Exam 2 Business Law

Front 1

Legal Liability

Back 1

Legally obligated to pay.

Judgement creditor can garnish your paycheck (can't garnish 100% of paycheck, only 30 hours per weeks x minimum wage)

Garnish proof if you work less than 30 hrs a week

Front 2

Contract

Back 2

Legally enforceable promise

Front 3

Tort

Back 3

A wrong, or an unspoken (implied) promise.

Front 4

Unintentional and intentional torts

Back 4

Whether or not you intended to hurt someone or damage something

Front 5

Negligence Tort (5 elements)

Back 5

1. Proving the act or omission (what happened)

2. Duty of due care (what would a reasonable person have done?)

3. Breach of duty of reasonable care

4. Proximate cause (cause in fact)

5. Damages

Front 6

Good Samaritan Law

Back 6

Not legally obligated to help people (protects people, didn't intentionally harm someone)

Front 7

Duty (reasonable)

Back 7

For duty to be reasonable

•knowledge

•training

•experience

•situation

Front 8

Jury (in terms of reason)

Back 8

Jury gets to decide whether something is done reasonably.

Front 9

Shortcuts to figure out what's reasonable

Back 9

1. Negligence perse (law)

•major premise > reasonable people don't disobey the law

•minor premise > show that the defendant was breaking the law

•conclusion > not a reasonable person

2. Res Ispa Loquitur "the thing speaks for itself"

(If the thing in question was in control of the defendant)

Front 10

Damages (2 types)

Back 10

1. Bodily injury

2. Property Damage

Front 11

Proximate Cause

Back 11

1. Cause in fact > set everything in motion.

(But for test: but for the defendant's careless actions, thus would not have happened).

Front 12

Intervening causes

Back 12

Between proximate cause and damages (foreseeable- causal chain continues)

Front 13

Superseding causes

Back 13

Not foreseeable (charges stop there)

Front 14

Bodily Injury Damages (2 types)

Back 14

•"Special Damages" > more like specific damages or economic damages.

1. Medical expenses

2. Lost income

(Both tangible)

•"General Damages" > non economic

1. Pain and suffering damages

(Intangible)

Front 15

Punitive Damages

Back 15

When the defendant caused damages willfully or hatefully (punishment)

Front 16

Defenses

Back 16

1. Comparative negligence > shows plaintiff was also unreasonable/liable just like the contributory , but damages are split between the two

2. Contributory Negligence > defendant shows that the plaintiff is also being negligent, trys to make everyone have reasonable conduct + total defense = no damages, even if plaintiff is 10% responsible.

Front 17

If you were the defendant, which defense would you rather have? (Contributory Negligence or comparative Negligence)

Back 17

Contributory, because it is a total defense.

Front 18

Assumption of risk

Back 18

Plaintiff engages in certain activities and assumes the normal risk is tied with that activity and means that you can't sue because of the events that happen because of the activity.

Front 19

Trespasser

Back 19

Must refrain from intentional harm

Front 20

Licensee

Back 20

Permission to be on property, provide a warning of known dangers that don't inherently present themselves as dangers.

Front 21

Invitee

Back 21

Business visitor

Front 22

If you invite 4 people over to your house for dinner, what are they?

Back 22

Licensees

Front 23

Strict liability

Back 23

Predominantly applies to businesses, occurs when they engage in untrained hazardous activities + if someone is hurt because if it = you have to pay for it.

If product is unreasonably dangerous, company is liable for it

Front 24

Intentional torts

Back 24

Named because of the DAMAGES not the conduct

Front 25

Defamation Torts

Back 25

1. Libel = written, slander = oral

2. Need an untrue defamatory statement (hurtful) and need to be factually based, opinions don't count

3. Needs to be communicated (at least one other person needs to see or hear it).

4. Causes damages: usually damages to someone's reputation

5. For public officials to win, must show defendant acted with malice

6. Absolute Privileges = in court or in floor of legislature you can say anything you want without being sued for deformatory comments.

Front 26

False imprisonment

Back 26

Detaining someone intentionally without cause and against their will

Front 27

Interference with contracts

Back 27

Encouraging someone to breach their contract

Front 28

Lanham Act

Back 28

Advertising by a business

1. False statement

2. Commercial advertising

3. Create likelihood of harm

•Trying to create some type of business advantage

•intentional infliction of emotional distress

•assault and battery (intentional unpermitted touching)

•Trespass (needs to be Intentional, know you shouldn't be there)

•conversion (theft)

•fraud (false statements, intended to to decieve)

Front 29

Torts have statues of limitations

Back 29

1-5 years (the time you have to bring your lawsuit)

Begins after you figure out there is a problem

Front 30

Statues of Repose

Back 30

Begins when the problem occurs, not when you know about the problem.

Front 31

Contracts (4 elements)

Back 31

Legally enforceable agreements

1. Agreement

2. Consideration

3. Legal purpose

4. Competent parties

Front 32

Agreement (2 parts)

Back 32

1. Offer

2. Acceptance

Front 33

Consideration

Back 33

"Quid pro quo" > this for that.

Each party must give up something and get something in return

Front 34

Legal Purpose

Back 34

Has to be within the bounds of the law

Front 35

Competent parties

Back 35

•law is parental in nature

•cannot be minors, mentally insane, or intoxicated

Front 36

Forbarance

Back 36

Paid NOT to do something

Front 37

Status Quo Ante

Back 37

Get your money back (put back into the situation you would have been in before something happened)

Front 38

Minors can...

Back 38

Get out of their deal/contract for no cost (dissaffirm)

Chances of minor getting out of deal extremely low, too expensive

Front 39

Insane

Back 39

Unable to understand that you agreed to something (extremely mentally infirmed: old people)

Front 40

Intoxicated

Back 40

Unusual for law to protect intoxicated people.

Must be so intoxicated you do not understand you are making a deal.

Better to try to get out of deal quickly. Do NOT wait.

Front 41

Unilateral and Bilateral Contracts

Back 41

Unilateral > one promise contract (not common) usually limited to rewards.

Bilateral > two promise contracts (obligations).

Front 42

Contract Terms

Back 42

•Executed: contract is over > formed and preformed

•Executory: formed but not performed

•Void: makes an agreement non enforceable (neither party can get out)

•Voidable: one party can get out (lack competent party)

•Valid: enforcable by either party

Front 43

Express Contract

Back 43

Made using communicated ideas concepts (oral contract)

Formed by using words, writing, or signals

Front 44

Implied Contract

Back 44

Apply it in fact or at Law

•In fact: Can look at the conduct (house painting > agreed by not telling them to leave)

•At law:

*"promissory estoppel" someone made a promise (non contractual), induced someone to act (likely to endure reliance) "reliance in fact", enforced to avoid injustice, judge gets to decide if it was likely to induce.

*Quasi Contract: plaintiff gave benefit to defendant, plaintiff reasonably expected payment, unjust enrichment if no payment

(Flight for life gave benefit to defendant > expect to get paid for helping them) person will have to pay something.

Front 45

Law of Contract comes from...

Back 45

Common law and the UNC (uniform commercial code).

UCC: rules that are nationwide > sales of goods (good are tangible movables - personal property).

House is not a good. It's is real-estate. UCC does not deal with real-estate.

Front 46

Offer (3 elements)

Back 46

1. Communicated: offer is effective when it is received (ordering food)

2. Reasonably clear.

3. Contractual Intent: not a joke (whoever heard the offer must reasonably understand the offer was made without contractual intent)

Front 47

Things that are NOT offers

Back 47

1. "For sale" does not have all three elements

2. Invitation to deal: newspaper adds, catalog adds, simple price quotes

Front 48

Acceptance

Back 48

Effective when sent (mailbox rule)

•must abide by "Mirror image rule" > accept what is offered to you without changes

•master of the offer > you are the ruler of the offer

•Counter Offer > you change something about the original offer instead of accepting it (risk losing original offer)

Front 49

Revocation of the offer

Back 49

Not effective until received

( if the offered was accepted before the revocation was recieved, it's still a valid contract).

Front 50

Option Contract

Back 50

Someone pays to keep the offer open (a promise to keep an offer open is not a contract unless someone pays you to do it).

Front 51

Firm offer

Back 51

if two merchants agree to keep the offer open

>merchants must honor the promise

>individuals may breach the contract

Front 52

Consideration

Back 52

Gift vs. Contract

> value of freedom of contract: freedom to make a good deal or a bad deal "this for that must exist"

>present or future, not past

Front 53

Consideration concepts

Back 53

1. Must be future or present, not past

2. Bargained for exchange

3. Some act or a forbarance

4. Illusory promise > not really a promise "if you wash and was my car I'll pay you something if I want to"

*promises can be conditional > snow removal

5. Output Contracts/requirement contracts > both okay

6. Pre-existing obligation (duty) (building builder and buyer > buyer only has to pay for what was in the original contract)

7. Reduction of a debt > someone agrees to settle for less than the amount owed

Front 54

Debt (2 kinds)

Back 54

Liquidated > reduced to a specific dollar amount. (Must be in the city tract as a liquidated amount if contract is breached) A owes B $500

Unliquidated > (consideration) $300 owes B $500 meet in middle $400

Accord: satisfaction: (accord > agreement. Satisfaction > payment)

Front 55

Breach

Back 55

Contract is not performed > leads to damages > people are supposed to get "benefit of the bargain" (what the other person promised)

*substantial performance

Front 56

What do damages try to identify

Back 56

Identify the benefit if the bargain > putting people in the position they would have been in if the contract were performed (pre-accident condition)

Front 57

Tort law

Back 57

Damages move backwards

Front 58

Contract law

Back 58

Damages move forwards (benefit of the bargain)

Front 59

Contract related conditions

Back 59

Condition precedent: creates a right, triggering event

Condition subsequent: cancels the obligation

*disability > precedent, regain ability > subsequent

Front 60

Conditions can be...

Back 60

1. Express: written or oral

2. Implied: reasonable people know they're there

3. Concurrent: things that happen at the same time (obligation to pay for good when you get them)

Front 61

Performance of contracts

Back 61

Strict: do exactly what the cost tract calls for

Substantial: positive amount of money after the contract price - the cost to complete

Front 62

Subjective judgemental

Back 62

Contract calls for personal satisfaction "wash my car and I'll pay you if I think you did a good job"

Pesonal opinion of the car > subjective

Reasonable persons opinion of the car > objective

Front 63

Anticipatory Breach

Back 63

Notifying someone you won't perform the contract

Front 64

Damages (Expectancy)

Back 64

Expectation damages > benefit of the bargain damages (include identical damages: other things you had to do because the party breched)

Front 65

Damages (2 categories)

Back 65

1. Direct

2. Consequential > happens over time because you were supposed to get something you didn't (must be foreseeable and calculable at the time you make the contract in order to be collectable).

Front 66

Contract Breach Remedies (damages)

Back 66

1. Expectation (most common)

2. Reliance

3. Restitution

4. Specific performance (equitable)

Front 67

Reliance Damages

Back 67

Preparation damages ("I did this relying on the fact that there was a contract")

Front 68

Restitution

Back 68

Undo what has been done "unscramble the eggs" restore you to your pre-contract condition.

Front 69

Specific Performance (Equitable)

Back 69

Defendant is ordered to preform the contract

-property must be unique

-happens most frequently with Realestate

Front 70

Labor law

Back 70

Employment at will doctrine: employment is a consensual relationship between employer and employee (for good cause or no cause)

Front 71

Sherman Anti-trust law

Back 71

Prohibits price fixing efforts

Front 72

Employment security

Back 72

Family medical leave Act >= 50 employees, must have worked for employer for at least 1 year, you get 12 weeks of unpaid leave

Can be for personal or family medical issues

Front 73

Wrongful discahrge

Back 73

Boss fires you for something that contradicts public policy *boss wants you to do something illegal and fires you for not doing it* illegal under common law

Front 74

Employment contract

Back 74

Rare, usually only get a letter of intent of employment

Teachers to get employment contracts. Can be expressed or implied.

Front 75

Tort Termination

Back 75

Defemation= ruining reputation

Can be fired for it

Front 76

Alcohol and Drugs

Back 76

Law says employer can test for alcohol and drugs

Can fire you for it if it is affecting job performance.

Front 77

Termination (sexual harassment)

Back 77

Termination should never have anything to do with sexual harassment (wrongful termination)

Front 78

Employment safety (OSHA)

Back 78

Occupational Safety Health Administration

Protects employees by requiring safety regulations (inspects manufacturing facilities for safety)

Front 79

Fair labor standards Act

Back 79

•minimum wage

•14 yr Olds can't do much

• 14-15 hours can't conflict with school

•16 can leave school and not be truent

•16-17 no hour limits but cannot work in hazardous occupations

•18+ no limitations on hours or occupations

Front 80

Insurance law

Back 80

Company with more than 50 employees must provide health insurance

Front 81

COBRA

Back 81

If you leave your job for any reason, you can keep your health insurance for 18 months but must pay the health insurance premium.

Front 82

Social Security

Back 82

Created in 1935, revised in 1965. Part of the revitalization from the Great Depression.

Front 83

Social security

Back 83

Old age > quarters of coverage > 40 quarters = net income

Pay in 7.65% of income by employer and employee (self employed pay both)

People retire at age 67

Survivors benefit for children of you die before age 67

Health insurance program > medicare

Front 84

Workers Comp.

Back 84

Of you are injured on the job, employer must pay for injury expenses regardless of fault

Front 85

Labor Unions

Back 85

1935 Act > National Labor Relations Act (NLRB national labor relations board) contact NLRB and they help protect you

If 30 % of the employees say they want an election, the NLRB shows up. If more than 50% of the workers vote yes, there will be a union.

Union gives you the right to collectively bargain.

Front 86

Union Shops

Back 86

Closed shop > forced to immediately join the union (illegal)

Union shop > 90 days in the job before you must join the union (unless there is a right to work law: can never force you to join the union)

Open shop > the right to choose of you want to join the union

Front 87

Unlawful strikes

Back 87

1. Sit down strikes

2. Partial strikes (collectively show up on some days, but not others)

3. Off site pickets

Front 88

Agency

Back 88

Corporations are artificial persons. Agencies communicate for corporations.

Agent: some who can bind deals for the corporation (like giving a friend 10 signed checks)

Principle > agent > 3rd person

Front 89

Agency Relationship

Back 89

•consensual

•requires agreement, but no contract

•agent does not need to be competent (minors can serve as agents)

Front 90

Partially disclosed

Back 90

G. H. Allen. Is the Agent, but didn't write for whom. (Can sue the principle)

Front 91

Principle and agents

Back 91

They owe obligations to each other, but principle owes less to the agent (owes duty to compensate and duty to remburse).

Front 92

Respondiant Superior

Back 92

If agent engages in tort, principle is liable

Front 93

Termination of the Agency

Back 93

New customers > take away appearance of agency

Old/existing customers > must give notice agency is over, (known and u known customers: must give both notice).