Business Law Exam 1 Flashcards Preview

Commonwealth 2nd Quarter > Business Law Exam 1 > Flashcards

Flashcards in Business Law Exam 1 Deck (72):
1

What is Law?

• Rules of civil conduct commanding what is right prohibiting what is wrong. “Blackstone’s definition”
• It is a governmental rule prescribing conduct and carrying a penalty for violation.

2

What are the 2 bodies of Law?

• Criminal Law
• Civil Law

3

Criminal Law

• Laws dealing with crimes and the punishment of wrong doers
• Laws dealing with offense against society

4

Crime

• Is a criminal offense which is injurious to society as a whole
• Punishable offense against society

5

What are the 2 classifications of Crimes?

Felony
Misdemeanor

6

Felony

• Criminal offense punishable by confinement in prison or by death
• Murder
• Bank robbery

7

Misdemeanor

• Criminal offense which is neither treason nor a felony
• Speeding ticket
• Running a stop sign

8

Civil Law

• Legal proceedings concerned with the rights of public citizens
• Laws dealing with the enforcement or protection of private rights

9

What are the 2 types of Civil Law?

Tort Law
Contract Law

10

Tort Law

• 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

11

Basis for Tort Liability

Intentional
Negligence
Strict Liability

12

Intentional

• Deliberate and intentional action to cause harm

13

Negligence

• Failure to exercise or ordinary care
• “Act of omission”
• “Act of commission”

14

Strict Liability

• Liability for injury regardless of negligence or intent
• Product liability in which seller is liable for any and all defective or hazardous products which threaten a consumer’s personal safety

15

Act of Omission

• Failing to do something which a reasonable prudent person would do under ordinary circumstance
• Is negligence

16

Act of Commission

• Doing something which a reasonable and prudent person would not do under ordinary circumstances
• Is negligence

17

Contract Law

• Laws dealing with making contracts
• Business Law
• Property Law

18

Business Law

• Rules of conduct prescribed by a government and its agencies, in regulating business transactions
• Rules of conduct for the performance of business transactions.

19

Property Law

• Rules of conduct prescribed by a government and its agencies, in regulating transactions related to real and personal property

20

What are the 2 types of property?

Real property
Personal property

21

Real property

• Land and objects permanently attached to land
• Also known as REAL ESTATE
• Land, buildings, fences, trees, ect.

22

Personal property

• All property which is not real
• Car, furniture, jewelry, insurance, stocks, bonds, ect.

23

“The Pyramid of Law”

Stare Decisis
Case Law
Ordinances
Administrative Law
Police Power
Statutory Law
Constitutional Law
Common Law

24

Common Law

• Customs which have become recognized by the courts as binding on the community
• Forms the historical foundation of United States Law
• Based on human experience and the “Common good” of all members of society
• Rooted in English and early colonial law
• “If it makes sense, it must be good law”

25

Constitutional Law

• Written document containing fundamental principles of a government
• It determines the powers and duties of a government
• Guarantees certain rights to the people
• “Law of the Land”
• Examples
• Federal Constitution of the U.S. of America
• Individual state constitutions

26

Statutory Law

• Laws enacted by legislative bodies
• Also know as: STATUTES
• Legislative bodies include federal, state, and local governments
• Federal Statutes
• U.S. Congress
• State Statutes
• Individual state legislatures

27

Police Power

• Inherent power of every government to make reasonable laws to protect the safety, health, morals, and general welfare of its citizens
• Mortuary Law
• Licensure
• Health standards
• Business operations

28

Administrative Law

• 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
• Occupational Safety and Health Act (OSHA)
• Federal Trade Commission (FTC)
• Texas Funeral Service Commission (TFSC)

29

Ordinances

• Laws enacted by local municipalities
• Village, town, or city
• Parking ordinances
• No Smoking in public buildings
• Levels of Music

30

Case Law

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

31

Stare Decisis

• Principle that decisions of a court should serve as a 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

32

Jurisdiction

• Authority of a court to hear a case
• Related to the subject matter and person(s) involved in a court case

33

Function of Courts

• To interpret and apply law to a given situation

34

Federal Courts

• Have exclusive jurisdiction over
• Bankruptcy
• Claims against U.S.
• Patent & Copyright cases
• District courts
• Federal (circuit) courts of appeal
• U.S. Supreme court
• Special courts

35

District Courts

• 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
o Cases brought by the U.S. Government
o Cases arising under the
• U.S. Constitution
• Federal Laws
• Treaties

36

Federal (Circuit) Courts of Appeal

• Courts that hear appeals in the federal court system
• 12 federal judicial districts
• Hear appeals from cases originating in federal district courts
• Or federal administrative agencies and departments within its circuit
• Decisions have precedence over lower courts

37

U.S. Supreme Court

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

38

Writ of Certiorari

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

39

Federal Special Courts

• Federal trial courts with limited jurisdiction
• Limited by laws of Congress creating them
o Bankruptcy court
o Tax court
o Court of International Trade
o U.S. Court of Federal Claims

40

State Courts

• Inferior courts
• Courts of original general jurisdiction
• Appellate courts
• Special Courts

41

Inferior Courts

• Trial courts that hear only cases involving minor criminal offenses and disputes between citizens
• DISTRICT, MAGISTRATE, COUNTY, MUNICIPAL, SMALL CLAIMS, JUSTICE, TAX COURTS

42

Courts of Original General Jurisdiction

• 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
• Hear witnesses
• Receive evidence
• Try a case
• TRIAL COURT, COURT OF RECORD, CIRCUIT COURT, DISTRICT COURT, SUPERIOR COURT.

43

Appellate Courts

• Courts hearing cases appealed from lower state courts
• COURTS OF APPEAL
• STATE SUPREME COURT

44

State Special Courts

• Courts with limited jurisdiction
• Probate courts
• Juvenile courts
• Domestic relations courts (family)

45

Courts may be classified according to their function

• Trial courts
• Appellate courts

46

Procedural Law

• Laws specifying how actions are filed and what trial procedure to follow

47

Attorney/ Lawyer

• Person licensed to represent others in court

48

Complaint

• Written request initiating a civil suit
• PETITION

49

Court Procedures consist of?

Summons
Answer
Judgment
Execution

50

Summons

• 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 the defendant
• PROCESS

51

Answer

• Response of the defendant to a complaint
• MOTION

52

Judgment

• Decision of a court

53

Execution

• Carrying out or completion of some task

54

Plaintiff

• Individual who initiates a civil action

55

Defendant

• Person against whom legal action is brought

56

Contract

o Agreement between two or more competent persons (parties) which is enforceable by law

57

Classification of contracts are based on

• Formation
• Performance
• Enforceability

58

What are the 4 contract types of Formation

o Express
o Implied
o Formal
o Simple

59

Express Contract

o Parties express their intentions, either orally or in writing, at the time of the agreement
o ORAL CONTRACT
o WRITTEN CONTRACT

60

Implied Contract

o Terms of the contract are implied by acts or conduct of the parties
o Also called:
• Contract Implied In Fact
o Example is:
• A “First Call” when the family makes the first call requesting the services of the funeral home staff

61

Formal Contract

o Those with a special form or produced in a certain way
o Contract “under seal”
o Today, most contracts are “formal contracts”
• Real Estate Contracts
• Negotiable Instruments

62

Simple Contract

o Any contract which is not a formal contract

63

Classification of Contracts Performance

o Unilateral
o Bilateral
o Executory
o Executed
• By Stages

64

Unilateral Contract

o Calls for an act in consideration for a promise
o One promise is given in exchange for an act
o You find my lost dog; I pay you $100

65

Bilateral Contract

o Mutual exchange of promises
o Exchange a promise for a promise
o You agree to buy my car for $5,000
o Car is your when you give me the money

66

Executory Contract

o Terms of the contract have not been completely executed or fulfilled by the parties

67

Executed Contract

o Those contract in which the terms have been fulfilled by the parties
• Fully performed contract

68

Types of enforceability

o Valid
o Void
o Voidable
o Unenforceable

69

Valid Contract

o A contract which will be enforceable by the court
• Contract enforceable by law

70

Void Agreement

o Agreement with no legal effect
o Contract to rob a bank
o Sometimes referred to as a: Void Contract

71

Voidable Contract

o Contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties
o Party to a contract is declared “mentally incompetent”
o Adult contracts with a minor
o Minor contracts with another minor

72

Unenforceable

o 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
o Simple contract made into a formal contract