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52 Cards in this Set
- Front
- Back
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Free Market
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need relaible contract law
deals need to be completed as bargained for |
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Constitutional right
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Right to enter contract
courts are here to help us settle disputes |
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Contract
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Promise or set of promises for breach the law gives us remedy
Am. law- A voluntary set of promises that lthe law will enforce for private parties A promise isnt always a contrcact. Private LAW- no govt intervention |
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Sources of contract law
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Common Law
UCC-uniform commercial code Uniform Electronic Transaction Act |
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sources of contract law
Common Law UCC UETA |
CL- varies by state, land, services, building a home, employment
UCC- comercial code, younger than common law, uniformity with sale of goods, 49 states-not NOLA UETA- advances of technology and how this has changed the use of contracts, electronic signatures |
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CONTRACTS 9
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Bilateral/Unilateral
Express/Implied Void/Voidable Unenforcable Executory/Executed |
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Bilateral/Unilateral
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Bi- both parties making promises
UNI- a promise in exchange for a performance |
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Express/ Implied
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Ex- parties really want to get together. Oral or written
Implied in FACT- inferred by behavior of parties Implied in LAW- One party has incurred benefit, needs to compensate the party that gave the benefit |
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Void/Voidable
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Void- no contract, legal requirements are missing
Voidable- Enforcable, but may be cancelled |
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Unenforcable
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All contractual requirements, but other rules are stopping it
illegal acts. Prostitute and payor |
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Executory/Executed
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Executory- A ceritifed contract waiting to be performed,not fully complete.
Executed- when a;; parties have completed performance |
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Contract Formation
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Legally enforcable
-Agreement -Consideration -Capacity -Genuiness of assent -Legality of Purpose |
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Agreement
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Offer- promises
Valid if: present intent to enter into contract, defined terms, Communication Duration- Offeror can revoke anytime prior to acceptance specific time period to accept or notif rejected at any time have to start over Counter offers Option Contract- irrevocable offer that creates a seperate engagement; contract within a contract |
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Agreement 2
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Acceptance- positive response to proposed contract
-mirror image rule -offeree has to accept -Mail Box: acceptance is effective when sent |
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Consideration
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Bargained for legale value
what one parties gets for completing promisee mu suffer legal detriment Preexisting legal duty rule |
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Contract Form
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Statute of Frauds- some need to be in writing
prenups sales over $500 Parole Evidence rule- Contract reduced to writing is FINAL -court helps if: missing terms in doc, contract is ambiguous, Fraud |
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CApacity
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18+, minor contracts are voidable by the minor at anytime
Mental capacity- understand what they are getting into |
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Genuineness of assent
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Knowingly agree to something
MIsrepresentation Fraud- deceive or mislead, Scienter element Duress- forced into contract, becomes voidable for forced party Undue influence- close relationship taking advantage of another |
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Legality of Purpose
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Cannot enforce something that violates a statute, public policy, or any so unfair they should have never gotten into
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Remedies for Contracts
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Law- Monetary relief, put them where they would have been after contract,
--Compensation --Incidental Damages;transportation --Liquidated-damages built in contract claiming fees for faulting EQUITY- justice requires more than money, -- specific performance --Injunctive relief- stop or start doing what you should have been doing |
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Credit Contract
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5 contract requirements + terms
Terms: how much, rate, time, penalties, statutory requirements |
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Statutory rights of Credit Contracts
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State Usury Laws
Suprime Lending Market Equal Credit opportunity act Truth in lending act Ads and disclosure fair credit billing/reporting act |
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State USury LAws
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Usury- cahrging an interest high than allowed by law
-subject matter defines terms of interest rate if voilated contract is voidable creditor than forfeits interest and potentially principle |
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Subprime lending
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Creditor charges high interest and requires collateral for contract
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Equal Credit opportunity act
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prevents gender discrimination
awrding credit based on merit not sex |
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Truth in Lending Act
4 needs |
protect debtors
NEEDS -consumer loan -between people -Certified Creditor -Loan subject to finance terms all facts and penalties must be disclosed |
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Ads And Disclosures
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- all terms disclosed
Cards |
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Fair credit billing/reporting act
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Debtors can challenge errors on statements
gives protection of private credit information held by third parties |
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Enforcement of credit transactions
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protects creditor
Collateral- debitor pledges something, need security agreement with contract Collection rights- creditors have to be in good faith Fair debt collections practice- no violence, no inconviences to the debitor Lawsuits- creditor receives judgment against debitor |
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BANKRUPTCY
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way to start over
Federal LAw- one court per state |
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Forms of Bankrupcty
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Chapters
7 11 13 once filed for Bankrup immediately takes effect and are protected |
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Chapter 7
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Straight Bankruptcy(liquidation)
Individuals, corps., partners, agencies Voluntary or INvoluntary Creditors are rewarded of assets in order: Secured, Priority, General NON-DISCHARGABLE- loans, taxes, child support |
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Chappter 11
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Reorganization
Businesses mainly but individuals as well Voluntary or involuntary reorganize assets- keep assets and develop plan to work them off |
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Chapter 13
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Wager earner petition
Individuals only Voluntary individuals who have steady cash flow can pay within 3-5 years |
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Agency LAW
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COMMON LAW
One party acts on behalf of another Power of attorney- Specific or General Agent acts on behalf of principle both parties owe something to other party Principal- employer, one who is haveing things done for them Agents- employee, one doing things on other persons behalf. Extension of principle, act under principal |
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MAster servant relationship
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Principal excercises great deal of control on agent
greater degree of slaveness greater responsiblity principal takes on Level of supervision Level of control Nature of work Hours and rate of pay |
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Independent contractor
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not a servant of the master
hired just to complete a task -do not have to be given benfits -less liabilty to the master less taxes paid on them |
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Agency Relationships
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Express Authority- written or oral contract. record and capacity of principle
Implied Authority- Traditional or custom. part of express Apparent Authority- No express or implied authority, who is agent? principal is third party |
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Rights/Responsibilities of Principal and Agent
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AGENT
-Duty of loyalty- cannot compete or steal business -Duty of Obedience -Duty of Care- act reasonably and prudently PRINCIPAL -Duty to compensate -Expect agent to perform |
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Liabilities of Agency Law
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Third party comes in
-Disclosed principal- know principal exist and identity, prinicpal is responsible -partially disclosed-know principal but do not know identity, agent assumes some liabilty Undisclosed principal- nothing known of principal-- agent is completely liable TORT LIABILITY -Master/Serv: employer responsible if in scope of work Independent contractors: principal isnt responsible |
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Termination
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Time period ends
Agent quits Tell authorities their is no longer a relationship Contract employer- breach of contracts grounds for termination AT WILL employee- let go anytime as long as not discriminatory |
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Employment Law protects against
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Discrimination
Wrongful termination Sexual harassment Wage issues Safety Unemployment claims Compensation claims -Increasing protection decrease loylaty |
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FLSA
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Fair LAbor Standards Act
applies to all businesses with one employee -Employment issues -Enforcment -Penalties -Equal pay act |
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FLSA-Employment rules
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minimum wage, all employees must be paid minimum wager
professionals exempt from overtime Child LAbor Laws- 18+ can work anywhere any hours 16-17-- non hazordous work only 14-15 non hazardous with hour restrictions acting is age exempt |
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Enforcement of FLSa
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employees complain of mistreatment
Employers ask opinions of situation Labor department does own investigation |
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Penalties for violation of FLSA
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Civil- fine
Civil lawsuits Criminal sanctions- JAil up to 6 months |
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Equal pay act FLSA
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amendment to FLSA
pay same to girls as guys merit system can allow different pay |
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Work place Safty
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OHSA
Employee impairment- 20% or people are impaired at work -respondeant superior(let master answer) -Drug testing- before employment only |
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Workplace safety OHSA
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Occupational Safety and Health Administration
regulates everyone research, record keeping, and investigating where you take your lunch break How safe is workplace? lot of training Federal level but have state counterparts violations result in civil or criminal punishment |
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awarded Benefits of Employment Law
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1/3-1/2 of employee compensation
medical,dental,retirement insurances Social ssecurity--half paid by employer and employee Unemployment- granted up to 26 weeks ---able to work ---actively searching for job ---involuntarily terminated |
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Workers Compensation
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To provide recovery to injured employees
no fault comcept injured in workplace is eligible for compensation paid by: employer -pirvate fund contribute to state fund -pay as needed Hard to get insurance to pay compensation |
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Ethical Issues
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entering times
overseas factories working conditions SOLUTION -surprise inspections -be in the know |
