UARK Business Law Exam 1

Flashcard maker : Lily Taylor
British “Common Law” System
Basis of our legal system. Decisions by judges on cases are the most important part of law
Constitution
The basis of our federal government
Judicial Branch
Decides how to interpret laws (sets and follows precedents)
Marbury Vs. Madison
Established judicial review, by stating that the judicial branch has the ultimate authority to determine the meaning of a law
Legislation
Legislation is required to amend laws if the judiciary branch is misinterpreting them
Double Jeopardy
You CANNOT be tried twice for the same crime by the same state. (federal and state, or civil and criminal courts CAN try for the same crime)
Doctrine of State Action
The government cannot interfere with your fundamental freedoms (due process and equal protection)
Due Process
Guarantee of a day in court
Equal Protection
The government must treat everyone the same way, and only discriminate if it is to protect the safety or welfare of the general population
Burden of Proof
Degree of proof required for a conviction. Different for criminal and civil cases
Burden of Proof in a Criminal Case
Beyond a reasonable doubt: The jury must be at least 95% sure the defendant is guilty.
Burden of Proof in a Civil Case
By preponderance of evidence: The jury must be at least 51% sure the defendant is guilty.
Stare Decisis
Legal Precedent
Legal Precedent
Judges must follow the legal precedents (or decisions) made by judges of higher courts within their jurisdictions
Contingency Fee Lawyer
Lawyer paid only upon winning a case. Can only be hired by plaintiffs in civil cases
State courts
From lowest to highest: Trial Court, Appellate / Court of Appeals, State Supreme Court
Federal courts
From lowest to highest: District Court, US Circuit Appellate / US Circuit Court of Appeals, U.S. Supreme Court
Jurisdiction
The power of a court to hear certain cases
Forum Selection Clause
Part of online contract placed on websites to determine the state of jurisdiction over the website
Personal Jurisdiction
You may be tried in your home state, or any state with which you have minimal contacts
Federal Court Jurisdiction
Federal courts:

ALWAYS hear cases where the US is a party involved in the case

SOMETIMES hear cases where federal policy is in question

SOMETIMES hear Diversity of State cases where two states are involved, and an amount of money over $75,000

Trial Process:
Complaint: Document filed to open case
Service of Process: Notification of lawsuit to defendant
Discovery: Preparation for trial
Deposition
Interrogation of someone you expect to testify at a trial
Summary Judgement
BEFORE the trial, a judge can dismiss a case in which one side is entitled to win as a matter of law
Directive Verdict
DURING the trial, a judge can dismiss a case if one side does not provide enough evidence
Judgement NOV
AFTER the trial, a judge can overrule an obviously wrong verdict
Alternatives to Litigation
Mediation
Arbitration
Mediation
Third party helps resolve an issue (decision is non-binding)
Arbitration
Third party acts as a judge and decides outcome of disagreement (decision is binding)
Tort
Injury to a person or property
Tort of Assault
Apprehension of physical pain (no physical harm necessary)
Tort of Battery
Physical harm caused to a person
Tort of False Imprisonment
Holding someone against their will (exception: shopkeepers privilege)
Shopkeepers Privilege
Allows store owners to reasonably detain those suspected of theft
Tort of Defamation
False written or verbal statement that damages someone’s reputation in the eyes of a third party
Public Figure Defamation
Requires proof of malice
Tort of Invasion of privacy
You can be sued for invading someone’s expectation of privacy
Tort of Conversion
Theft
Tort of Outrage
Purposely causing emotional distress. Requires extreme or outrageous behavior
Appropriation
You have the right of action to sue someone for using your name or likeness for personal gain
Negligence Cases
Case of unintentional tort
Elements of Negligence Case
Duty, Breech of Duty, Causation, and Damages
Assumption of Risk
If you are fully aware of risks involved with your actions, you are liable for the resulting damages
Shannon Vs. Ashworth
Merchant who knowingly sold alcohol to minor who sustained injuries was held responsible for damages. Changed long Line of Arkansas court decisions. It proved that supreme court can change the law by overturning precedents
Compensative Damages
Victim can receive compensation for lost money or property
Punitive Damages
On top of compensative damages, punitive damages punish the defendant for the wrong doing. Arkansas places a limit on punitive damages
Legal Requirements of a Contract
Mutual Agreement, Consideration, Capacity, Concent.

Purpose of contract must be lawful, but DOES NOT HAVE TO BE FAIR

Gambling / Raffles
are considered unlawful
Minors
Can end contracts without consent of other party. The other party cannot break the contract.
Bilateral Contract
Promise for a promise. (sale)
Unilateral Contract
Promise for an act. (act must be completed for contract to be binding)
Executed
Fully Performed Contract
Executory
Incomplete Contract
Common Law
Established legal precedents in court (primary source of contract law)
Restatement of Contracts
Document containing key contract laws and precedents
Uniform Commercial Code Article 2
Same laws apply to sales of products in all states. (Applies only to goods)
Offer
Offer may be withdrawn at any time until it’s acceptance, unless offering party is paid to keep option open
Mailbox Rule
If acceptance has already been mailed, it is valid
Lack of Consideration
You can’t demand more money half way through a contract because of this
Contract Interference
Is the act of convincing someone to violate a contract with a third party, for personal gain
Lucy Vs. Zehmer
If a reasonable person watching the contract be created would consider it a legal, binding contract, it is. Requires outward manifestation of intent.
Statute of Frauds
Requires a contract to be in writing.
Statute of Frauds qualification
Sale of land, or
Impossible to complete within one year, or
$500 or more sold in goods

Get instant access to
all materials

Become a Member