0 The Golden Rule
0 Do unto others as you would have
them do unto you
0 Consequential Reasoning
0 Takes a look at the consequences
of the action before making a decision on what way to act
0 Judicial: Led by the Supreme
Court. The Supreme Court decides if 0 the law being made is constitutionally correct. 0 Legislative: Led by Congress. Congress is made up of the Senate and the House of Representatives. The Senate consists of two members from every state. The House of Representatives consists of members based on their population. 0 Executive: Led by the President. Elected by vote of the people
0 Ethics: deciding
what is a right or wrong action in a reasoned, impartial manner 0 Morality: involves the values that govern societyâ€™s attitude toward right and wrong 0 Empathy: putting yourself in the other personâ€™s position 0 Rule-based Reasoning
0 Makes a decision
based on majority vote
0 Law of Precedent-Judges referred
to decisions in previous common law cases. 0 Statutory Law-Common law was eventually written down Legislative bodies adopted common laws Common law became statutes. 0 Statutes 0 All statutes-Are subject to review
by judicial system Must be constitutional - cannot conflict with the United States Constitution
0 Administrative law is the
regulations, orders, rules and decisions of administrative agencies.
0 Laws are rules of
conduct established by the government of a society to maintain stability and justice in that society. 0 American law is constantly changing as our society changes. 0 Common LawUnwritten laws 0 English Common LawThe Kingâ€™s court of judges traveled in circuits around the countryside deciding cases.
0 4 Punishments for
Imprisonment Fine Probation Community Service 0 Combination of the above 0 0 0 0
0 Types of Crimes 0 Crimes Against People 0 Social Crimes 0 Crimes Against Property 0 Business crimes (White Collar)
0 Computer Laws-
The National Information Infrastructure Protection Act of 1996 was enacted as part of Public Law 104-294. 0 Telecommunicatio n Law or Cyber LawTelecommunicatio n law or Cyber law governs the legal issues of cyberspace. 0 JurisdictionAuthority to hear a case and make a decision
0 Complaint – Legal
document containing a short and plain statement of the plaintiff’s claim against defendant, first pleading filed in civil cases 0 Pretrial Hearing 0 Informal hearing to
simplify issues and discuss matters
0 Arrest – Action take
when a person is deprived of his or her freedom 0 Bail – Money or property that is left with the court to assure the court that the person will return to stand a trial. Money is forfeited if person does not appear in court 0 Contempt of Court – An action that hinders the administration of justice in the court 0 Diversity of Citizenship – When a resident in one state sues a resident in another state for more than $50,000
0 Steps to a Trial 0 Select a jury 0 Opening statements
0 Plaintiff presents evidence
0 Real evidence is photographs, actual objects, etc. 0 Witnesses testify
0 Failure to appear will result in a contempt of court order
0 Defense presents evidence
0 Civil Trial Procedures17
0 Closing Arguments 0 Same order 0 Instructions to Jury 0 Statement made by the judge 0 Verdict 0 Judgment
0 Execution of Judgment
0 Grand Jury – A jury of Inquiry 0 Precedent – When judge is required to follow an
earlier court decision when deciding a case with similar circumstances 0 Prosecutor – Party that accuses the person of a crime 0 Statutes – Laws enacted by state or federal legislatures 0 Statue of Limitations – State laws setting time limit for bringing a lawsuit
0 What is a tort? 0 One person’s interference with another person’s rights, either through intent, negligence, or strict liability. 0 Based on 4 rights: 0 Right to: 0 – Be free of
bodily harm 0 – Enjoy a good reputation 0 – Conduct business without interference 0 – Have property free from damage or trespass
Intentional vs. Unintentional ■ Intentional – know and desire the consequences of your act ■ Unintentional – lacks the determination of mind.
Goal 3 0 Revocation – Taking
0 Mirror Image Rule 0 Acceptance must “mirror” offer 0 Counteroffer 0 Offeree makes an offer
0 Offeror becomes offeree
0 Methods of Acceptance 0 Contract accepted when sent, if same method of communication used 0 Contract accepted when received, if different method of communication is used
back of an offer by offeror 0 Rejection – Refusal by the offeree 0 Counteroffer – Any change in the terms of the offer 0 Expiration of Time – If the offer puts a time limit on the offer and it has passed 0 Death – Offeror dies 0 Insanity – Offeror is declared insane
0 0 0 0 0 0 0 0 0 0 0
Capacity – legal ability to enter a contract Majority – age of legal adulthood Minor – not yet reached legal age (minority) NC Age of Majority = 18 years old Voidable Contracts – minors may disaffirm or avoid their contracts if they so choose Infancy = minority = minor = under 18 yrs. Old Returning Merchandise – must be returned if disaffirming a contract Tender – offer to return Misrepresenting Age – fraud- if contract disaffirmed, you may be sued for fraud Contracts for Necessaries – necessities – food, clothing, shelter, and medical care Special Statutory Rules – minors have capacity to buy car/life insurance 0 - married = adult 0 - limited capacity if you own a business 0 - renting apartment is a necessity
Gratuitous Contracts: The law does not enforce any contracts that are gratuitous Gratuitous contracts are free agreements Consideration: Exchange of benefits and detriments by the parties to an agreements Benefits Something that a party was not previously entitled to receive Detriments Any loss suffered
0 Special Applications: 0 Partial Payment of Debt 0 Must have new consideration in order to relieve entire debt 0 Settlement of Disputed Claims 0 Extension of Time 0 To extend time, one party must offer new consideration
0 MISTAKE: 0 Unilateral Mistake 0 An error on the part of one of the parties 0 Cannot get out of contract 0 Types: 0 Nature of the Agreement
0 Signing a contract you don’t understand or have not read 0 This applies to signing a contract in a language you don’t understand
0 Identity of a Party 0 Bound by contract with face to face meetings 0 May be able to void a contract made NOT face to face •
0 Bilateral Mistake (Mutual Mistake) 0 Both parties are mistaken 0 Types:
0 Possibility of Performance 0 Contract is impossible to perform Either party can void contract
0 Subject Matter 0 Either party can void contract
0 FRAUD: Deliberate deception for an unfair or unlawful gain 0 INNOCENT MISREPRESENTATION 0 Make an innocent statement of supposed fact that turns out to be false 0 DURESS 0 Overcoming a personâ€™s will by use of force or by threat of force or bodily harm 0 UNDUE INFLUENCE 0 Unfair and improper persuasive pressure within a relationship of trust
Agreements that Violate Statutes: 0 Civil & Criminal Statutes
0 – Agreements to commit a crime/tort are illegal
0 Usury Statutes
0 – State sets a max interest rate
0 Fee the borrower pays to the lender for using the money
0 Charging too high of an interest rate •
0 Truth in Lending Act
0 Lender is required to make clear the annual percentage rate (APR).
0 Gambling Statutes
0 Discuss state laws 0 Lottery vs. Poker
0 Sunday Statutes
0 Illegal to perform certain contracts on Sunday
Contract Law- 6 Elements
0 Offer 0 Proposal by one party to another with intent to create a legal binding agreement 0 Acceptance 0 An unqualified willingness to go along with the offer 0 Genuine Agreement 0 If a valid offer is met by a valid acceptance then a genuine agreement exists 0 Can be destroyed by fraud, misrepresentation, duress, or undue influence 0 Capacity 0 Legal ability to enter into a contract 0 Consideration 0 Must exchange something of value in order to create a bond 0 Legality 0 Must be permitted by law 0 Courts will not enforce an illegal contract
3 Requirements of an Offer
0 Serious Intent 0 Must intend to make the offer 0 Advertisements? 0 â?˜ No serious intent
0 â?˜ Known as an invitation to negotiate
0 Definite and Certain 0 Must use definite words 0 Communicate to the Offeree 0 Phone, fax, Internet, letter, etc
Characteristics of a Contract: 0 Valid 0 Legally good
0 No legal force
0 Not void, but may be voided by one party
0 Some rule of law can not be enforced by the court.
Express vs. Implied: 0 Express
0 Stated in words 0 Written or spoken
0 Based on actions (not words)
Oral 0 Spoken words Written 0 Write out exact terms
Discharge by Performance: 0 Complete
Types of Discharges
0 All terms have been carried out properly and completely.
0 Time 0 Court will honor time request, if it is deemed â€œof the essence.â€? 0 If not mentioned in contract, then a reasonable time will be assumed. 0 Satisfactory 0 Law requires that services be completed in a satisfactory manner. 0 Reasonable person test 0 Substantial 0 Slightly less than full performance 0 Must meet the following rules: 0 Acted in Good Faith
0 Completed Major Components of Contract 0 Only Minor Details Incomplete.
Types of Discharges Cont.
0 Tender â€“ Offer to Perform
Discharge By Agreement: 0 Mutual Release
0 Each side releases the other side from the contract.
0 Accord and Satisfaction
0 Substitute one contract for another
Discharge By Impossibility of Performance: 0 Death or Illness in a Personal Service Contract 0 Only allowed in Personal service contracts. 0 What is personal service? 0 Photographer 0 Artist 0 Any other contract must be completed.
0 Destruction of the Exact Subject Matter
0 If the subject matter is essential to the contract then it will be discharged.
0 Any illegal contract is void.
Types of Discharges Cont.
Discharge by Operation of Law: 0 Wrongful Alteration
0 Any altering or changing of a contract will discharge
parties to the agreement.
0 Statute of Limitations 0 Individual states have a time limit on lawsuits to be filed.
0 Bankruptcy 0 Debtors can be discharged from contracts after filing for bankruptcy.
0 Privacy of Contract 0 Determines who can sue who over a breach of contract. 0 Third-Party Beneficiary 0 A person who is not a party to a contract but benefits from it. 0 Has the right to sue over breach of contract.
Breach of Contract: 0 Wrongful failure to perform one or more promises in a contract. 0 Anticipatory Breach
0 Notified that a party to the contract will not
fulfill their part of the contract prior to the required time of fulfillment. 0 Lawsuit may be filed early in this case. Exception to the rules: 0 Refusal to pay money owed at a future date.
0 Money Damages 0 Actual – Damages DIRECTLY related to breach. 0 Compensatory – Award only for injuries suffered nothing more. 0 Consequential – Damages that DO NOT flow directly from breach. 0 Incidental – Reasonable expenses that INDIRECTLY from breach of contract. 0 Liquidated – Anticipated damages agreed prior to contract being signed. 0 Nominal – Award to proved legal injury but no actual damages caused. 0 Punitive – Damages in excess of losses suffered in order to punish party for breach. 0 Speculative – Damages awarded not on fact but on expectations from contract fulfillment. 0 Specific Damages 0 Ask court to order the other party to do what they agreed to do. 0 Subject matter must be unique in nature.
Characteristics of Sole Proprietorship: 0 Requirements for Organizing - none 0 Legal Status – owner is the business and it is not a separate entity. 0 Liability - unlimited 0 Management – owner makes the decisions Requirements for Organizing – agreement of the parties: 0 Legal Status – not a separate entity in many 0 states 0 Liability – unlimited liability (except limited partnership) 0 Management – partners have equal say in management unless otherwise specified in agreement.
Types of Corporations: 0 Domestic-chartered in a specific state 0 Foreign-chartered in one state but doing business in another state 0 Alien-chartered in another nation but doing business in a state
Endorsements: 0 Signature on the back of a negotiable instrument 0 Allow payee to cash, deposit or transfer payment of the check to someone else 0 Proof that the payee cashed or transferred payment of the check to someone else 0 Endorser is responsible for payment of the check if the new owner cannot collect payment 0 Endorse should sign the check the way it is on the front of the check and if the name is misspelled, correct the signature directly up under the first endorsement Special Or Full Endorsements: 0 Transfer payment to someone else 0 Can make a payment on a debt with this endorsement 0 Payee signs the check over to another person to receive payment Restrictive Endorsements: 0 Limits use of check 0 Safest type of endorsement 0 Can not be cashed by someone who has stolen the check 0 Safest way to send a check through the mail
Challenging Unconscionable Contracts: 0 Unfair and oppressive 0 Judge decides if conscionable
0 Refuse to enforce contract 0 Remove unfair clause and enforce contract 0 Limit clauseâ€™s application so no longer unfair
Prohibiting Abuse in the Credit System: 0 Federal Equal Credit Opportunity Act
0 May not refuse due to sex or marital status 0 May not ask marital status if applying for unsecured separate
account 0 May not prohibit a married female from opening/maintaining account in maiden name 0 May not request information about birth control practices or intentions 0 Married persons with joint accounts have right to have credit information reported in both names
Federal Fair Credit Billing Act: 0 Creditors must mail bills at least 14 days before due date 0 Creditors must acknowledge billing inquiries within 30 days 0 Creditors must settle complaints within 90 days 0 Creditors may not send repeated letters demanding payment until disputes over billing are settled 0 Credit cardholders may withhold payment for items defective without being liable for entire amount owed (purchases of $50 or more and 100 miles from home) Types of Drafts: 0 Sight Draft – A draft payable as soon as it is presented to drawee for payment 0 Time Draft – Not payable until the lapse of a particular time period stated on a draft 0 Trade Acceptance – Used by a seller of goods to receive payment or to extend credit 0 Check – Draft drawn on a bank and payable on demand, can be called a demand draft 0 Honor – Pay when due 0 Dishonor – Refuse to pay when due 0 Stop Payment – Instruction for bank not to pay check
Types of Checks 0 Certified Check – A personal check that has been accepted by a bank before payment 0 Cashier’s Check – A check the bank draws on itself 0 Money Order – Draft issued by a post office, bank, express company, or telegraph company for use in paying or transferring funds for the purchaser 0 Traveler’s Checks – Draft drawn by a well-known financial institution on itself or its agent, used when traveling 0 Teller’s Check – Draft drawn by a bank on funds that it has on deposit at another bank Types of Notes: 0 Demand Note – Payable whenever the payee demands payment 0 Time Note – Payable at a future date that is written on the face of the note 0 Installment Note – Paid in a series of payments Installment Plans 0 Secured – Collateral used to secure loan 0 Pledge – Creditor obtains possession of collateral by written or oral agreement 0 Security agreement – Contract where debtor retains possession of collateral under a written contract 0 Repossession – Taking back of items used to secure loan when payment is not made 0 Unsecured – No collateral used
TYPES OF AGENTS 0 General Agent-given authority to perform any act within the scope of a business. 0 Special Agent-employed to accomplish a specific purpose or to do a particular job. 0 Subagents-appointed by another agent. 0 Agent’s Agent-has no power to appoint a subagent but does so anyway. 0 Co agents-two ore more agents hired by the principal. AGENCY RELATIONSHIPS 0 Gratuitous Agent: agent works for free (no contract) 0 Master: has the right to control the conduct of his or her servant 0 Independent Contractor: agent is hired by the other party, but not controlled 0 Partially Disclosed Agent: principal’s existence but not identity is known to the third party. 0 Fiduciary: relationship is based on trust. 0 Actual Authority: real power the principal gives to an agent to act on his or her behalf 0 Apparent Authority: agency by estoppel 0 Third Party: must be notified if an agency has been terminated 0 Consensual: both parties of a principal/agent relationship agree or consent to relationship 0 Agent is obligated to act in good faith (within the scope of the principal’s needs and wants). Therefore, a principal is not liable for criminal acts. 0 When an agency is created by statute (law), the agent is known as a statutory agent. 0 If unauthorized agent works on your behalf, you have two options: 0 1. Charge agent with fraud (agent is liable to the third party) 0 2. Accept actions of agent (ratify)
Laws: 0 Wagner Act (National Labor Relations Act)
0 First federal law dealing with collective bargaining 0 Encourage collective bargaining, discouraged unfair labor practices
0 Taft-Hartley 0 Prevents labor union from requiring an employer to retain employees who are no longer need 0 Fair Labor Standards Act of 1938 0 Restricted child labor 0 Landrum-Griffin Act 0 Unions must register with Sec. of Labor and submit year financial reports.
Types of Shops: 0 Agency- receive union benefits without belonging to union 0 Closed- must join prior to employment 0 Union- must join with 1 year of employment
Risk Management: 0 Options for people to manage risk include
0 – Transfer part of risk of financial loss to an insurance company 0 Auto, life, health, disability, property insurances
0 – Retain (keep) the risk of financial loss using high deductible 0 – Abstain or choose not to participate in risky activities 0 Do not drive car, buy home, play sports, etc.
Property Damage Liability: 0 Property Damage Liability protects the insured person from liability claims for damage to property of others, such as: 0 • Personal property including vehicles, animals
0 • Business property including telephone poles and other utility
structures 0 • Government property such as bridges and other road structures 0 • Real property
Factors Affecting Cost of Auto Insurance 0 Type of coverage 0 $ Limit of coverage 0 Risk retention -Deductible amount 0 Experience rating â€“ how long driver has been licensed (AGE IS NOT A FACTOR!!) 0 At fault Accidents (Points) 0 Tickets (Points) 0 Type of Vehicle - Value, reparability, engine size, style 0 Geographic area- Urban, suburban, rural 0 Use of Vehicle - Distance driven and purpose 0 Company
Other Bailments 0 Gratuitous Bailment
0 –Free of charge (lend something to a friend). 0 Only one party benefits
0 Extraordinary bailment
0 A common carrier or hotel is strictly liable for damage to bailed goods
Rights and Duties of Bailee: 0 Rights:
0 To hold a Mechanic’s Lien -the right to retain property of another, if not paid for service rendered 0 To expect payment for services rendered
0 • Duties:
0 Of reasonable care and protection of goods while in custody of bailee 0 To comply with terms of bailment
Rights and Duties of Bailor: 0 Rights
0 to have goods protected 0 to receive service as agreed upon 0 to have goods returned in timely manner
0 • Duties
0 to pay for service provided 0 to warn of dangers or special care required 0 to pick up goods in a reasonable time
Types of Deed: 0 Quitclaim
0 Transfers a sellerâ€™s interest in a property but doesnâ€™t warrant that
the seller owns any interest
0 General Warranty Deed 0 Warrants the title 0 Most desirable for the buyer 0 Bargain and Sale Deed 0 Transfers title to property without giving warranties
A complete review of things me and probably Maggie don't know about Business Law