1 9 Legal environment & managing risk

Question 0

Statutory law

Answer 0

Star and federal constitutions, legislative enactments, treaties of fed gov and ordinances in short WRITTEN LAW

Question 1

US business law

Answer 1

The rules, statues, codes, and regulations that provide a legal framework for the conduct of business and that are enforceable by court action

Question 2

Common law

Answer 2

The body of law that comes from decisions handed down by courts; also referred to as unwritten law

Question 3

Precedent

Answer 3

Decisions judges have made in earlier cases that guide the handling of new cases

Question 4

Administrative agencies

Answer 4

Federal or state institutions and other gov organizations created by congress or state legislatures with delegated power to create rules and regulations within their mandated area of authority.
Ex Securities Exchange Commission SEC

Question 5

Tort

Answer 5

A wrongful act that causes injury to another person’s body, property or reputation

Question 6

Negligence

Answer 6

In tort law, behavior that causes unintentional harm or injury

Question 7

Product liability

Answer 7

Part of tort law that holds businesses liable for harm that results from the production, design, or use of products they market.

Question 8

Strict product liability

Answer 8

Legal responsibility for harm or injury caused by a product regardless of fault. Even if company did not know of defect at time of sale

Question 9

Patent

Answer 9

A document that gives inventors exclusive rights to their imventions for 20 years

Question 10

Copyright

Answer 10

A document that protects a creator’s right to materials such as books, articles, photos, paintings and cartoons

Question 11

Contract

Answer 11

A legally enforceable agreement between two or more parties

Question 12

Contract law

Answer 12

Set of laws that constitutes a legally enforceable agreement

Question 13

Consideration

Answer 13

Something of value; consideration us one of the requirements of a legal contract

Question 14

Conditions to make a co teact legally binding

Answer 14

1 An offer is made
2 There is voluntary acceptance of offer
3 Both parties give consideration
4 Both parties are competent
5 The contract covers a legal act
6 The contract is in proper form. Ex sales above 500 usd in written

Question 15

Breach of contract

Answer 15

When one party fails to follow the terms of a contract

Question 16

Damages

Answer 16

The monetary settlement awarded to a person who is injured by a breach of contract

Question 17

antitrust

Answer 17

The federal law that forbid businesses for monopolizing a market or restraining free trade

Question 18

Consumerism

Answer 18

A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers

Question 19

Deregulation

Answer 19

Gov withdrawal of certain laws and regulations that seem to hinder competition. Has created problems in some industries like airlines

Question 20

Risk

Answer 20

The chance if loss, the degree if probability of loss, and the amount of possible loss.

Question 21

Speculative risk

Answer 21

A chance of either profit or loss

Question 22

Pure risk

Answer 22

The threat of loss with no chance for-profit

Question 23

Self insurance

Answer 23

The practice if setting aside money to cover routine claims and buying only “catastrophe” policies to cover big losses

Question 24

Ininsurable risk

Answer 24

A risk that no insurance company will cover

Question 25

insurable interest

Answer 25

The possibility of the policyholder to suffer loss

Question 26

Insurance company

Answer 26

A written contract between the insured and an insurance company that promises to pay for all or part of a loss

Question 27

Premium

Answer 27

The fee charged by an insurance company for an insurance policy

Question 28

Claim

Answer 28

A statement of loss that the insured sends to the insurance company to request payment

Question 29

law of large numbers

Answer 29

Principle that if a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time

Question 30

rule of indemnity

Answer 30

Rule saying that an insured person or org cannot collect mire than the actual loss firm an insurable risk

Question 31

Stock insurance company

Answer 31

A type if insurance company owned by stockholders

Question 32

Mutual insurance company

Answer 32

A type of insurance company owned by its policyholders

Question 33

what are possible consequences if a contract is violated?

Answer 33

specific performance
payment of damages
discharge of obligation