Legal & Regulatory Environment Of Business Ch. 1, 3-6, 10-12, 14, 16, 20 Vocab

Front 1

law

Back 1

rules laid down by the state and backed up by enforcement

Front 2

rule of law

Back 2

the general and equal application of laws, even to lawmakers

Front 3

property

Back 3

a legal right that allows you to exclude others from your resources

Front 4

jurisprudence

Back 4

the philosophy of law

Front 5

common law legal system

Back 5

a legal system that emphasizes role of judges in determining the meaning of laws and how they apply

Front 6

civil law legal system

Back 6

legal system that relies more on legislation than judicial decisions to determine law

Front 7

public law

Back 7

classification of legal matter that regulates the relationship of individuals/organizations to society

Front 8

constitutional law

Back 8

public law, interpretation and application of either federal or state constitutions

Front 9

administration law

Back 9

public law; legal principles that apply to government agencies, bureaus, boards, or commissions

Front 10

criminal law

Back 10

public law, various offenses against the proper order of the state

Front 11

private law

Back 11

classification of legal matter that deals with the relationship between legal entities (ex: between people)

Front 12

property law

Back 12

private law, involves the recognition of exclusive right in both tangible and intangible resources

Front 13

contract law

Back 13

private law, rules of how owners transfer resources by exchanging them

Front 14

tort law

Back 14

private law, establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another

Front 15

substantive law

Back 15

defines the legal relationship between people or between people and the state

Front 16

legislation

Back 16

formal written laws created and adopted by elected representatives serving in the legislative branch of government

Front 17

statute/act

Back 17

legislation adopted by Congress or a state legislature

Front 18

ordinance

Back 18

laws passed by local government

Front 19

codes

Back 19

compilations of legislation at all levels of government

Front 20

Uniform Commercial Code (UCC)

Back 20

uniform law across states which simplifies, clarifies, and modernizes the laws governing commerical transactions

Front 21

statutory construction

Back 21

rules courts use in interpreting the meaing of legislation

Front 22

opinion

Back 22

the decision of a judge, usually issued in a written form

Front 23

precedent

Back 23

a prior judicial decision relied upon as an example of a rule of law

Front 24

citation

Back 24

the reference identifying how to find a case

Front 25

stare decisis

Back 25

Latin for "let the prior decision stand", doctrine that traditionally indicates that a court should follow prior decisions in all cases based on substantially similar facts

Front 26

dicta

Back 26

statements made in a judicial opinion that are not essential to the decision of the case

Front 27

holding

Back 27

the precise legal response in an opinion by an appellate court on an issue of law raised on appeal

Front 28

constitutional relativity

Back 28

the idea that courts should understand the meaning of the Constitution relative to the time in which they interpret

Front 29

conflicts of law

Back 29

rules of law the courts use to determine that substantive law applies when there is an inconsistency between laws of different states or countries

Front 30

sanctions

Back 30

penalties imposed for violation of a law

Front 31

remedy

Back 31

the action/procedure followed in order to enforce a right or obtain damages for injury to a right; the means by which a right is enforced or the violation of a right is prevented, redressed, or compensated

Front 32

breach of contract

Back 32

when one party to a contract fails to do what (s)he agreed to do

Front 33

compensatory damages

Back 33

usually awarded in breach of contract cases to pay for a party's losses that are a direct and forseeable result of the other party's breach; the award of these damages is designed to place the nonbreaching party in the same position as if the contract had been performed

Front 34

specific performance

Back 34

euitable remedy that requries defendants in certain circumstanes to do what they have contracted to do

Front 35

tort

Back 35

a civil wrong other than breach of contract

Front 36

intentional tort

Back 36

noncontractual legal wrong caused by one who desires to cause the wrong or where the wrong is substantially likely to occur from the behavior (plaintiff has to prove it was intentional)

Front 37

negligence

Back 37

a person's failure to exercise reasonable care that foreseeably causes another injury

Front 38

strict liability

Back 38

requires plaintiff to prove that the defendant has injured something proper to the plaintiff

Front 39

punitive damages/exemplary damages

Back 39

money damages in excess of a compensatory award, usually granted only in intentional tort cases where defendant's conduct involved some element deserving punishment

Front 40

corporation

Back 40

business chartered by the state to do business as a legal person in a certain form of organization

Front 41

corporate governance

Back 41

defines the legal relationship between corporate agents (managers, board of directors, etc.) and shareholders

Front 42

petit jury

Back 42

the trial jury that returns a verdict in both civil and criminal cases

Front 43

trial court

Back 43

level of the court system that initially resolves the disputes of litigation (usually with the jury as a fact-finding body)

Front 44

appellate court

Back 44

decides whether a trial judge has made a mistake of law

Front 45

subject matter jurisdiction

Back 45

the authority of a court to hear cases involving specific issues of law

Front 46

small-claims court

Back 46

handles litigation between business and its customers (has limited jurisdiction and is below trial courts in the court system)

Front 47

appeal

Back 47

right of litigation parties to a review of their case by a higher court

Front 48

courts of appeal

Back 48

a court that reviews decisions by lower courts (in a state with 2 appellate courts, the lower of the 2)

Front 49

supreme court

Back 49

the highest appellate court

Front 50

writ of certiorari

Back 50

procedure for requesting a 2nd review

Front 51

federal question cases

Back 51

litigation involving the application or interpretation of the federal Constitution, federal statutes, federal treaties, or federal administration agencies; federal court system has subject matter jurisdiction over these issues

Front 52

diversity of citizenship

Back 52

all plaintiffs must be citizens of different states from all defendents; federal courts have subject matter jurisdiction over these cases if over $75,000

Front 53

Federal Rules of Civil Procedure

Back 53

provide the details concerning procedures to be followed in federal court litigation

Front 54

judicial review

Back 54

the power to review laws passed by the legislative body and to declare them to be inconstitutional and void; can also review actions taken by the executive branch and declare them unconstitutional

Front 55

judicial restraint

Back 55

believes that the political process, not courts, should correct society's ills; decides issues on a narrow basis, if possible; follows precedent whenever possible; doesn't engage in "judge-made law" but interprets the letter of the law

Front 56

judicial activism

Back 56

believes that the political process can't adequately handle society's difficult issues; courts can correct society's ills through the decision making process; following precedent is not crucial; "judge-made law" is often necessary to carry out the legislative intent of the law

Front 57

plaintiff

Back 57

the party who files a civil action

Front 58

defendant

Back 58

the party sued (or the person against whom a criminal charge is filed by the prosecuting state or federal government)

Front 59

counterclaim

Back 59

any claim filed by the defendant in a lawsuit against the plaintiff in the same suit

Front 60

counterplaintiff & counterdefendant

Back 60

parties of a counterclaim

Front 61

third-party defendants

Back 61

a party who is not a party to the original litigation (not the plaintiff or defendant); usually if there is someone who may have liability to a defendant if defendant has liability to plaintiff

Front 62

standing to sue

Back 62

reqiurement a plaintiff must satisfy by demonstrating a personal interest in the outcome of litigation or an administrative hearing

Front 63

personal jurisdiction

Back 63

power over the parties to the case

Front 64

summons

Back 64

notice to appear in court; gives court jurisdiction over the defendant

Front 65

long-arm statutes

Back 65

provides for the service of process beyond a state's boundaries

Front 66

service of process

Back 66

publication of notice and mailing summons to last known address of defendant (instead of summons)

Front 67

extradition

Back 67

process of requesting and transporting a prisoner from one state to another

Front 68

class-action suit

Back 68

suit in which one or more plaintiff file suit on their own behlaf and on behalf of all other persons who may have a similar claim

Front 69

pleadings

Back 69

the legal documents that are filed with a court to begin the litigation process

Front 70

complaint

Back 70

pleading filed by the plaintiff with the court clerk; contains allegations and statements/request of relief sought

Front 71

answer

Back 71

the responsive pleading filed by a defendant

Front 72

default

Back 72

failure of a defendant to answer a complaint within the time period allowed by the court; upon defendant's default, a judgement is entered in the plaintiff's favor

Front 73

discovery

Back 73

procedures by which one pary to a lawsuit may obtain information relevant to the case from the other party or from third persons

Front 74

interrogatories

Back 74

type of discovery procedure where written questions submitted by one party to another in a lawsuit

Front 75

request for production of documents

Back 75

method of discovery whereby one party asks the other to provide documents for the requesting party's review

Front 76

deposition

Back 76

discovery process outside court supervision that involves the sworn questioning of a potential witness; spoken words recorded by a court reporter

Front 77

request for an admission

Back 77

method of discovery used to narrow the issues to be litigated by having a party request that the other party admit the facts that aren't in dispute

Front 78

motions

Back 78

process by which the parties make written or oral requests that the judge issue an order or ruling

Front 79

statute of limitations

Back 79

statute that sets a date after which a lawsuit may not be brought

Front 80

judgement on the pleadings

Back 80

party is asking the judge to decide the case based soley on the complaint and the answer

Front 81

summary judgement

Back 81

judicial determination that no genuine factual dispute exists and that one party to the lawsuit is entitled to judgement as a matter of law

Front 82

affadavit

Back 82

sworn written statement made before an officer authorized by law to administer oaths

Front 83

voir dire

Back 83

literally "to speak the truth"; preliminary examination of prospective jurors for the purpose of ascertaining bias or interest in the lawsuit

Front 84

peremptory challenges

Back 84

power granted each party to reject a limited number of potential jurors during voir dire without a reason

Front 85

directed verdict

Back 85

motion that defendant requests after plaintiff has made case; granted if the evidence establishes as a matter of law that the party making the motion is entitled to a verdict

Front 86

jury instructions

Back 86

judge acquaints jury with the law applicable to the case

Front 87

burden of proof

Back 87

1. responsibility that a person has to come foward with evidence on a particular issue (usually the pary alleging certain facts)
2. responsibility a person has to be persuasive as to a specific fact <burden of persuasion>

Front 88

beyond a reasonable doubt

Back 88

burden of proof in a criminal case; prosecution has burden of proving the defendant is guilty and jury must have no reasonable doubt about defendant's guilt

Front 89

preponderance of evidence

Back 89

requires that a party convince the jury by a preponderance of evidence that the facts are as he contends; achieved when there is greater weight of evidence in support than there is against

Front 90

clear and convincing proof

Back 90

requires party with burden to establish clearly the existence of the alleged facts (more than preponderance of evidence, less that beyond a reasonable doubt)

Front 91

verdict

Back 91

jury's decision; announced in courtroom after jury deliberations

Front 92

judgement

Back 92

official ajudication of a court of law (entered after verdict if judge agrees with jury)

Front 93

judgement notwithstanding the verdict

Back 93

in state court, decision of a court that sets aside the verdict and reaches the opposite result (called judgement as a matter of law in federal court

Front 94

appellant

Back 94

party appealing

Front 95

appellee

Back 95

successful party in trial court

Front 96

petitioner

Back 96

party initiating the petition for certiorari to the supreme court

Front 97

respondant

Back 97

party answering a petition for a writ of certiorari in the Supreme Court (party not filing petition)

Front 98

brief

Back 98

written document filed with reviewing court that contains a short description of case, factual summary, legal points and authorities, and arguments for reversing/affirming the lower court decision

Front 99

oral argument

Back 99

attorneys explain orally, in person, to appellate court their position in the case and answer the court's questions about the case

Front 100

execution

Back 100

to carry out some action to completion; with respect to enforcing court judgement, seizure of debtor's property, a sale of the property, and payment of proceeds to creditor

Front 101

garnishment

Back 101

portion of debtor's wages paid to court, which in turn pays creditor

Front 102

conflict

Back 102

when two or more points of view exist

Front 103

dispute

Back 103

when one party makes a claim that another party denies

Front 104

negotiation

Back 104

process used to persuade or coerce someone to do what you want them to do

Front 105

positional bargaining

Back 105

parties exchange offers with concessions being made so that parties find a middle ground; sellers refer to the last offer made as bottom line and buyers refer to last offer made as top dollar

Front 106

principled, interest-based negotiation

Back 106

method of negotiation that focuses on the parties' interests instead of positions

Front 107

focus groups

Back 107

group acting as a mock jury; attorneys present cases to group to get members' feedback on the merits of the various arguments presented

Front 108

arbitration

Back 108

submission of a dispute to an extradjudicial authority for decision, binding

Front 109

arbitrator

Back 109

individual/panel members authorized by disputing parties to resolve a dispute through arbitration

Front 110

submission

Back 110

act of referring a matter to arbitration

Front 111

voluntary arbitration

Back 111

when disputing parties agree to use arbitration

Front 112

mandatory arbitration

Back 112

when a statute or court requires parties to arbitrate

Front 113

award

Back 113

decision announced by arbitrator

Front 114

predispute arbitration clause

Back 114

applicable to ADR system agreed to by contracting parties prior to a dispute arising; usually part of original contract

Front 115

postdispute arbitration clause

Back 115

can be applicable to arbitration, mediation, or other ADR methods; such a clause is signed by parties that are already in dispute

Front 116

de novo judicial review

Back 116

court tries the issue anew as if no arbitration occured

Front 117

mediation

Back 117

process by which a mediator attempts to assist disputing parties in resolving their differences

Front 118

mediator

Back 118

third party called to assist disputing parties

Front 119

caucus

Back 119

private meeting between a mediator and one of the parties involved in a mediation

Front 120

Med-Arb

Back 120

parties resolve all matter they can and agree to arbitrate the unresolved matters

Front 121

seperation of powers

Back 121

doctrine that golds that the legislative, executive, and judicial branches of government function independently of one another and each branch serves as a check on the others

Front 122

federalism

Back 122

vertical aspect of seperation of pwers; the coexistence of federal government and various state governments, with each having responsibilities and authorities that are distinct but overlap

Front 123

supemacy clause

Back 123

Article VI; federal constitutions, laws, and treaties shall be the "supreme law of the land" and shall take precedence over conflicting state laws

Front 124

preemption

Back 124

condition when a federal statute or administrative rule governs an issue to the extent that a state/local government is prohibited from regulating that area of law

Front 125

contract clause

Back 125

Article I, Section 10; prohibits states from enacting laws that interfere with existing contracts

Front 126

establishment clause

Back 126

1st amendment; Congress shall make no law "respecting an establishment of religion"

Front 127

free exercise clause

Back 127

1st amendment; allows all citizens the freedom to follow or believe any religious teaching

Front 128

prior restraint

Back 128

principle applicable to under freedom of speech/press clauses of 1st amendment, court decisions encourage government to allow the publication or expression of thoughts rather than to restrain such thoughts in advance of their publication/expression

Front 129

defamation

Back 129

the publication of anything injurious to the good name or reputation of another

Front 130

libel

Back 130

tort theory used to recover damages as a result of printed defamation of character

Front 131

malice

Back 131

the state of mind that accompanies the intentional doing of a wrongful act without justification or excuse

Front 132

symbolic speech

Back 132

nonverbal expression, covered by 1st amendment free speech clause

Front 133

overbreadth doctrine

Back 133

prinicple used by courts to invalidate legislation that is broader in scope than is necessary to regulate an activity

Front 134

commercial speech

Back 134

speech that has a business oriented purpose

Front 135

due process clause

Back 135

5th and 14th amendments; assures all citizens of fundamental fairness in their relationship with the government

Front 136

equal protection clause

Back 136

14th amendment; requires all citizens to be treated in a similar manner by the government unless suffucient justification for unequal treatment

Front 137

procedural due process

Back 137

process/procedure ensuring fundamental fairness that all citizens are entitled to under the U.S. Constitution

Front 138

minimum rationality

Back 138

legal test used by courts to test the validity of governmental action, ie legislation, under the equal protection clause; to pass there has to be a rational connection to a permissible state end

Front 139

strict scrutiny

Back 139

legal test used by courts to test the validity of governmental action, ie legislation, under the equal protection clause; government has to demonstrate that there is a compelling state interest justifying the action

Front 140

quasi-strict scrutiny

Back 140

legal test used by courts to test the validity of governmental action, ie legislation, under the equal protection clause; government has to deomonstrate that there is an important government objective

Front 141

commerce clause

Back 141

Article I, Section 8; grants the federal government the power to regulate business transactions (commerce with foreign countries, between states, and with Indian nations)

Front 142

police powers

Back 142

authority state/local governments have to protect the public's health, safety, morals, and general welfare

Front 143

dormant commerce clause

Back 143

limitations on states' ability to regulate commerce imposed by the Constitution

Front 144

irreconcilable conflicts

Back 144

when state/local law requires something different than a federal law and both can't be satisfied

Front 145

prohibiting discrimination

Back 145

standard of review under the commerce clause that can invalidate state/local laws; when state/local laws discriminate against or negatively impact interstate commerce, the laws are invalid and void

Front 146

apportionment

Back 146

concept used by states to divide a company's taxable income so that no one state burdens a company with an unfair tax bill

Front 147

nexus

Back 147

a logical connection

Front 148

administrative agencies

Back 148

the boards, bureaus, commissions, and organizations that make up the governmental bureaucracy

Front 149

quasi-legislative

Back 149

authority of an agency to issue rules/regulations that have the impact of law

Front 150

quasi-judicial

Back 150

authority of an agency to make decisions like a court

Front 151

exhaustion of remedies

Back 151

concept used in administrative law that requires any party to and administrative proceeding to give the administrative agency every opportunity to resolve the dispute before appealing to the court system; not absolute

Front 152

primary jurisdiction

Back 152

doctrine used by reviewing courts to determine whether a case is properly before the courts or whether it should be heard by an administrative agency first since such an agency might have expertise superior to the courts'

Front 153

tort

Back 153

civil wrong other than a breach of contract

Front 154

intent

Back 154

the desire to bring about certain results and/or knowing the "substantially likely" results of an action

Front 155

assault

Back 155

the placing of another in immediate apprehension of his/her physical safety

Front 156

battery

Back 156

illegal touching of another

Front 157

intentional infliction of mental distress

Back 157

battery to the emotions that arises from outrageous, intentional conduct (usually the plaintiff has to prove physical symptoms)

Front 158

invasion of privacy

Back 158

misappropriation of name or likeness, intrusion upon physical solitude, or public disclosure of objectionable, private information

Front 159

false imprisonment

Back 159

intentional unjustified confinement of a nonconsenting person

Front 160

malicious prosecution

Back 160

causing someone to be arrested criminally without proper grounds

Front 161

trespass

Back 161

to enter another's land without consent or to remain there after being asked to leave

Front 162

conversion

Back 162

the wrongful execise of domain (power) and control over the personal (nonland) resources that belong to another

Front 163

defamation

Back 163

the publication of untrue statements about another that hold up that individual's character or reputation to contempt or ridicule

Front 164

slander

Back 164

oral defamation

Front 165

libel

Back 165

written defamation or defamation published

Front 166

fraud

Back 166

an intentional misrepresentation of a material fact that is justifiably relied upon by someone to his/her injury

Front 167

injurious falsehood (or trade disparagement)

Back 167

the publication of untrue statements that disparage the business owner's product or its quality

Front 168

intentional interference with contractual relations

Back 168

example: when one company raids another for employees, trying to break contracts

Front 169

negligence

Back 169

unreasonable behavior that causes injury

Front 170

duty

Back 170

a legal obligation imposed by the law

Front 171

cause in fact

Back 171

the actual cause of an event; the instrument that is the responsible force for the occurance of a certain event. required element of a tort

Front 172

proximate cause

Back 172

in tort law and legal requirement that an act foreseeably causes an injury

Front 173

contributory negligence

Back 173

a failure to use reasonable care by the plaintiff in a negligence suit

Front 174

comparative responsibility

Back 174

a doctrine that compares the plaintiff's contributory fault with the defendent's fault and allows the jury to reduce the plaintiff's verdict by the percentage of the plaintiff's fault (aka comparative negligence

Front 175

assumption of risk

Back 175

negligence doctrine that bars the recovery of damages by an injured partyon the ground that such a party acted with actual or constructive knowledge of the hazard causing the injury

Front 176

strict liability

Back 176

the legal responsibility for injury-causing behavior that is neither intentional nor negligent; impose legal liability regardless of intent or fault of defendent

Front 177

strict products liability

Back 177

type of strict tort liability for the commercial sale of defective products

Front 178

production defects

Back 178

when products are not manufactured to a manufacturer's own standards

Front 179

design defects

Back 179

when a product is manufactured according to the manufacturer's standards but the product injures a user due to its unsafe design

Front 180

state-of-the-art

Back 180

the prevailing industry standards at the time of product manufacture

Front 181

statute of repose

Back 181

statute that applies to product liability cases; prohibits initiation of litigation involving products more than a certain number of years (eg 25) following their manufacture

Front 182

dram shop acts

Back 182

statutes adopted in many states the impose strict liability upon tavern owners for injuries to 3rd parties caused by their intoxicated patrons

Front 183

compensatory damages

Back 183

damamges to compensate 3 major types of loss: past/future medical expenses, past/future economic loss (including property damage and loss of earning power), and past/future pain and suffering

Front 184

punitive damages

Back 184

damages used to punish defendants for committinf intentional torts and for negligent behavior considered "gross" or "wanton and willful" (key is motive)

Front 185

contingency fee

Back 185

permits a plaintiff to sue without first having to pay an aottorney; encourages litigation

Front 186

workers' compensation

Back 186

plan for the compensation for occupational diseases, accidental injuries, and deaths of employees that arise out of employment. compensation includes medical expenses and burial costs and lost earnings based on the size of the family and the wage rate of the employee

Front 187

exclusive remedy rule

Back 187

an employee's sole rmedy against an employer for workplace injury or illness shall be workers' compensation

Front 188

property

Back 188

established relationship of legal exclusion between an owner and other people regarding limited resources

Front 189

intellectual property

Back 189

the application of property in the areas of trade secrets, patents, trademarks, and copyrights

Front 190

trade secrets

Back 190

any form of knowledge or information that
1. the owner (usually a business owner) has taken reasonable measures to keep secret
2. has economic value from not being known to the public

Front 191

injunction

Back 191

an order by a judge either to do something or to refrain from doing something

Front 192

patent

Back 192

a specific legal monopoly in the intangible resource of copying and marketing a new invention

Front 193

trademark

Back 193

a statutorily created property in a mark, word, picture, or design that attaches to goods and indicates their source

Front 194

trade dress

Back 194

a colored design or shape associated with a product or service

Front 195

infringement

Back 195

the tort establishing violation of intellectual property rights

Front 196

generic

Back 196

when intellectual property loses its distinctiveness (if a product becomes generic it is no longer porotected)

Front 197

trademark dilution

Back 197

the impact of something that reduces the distinctiveness of a trademark

Front 198

copyright

Back 198

a statutorily created property in creative expression that protects authors
3 criteria:
1. original work, not copied
2. work fixed in a tangible medium
3. work shows creativity

Front 199

fair use

Back 199

statutorily permitted use of another's copyright for criticism, comment, news reporting, teaching, scholarship or research

Front 200

white-collar crime

Back 200

any illegal offense that occurs in a business or professional setting, usually for personal finanacial gain

Front 201

felony

Back 201

criminal offense of a serious nature, generally punishable by death or imprisonment in a penitentiary

Front 202

misdemeanor

Back 202

criminal offense of a less serious nature than a felony, generally punishable by fine or jail sentence other than in a penitentiary

Front 203

indictment

Back 203

a document issued by a grand jury formally charging a person with a felony

Front 204

information

Back 204

a written accusation by the prosecutor presented in a court charging an accused perosn with a crime

Front 205

intent

Back 205

legal doctrine indicating that parties meant to do what they did

Front 206

willfully

Back 206

with intent to defraud or deceive

Front 207

knowingly

Back 207

intentionally

Front 208

nolo contendre

Back 208

latin for "no contest," plea entered by a defendant in a criminal case that neither admits nor denies the crime allegedly committed but, if accepted by the court, permits the judge to treat the defendant as guilty

Front 209

probable cause

Back 209

the reasonable basis on which law enforcement officials convince a judge that criminal activity has occured; this is the basis that must be satisfied before a judge will issue a criminal search warrant

Front 210

presumption of innocence

Back 210

to be presumed innocent until found guilty by a petit jury

Front 211

unreasonable searches and seizures

Back 211

violation of the 4th Amendment that occurs when a valid search warrant is not obtained or when the scope of a valid search warrant is exceeded

Front 212

search warrant

Back 212

court order required by the 4th Amendment to be obtained from government officials prior to private property being searched or seized

Front 213

expectation of privacy

Back 213

the expectation that one will not be observed by the state

Front 214

double jeopardy

Back 214

a constitutional doctrine that prohibits an individual from being prosecuted twice by the same governmental body based on the same factual situation

Front 215

fraud

Back 215

false representation of fact made with the intent to deceive another that is justifiably relied upon to the injury of that person

Front 216

scheme to defraud

Back 216

a plan or program designed to take from a person the tangible right honest services

Front 217

mail fraud

Back 217

use of USPS or any interstate carrier to conduct fraudulent activities

Front 218

wire fraud

Back 218

use of radio, TV, phone, internet, or other wired forms of communication to conduct fraudulent activities

Front 219

intent to defraud

Back 219

to act knowingly and with the specific intent to deceive someone (usually for financial loss for the other person or financial gain for self)

Front 220

good faith

Back 220

honesty in dealing; innocence; without fraud or deceit

Front 221

bankruptcy crimes

Back 221

an action involving the falsification of documents filed in a bankruptcy case

Front 222

concealment

Back 222

an intentional misrepresentation of a material fact occuring through the silence of a party

Front 223

conspiracy

Back 223

an agreement or a "kind of partnership" for criminal purposes in which each member becomes the agent or partner of every other member

Front 224

overt act

Back 224

any transaction or event knowingly committed by a conspirator in an effort to accomplish some objective of the conspiracy

Front 225

obstruction of justice

Back 225

when an individual commits an act with the intent to obstruct the legislature or a judicial process (broadly encompasses all steps and stages from the inception of an investigation to the conclusion of trial)

Front 226

exculpatory no

Back 226

doctrine that merely denying guilt is not a criminal lie in response to a question from an agency of the federal government; no longer valid

Front 227

larceny

Back 227

the unlawful taking of personal property with the intent to deprive the rightful owner of it permanently

Front 228

robbery

Back 228

larceny by violence or threat (like with a gun)

Front 229

burglary

Back 229

breaking into a building with the intent to commit a felony (most common felony in burglary cases is larceny)

Front 230

RICO

Back 230

Racketeer Influenced and Corrupt Organization Act; law imposing criminal and civil liability upon those business people who engage in certain prohibited activities and who engage in interstate commerce

Front 231

pattern of racketeering

Back 231

under RICO, 2 or more similar acts of organized crime in a 10-year period

Front 232

racketeering

Back 232

a crime under RICO involving a pattern of actions that are indictable under state or federal laws

Front 233

endangerment of workers

Back 233

criminal act that involves placing employees at risk with respect to their health and safety in the work environment

Front 234

aiding and abetting

Back 234

criminal action that arises from association with and from assistance rendered to a person guilty of another criminal act

Front 235

accessory

Back 235

term used at the state level similar to aiding and abetting; accessory to a crime generally is either before the criminal act or after it

Front 236

sentencing guidelines

Back 236

adopted by the U.S. Sentencing Commission as a means of standardizing the sentences given to similar criminals committing similar crimes

Front 237

closely held

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organization owned by only a few persons (like family-owned or operated)

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publicly held

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business owned by hundreds or thousands of persons (like those whose stick is traded on a public exchange)

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dissolution

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any change in the ownership of an organization that changes the legal existence of the organization

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sole proprietorship

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simplest form of business, created and controlled by one owner

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partnership

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business organization involving 2 or more persons agreeing to conduct a commercial venture while sharing its profits and losses

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articles of partnership

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formally drafted partnership agreement

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assumed-name statute

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state law that requires partners to make a public filing of thier identities if their partnership operates under a name that doesn't reveal the partners' identities

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buy and sell agreement

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a contract, usually among partners, wherein one party agrees to buy the ownership interest held by another party or the first party agrees to sell such an interest to the other party; helps provide for a transition of owners without harming the business of the organization

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corporation

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artificial, but legal, person created by state law; as a business organization, the corporation's seperation of owners and managers gives it a high degree of flexibility

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domestic corporation

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business organization created by the issuance of a state charter that operates in the state that issued the charter

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joint and severally liable

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legal principle that makes 2 or more people, usually partners, liable for an entire debt as individuals or in any propoertional combination

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foreign corporation

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business organization, created by the issuance of a state charter, that operates in states other than the one issuing the charter

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charter

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the legal document issued by a state when creating a new corporation

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incorporators

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those individuals who are responsible for bringing a corporation into being

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articles of incorporation

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legal document that forms the application for a state charter of incorporation

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shareholders

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owners of corporations; typically vote on major decisions impacting their corporations, most commonly the election of a board of directors

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directors

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those individuals who are elected by the shareholders to decide the goals and objectives for the corporate organization; appoint officers

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officers

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those individuals appointed by directors of a corporation to conduct the daily operations of the corporate organization

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proxy

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legal document whereby a shareholder appoints an agent to vote the stock at a corporation's shareholers' meeting

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derivative suit

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lawsuit filed by a shareholder of a corporation on behalf of the corporation against that organization's management; brought to benefit the corporation directly and its shareholders indirectly

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limited personal liability

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owners are liable for the debts of the corporation only to the extent of those shareholders' investment in the cost of the stock

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piercing the corporate veil

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legal doctrine used by courts to disregard the existence of a corporation, thereby holding the shareholders personally liable for the organization's debts

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alter-ego theory

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one method used by courts to pierce the corporate veil when a shareholder fails to treat the corporate organization as a seperate legal entity

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double tax

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a disadvantage of a corporate form of organization in that the corporation must pay a tax on the money earned and the shareholders pay a second tax in the dividends distributed

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limited partners

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owners of a limited partnership who forgo control of the organization's operation in return for their liability being limited to the amount of their investment

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general partner

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owner of a limited partnership that enjoys the control of the partnership's organization; personally liable for the debts of the partnership

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S corporations

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business organization thats formed as a corporation but, by shareholder's election, is treated as a partnership for tax purposes; can't have more than 75 shareholders

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limited liability corporation

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type of business organization that has characterisitics of both a partnership and a corporation; owners called members and their personal liability is limited to their capital contributions; not a taxable entity

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limited liability partnership

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a hybrid business partnership

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articles of organization

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document used to create a LLC. purpose corresponds to the purpose of the articles or partnership and articles of incorporation

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organizers

Back 267

the parties responsible for bringing a LLC into existence; parties correspond to the function of incorporators with respect to the corporation

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members

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owners of LLCs

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managers

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a person designated and charged with day-to-day operations of a LLC

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say-on-pay

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a policy of companies that allow the compensation of executives to be reviewed by shareholders

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trust

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fiduciary relationship concerning property in one person, known as the trustee, holds legal title to the property for the benefit of another, known as the beneficiary

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trustee

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the person in a trust who holds the legal title to the property and manages and preserves that property

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beneficiary

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the person in a trust who benefits from the land held by the trustee

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Sherman Act

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1890, congressional enactment designed to regulate anticompetitive behavior in interstate commerce

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Clayton Act

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legislation passed in 1914 that exempts labor unions from the Sherman Act; expanded the national antitrust policy to cover price discrimination, exclusive dealings, tying contracts, mergers, and interlocking directors

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Federal Trade Commission Act

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passed in 1914, created the Federal Trade Commission (FTC) and authorized it to protect society against unfair methods of competition; amended in 1938 (by the Wheeler-Lea amendment) to provide the FTC with authority to regulate unfair or deceptive trade practices

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restraint of trade

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monopolies, combinations, and contracts that impede free competition; section 1 of the Sherman Act prohibits restraints of trade

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price fixing

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agreement among competitors to charge the same price for their products

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monopoly

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exclusive control of a market by a business entity

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predatory conduct

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seeking to advance market share by injuring actual or potential competitors by means other than improved performance

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rule of reason

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under the Sherman Act, contracts or conspiracies are illegal only if they constitute an unreasonable restraint of trade or attempt to monopolize. an activity is unreasonable if it adversely affects competition. requires than an anticompetitive effect be shown

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per se illegality

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under the Sherman Act, agreements and practices are illegal only if they are unreasonable. the practices that are conclusively presumed to be unreasonable are per se illegal. if an activity is per se illegal, only proof of the activity is required and it is not necessary to prove an anticompetitive effect

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triple damages

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(or treble damages) an award of damages allowable under some statutes equal to 3x the amount found by the jury to be single recovery

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nolo contendre

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defendant's plea in a criminal case, neither admits nor denies crime allegedly committed but, if accepted by the court, permits the judge to treat the defendant as guilty

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state action exemption

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Sherman Act exemption of the sovereign action of a state that replaces competition with regulation if the state actively supervises the anti competitive conduct

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Parker v. Brown doctrine

Back 286

name given to state action exemption of the Sherman Act

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Noerr-Pennington doctrine

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exempts from the antitrust laws concerted efforts to lobby government officials regardless of the anticompetitive purposes; based on 1st Amendment freedom of speech

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horizontal price fixing

Back 288

agreement between competitors to fix prices

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vertical price fixing (resale price maintenance)

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attempts by manufacturers to control the ultimate retail price for their products

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Colgate Doctrine

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manufacturers can legally control retail prices of its products by simply announcing its price and refusing to sell to those who refuse the price, no agreements involved

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horizontal territorial agreement

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agreement between competitors with respect to geographical areas in which each will conduct its business to the exculsion of the others. illegal per se under the Sherman Act

Front 292

vertical territorial agreement

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agreement between a supplier and its customers with respect to geographical area in which each customer will be allowed to sell that supplier's product. this type of agreement is analyzed under the rule of reason to determine whether it violates the Sherman Act. limitations on intrabrand competition may be permitted if there is a corresponding increase in intrabrand competition

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concerted activities

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those activities involving an agreement, contract, or conspiracy to restrain trade that may be illegal under the Sherman Act

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Robinson-Patman amendment

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amendment to section 2 of the Clayton Act covering price discrimination; as originally adopted, outlawed price discrimination in interstate commerce that might substantially lessen competition or tends to create a monopoly (tried to prtect smaller buyers)

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predatory pricing

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a policy of lowering the price charged to customers for the purpose of driving competitors out of business. typically, this policy involves prices that are below the seller's costs of the products sold with resulting losses to the seller

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cost justification defense

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defense to Robinson-Patman amendment; the defendant seeks to justify charging different customers different prices due to that defendant's costs varying because of the differing quantities purchased by the customers

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good-faith meeting-of-competitor defense

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defense to Robinson-Patman amendment; a seller in good faith may meet the equally low price of a competitor

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tying contract

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contract in which a product is sold or leased only on the condition that the buyer or lessee purchase a different product from the seller or lessor

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full-line forcing

Back 299

seller compels buyer or lessee to take a complete product line from the seller

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reciprocal dealing

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contract in which 2 parties agree to mutual actions so that each party can act as both a buyer and a seller; violates Clayton Act if it results in substantial lessening of competition

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exclusive dealing

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buyer agrees to purchase a certain product exclusively from the seller of the seller agrees to sell all of his/her production to the buyer

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requirements contract

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contract under which the buyer agrees to buy a certain item only from the seller

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merger

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extinguishment of a corporate entity by the transfer of its assets and liability to another corporation that continues in existance

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horizontal merger

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merger of corporations that were competitors prior to the merger

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market extension merger

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an acquisition in which the acquiring company extends its markets

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product extension

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a market extension merger that creates a market extension in new products

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geographic extension

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a market extension merger that creates a market extension in new areas

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vertical merger

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brings together one company that is the customer of the other in one of the lines of commerce in which the other is a supplier

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conglomerate merger

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merger in which the businesses involved neither compete nor are related as customer and supplier in any given line of commerce

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Celler-Kefaurer amendment

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passed in 1950 to amend the Clayton Act by broadening the scope of section 7 on mergers and acquisitions

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bona fide occupational qualifications (BFOQs)

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a qualification that permits discriminatory practices in employment if a person's religion, sex, or national origin is reasonably related to the normal operation of a particular business

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disparate treatement

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a term of employment litigation that refers to the illegal discriminatory treatment of an individual in some protected class (like race or sex)

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disparate impact

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a term of employment litigation that refers to the disproportionate impact of a policy neutral on its face on some protected class

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business necessity defense

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an affirmative defense under Title VII of the CRA. it is raised to disparate impact claims and asserts that a facially neutral but discriminatory policy is job related

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retaliation

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striking back against someone for what they did to you. used in labor law, employment discrimination cases, whistle-blowing as part of a doctrine prohibiting an employer from firing or taking other adverse actions against employees for reporting the employer to federal agencies for violating various laws

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hostile work environment

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under Title VII an environment where co-workers make iffensive sexual comments or propositions, engage in suggestive touching, show nude pictures, or draw sexual graffiti

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comparable worth

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jobs that, although different, produce substantially equal value for the employer

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affirmative action

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positive steps taken in order to alleviate conditions resulting from past discrimination or from violations of a law

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reverse discrimination

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the advancement and recruitment of minority workers ahead of similarly qualified nonminority workers

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seniority system

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a plan giving priority to employees based on the length of time an employee has worked for an employer. an employer may apply different standards pursuant to a good-faith seniority system if the differences are not the result of an intention to discriminate

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Section 1981

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the provision of the CRA of 1866 that forbids racial discrimination in the making of contracts

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disability

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any physical or mental impairment that substantially limits a major life activity

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qualified disabled

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those with a disability who, with or without reasonable accommodation, can perform the essential functions of a particular job position

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reasonable accommodation

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the actions that an employer must take under Title VII of the CRA and under the ADA to adapt employment conditions to an employee's religious belief or disability