Business Law Exam 1 Review

Business Law Exam 1 Study Guide Chapter 1 Jurisprudence- the philosophy of law 3 Theories of Jurisprudence:  Legal Positivist – whatever sovereign says is law, right or wrong  Legal Realist – what counts is who enforces that law & by what process  Natural Law- St Thomas Aquinas said “An unjust law is no law at all and need not to be obeyed” Precedent – the tendency to decide current cases based on previous rulings Common law – accumulation of precedent, judge-made laws Stare decisis - “let the decision stand” Statutes – laws made by legislatures 6 Sources of Law  US Constitution  Statutes  Common Law  Court Orders  Administrative Law  Treaties Federalism – multiple levels of government, each with specified powers. Power is shared between one central authority and numerous local authorities and individual jurisdictions. The Supremacy Clause (Article VI of the Const) – states that the Constitution and its federal statutes and federal treaties, shall be the supreme law of the land. Chapter 2 2 Ethical Theories  Utilitarian- maximize happiness, minimize pain; based on greatest good for greater population  Deontological – ethical decisions are made for good and moral reasons; moral based, regardless of outcome 2 Corporate Models  Shareholder Model – maximize shareholder profits  Stakeholder Model – take care of company, employees, customer, community, and shareholders. 3 distinctions between civil and criminal litigation Civil Vs. Criminal Preponderance of Evidence, Burden of Beyond a Reasonable

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>51% 2 or more citizens/entities $ Solution or required action

Proof Parties involved

Doubt Govt. against plaintif

Result

Jail/fine/probation

Chapter 3 Name several special Trial courts: Bankruptcy Court, Tax Court, US court of International Trade. 2 Cases that qualify to be tried in the Federal District Court:  Federal Question Cases – claim based on the constitution of a federal statute or treaty  Diversity Cases – 1) plaintif and defendant are citizens of diferent states and 2) the amount >$75,000 Appeal structure Interrogatories – written questions opposing party must answer in writing, formal Depositions – question in person under oath, more informal, can be witnesses too Civil burden of proof – preponderance of the evidence (slightly more likely) Criminal burden of proof- beyond a reasonable doubt – tougher 4 potential resolutions  Affirm – allow to stand  Modify – affirm with changes  Reverse & remand – nullify the lower decision & return for reconsideration or retrieval  Reverse – turn loser into winner Mediation – mediator leads to voluntary settlement Arbitration – arbitrator decides settlement between two parties Voir dire – process of selecting the jury “speak the truth” Chapter 4 3-step process a court uses when interpreting a statute1. Plain meaning rule – when a statute’s words have ordinary, everyday significance, the court will apply those words 2. Legislative History & Intent – if the language is unclear, the court must look deeper (go of of common law) 3. Public Policy – if the legislative history is unclear, courts will rely on general public policies Flow of a Bill through Congress: Committee – House vote – Other committee – senate vote – conference committee – new vote – other new vote – presidential signing 2

President’s veto is overridden 2/3 both House & Senate 2 Kinds of Federal Administrative agencies (created by Congress)  Executive Agencies – president has greater control, can fire head – ex: IRS, FBI, FDA, Nuclear Regulatory Commission  Independent Agencies – president has no removal power – ex: FCC, FTC, SEC, EPA, NLRB Freedom of Information Act – gives everyone access to 1) information on how the government operates and spends it money and 2) any information the government has about you Chapter 5 Checks and Balances  Supreme Court has control over final say on laws and actions  President has power of veto  President proposes legislation at the State of the Union address  President appoints judges and head of federal agencies  Supreme Court can impeach the president  Congress can declare war  Congress can congressionally override the presidents veto  Congress can override SC by amending the Constitution Judicial Review – the power of federal courts to declare a statute or governmental action unconstitutional or void Civil Rights Act of 1964 – Title VII protects against race, religion, color, national origin and sex discrimination  later added age and disability Commerce Clause – gives Congress the power to regulate commerce with foreign nations and among states. Significant Efect rule – If your company is big enough to have an impact on another states economy you are considered interstate commerce even if you are only in one state 1st Amendment – freedom of speech (political & commercial), press, assembly, religion, and petition Chapter 6 Intentional Torts  Assault – fear inflicted of battery  Battery – intentional harm  False imprisonment – keeping someone without cause & consent  Defamation o Slander – oral o Libel – written  Trespass  Conversion – taking/using personal property without consent 3

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Fraud Intentional Infliction of Emotional Distress – extreme & outrageous conduct that causes emotional harm  Tortious Interference with Contract – intentional interference with a business contract by a third party Damages  Compensatory – restoring to a condition before the injury (medical expenses, wages, pain and sufering)  Punitive – intended to punish the defendant Chapter 7 Tort – violation of a duty imposed by civil law Negligence – injuries cause by neglect & oversight Strict Liability – for ultra hazardous activity & defective products Res Ipsa Loquitur – “ the thing speaks for itself” the facts imply the defendant’s fault Assumption of Risk – if you knowingly take on the risk they are not liable 5 Elements to win a negligence case 1. Duty of due care 2. Breach 3. Factual Cause 4. Proximity Cause 5. Damages Contributory negligence - plaintif slightly negligent as well, recover nothing Comparative negligence – can generally recover the % you were not responsible for Chapter 8 For a valid search and seizure warrant must: 1) claim specifically where you are searching and what is to be seized and 2) must have probable cause for search Probable cause – likely that evidence of a crime will be found 7 reasons for searching without a warrant 1. Plain view 2. Stop and frisk 3. Emergencies 4. Automobiles 5. Lawful arrest 6. Consent 7. No expectation of Privacy

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Chapter 9 GATT – General agreement on Tarifs and Trade – sought to eliminate trade barriers and tarifs WTO – World Trade Organization – resolves trade disputes, formed from GATT, can impose sanctions NAFTA – North American Free Trade Agreement – eliminated trade barriers in North America EU – European Union – 27 countries all regulated under one govern, using euro CISG – United Nations Convention on Contracts for International Sale of Goods – creates uniform international laws for international sales FCPA – Federal Corrupt Practices Act – makes bribery to government officials illegal Letter of Credit – guarantee of payment in international trade Sovereign Immunity – statute that states that American courts cant usually hear suits against foreign governments Repatriation of Profits – pulling the profits out of the country and taking them back home Expropriation – when the government takes property owned by foreign investors Constitution 1st – freedom of religion, press, petition, speech, assembly 2nd – right to bear arms 4th – no unreasonable search and seizure without warrant and probable cause 5th – trial by jury, no double jeopardy, no self-incrimination, due process, limited power of eminent domain 6th – Right to speedy and public trial and to an attorney 8th – No excessive bail, fines, or cruel and unusual punishment 14th - equal protection for all races

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