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Uncategorized > 2nd Quarter- BUSINESS LAW Quarter Final > Flashcards

2nd Quarter- BUSINESS LAW Quarter Final Flashcards

1
Q

“Blackstone’s definition.” Rules of civil conduct commanding what is right and prohibiting what is wrong. A governmental rule prescribing conduct / caring out a penalty for violation.

A

law

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2
Q

bodies of law

A

Criminal Law / Civil Law

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3
Q

Related to crimes and punishment of wrong doers.Laws dealing with offenses against society

A

criminal law

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4
Q

legal proceedings concerned with the rights of public citizens.Laws dealing with the enforcement or protection of private rights..Examples: Tort Law Contract Law

A

civil law

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5
Q

Criminal offense punishable by confinement in prison or by death. Example: Murder Bank Robbery

A

felony

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6
Q

Criminal offense which is neither treason nor a felony. Example: Speeding ticket Running a stop sign.

A

misdemeanor

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7
Q

bending or breaking the law

A

tort law

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8
Q

a private or civil wrong, either intentional or caused by negligence, for which there may be action for damages / private wrong for which damages might be recovered

A

tort

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9
Q

basis for tort liability

A

Intentional / Negligence/ Strict Liability)

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10
Q

“Failure to exercise ordinary care.”

A

negligence

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11
Q

failing to do something which a reasonable and prudent person would do under ordinary circumstance.

A

act of omission

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12
Q

doing something which a reasonable and prudent person would not do under ordinary circumstance.

A

act of commision

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13
Q

liability for injury regardless of negligence or intent.

A

strict liability

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14
Q

when seller is liable for any and all defective or hazardous products which threaten a consumer’s personal safety.

A

product liablility

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15
Q

Improper or negligent professional act by a professional person. Example: poor embalming. or the doctor leaves instrument in abdominal cavity during or after surgery.

A

malpractice

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16
Q

Related to making and executing contracts.Laws dealing with making contacts.

A

contract law

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17
Q

Rules of conduct prescribed by a government and its agencies to regulate business transactionsRules of conduct for the performance of business transactions

A

business law

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18
Q

Rules of conduct prescribed by a government and its agencies, in regulating transactions related to Real and Personal property.

A

property law

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19
Q

Land and objects permanently attached to land. Real Estate.Land, Building, Fences, Trees, etc.

A

real property

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20
Q

All property which is not real property.Cars, Furniture, Jewelry, Insurance, Stocks, Bonds, etc.

A

personal property

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21
Q

sources of US law

A

o Common Law o Constitutional Lawo Statuary Lawo Police Powero Administrative Lawo Ordinanceso Case Lawo Stare Decisis

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22
Q

The Pyramid of Law

A

Stare DecisisCase LawOrdinancesAdministrative LawPolice PowerStatutory LawConstitutional LawCommon Law

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23
Q
  1. customs which have become recognized by the courts as binding on the community. 2. Forms the historical foundation of U.S. Law. 3. Based on human experience. “Common good” of all people(Members of Society). 4. Rooted in English and early colonial law. “If it makes sense,it must be good law.”Constitutional Law - written document containing fundamental principles of government. Power and duties of a government. Guarantees Rights of the people - first 10 amendments of the constitution. “Law of the land.” Example: Federal and individual state constitutions
A

common law

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24
Q

enacted by legislative bodies.

A

statutory law

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25
Q

Legislative bodies include Federal, State and Local Governments

A

statutes

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26
Q

enacted by the U. S. Congress

A

federal statutes

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27
Q

enacted by individual state legislatures

A

state statutes

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28
Q

inherent power of every government to make reasonable laws to protect the safety, health, morals, and general welfare of its citizens. Example: Mortuary law Licensure Health standards Business operations

A

police power

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29
Q

Body of law created by federal and state administrative agencies to implement their powers and duties in the form of rules, regulations, orders, and decisions. Example: OSHA regulations FTC funeral rule State board rules and regulations

A

administrative law

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30
Q

Appointed governmental body charged with the implementing particular legislation.Examples: Occupational Safety and Health Administration (OSHA)Federal Trade Commission (FTC)Texas Funeral Service Commission (TFSC)

A

administrative agencies

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31
Q

Laws enacted by local municipalities, villages, towns or city.Example: City of Houston has parking ordinances / No Smoking In Public Buildings.

A

ordinances

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32
Q

Court decisions that establish precedent principles. Laws based on a court’s interpretation of federal, state, and local laws. Determines “constitutionality” of a law.

A

case law

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33
Q

Principle that decisions of a court should serve as guide or precedent and control the decision of a similar case in the future. Reliance on authority of established law “like cases are decided in like manner”. Applicable to mortuary law and court cases.

A

Stare Decisis (Decision Stands)

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34
Q

authority of a court to hear a case. Related to the subject matter and person(s) involved in a court case. Function of the courts – to interpret & apply law to a given situation.

A

jurisdiction

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35
Q

Have exclusive jurisdiction over – bankruptcy, claims against USA, Patent & Copy Right Cases.

A

federal courts

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36
Q

Trial courts of the federal court system. Largest class of federal courts / Deal only with criminal cases involving violation of federal law. Or civil suits that meet specified criteria. Cases brought by US Govt., Cases arising under U.S. Constitution / Federal Laws/Treaties

A

federal district courts

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37
Q

Offense which is injurious to society as a whole / punishable offense against society.

A

Crime

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38
Q

Deliberate and intentional action to cause harm

A

Intentional

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39
Q

There are 12 federal judicial districts. Courts that hear appeals in the federal court system. Hears appeals from cases originating in federal district courts. Hears appeals from federal administrative agencies and departments within its circuit. Decision have precedence over lower courts.

A

Federal Circuit Court of Appeals

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40
Q

o Highest court in the United States.o Court of original jurisdiction in cases involving ambassadors, public ministers, consuls, and cases in which a state is a party.o As well as cases appealed from federal courts of appeal.Supreme decision over all lower courts

A

U.S. Supreme Court

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41
Q

issued by Supreme Courto Order to produce the record of a case.o Only such cases will be heard by the U. S. Supreme Court

A

Writ of Certiorari

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42
Q

Federal trial courts with limited jurisdiction. Limited by laws of Congress creating them. Examples: Bankruptcy Court / Tax Court / Court of International Trade U.S. Court of Federal Claims (against the courts).

A

Special Courts

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43
Q

Inferior courts - Courts of original general jurisdiction - Appellate courts - Special courts (State & City)

A

State Courts

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44
Q

Trial courts that hear only cases involving minor criminal offenses and disputes between citizens.Examples: District, Magistrate, County ,Municipal (city) ,Small claims, Justice, and Tax Courts.

A

Inferior Courts

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45
Q

Court in which a case is first heard. Maintain an official record of all proceedings. Broad jurisdiction over disputes between two or more parties. Criminal offenses against the state. This Court: Hear witnesses Receive evidence Try a case Examples: Trial Court, Court of Record, Circuit Court, District Court, and Superior Court

A

Court of Original General Jurisdiction (State)

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46
Q

usually in larger cities.Courts hearing cases appealed from lower state courtsExamples: Court of Appeals State Supreme Court

A

Appellate Courts (State)

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47
Q

Courts with limited jurisdictionExamples: Probate Court Juvenile Courts Domestic Court

A

Special Courts (State)

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48
Q

Laws specifying how actions are filed & that trial procedure to follow

A

. Procedural Laws

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49
Q

Person Licensed to represent others in court.

A

attorney/ lawyer

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50
Q

written request initiating a civil suit

A

complaint or petition

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51
Q

a notice of complaint given to a defendant defining the complaint and a time frame in which a response, or answer, must be filed. Serves the purpose of conferring personal jurisdiction over defendant. Also known as a process

A

summons

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52
Q

The response of the defendant to a complaint. Also known as a motion.

A

answer

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53
Q

The decision of the court. Favor of the Plaintiff or Defendant

A

judgement

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54
Q

Carrying out of completion of some task

A

execution

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55
Q

Individual who initiates a civil action

A

plaintiff

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56
Q

Person against whom legal action is brought

A

defendant

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57
Q

agreement between two or more competent persons (parties) which is enforceable by law.

A

contract

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58
Q

Classifications of contracts: Based on:

A

formation / performance / enforceability

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59
Q

parties express their intentions, either orally or in writing, at the time of the agreement.

A

express contract

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60
Q

terms of the contract are implied by acts or conducts of the parties.In fact - example: “first call.”

A

implied contractsalso called contract implied in fact

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61
Q

those with a special form or produced in a certain way.Contract “under seal.”Today most contracts are these kindExample: Real Estate ContractsNegotiable InstrumentsFuneral Contract

A

formal contracts

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62
Q
  • any contract which is not a formal contract
A

simple contract

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63
Q
  • calls for an act in consideration for a promise.One promise is given in exchange for an act.you find my lost dog; I pay you $100
A

unilateral contract

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64
Q

mutual exchange of promises.Exchange a promise for a promise.You agree to buy my car for $5,000. Car is yours when you give me the money.Most contracts are bilateral contracts.

A

bilateral contract

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65
Q

terms of the contract have not been completely executed or fulfilled by the parties.

A

executory contracts

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66
Q
  • terms have been fulfilled by the parties
A

executed contracts

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67
Q

contract enforceable by court.

A

valid contract

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68
Q

Agreement with no legal effect. Example: contract to rob a bank.

A

void agreementalso called a void contract

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69
Q

Contract which would be an enforcement agreement, but due to circumstances, may be set aside by one of the parties. Example: party to a contract is declared “mentally incompetent” / party contracts with a minor / minor contracts with anotherminor

A

voidable contract

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70
Q

Agreement which is not in the form required by law, but can be made so by the parties.- a contract that is not currently binding Example: simple contract made into a formal contract.

A

unenforceable contract

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71
Q

Legal objectives of written contracts

A

legal purpose and execution, as long as elements of a contract are legal (Mutual Agreements,competent parties and Consideration) terms of contract should be executed. Illegality renders a contract void.

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72
Q

expression of willingness of the offeror to enter a contractual agreement.

A

offer

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73
Q

person or party who initiates or makes and offer

A

offeror

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74
Q

person or party to whom an offer is made

A

offeree

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75
Q

requirements of a valid offer

A

Must be Definiteo Basis for agreemento Seriously intendedo Not a joke / Nor offered in jest, fear, or anger.o Communicated from offeror to offeree.o Both parties must be cognizant of the agreement.

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76
Q

Offer vs. invitation to deal

A

o Is it truly an offer?o Or an invitation to deal and make a subsequent offer?

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77
Q

invitation to deal

A

• Advertisement • Price list and quotations• Bids • Estimates• Not valid offers • May lead to an offer.

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78
Q

termination of an offer

A

o By revocation - annulment or cancellation of an instrument, act, promise by one doing or making it.o Communicated by offeror to offeree prior to acceptance.By terms of the offer:o If terms are not met, there is no contract.o By lapse of “reasonable” period of time.o Depends on type of offer.o By death or insanity of offeror.By rejection.o Refusal to accept.o By counter offer - intended acceptance which changes or qualifies the offer, and is a rejection of the original offer.o By intervening illegality.(Legal situation interfering with an offer and agreement. Example:Making a contract to kill someone.)

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79
Q

person afflicted with a serious mental disorder impairing ability to function.

A

insane

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80
Q

intended acceptance which changes or qualifies the offer, and is a rejection of the original offer

A

counter offer

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81
Q

o Legal situation interfering with an offer and agreement.

A

intervening illegalityexample: making a contract to kill someone

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82
Q

o Agreement to an offer resulting in a contract.o Communicated by offeree to offeror.o Oral or written.o Including mail or telegram.

A

acceptance

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83
Q

o Justifiable reliance by offeree.o Offeree believes what offeror says is true.o No reason to believe otherwise.o Without this, contract is voidable.

A

reality of consent

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84
Q

False statement of a matter of fact.

A

misrepresentation

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85
Q

False statement made in the belief it is true.

A

innocent misrepresentation

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86
Q

Intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, at his/her detriment.

A

fraud

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87
Q

manner of committing fraud

A

o By expressed misrepresentation.o Oral or written.o By concealment. (attempting to hide information)o By silence when one has a duty to speak.(Not sharing information when asked or requested.)

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88
Q

• Improper influence that is asserted by one dominant person over another, without threat or harm.o Often with a fiduciary relationship.

A

undue influence

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89
Q

Person in a relationship of trust or confidence

A

fiduciary Examples• Family relationship.• Attorney and client.• Physician and patient.• Funeral director and family.

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90
Q

Means of removing one’s free will. Obtaining consent by threat to do harm to the person, his/her family, or property.o Element of coercion or force.Can be physical, emotional and financial.

A

duress

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91
Q

Mistake by one party to a contracto Mistake as to quality, value or price.o Mistake as to terms of contract.o Generally will not render agreement defective.

A

unilateral mistake

92
Q

Mistake by both parties to a contract.o Mistake as to nature of transaction.o Mistake as to identity or existence of subject matter.o Generally render agreement defective

A

mutual mistake

93
Q

classes of illegal agreement

A

agreements to commit a crime or torts. Agreements prohibited by statute. Agreements contrary to public policy

94
Q

injurious to individuals and society at large

A

agreements to commit crimes of torts

95
Q

What type of agreements fall under the category of agreements prohibited by statute?

A

unsuriousrestraint of tradefix pricesinfluence fiduciaries defraud creditorsobstruct justicerelieve liability for willful negligence

96
Q

exceeding maximum rate of interest which may be charged on loans or consumer credit accounts

A

usurious

97
Q

charging a higher rate of interest than the law allows

A

unsury

98
Q

highest legal rate of interest

A

maximum contract rate

99
Q

interest rate applied when no rate is specified

A

legal rate

100
Q

laws which seek to promote competition among business

A

antitrust law

101
Q

what are the advantages of antitrust laws or why were they set up?

A

to prevent creation of a monopolyprohibits contracts not to competefix prices of goods and servicesunfair competitive practices

102
Q

Legislation intended to promote competition among business by prohibiting restraint of trade.

A

Sherman Antitrust Law

103
Q

Person or persons in a relationship of trust or confidence

A

Fiduciaries

104
Q

Agreement in which someone else “takes the blame.”

A

Agreements to relieve liability for willful negligence:

105
Q

Regarding payment of a debt. Money owed.

A

Agreements to defraud creditors

106
Q

o Contracts limiting freedom of marriage.o Contracts injurious to public service of the “public good.”

A

Agreements contrary to public policy:

107
Q

Statute of Frauds

A

• Originally enacted by the English Parliament (1677).• Present in some form in all states.• Lists certain types of contracts which can only be enforced if it is in written form.

108
Q

Types of contracts in writing:

A

Contracts to transfer an interest in real property. Real estate - Land Real property - Objects attached to land.

109
Q

cannot be completed within one year from date of making. Ensures parties do not forget contract terms Example: purchase of real estate with long term loan contract/mortgage.

A

Executory bilateral contracts

110
Q

Obligation to pay money or goods

A

debt

111
Q

Non-performance of a duty or obligation

A

default

112
Q

Rather than paying debts from decedent’s estate. Agreement to pay debts of another.

A

Contracts made by executor or administrators to pay debts of an estate out of his/her personal funds.

113
Q

Promises made in consideration of marriage.

A

Prenuptial agreements.

114
Q
  • movable, tangible, personal property.
A

goods

115
Q

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation law.

A

Discharge of contracts

116
Q

When all terms of the contract have been fulfilled, the contract is discharged by performance

A

Performance

117
Q

• Satisfactory or complete performance.• Contract that has been performed in a manner that would “satisfy” an ordinary, reasonable person.

A

Nature of performance:

118
Q

Fulfilling major terms of the contract. Contract can be discharged. Less any damages that might occur for minor breaches of contract

A

Substantial performance

119
Q

• Mutual agreement to cancel the contract.• Entering into a contract is a mutual agreement.• Parties can also mutually agree to cancel the contract.

A

Discharge by Agreement

120
Q

document drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit. Also called negotiable instrument

A

commercial paper

121
Q

classifications of commercial paper ??????

A

promises to payorders to pay???????

122
Q

Unconditional promise in writing made by one party to another, signed by the maker engaging to pay on demand or at a particular time, a particular sum of money to order or to bearer This is one example of commercial paper

A

PROMISSORY NOTE

123
Q

acknowledgement by a bank of receipt of money with an agreement of repayment

A

CERTIFICATE OF DEPOSIT (CD)

124
Q

here is an example of a CD

A

$1,000 CD with maturity date of 01/05 and interest of 6% at maturity date, bank will pay principle, plus interest

125
Q

person who executes promissory note (person who MAKES promise, a bank or person getting loan)

A

maker

126
Q

party to whom any negotiable instrument is made payable

A

payee

127
Q

written order signed by one person requiring the person to whom it is addressed to pay a particular sum of money, to order or bearer; on demand at a certain time. Second example of commercial paper

A

draft

128
Q

types of orders to pay

A

Certified checkCashier’s check Bank draftVoucher check Traveler’s check

129
Q

ordinary check which an official of a bank has accepted by writing across the face of the check the word “certified” and signed. • This makes the bank liable for the payment. • The drawer is released from liability

A

certified check

130
Q

• Check drawn on a bank’s own funds • Signed by a responsible bank official or a cashier • Bank may use to pay its own obligation • May be used by someone in lieu of their own personal check

A

cashier’s check

131
Q

• Check drawn by one bank or another • Banks will keep a portion of their funds in other banks • Bank can draw a check on these funds at will

A

bank draft

132
Q

• Checks with voucher attached • Voucher lists items of an invoice being paid by check

A

voucher checks

133
Q

• Similar to cashier’s checks • Required signature and countersignature by purchaser

A

traveler’s checks

134
Q

person who executes any draft or check

A

drawer

135
Q

person, company or financial institution ordered to pay a draft or check

A

drawee

136
Q

party to whom any negotiable instruments is made payable. Person that gets the money

A

payee

137
Q

REQUIREMENTS FOR NEGOTIABILITY

A

• Must be in writing and signed by the maker • Contain an unconditional order or promise to pay a certain sum in money • Payable on demand at a definite time • Payable to “order” or to “bearer” • Order paper or Bearer paper

138
Q

• A commercial paper made payable “the order of” some named party • Word “order” or its equivalent must be used • may be paid only to the person to whom it has been properly endorsed

A

order paper

139
Q

• A commercial paper made payable to any person in possession of it • “Payable to bearer”

A

bearer paper

140
Q

act of transferring ownership of a negotiable instrument to another party

A

negotiation

141
Q

person who has possession of a delivered negotiable instrument

A

holder

142
Q

the signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates future control of the instrument

A

ENDORSEMENT or INDORSEMENT

143
Q

the “payee” of a note or draft transferring the instrument to another party

A

ENDORSER or INDORSER

144
Q

person who becomes the “holder” of a negotiable instrument by endorsement which names him/her as the person to whom the instrument is negotiated

A

ENDORSEE or INDORSEE

145
Q

a type of endorsement having no words other than signature of endorser

A

blank endorsement

146
Q

endorsement which designates the particular person to whom payment is to be made (i.e. – pay to the order of)

A

special endorsement

147
Q

an endorsement which prevents the use of the instrument for anything except stated use (i.e. – for deposit only)

A

restrictive endorsement

148
Q

limits liability of endorser. Endorser signs the bill or promissory notes and adds; “without recourse”. This limits the endorser’s liability and endorsee accepts the liability

A

qualified endorsement

149
Q

person in possession of a negotiable instrument who accepts the negotiable instrument in good faith and for value; “innocent purchaser”

A

holder in due course

150
Q

What are the requirements of the holder in due course?

A

The Holder: • Must take instrument in good faith and for value • Must have no notice that instrument is overdue or has been dishonored • At time of negotiation, no notice of any defense against or adverse claim to the instrument

151
Q

What are the rights of the holder in due course?

A

• Right to collect amount due • Right to be free from defense of no consideration

152
Q

liability for payment of negotiable instruments

A

• Requirements to qualify as a holder in due course • Rights of a holder in due course

153
Q

transferor’s warranties

A

• Transfer of commercial paper • Warrants existence of certain facts • Specified by UCC • Transferor entitled to enforce the instrument • All signatures genuine or authorized • Instrument has not been altered • Instrument not subject to defense or claim of any party • Transferor has no knowledge or insolvency proceedings with maker, acceptor, or drawer of unaccepted draft

154
Q

transfer of possessions, but not title of personal property by one party to another, under agreement EXAMPLE:Leaving a car with garage for repairStoring furniture in a warehouseStudent borrowing a tuxedo

A

bailment

155
Q

party who gives up possession, but not title or property

A

bailor

156
Q

party who acquires possession, but not title of personal property

A

bailee

157
Q

those held to “normal” standard of care for bailed property

A

ordinary bailment

158
Q

those held to higher than normal standard of care for bailed property Such as:• Common carriers • Hotel keepers • Funeral directors

A

extraordinary bailment

159
Q

conditions of bailment

A

• Bailor delivers property to bailee • Bailee accepts property from bailor • Both parties agree that property will be returned to bailor

160
Q

types of bailment

A

• Sole benefit of bailor • Sole benefit of bailee • Mutual benefit

161
Q

• Bailment benefits only property owner • Bailee must exercise “slight care” • Liable only for gross negligence

A

sole benefit of bailor

162
Q

occurs when borrowing someone’s property Bailee must exercise “great care”

A

sole benefit of bailee

163
Q

• Bailee renders a service • Charges for the service • Bailee must exercise “reasonable care under the circumstances”

A

mutual benefit

164
Q

Transports under special arrangements for a fee • Moving van • Delivery services • Funeral home A transports body for funeral home B

A

private carriers

165
Q

one that undertakes transport without discrimination for all who apply for service • Airline • Bus • Train

A

public carriers

166
Q

one who ships goods by a common carrier, (i.e. - forwarding funeral home).

A

consignor

167
Q

one to whom goods are shipped to by a common carrier

A

consignee

168
Q

contract between consignor and carrier Is receipt and contract existing between consignor and carrier?Is documentary evidence of title of goods?

A

bill of lading

169
Q

• Describing the freight for ID • States the name of the consignor • The terms of the contract for carriage • Directing location of delivery

A

elements of bill of lading

170
Q

person in possession of a COMMERCIAL check

A

bearer

171
Q

public carrier is the same as…

A

common carrier

172
Q

person in possession of an INSTRUMENT

A

holder

173
Q

specialized business relationship between one party known as the “principal” and another known as the “agent.”

A

agency

174
Q

Party who appoints a second party to serve as an agent

A

principal

175
Q

Party appointed by a principal to enter into a contract with a third party on the principal’s behalf.

A

agent

176
Q

From principal to agent. Act in good faith on behalf of principal’s interest. Enter into contracts on principal’s behalf

A

delegation of powers

177
Q

authorized to carry out particular kind of business or all business at a location. Example: FDIC funeral Director in charge. Responsible for the funeral home

A

general agent

178
Q

authorized to transact specific act or act(s).

A

special agent

179
Q

three types of agent’s authority

A

Express authorityImplied authorityApparent authority

180
Q

Stated in agreement creating agency. Authority by appointment. Example: Written power of attorney

A

express authority

181
Q

Authority to do things in order to carry out expressed authority. How to remember: You hire commercial embalmer, they believe they have authority to determine injection site, chemicals, etc.

A

implied authority

182
Q

Authority agent believed to have because of principal’s behavior

A

apparent authority

183
Q

Person who undertakes to perform a specified task according to the terms of a contract. Other contracting party has no control except as stated in the contract.Think of trade embalmer

A

independent contractor

184
Q

Party who hires employees to do certain work

A

employer

185
Q

Person hired to perform work

A

employee

186
Q

Need to know information for employer and employee relationships

A

 Employee performs work for employer. Employee under control of employer for work and manner of completion. Employer liable for injuries to third party caused by negligence of employee. Employer liable for torts committed by employee acting within scope of employment. Employer must comply with laws relating to employees. Social Security deductions (FICA). Worker’s compensation (FUTA & SUTA). Federal and state income tax withholdings.

187
Q

agent’s duty to principal

A

Loyalty and good faithObedience Reasonable skill and diligenceAccounting Information

188
Q

principal’s duty to agent

A

Compensation WagesReimbursement of expenses incurred during course of employment.

189
Q

compensation for sustained losses. Adherence to terms of employment contract.

A

indemnification

190
Q

Termination of agency by act of the parties

A

Original agreement Subsequent agreementRevocation Renunciation by agent

191
Q

Termination of agency by operation of law

A

Subsequent illegality of subject matterDeath or incapacity of either partyDestruction of subject matterBankruptcy of principalDissolution of the corporation

192
Q

Types of business organization

A
  1. Proprietorship (sole proprietorship) 2. Partnership 3. Corporation
193
Q

Business owned by one person who is subject to claims of creditors. No separation of personal and business assets

A

Proprietorship

194
Q

 Simplest form of business organization. receives all profits and assumes all losses. bears all risks and has personal liability for all debts. Death of the terminates the business.

A

Proprietorship

195
Q

Voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

A

partnership

196
Q

Kinds of partners

A

general, silent, and limited

197
Q

individual actively and openly engaged in the business and held out to everyone as a partner

A

general partner

198
Q
  • individual who takes no active part in management of a business, but has capital invested in the business
A

silent partner

199
Q

partner who has his/her liability for the firm’s debts limited to the amount of their investment

A

limited partner

200
Q

Duties of a partner

A

 Exercise loyalty and good faith Use reasonable care and skill  Conform to contract of partnership Maintain records  Inform one another

201
Q

Rights of a partner

A

 Participate in management Inspect financial data  Contribution- input as to how business is managed Withdraw advances (business money for personal use) Withdraw(share) profits

202
Q

Liabilities of a partner

A

 For contracts of the partnership For torts

203
Q

three types of dissolutions of a partnership

A

By acts of the partiesBy court decreeBy operation of law

204
Q

Dissolution of a partnership by acts of the parties

A

 By agreement  By withdrawal or alienation  By expulsion (one may kick or buy the other out)

205
Q

Dissolution of a partnership by court decree

A

 Insanity  Incapacity  Misconduct Futility - not making money  Bankruptcy

206
Q

Dissolution of a partnership by operation of law -

A

 Illegality / Death

207
Q

an artificial being, invisible, intangible, and existing only in contemplation of law. An entity that is something that has a distinct existence separated and apart from the existence of its individual members.

A

corporation

208
Q

Formed to carry out government functions

A

public corporation

209
Q

Formed by individual to perform some non-governmental function for profit.

A

private corporation

210
Q

types of public corporations

A

 State university  Public hospitals Public utilities

211
Q

types of private corporations

A

 For profit or  Non-profit (not-for-profit)

212
Q

written document setting forth facts about a corporation prescribed by law for issuance of a charter and asserting the corporation has complied with legal requirements.

A

articles of incorporation

213
Q

grant of authority from a government to exist as a corporation

A

charter

214
Q

corporate structure

A

Stock holders / Board of Directors / Officers

215
Q

 Those having title to one or more shares of stock in a corporation. Represent combined ownership of the corporation. Shareholders Conduct meetings at least once a year.

A

stockholders

216
Q

rights of the stockholders

A

 Receive properly executed stock certificates as evidence of ownership Attend corporate meetings and vote (unless denied by express agreement). Receive proportionate shares of profits when distributed as in dividends.

217
Q

Person authorized to vote for another, written authorization to vote for another.

A

proxy

218
Q

 Body elected by stockholders to act on behalf of the corporation and carry out the board’s policies.

A

board of directors

219
Q

 Authorized by Board of Directors to carry out board policies.(President / Vice-President / Secretary / Treasurer)

A

officers

220
Q

types of dissolution of corporations

A

voluntary involuntary

221
Q

voluntary dissolution of corporation

A

By vote of the stockholders Corporation pays debts, Distributes remaining assets to stockholders as to number of stocks owned, and  Surrenders articles of incorporation.

222
Q

involuntary dissolution of corporation

A

Action of the court or state Due to forfeiture or abuse of corporate charter, Violation of state or federal law, Fraud in obtaining the charter, or  Failure to pay specified taxes.

223
Q

manner of dissolution of a corporation

A

 Existence terminated except to complete its business. Cannot sue, own property, or form contracts. Except to convert assets to cash.

224
Q

What are some examples of how funeral homes enter into agency agreements?

A

answering service, embalming agency, livery company

225
Q

What is unique about independent contractors?

A

They have more freedomfor example Trade embalmer sets schedule, has own keys; you have less control over them

226
Q

Are county hospitals usually corporated or incorporated?

A

incorporated

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