Blaw Final Exam - New Stuff

Front 1

Usury Law

Back 1

Limits the amount of interest that may be charged on a credit transaction
-ONLY ONE

Front 2

Liability for lost/stolen credit card

Back 2

$50

Front 3

Statutory Lien

Back 3

Creditor is not pain by the contractor for his work on house, may obtain stat. lien by operation of law.
House can not be sold until creditor is paid

Front 4

Preference

Back 4

If you purchase/pay a debt within 90 days before filing for bank. the gift/payment will be repossessed and included in the estate
-Have to pay creditors equally

Front 5

Defaulting on Payments

Back 5

Secured transaction: collateral is promised to creditor
-Self help repossession: reposes collateral, sell, if not enough money get deficiency judgment.
-Collect def. j. through garnishment of wages
Nonsecured: no collateral
-Creditor garnishes wages (taking % of wages)

Front 6

Chapter 7 Bankruptcy

Back 6

Straight Liquidation: sell all assets to pay debts
Arkansas Exemptions:
1. Homestead
2. Wearing Apparel

-Anything earned after filing date is yours
-Does not include "passive" income (Dividends, stock, rentals)
-Anything you inherit within 6 months goes to estate

Front 7

Chapter 11 Bankruptcy

Back 7

Business

Front 8

Chapter 13 Bankruptcy

Back 8

Wage earners plan: keep assets, supervises payment

Front 9

2005 Bankruptcy Reform Act

Back 9

Some who would have filed under Ch 7 now must file under Ch 13
-Requires credit counseling
-"Means Test" look at family income
(if above, may have to file chapter 13)
(Below: Ch 7, above, ask questions)

Front 10

Non Dischargeable Debts (Never disappear)

Back 10

-Federal Income Tax
-Administrative Expenses
-Liability for intentional torts (fraud, criminal fines)
-Alimony and child support
-Student Loans

Front 11

At will Employee

Back 11

Fired for any reason at anytime. No pay req.

Front 12

Exceptions to At Will Employees

Back 12

Wrongful Discharge
1. Implied Contract (manual, employee handbook)
2. Whistleblower/Public Policy
3. Title 7 protected classes

Front 13

Wistleblower

Back 13

Report about violations of civil rights act

Front 14

Term Contracts

Back 14

Agents can still be fired, but must be compensated for the remainder of the contract
-May sue for monetary damages
-Not job back

Front 15

Workers Compensation

Back 15

Get hurt on job, get a benefit package
-No fault system
-NOT lunch break
-Can not sue the boss

Front 16

Subrogation Right

Back 16

Right to sue the person who injured you, but you loose workers comp.

Front 17

FICA

Back 17

Social Security
Paid for by employer and employee

Front 18

Affirmative Action

Back 18

Federal Government Policy that requires companies contracting with the government to hire qualified minorities over non minorities
-Cant have a quota

Front 19

Disparate Impact Discrimination

Back 19

Hiring criteria eliminate a disproportionate number of people from a protected class without it being job related

Front 20

80% Rule

Back 20

Determines whether discrimination has occurred
-80% women and 20% men = discrimination

Front 21

Title 7 Protected Classes

Back 21

(Civil Rights Act)
Applies to companies with 15 or more employees
Affect interstate commerce

1. Race
2. Gender
3. National Origin (accent)
4. Color
5. Religion

Front 22

EEOC Filing

Back 22

Must report it to EEOC within 180 days before filing

Front 23

ADEA

Back 23

Protects from age discrimination over 40

Front 24

ADA

Back 24

American with Disabilities Act
-Disability: physical or mental impairment that substantially limits a major life activity
-HIV AIDS cant walk speak breathe eat

Front 25

Quid pro Quo

Back 25

Directly asking for performance of sexual act

Front 26

Hostile Work Environment

Back 26

-Inappropriate language, literature, or touching
-Must be severe enough to alter conditions of the employment

Front 27

Drug Testing

Back 27

Arkansas has no laws

Front 28

5 Rules of Ethics

Back 28

1. Obey the law
2. Tell the truth
3. Keep your word
4. Follow instructions
5. Set a good ethical tone

(Only Tell Kangaroos Four Secrets)

Front 29

Inherence

Back 29

The course of action you're proposing one that will maximize shareholder profit
-PROFITS are all shareholders care about

Front 30

Enlightened Self Interest

Back 30

What is the effect on econ. environment, community, potential cust., and shareholder profits?

Front 31

Sarbanes Oxley

Back 31

Response to Enron and false financial statements

Front 32

Characteristics of Sarbanes Oxley

Back 32

1. Only applies to companies who's shares are publicly traded (in stock)
2. Gives confidential reporting systems to employees (Whistleblower protection)
3. Establishes Public Accounting Oversight board
4. Establishes limitations on non-audit services (doesnt work for comp.)
5. Rotates audit partners
6. Delists companies who do not comply (stock not traded)
7. CEO and CFO now have to sign off on accounting report
8. Forfeits profits if restatement is required
9. Company must mention whether or not they have a code of ethics; and must address honestly

DOES NOT limit stock options and bonuses

Front 33

Foreign Corrupt Policies Act

Back 33

Can not bring foreign government officials even if it is legal in that country

Front 34

25% limit on garnishment

Back 34

True

Front 35

Liabitiy on debit card

Back 35

NONE
Whatever is in your account

Front 36

Errors in billing

Back 36

Time that company is investing this, they can not charge interest

Front 37

Can not ______ when repossessing

Back 37

Breach the Peach
whatever judge says it is

Front 38

Federal Consumer Protection Law

Back 38

The Fair Debt Collections Practices Act
o Applies to collection agencies (no creditors collecting their own debts) , limits contact with agency and debtor

Front 39

______ writes bankruptcy laws

Back 39

Congress

Front 40

If below the "means test" in B.R.A

Back 40

• Looks back over the past 6 months
• Assuming that you in in ch 13, court will closely examine your monthly expenses and come there to guidelines prepared by IRS
• Up to 1500 can be spent of public school
• Charitable donations of up to 15%

Front 41

Fraudulent Transfer

Back 41

2 year rule
• Transfer 2 years prior to date of bankruptcy, without equal exchange. (Give presents to people)

Front 42

Exemptions in a straight liquidation (ch 7)

Back 42

Debtor can choose to get state or fed. exemptions (some states are generous)

BUT

Must live in state for 2 years to get exemptions
Owned home for 3 years

Front 43

Unlimited homestead

Back 43

7 states home is paid for $1million

Front 44

Priority Creditors

Back 44

• Child and spousal support obligations (top)
• Admin. Expenses
• Wages and salaries (when debtor has employees) up to a dollar max.
• Taxes

Front 45

Denial of a discharge (Death Penalty)

Back 45

Judge saying you have not been in good faith
• Destroying or falsifying records
• False statement under oath
• Secretly transferring or concealing property
• Failing to explain loss of assets
• Wait 8 years to get another discharge

Front 46

Bankruptcy on file for ___ years

Back 46

10

Front 47

Fair labor standards act must ______

Back 47

affect interstate commerce
-If not: govt has no jurisdiction

Front 48

OSHA

Back 48

o Occupational Safety and Health Act
o Must affect interstate commerce
o Detailed safety regulations
o Search warrants or consent required for search of the business

Front 49

COBRA

Back 49

extends group insurance coverage up to 18 months after termination
-premiums paid by ex employer

Front 50

• Drug testing: Public sector v. Private sector

Back 50

o Public Sector: constitution, drug testing is covered by the 4th amendment
o Private Sector: not covered by 4th amendment
• Possible Protections:
• Common law right to privacy
• Statutory law in some states
o About half to states have these laws protecting employees
o Requires a “confirmation” test
o Prohibits direct observation of the generation of the sample
o A few state prohibit giving a drug test to a current employee without probable cause

Front 51

Basics of Civil RIghts Act

Back 51

o Affect interstate commerce (commerce clause)
o 15 or more employees
o 5 protected classes
o No “preferential treatment” for under-represented groups (affirmative action)
o Statue, EEOC Guidelines (equal employment opportunity commission), and court decisions

Front 52

Read these

Back 52

2. Attractive, distraction: legal
3. Height: illegal (discriminates against women)
4. Weight: legal (unless disability)
5. Accept: illegal (National Origin)
6. Ability to speak English: Illegal (English only rule: comes into effect when English is necessary to preform a task)
7. Cant work Saturday because of religious: illegal
8. Filed for bankruptcy: legal (Bankruptcy code: cant be fired from a job you CURRENTLY have)
9. Arrest record: illegal
10. Gay: legal

Front 53

What "law" requires affirmative action?

Back 53

o Is not federal statutory law. (None of the above)
o Answer: Executive order 11246
• Govt contractors and sub contractors
• Goal: Increased job opportunities for under-represented groups

Front 54

Affirmative

Back 54

o Not part of title 7
o Government contractors (fed)

Front 55

EEOC Runs ____

Back 55

title 7

Front 56

Family on Medical Leave Act

Back 56

12 weeks a year unpaid leave for medical reasons

Front 57

Suretyship

Back 57

Contract to pay someones else's debt (Co Signer)

Front 58

Liquidated Damages Clause

Back 58

"reasonable to be enforced"
Recognize breach

Specifies amount of money breaching party will owe if contract is breached

Front 59

Smith vs Russ

Back 59

"consequences must be foreseeable"

Front 60

Shareholders

Back 60

1. Amends articles of incorporation
2. Elect board of directors

Front 61

Express Authority

Back 61

-Giving specific orders as to what an agents authority is

Example: Power of Attorney

Required: Specific Instructions

(test could ask "what is required" or "what is an example

Front 62

Contract Liability

Back 62

When signing a contract, agent must disclose that he is only an agent to be liable for the contract

*If you only sign your name, you OR the company is liable*
*If you sign companies FULL name, only company is liable*

Front 63

Exceptions to the At-Will Doctrine

Back 63

Wrongful Discharge
2. Implied Contract Theory (handbook or employee manual)
3. Public Policy Theory (has cause of action for wrongful termination if fired in "violation of a well established public policy of state) (Whistleblowng)
4. Title 7 protected classes