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88 Cards in this Set
- Front
- Back
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What is the function of the court? |
To interpret and apply the law to a given situation |
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What is jurisdiction? |
The power and authority each court has to hear cases |
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What is the venue? |
The location in a court system in which the case is tried |
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What are the classifications of courts? |
Federal, State, Municipal, Trial, and Appellate |
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What is the function of the appellate court? |
It reviews cases appealed from the decisions of lower courts |
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What are the classifications of the federal courts? |
Special federal courts, district courts, circuit courts of appeals, and US Supreme Court |
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What courts are included in the Special Federal Courts? |
Court of International Trade and the United States Claims Court |
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What is the largest class of federal courts? |
Federal district courts |
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What court hears all appeals from federal district courts? |
Federal courts of appeals |
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What are the classifications of the state courts? |
Inferior Courts, Courts of Original General Jurisdiction, Appellate Courts, and Special Courts |
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What are state inferior courts? What are these courts called? |
Have limited jurisdiction and hear only cases involving minor offenses and disputes. They are called justice courts, district courts, magistrate courts, county courts, small claims courts, or municipal courts, or taxi courts |
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What is the most important court in the state for the average citizen? Why? |
Courts of original jurisdiction because it is in them that the case is first instituted |
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What is the highest appellate court called in most states? What state is the exception? What is it called there? |
The Supreme Court, New York, Court of Appeals |
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What courts are included in Special Courts? |
Probate, Juvenile, and Domestic Relations Courts |
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Who is the chief officer of the court? |
Judge, justice of the peace, or magistrate |
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Who is the executive officer of the court? |
The sheriff, constable, bailiff, or marshal |
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Who represent the plaintiff and the defendant? |
The lawyers or attorneys |
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What is the difference between the plaintiff and the defendant? |
The plaintiff brings the action and the defendant is whom the action is brought against |
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How is the complaint or petition filed? |
The plaintiff files it with the clerk of the court |
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How is the defendant brought to court? |
The defendant is subjected to the power of the court by means of summons |
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What is the trial procedure? |
1. Attorneys make opening statements 2. The plaintiff presents evidence followed by the defendant's evidence 3. The attorney for each side summarizes the evidence 4. The judge instructs the jury as to the points of law which govern the case 5. The jury adjourns to the jury room and in secret arrives at its verdict 6. The judge enters a judgement |
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When would an appeal be filed? |
If the plaintiff or the defendant was dissatisfied with the court's judgement and could cite an error of law by the court |
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Does the procedure change depending on the court level? Explain. |
Yes, the procedure in an inferior court like a small claims court is much simpler than in a court of record |
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What is a tort? |
A private wrong or injury for which damages may be recovered. Can be intentional or negligent. |
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What is a business tort? |
A tort caused by or involving a business |
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What is product liability? |
Manufacturers, dealers, suppliers, and rental companies incur potential liability in tort for injuries caused by their products |
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What are two business activities that are recognized as torts? |
Interference with a contract or economic advantage and confusion about a product |
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When does interference with a contract or economic advantage occur? |
When a business relationship has been formed and a third party causes one party to break up that business relationship |
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What is confusion about a product? |
Making false statements about another's product or representing goods or services as being the goods or services of someone else |
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What is a trademark? |
A word, symbol, device, or any combination of these adopted or used to identify one product or service from another |
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What is unfair competition? |
It occurs when the total impression of a product gives consumers results in confusion about the origin of the product |
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What are business crimes? |
Crimes committed against a business or in which the perpetrator uses a business to commit the crime |
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What are the three types of business crimes? |
Theft, RICO cases, and computer crimes |
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What is included in business theft? |
Shoplifting, embezzlement, and larceny |
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What is the RICO Act? |
Racketeer Influenced and Corrupt Organizations Act allows injured parties to recover damages for criminal conduct of an enterprise through a pattern of racketeering activity |
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What is computer crime? |
Crime that is committed with the aid of computers or because computers are involved. Includes trespass- which involves the unauthorized use of a computer, fraud- which includes theft and embezzlement, and criminal copyright infringement- which requires willful copyright infringement for business advantage or financial gain |
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What is the FCPA |
Foreign Corrupt Practices Act prohibits bribes to foreign officials, politicians, and political parties and requires recording keeping by publicly help corporations listed on US stock exchanges |
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What are the consequences or violation of the FCPA? |
Fines, imprisonment, and debarment (prohibition on doing business with the government) |
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Why does the government regulate business? |
To eliminate abuses and regulate unreasonable conduct |
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What are the two forms of administrative agencies? |
Regulatory- they govern to some degree the economic activity of a business Non-regulatory- They dispense benefits for social and economic welfare |
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In what three areas of regulation do regulatory agencies have power? |
Licensing power, rate-making power, and power over business practices |
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What do administrative agencies do? |
Set policy through rule making |
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What do state administrative agencies do? |
Affect businesses operated in their states |
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What do antitrust laws do? |
Regulate business by promoting competition |
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What are two examples of federal antitrust laws? What is their purpose? |
Sherman Antitrust Act and Clayton Act. They apply to commerce between two or more states |
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What does the Environmental Protection Agency do? |
Enact laws to protect our environment |
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What are the 4 important laws administered by the Environmental Protection Agency? |
1. The Water Pollution Act 2. The Clean Air Act 3. The Resource Conservation and Recovery Act 4. The Comprehensive Environmental Response, Compensation, and Liability Act |
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What does CERCLA do? |
Imposes liability for disposal of hazardous wastes on owners and operators of the facility and disposers and transporters of the waste |
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How does CERCLA affect businesses? |
Businesses could be subject to huge cleanup costs & also should consider environmental risks before buying a property |
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What are the classifications of a partnership? |
Ordinary, Limited, or Trading/ Non-Trading Partnerships |
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What are the classifications of partnership members? |
General partners- those who are openly engaged in the business Silent partners- those who take no part in the business but may be known by the public Secret partners- active partners, unknown to the public Dormant partners- those who are silent and secret Nominal partners- pretends to be a partner, holds no share in management or profit but could be held liable |
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What are the advantages to a partnership? |
Greater profits through increased capital, more efficient labor, and improvement in management |
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What are the disadvantages for a partnership? |
Unlimited liability of each partner, relative instability of the business, and divided authority can lead to disharmony |
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What are joint-stock companies? |
Partnership that issues shares of stock, but investors have unlimited liability |
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What are joint ventures? |
Business relationship that exists for a single transaction only |
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What is a limited liability partnership? |
Registered partnership whose members run business but have limited liability |
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What is a limited liability company? |
A type of business that combines the management features of a partnership with limited liability for members |
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Why are LLCs important? |
Because they offer members limited liability and the flexibility to choose how the company will be classified for tax purposes |
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What does it mean to "pierce the corporate veil"?
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Courts will do this and hold members who have ignored the LLC liable |
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What did the Uniform Partnership Act do? |
Said that a person receiving a share of profits is proof of a partnership |
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What is a partnership by estoppel? |
A partnership that is inferred from the acts of the parties |
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What are the 5 primary duties of partners? |
1. Exercise good faith and loyalty 2. Work for the firm 3. Abide by majority vote 4. Keep records 5. Inform other partners of matters relating to the partnership |
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What are the 5 rights of partners? |
1. Participate in management 2. Inspect the books at all times 3. Reimbursement when that partner has paid a debt of the firm from personal funds 4. Withdraw advances 5. Withdraw profits |
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What are the 3 liabilities of partners? |
1. Contracts 2. Torts 3. Crimes |
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What are the implied powers of a partner in an ordinary trading partnership? |
1. Compromise and release a claim against a third party 2. Receive payments and give receipts in the firm's name 3. Employ or discharge agents and employees for the business 4. Draw and endorse checks 5. Insure the property of the partnership, cancel insurance policies, prove loss, & collect profits |
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What are the 5 things partners do not have the implied power to do? |
1. Assign the assets of the firm for the benefit of the creditors 2. Indorse a negotiable instrument as an accommodation 3. Submit a partnership controversy to arbitration 4. Discharge a personal debt bt set-off against a debt due to the firm 5. Dispose of the goodwill of the business |
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What are the dissolution acts of the parties? |
Agreement, Withdrawal, or Expulsion |
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What are the dissolution acts by court decree? |
Insanity of a partner, Incapacity of a partner, Misconduct of a partner, or futility of the partnership |
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What are the dissolution acts by operation of law? |
Death, Bankruptcy, or Illegality of the type of business |
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When a partnership has been dissolved, notice must be given except when? |
1. When the partnership was dissolved by the operation of law 2. When the partnership was dissolved by a judicial decree 3. When a dormant or sleeping partner retires |
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What is the process of distributing the assets after dissolution of a partnership? |
1. Reimbursement to partners who have incurred liabilities or advanced money to the firm 2. Each partner is entitled to the return of the capital contributed 3. Any remaining assets are distributed equally, unless agreed upon otherwise |
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What are the classifications of corporations? |
Public, private, domestic, or foreign |
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What are the powers that a corporation has? |
Express, Implied, or Incidental |
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What are the incidental powers of a corporation? |
1. Have a corporate name 2. Have continuous existence 3. Have property rights 4. Make bylaws and regulations 5. Engage in legal actions 6. Have a corporate seal |
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What are the implied powers of a corporation? |
1. Borrow money and collect debts 2. Make, endorse, and accept negotiable instruments 3. Mortgage or lease its property |
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What is an ultra vires contract? |
A contract entered into by a corporation that is not authorized by powers |
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What are the 2 classes of stock? |
Common stock & preferred stock |
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What is par-value stock? |
Stock to which a face value has been assigned |
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What is common stock? |
Can be either par value or no-par value |
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What is treasury stock? |
Stock a corporation has issued and then reacquired |
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What is watered stock? |
Stock that has been issued as fully paid when it has been paid for at an inflated value |
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What are blue-sky laws? |
Laws that have been passed in most states to prevent the sale of worthless stock |
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What does the board of directors do? Who elects them? |
They select officers and appoint other agents to operate the corporate business, stockholders |
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What is a quorum? |
The minimum number of shares required to be represented to transact shareholder business |
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What is the most important right of a shareholder? |
The right to vote because it is their only way to have control over their investment |
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What are the rights of a stockholder? |
1. To receive a properly executed certificate of stock ownership 2. To attend corporate meetings & vote 3. To receive proportionate share of profits 4. To sell and transfer shares of stock 5. To subscribe for new shares in proportion to shares owned 6. To inspect corporate books in absence of a statue to the contrary 7. To share pro rata in the assets remaining after all obligations of the company have been paid when it is dissolved |
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What are the duties/powers of the board of directors? |
Duty to establish all major policies, and powers granted to them by law, articles of incorporation, and bylaws |
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How may a corporation be dissolved? |
Forfeiture or abuse of corporate character, violation of state laws, fraud in the procurement of the charter, or failure to pay specified taxes |
