Duaa Ali Business Law
Sources of American Law: Common Law Law of Precedent Statutory Law Federal and State Constitutions Administrative Law
Unwritten laws Based on customs and traditions of people in a society
Ethics: deciding what is a right or wrong action in a reasoned, impartial manner Morality: involves the values that govern society’s attitude toward right and wrong Ethics are based around the following basics: -Feelings and Opinions -The Greatest Good The Golden Rule - Consequential Reasoning Rule-based reasoning
The idea is that must people will base their opinion of ethics based on how a certain situation affects the greatest amount of people The more good that result, the more ethical the action taken The more bad the result, the less ethical the action taken
The Greatest Good
Types of courts: Dual Court System Federal Court System State Court System
Derives from Article III of US Constitution Governs over cases concerning federal matters Governs over cases concerning diversity of citizenship There are 13 judicial courts There are 95 federal district courts
Federal Court System
Acceptance Unqualified willingness to go along with the offer
Unconditional Acceptance – Mirror Image Rule (IMPORTANT) Acceptance must “mirror” offer Any change means there is no acceptance – Counteroffer Offeree makes an offer Offeror becomes offeree
Requirements of Acceptance
Contract accepted when sent, if same method of communication used • Contract accepted when received, if different method of communication is used • If method is stated in offer, it MUST be used • Action=Acceptance • Silence cannot be a method of acceptance
Methods of Acceptance
• Revocation – Taking back of an offer by offeror • Rejection – Refusal by the offeree • Counteroffer – Any change in the terms of the offer • Expiration of Time – If the offer puts a time limit on the offer and it has passed • Death – Offeror dies • Insanity – Offeror is declared insane
Termination of Offer
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 years old
Capacity to Contract
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
Characteristics of a Contract: Valid – Legally good Void – No legal force Voidable – Not void, but may be voided by one party Unenforceable – Some rule of law can not be enforced by the court
Express – Stated in words – Written or spoken Implied – Based on actions
Express vs. Implied
Bilateral – Contains two promises Unilateral – Contains one promise
Bilateral vs. Unilateral
Oral – Spoken words Written – Write out exact terms
Oral vs. Written
Complete • All terms have been carried out properly and completely. Time • Court will honor time request, if it is deemed “of the essence.” • If not mentioned in contract, then a reasonable time will be assumed.
Discharge by Performance
Types of Corporations: Domestic-chartered in a specific state Foreign-chartered in one state but doing business in another state Alien-chartered in another nation but doing business in a state
- Public-established for a governmental purpose - Private-established by individuals for business or charitable purposes.
Classification of Corporations
Name of corporation 2. Duration 3. Purpose for which the corporation is organized 4. Number and kinds of shares of capital stock to be authorized for issuance 5. Location of the principal office and name of its agent 6. Number or names and addresses of initial directors 7. Name and addresses of each incorporator 8. Any other provision consistent with the law
Eight Elements of a Corporation
Endorsements: Signature on the back of a negotiable instrument Allow payee to cash, deposit or transfer payment of the check to someone else Proof that the payee cashed or transferred payment of the check to someone else Endorser is responsible for payment of the check if the new owner cannot collect payment 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
Signed with endorser’s name only Can be cashed by anyone who has a check with a blank endorsement
Limits use of check Safest type of endorsement Can not be cashed by someone who has stolen the check Safest way to send a check through the mail
An Agency: Relationship in which one person, called an agent, represents another person, called a principal, in some sort of business transaction with a third party. In most cases a binding contractual agreement is formed.
Actual-real power given to agent Express-all orders, commands, or directions given to agent when relationship created Implied-understood acts or powers implied from express terms
TYPES OF AUTHORITY
Contract negotiated by the employer and representative of the labor union.
To certify, must have a unanimous vote (50 %) If lose certification vote, must wait one year for another vote.
Employment is not for a stated amount of time. Employer, without being liable for breach of contract, could fire the employee and pay him or her for services rendered up to the time of the firing (employee can quit). Unjust Dismissal Employees have legal grounds against employers who have treated them unfairly.
Employment at Will
Domestic Relations Laws: Rights Relating to the Marriage Contract The right to support, either emotional or financial, by one’s spouse when necessary The right to inheritance from one’s deceased spouse The right to property if the marriage fails
The division of marital property during a divorce depends on many standards: Age and individual earning power of each spouse Length of the marriage Contributions of each spouse to the marriage (including the value of homemaking services)
Division of Marital Property
Prohibited marriages include, in most states, marriage between close relatives, marriage between those related by blood (consanguinity), or marriages related by marriage (affinity) The Uniform Marriage and Divorce Act prohibits marriage between parent/grandparent, child/grandchild, brother/sister, uncle/niece, or aunt/nephew Bigamy (two spouses at one time) and Polygamy (more than two spouses at one time) are prohibited
Common Law marriages require no witnesses or ceremony by anyone authorized Common Law marriages do not require a ceremony but is typically considered when a man and a woman share common residence for an extended period of time (different by state, typically 10 years) Under Common Law, a published notice of an upcoming marriage was called a marriage bann
Common Law Marriages
Basic health insurance – a limited medical insurance covering hospital, surgical and medical expenses. Limited by: – Numerous exclusions – Low maximum benefit –Waiting periods
LAW OF SALES Sale: a contract by which ownership of goods is transferred by the seller to the buyer for a consideration called price Goods: tangible (touchable) personal property that can be physically weighed, measured, and moved
A premarital agreement is an agreement between two people considering marriage Each party in the agreement must be honest about every aspect of the agreement Not every marriage contract includes a premarital agreement A premarital agreement must be in writing and signed by each party Also called prenuptial agreement
Voids the marriage contract
The grounds for annulment include either spouse lying about: Pregnancy Freedom from disease Willingness to have a child Past Marriage Age
Sale- a contract by which ownership of goods is transferred by the seller to the buyer for a consideration called price – *Sales Contract must have all required elements. Goods- tangible (touchable) personal property that can be physically weighed, measured, and moved. Buyer- the purchaser or vendee Services are not covered in law of sales
What is a Sale?
Consideration in sales contract. Items used for consideration include: Money, Services, Other goods and Real estate.
Sale where the buyer pays for the goods and takes ownership of the goods upon payment. Ownership transfers at the time of the transaction. Risk of loss attaches upon receipt of goods. Risk of loss- the responsibility for loss or damage to goods
Cash and Carry
Similar to cash and carry EXCEPT payment is made at a later date by agreement of the parties. Examples: – Appliances, furniture, vehicles – Usually bigger ticket items
Sale on Credit
Goods are shipped to buyer Carrier collects price and transportation charges upon delivery Carrier is the transportation company Carrier transmits the funds to the seller
COD - Collect on Delivery