A familiar example of an agent is the owner of a corporation.
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Agency relationships do not permeate the business world.
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The term fiduciary is at the heart of agency law.
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Through agents, a principal can conduct only one business operation at a time.
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If work is usually done under the employer's direction, this indicates independent-contractor status.
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If a great degree of skill is required, this may indicate that a person is an employee hired for a specialized job and not an independent contractor.
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Whether a worker is an employee or an independent contractor has no effect on the employer's liability for the worker's actions.
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Employers can avoid certain tax liabilities by hiring independent contractors instead of employees.
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Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."
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An agency agreement can be implied by conduct.
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An agency relationship created for a purpose that is contrary to public policymay still be enforceable.
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A person must have contractual capacity to be an agent.
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Ratification involves a question of intent, and intent can be expressed only by words.
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An agency by estoppel arises when the principal's actins have created the appearance of an agency that does not in fact exist.
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Generally, the law assumes that the principal is aware of any information acquired by the agent that is relevant to the agency.
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An agent can represent two principals in the same transaction as long as neither of them knows about it.
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Even during emergency situations, when the principal cannot be consulted, the agent may not deviate from the principal's instructions without violating the duty f obedience.
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A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties.
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The agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment.
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Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep.
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An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation.
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The equal dignity rule requires that if a contract entered into by an agent is in writing, the principal, must honor it
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A special power of attorney permits an agent to transact all business for a principal.
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An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.
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An agent's implied authority can be implied by custom.
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An agent's authority to act on behalf of a principal must be apparent to be real.
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Apparent authority usually comes into existence through a principal's pattern of conduct over time.
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A principal's ratification of an agent's unauthorized act must be express.
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A principal cannot be estopped from denying that an agent has authority.
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If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.
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A principal whose identity is totally known by a third party with whom an agent contracts on the principal's behalf is an undisclosed principal.
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A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.
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A partially disclosed principal is only partially liable to a third party for a contract made by an agent.
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An undisclosed principal is not liable to a third party for a contract made by an agent.
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A principal is always directly responsible for an agent's misrepresentation made within the scope of the agent's authority.
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Under the doctrine of respondeat superior, a principal may be liable for any harm that his or her agent causes to a third party.
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A principal or employer normally is not liable for an agent's crime even if the crime was committed within the scope of authority or employment.
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An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.
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B19. If either the principal or the agent petitions for bankruptcy, the agency is not usually terminated.
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When the parties terminate an agency, it is the principal's duty to notify any third parties who know of the existence of the agency that it has been terminated.
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