Business Law Midterm Exam

Front 1

rules created and applied by those having governmental powers

Back 1

administrative law

Front 2

power that a given level of government has to enact laws

Back 2

jurisdiction

Front 3

an earlier case used to resolve a current case because of its similarity

Back 3

precedent

Front 4

rules that focus on what would be fair given the specific circumstances of the case, as opposed to what the strict rules of common law might dictate

Back 4

rules of equity

Front 5

an agreement between two parties that is enforceable in a court of law

Back 5

contract

Front 6

parties have agreed on what their essential obligations are to each other

Back 6

"meeting of the minds"

Front 7

test based on how a “reasonable” person would view the matter

Back 7

objective standard test

Front 8

the legal assumption that parties to a contract are able to look out for their own interests

Back 8

equal bargaining power

Front 9

A promise to perform specified acts on certain terms

Back 9

offer

Front 10

An expression of willingness to do business

Back 10

invitation to treat

Front 11

A “take it or leave it” contract, where the customer agrees to a standard test of terms that favours the other side, no negotiations

Back 11

standard form contract

Front 12

Unqualified willingness to enter into a contract on the terms in the offer

Back 12

acceptance

Front 13

A promise for which no consideration is given (promises to provide something at no charge and later changes mind)

Back 13

gratuitous promise

Front 14

Legal obligation that a person already owes

Back 14

pre-existing legal duty

Front 15

Legal presumption in favor of one party that the other side can seek to rebut or dislodge by leading evidence to the contrary (true unless proved otherwise)

Back 15

rebuttable preseumption

Front 16

states promise explicitly

Back 16

express term

Front 17

not expressly included in a contract, but is necessary to give effect to parties intention

Back 17

implied term

Front 18

term of contract that limits liability for breach to something less than would otherwise be recoverable (liability shall not exceed the unit price of the tracking, and in no event should it include loss of profit)

Back 18

limitation of liability

Front 19

a term of a contract that identifies events causing loss for which there is no liability whatsoever

Back 19

exemption clause

Front 20

terms are enclosed with a product such as prepackaged software (opening package constitutes agreement to the terms)

Back 20

shrink-wrap agreement

Front 21

appears on a user’s computer screen when they attempt to download software or purchase things online, must review terms prior to clicking an “I accept” button, usually user cannot proceed without agreeing to the terms

Back 21

click-wrap agreement

Front 22

user agrees by simply using the website, they are bound by the terms of use associated with website and agree that those terms are part of a binding contract between the parties

Back 22

browse-wrap agreement

Front 23

involving a defect so substantial that it is of no force or effect

Back 23

void contract

Front 24

in certain circumstances, an aggrieved/upset party can choose to keep in force or bring to an end

Back 24

voidable contract

Front 25

Unfair manipulation that compromises someone’s free will, operates in actual pressure and presumed pressure

Back 25

doctrine of undue influence

Front 26

Contracts that are made when one of the parties are being threatened with physical harm (not enforceable)

Back 26

duress

Front 27

Unfair contract formed when one party takes advantage of the weakness of another

Back 27

unconscionable transaction

Front 28

A false statement of fact that causes someone to enter a contract

Back 28

misrepresentation

Front 29

An error made by one or both parties that seriously undermines a contract

Back 29

mistake

Front 30

a minor term that, if breached, gives the innocent party the right to claim damages only

Back 30

warranty

Front 31

an important term that, if breached, gives the innocent party the right to terminate the contract and claim damages

Back 31

condition