Business Law Exam 1

Front 1

what is law?

Back 1

a set of rules creating order and expectations

Front 2

what makes law voluntarily enforceable?

Back 2

1. we have the ability to change them
2. have legitimate gov't
3. vote in legislature

Front 3

why do we need law?

Back 3

keep order, influence conduct, promote equality, honor expectations, and offer compromises.
Decides punishment, so people follow the same rules

Front 4

What are the sources of US law?

Back 4

US Code, US administrative regulations, US executive order, case law and precedent, constitution, state versions, counties, cities

Front 5

What is a source of international law?

Back 5

treaties-agreements between and among nations regarding their political and commercial relationships
uniform laws-contracts for the International Sale of Goods

Front 6

who owns a corporation?

Back 6

shareholders, but it is overseen by a board of directors

Front 7

what is a plaintiff?

Back 7

complaining party

Front 8

what is a defendant?

Back 8

accused party

Front 9

what is jurisdiction?

Back 9

power of court to decide

Front 10

give an example of subject matter jurisdiction.

Back 10

traffic court for a ticket

Front 11

what is diversity jurisdiction?

Back 11

when there is a case involving people from two different states and over $75,000 can be held in a federal court

Front 12

what is a partnership by estoppel?

Back 12

a person cannot deny being a partner if he permits the partnership use his name. arises when others are led to believe there is a partnership.

Front 13

what is a trial court?

Back 13

hears cases, takes evidence, jury decides facts, and issue decisions.

Front 14

what is an appelate court?

Back 14

hears appeals on questions of law. writes opinions (no juries, no evidence, just reads arguments)

Front 15

Criminal court

Back 15

go to court found guilty or not guilty (ex/ violating a state law)

Front 16

what is jurisdiction over the person?

Back 16

the power of a court to require that a party or a witness come before the court

Front 17

what is a civil proceeding?

Back 17

person found guilty can still be sued by individually private person v. private person; individual person brings the claim, only can award money, no jail time

Front 18

what is a writ of certiorari?

Back 18

mechanism through which appeals to the US Supreme court are granted (about 100 out of 7000 will be chosen)

Front 19

How many justices are in the supreme court?

Back 19

nine

Front 20

how long is the term of office in the supreme court?

Back 20

lifetime appointments

Front 21

how do the supreme court justices get there?

Back 21

they are nominated by the president and confirmed by 2/3 vote of the Senate

Front 22

how does the constitution divide power?

Back 22

legislative, executive, and judicial

Front 23

what is common law?

Back 23

a system of law which allows judges to write opinions of law

Front 24

what is civil law?

Back 24

laws affecting the private rights of individuals

Front 25

what is the commerce clause?

Back 25

clause in the Constitution that gives Congress the power to regulate international trade

Front 26

what is interstate commerce?

Back 26

goods, instrumentalities (businesses, any franchise), channels (transportation route).
goods flowing between states

Front 27

what are a state's police powers?

Back 27

the power to rule over public health, welfare, and public safety

Front 28

can a state burden interstate commerce? what is the balance test?

Back 28

yes, the federal courts decide and they balance the tow to see if the good for the state outweighs the hurt on interstate commerce

Front 29

what is the supremacy clause?

Back 29

Article VI. federal acts under the supreme law of the land if acting under proper authority

Front 30

what is the reservation clause?

Back 30

10th amendment. all powers not delegated to the feds is reserved to the states

Front 31

what is garnishment?

Back 31

judicial process of taking funds or wages for satisfaction of a judgment (ex/ how one collects in situations such as child support)

Front 32

what does the 5th amendment say about property?

Back 32

persons haave a right to be secure in their property and that they have a right to be secure in their property and that they will not be deprived of it without due process of law

Front 33

what is eminent domain?

Back 33

taking private property for public use

Front 34

what is a sole proprietor?

Back 34

have personal liability, must protect your tradename, tax return is a personal return, and can transfer ownership

Front 35

what is a corporation?

Back 35

limited liability for owners, corp is a person under the law, for profit v. non-profit, domestic v. foreign, professional: CPAs and physicians

Front 36

what is political free speech?

Back 36

unrestricted; businesses can have political opinions

Front 37

what is commercial speech?

Back 37

substantial interest to regulate and no other way to accomplish goal

Front 38

can a state condemb property through regulation?

Back 38

yes, a state passes a law prohibiting a property owner from building a home on their beachfront lot

Front 39

what is procedural due process?

Back 39

must be a notice, must be allowed to be heard (opportunity to be heard, notice of proceedings)

Front 40

what is substantive due process?

Back 40

requires laws to apply equally to all and not deny property or rights without prior notice. must give justification. (what law is about; what is it designed to do or achieve)

Front 41

when can a state deny someone equal protection of its laws?

Back 41

on a rational basis

Front 42

what is a postivist?

Back 42

believes law is ethics

Front 43

what is a relativist?

Back 43

based on the situation, applies ethical standards (thinks through decision)

Front 44

what is pragmatism?

Back 44

very practical, doesn't impose value or judgment

Front 45

what are the benefits of ethics to a business?

Back 45

gives you a good reputation leading to good business. employees follow the code. reputation valuable, repeat business is a strategy

Front 46

what are the models of ethics?

Back 46

1. golden rule-most religions
2. peale-blanchard-is it legal? is it balanced? how does it make you feel? can you sleep at night?

Front 47

what are the rights of shareholders?

Back 47

attend regular meetings, vote if stock allows them to, vote by proxy, inspect books and records for a proper purpose, pooling arrangement or voting trust

Front 48

what is the business judgment rule?

Back 48

can make mistakes, but have to be reasonable. cannot benefit personally over a corporate opportunity.

Front 49

what is piercing the corp. veil?

Back 49

courts can pierce the corp. veil if the corp. is undercapitalized or under alter ego theory (individual avoiding liability)

Front 50

US v. Morrison

Back 50

congress cannot regulate criminal conduct even if it has an aggregate affect on the economic situation

Front 51

Santitary landfill v. Michigan

Back 51

when one is involved in Interstate Commerce one must be current on regulations that affect one's industry

Front 52

Quill Corp. v. North Dakota

Back 52

any company doing substantial amount of business in a state should expect to pay taxes to the state regardless of whether or not they have a physical presence in the state because there is a nexus, a sufficient connection between the corp.

Front 53

Geier v. Honda

Back 53

a business should aspire to manufacture the recommended passive safety restraints, but is not legally liable for having the recommended passive safety restraints

Front 54

nike v. kosky

Back 54

not engaging in mistreatment within labor force (providing good working conditions. realize effect of false advertising.

Front 55

boston v. betotti

Back 55

corporations have individual rights. they have rights to political free speech. it interferes with the 1st amendment for the state to take away this right