Business Legal Environment Test 2

Front 1

How do civil litigants get attorneys?

Back 1

They are a private party, so the hire their own attorneys.

Front 2

Differences between misdemeanor and felony

Back 2

Felony: serious crime, more than 1 year jail time

Misdemeanor: minor crime, less than 1 year jail time

Front 3

Mens rea

Back 3

Having the guilty mind during commission of guilty act.

Front 4

Can corporations be held criminally liable?

Back 4

Yes, a corporate entity may be convicted of a crime. Punishment would be fines and/or denial of certain legal privileges.

Front 5

Examples of property crime

Back 5

burglary, larceny, arson, receipt of stolen goods, forgery, theft of trade secrets.

Front 6

White collar crime

Back 6

crimes occurring in the business contexts using non-violent means to obtain personal or business advantage

Front 7

Bribe

Back 7

offering, giving, receiving, or soliciting of any items of value to influence a certain action

Front 8

Rico Statute

Back 8

allows prosecution and civil penalties for activity performed as part of an ongoing criminal enterprise

Front 9

Plea Bargain

Back 9

an arrangement between a prosecutor and a defendant where the defendant pleads guilty to a lesser charge with expectation of leniency.

Front 10

Procedural due process

Back 10

when the state or government acts in a way that denies citizen of life, liberty, or interest, the person must be given notice and the opportunity to be heard

Front 11

What is a principal and an agent

Back 11

Relationship when one entity legally appoints another to act on its behalf

Front 12

Rights to a principal as to an agent

Back 12

Principals use agent to be able to conduct multiple business operations simultaneously in various locations. The principal has the right to control the agent in matters entrusted to the agent

Front 13

Differences between an agent and independent contractor

Back 13

an agent works on behalf of a company; an independent contractor works for a company

Front 14

Who does intellectual property developed by an employee and independent contractor belong to

Back 14

the intellectual property refers back to the copyright law, but most of the time the hiring company owns the property

Front 15

The duties owed from an agent to the principal and a principal to an agent?

Back 15

Agents to principals: performance, notification to principal, loyalty, obedience, and accounting

Principals to agents: compensation, reimbursement and indemnification, cooperation, and provide safe working conditions

Front 16

Equal Dignity Rule

Back 16

if law requires written contract, agent's authority must be in writing. failure to comply with the rule renders contract voidable

Front 17

power of attorney?

Back 17

ordinary v. durable

Front 18

implied authority

Back 18

inferred or conferred by custom, agent's position or what is reasonably necessary to carry out express authority

Front 19

emergency power of agent?

Back 19

arises when agent should protect principal, agent cannot communicate with principal

Front 20

ratifications of an agent's actions by a principal

Back 20

1. agent must act on behalf of principal.

2. principal must affirm entire deal.

3. principal must affirm before 3rd party withdraws from transactions.

4. principal and 3rd party must have legal capacity to contract when agent made the deal. 5. principals must know all the material facts involved in the case.

Front 21

indemnification

Back 21

part of an agreement that provides for one party to bear the monetary costs, either directly or by reimbursement, for losses incurred by a second party.

Front 22

Respondent Superior?

Back 22

employee is vicariously liable for employee's negligent torts committed within the Agent's "course and scope of employment"

Front 23

Sole Proprietorship

Back 23

The owner is the business; anyone who does business without creating a separate business organization has a sole proprietorship.

Front 24

Advantages and Disadvantages of Sole Proprietorship

Back 24

Advantages: owner is in complete control and receives all profits, flexibility, and ease of creation; maintenance

Disadvantages: owner is personally liable for all torts/contracts, lacks continuity after death, difficult to raise financing

Front 25

When does uniform partnership act control a dispute between partners?

Back 25

In the absence of a partnership agreement

Front 26

Franchise

Back 26

agreement so that franchisor licenses franchisee to use the trade mark, trade name, or copyright in the sales of goods or services.

Front 27

What is a "person" under the Uniform Partnership Act?

Back 27

someone who agrees to carry on business for profit as co owners with equal right to manage and share

Front 28

Does a partnership pay tax? Do individual partners pay tax?

Back 28

a partnership doesn't pay federal income tax, individual partners do.

Front 29

what is a partnership for a term?

Back 29

ends on a specific date o the completion of a particular project.

Front 30

Partnership by estoppel

Back 30

occurs when a person who is not a partner holds himself out to a 3rd party and the 3rd party relies to their detriment

Front 31

who does property belong to that was purchased during a partnership using a partnership fund?

Back 31

it belongs to the partnership itself

Front 32

how are profits split according to the uniform partnership act if there is no agreement?

Back 32

they are split proportionally, and split evenly.

Front 33

dissociation?

Back 33

allows partner to have their interest purchased by the partnership

Front 34

dissolution by operation of law?

Back 34

dissolved in the same way as a general partnership; creditors are paid first, then partners.

Front 35

partner powers during the winding up process?

Back 35

no authority to do new transactions, no authority after dissolution except to complete transactions already begun

Front 36

what is the order of payments to creditors made during windup?

Back 36

1. 3rd party creditors

2. Partner loans to partnership

3. Return of capital contributions

4. Distribution of the balance, if any, to partners

Front 37

Advantages of an LLP?

Back 37

"Pass through" tax advantages, allows professionals to avoid personal liability for the malpractice of other partners

Front 38

Rights of an LLC- in other words, what rights does the entity itself have?

Back 38

the right to sue, be sued, enter into contracts, and hold title to property

Front 39

what designation must appear in an LLC's name?

Back 39

The term "LLC"

Front 40

Is an LLC a citizen of the state each one of its members are a citizen from?

Back 40

the citizenship of an LLC is also the citizenship of all its members, which may live in multiple jurisdictions

Front 41

How can an LLC be taxed?

Back 41

If no choice is made, an LLC is taxed like a partnership

Front 42

Conditions under which an LLC dispute is covered by partnership laws?

Back 42

if the operating agreement is silent

Front 43

What are the voting rules of an LLC if the articles of organization do not specify voting rights?

Back 43

Statues provide either that each member has one vote or votes be made based on percentage of ownership.