Business Law Exam 5 Mini-Final Flashcards Preview

Commonwealth 2nd Quarter > Business Law Exam 5 Mini-Final > Flashcards

Flashcards in Business Law Exam 5 Mini-Final Deck (58):
1

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

Crime

2

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

•Tort

3

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

Real Property

4

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

Personal Property

5

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

Valid Contract

6

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

Void Agreement

7

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

Voidable Contract

8

•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
•Simple contract made into a formal contract

Unenforceable

9

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

Negligence

10

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

Procedural Law

11

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

The Pyramid of Law

12

•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”

Common Law

13

• 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

Constitutional Law

14

• 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

Statutory Law

15

• 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)

Administrative Law

16

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

Ordinances

17

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

Case Law

18

• 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

Stare Decisis

19

o Expression of willingness of the offeror to enter a contractual agreement

Offer

20

• Person/party who initiates, or makes, an offer

Offeror

21

• Person/party whom an offer is made

Offeree

22

• Intended acceptance which changes or qualifies the offer, and is a rejection of the original offer.

Counteroffer

23

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

Unilateral Mistake

24

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

Mutual Mistake

25

• Refraining from doing something
• Example: Promising not to rob a bank

Forbearance

26

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

Undue influence

27

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

Duress

28

o 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

Fraud

29

stipulated by the contract, generally expressed in money or money's worth;
EX:can be: money, goods, services

Consideration

30

Recognized as most important statute in business law; Includes provisions which regulate certain sales of goods

Uniform Commercial Code (UCC)

31

o 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

Commercial paper (Negotiable Instrument)

32

o Is the receipt and contract existing between CONSIGNOR (SHIPPER) AND CARRIER
o Is documentary evidence of title of goods

Bill of Lading

33

• One who ships goods by a common carrier

Consignor

34

• One to whom goods are shipped to by a common carrier

Consignee

35

o Transports under special arrangements for a fee
• Moving vans
• Delivery services
• Funeral Home A transports a body for Funeral Home B

Private Carrier

36

•One that undertakes to transport without discrimination for all who apply for service
•Airlines, trains, buses, etc.

Public Carrier (common carrier)

37

o Those held to “normal” standard of care for bailed property

Ordinary Bailment

38

o Those held to higher than normal standard of care for bailed property
• Common carriers
• Hotelkeepers
• Funeral directors

Extraordinary Bailment

39

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

Sole Benefit of Bailor

40

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

Sole Benefit of Bailee

41

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

Mutual Benefit

42

• Party who gives up possession, but not title of property

Bailor

43

• Party who acquires possession, but not title of personal property

Bailee

44

• Enforceable promise whereby one party justifiably acts in reliance upon the promise of another

Promissory Estoppel

45

• Confirming of an act which was executed without authority or an act which was voidable

Ratification

46

those goods which are, at the time of the contract, in existence and owned by the seller

Existing Goods

47

those goods which are not in existence at the time a contract is agreed to

Future Goods

48

a contract which the parties express their intentions, either orally or in writing, at the time of the sale

Expressed Contract

49

one in which the terms of the contract are implied by acts or conduct of the parties.

Implied Contract

50

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

Endorsement/ Indorsement

51

o The payee of a note or draft transferring the instrument to another party

Endorser/ Indorser

52

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

Endorsee/ Indorsee

53

• Having no words other than signature of endorser
• “Mary A. Johnson”

Blank endorsement

54

• An endorsement which designates the particular person to whom payment is to be made
• “Pay to the order of John Q. Jones”

Special Endorsement

55

• An endorsement which prevents the use of the instrument for anything except stated use
• “For deposit only”

Restrictive Endorsement

56

• Limits liability of endorser
• Endorser signs the bill or promissory note and adds “Without recourse”
• This limits the endorser’s liability
• Endorsee accepts the liability

Qualified Endorsement

57

a situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract

Breach of Contract

58

• 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

police power