Upgrade to remove ads
Business Law Midterm
Terms in this set (66)
Requires fiduciary (someone who occupies a position of power, trust and confidence regarding the property of another) to act solely in the interest of that person's property and interests.
conflict of interest
exists when your personal interest or duty conflicts with a professional interest or duty
people and companies must be careful not to injure each other
Honesty in fact and the observance of reasonable commercial standards of fair dealing
aka compliance officers; considered experts in assessing conflicts of interest that arise within the company and outside the company instituting and monitoring compliance programs
cost benefit model
an ethical model that gives the greatest benefit or least cost
the rights model
an ethical model that gives way to human rights i.e freedom
not doing anything and not being penalized i.e not performing CPR
doing something wrong i.e rear ending someone
doing something wrong on purpose i.e shooting someone
code of ethics
written standards designed to deter wrong doing and promote:
1. honest and ethical conduct
2. full, fair, accurate, timely, and understandable in the periodic reports required by a company
3. compliance with government laws, rules, and regulations
4. prompt internal reporting of violation code to appropriate persons identified in the code
5. accountability for adherence to the code
the study of legal philosophy
A body of principles of right and justice existing for al peoples irrespective of time and culture. It transcends human notions of what is right and just.
regards law as any body of rules imposed by a sovereign or sovereign body. a law laid down by the duly constituted authority. ex: speeding limit
the embodiment of a society's customs. custom is the chief manifestation of law and that law evolves with social development
defines law in present human conduct; sum of what law books permit and human behavior provides.
looks beyond logic/reasoning and examines what actually occurs in the legal process. focuses primarily on the social influences affecting judicial process. ex: speed limit=55mph, but cop doesn't pull over till 65, _______ believes 65 is speed limit
law is the product of political and sociological judgements made by judges
law as an instrument by which efficient economic outcomes are achieved
refers either to the process by which a statue is enacted or the statue itself
A legal system based on custom and court rulings. Judge made law
"let the decision stand": a policy that courts have developed as a general rule; past judicial decisions are applied to decide present controversies
"a remark by the way":
A statement of a principle of law, contained in a judgement, which is not necessarily part of the decision.
Takes the words in a case or statute out of context and defines them without taking into account their purpose
attempts to define the meaning of words in a case by finding the underlying purpose
plain meaning rule
if the words of the contract are objectively clear in their meaning, the courts will enforce the contract as written
a case that has already been decided cannot go back to court
a writ or order by which a higher court reviews a decision of a lower court. granted if 4 of the 9 judges are in favor of it
measurement of damages
taking injuries in a case and determining a monetary value for them
the power of a court to hear and decide a case. state courts can usually hear most cases federal courts cannot.
long arm statue
a state statue that permits a state to exercise jurisdiction over nonresident defendants
federal question jurisdiction
includes any claim arising under a federal statue, a treaty, or the US Constitution
discovery of citizenship jurisdiction
over cases between citizens of different states where the amount in contest exceeds $75,000
class action suit
Lawsuit brought by an individual or group of people on behalf of all those similarly situated.
refers to the process where each party attempts to learn what the other party knows
pleading stage, discovery stage, trial stage, and appellate stage
what are the four stages of a lawsuit?
documents that tell each party's claim or defense
An order which legally prevents something
A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.
The hearing and determination of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them.
an opinion in a legal case written by one or more judges expressing disagreement with the majority opinion of the court which gives rise to its judgment
an ________ is made by the offeror and gives the offeree the power to bind the offeror by accepting the ________. must be distinguished from invitations to negotiate and is not effective until it is communicated to the offeree.
a promise that the law will enforce
offer, acceptance, consideration, and a legal subject matter
what are the four parts of a legal contract?
Acceptance that becomes effective as soon as it is sent in the mail, unless the contract specified a certain means for delivery
refers to the requirement that a promise be part of a bargained for exchange in order for it to be enforceable. a legal detriment by the promisee that is bargained for by the promisor
state of frauds (2-201)
requires written evidence for:
MYLEGS - Marriage, one Year contract, Land, Executor, Guarantee, Sale of Goods equal or more than $500
courts enforce promises that lack consideration and oral promises that would otherwise be unenforceable under the statue of frauds
1. must be a promise from a promisor to a promisee
2. must be reliance by the promisee upon the promise
3. reliance must be to the promisee's substantial economic detriment traditionally used as a defense
A contract that contains a promise by only one person to do something if and when the other party performs some act
A contract containing two promises in which one party promises to do something in exchange for the other party to do something else
A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.
implied in fact contract
______________ are formed by manifestations of asset other than oral or written language
quasi (implied in law) contract
where a party confers a benefit on another party with a reasonable expectation of a payment. ex: doctor treats unconscious patient
stops a party from asserting a legal right that party has in the interests of fairness
incapacity, duress, undue influence, misrepresentation, and mutual mistake
what are the five reasons a contract may be voidable
a reason a contract is voided when parties are vulnerable due to mental ________ or age
where a __________ of a material fact is made and a party justified relies on the __________, the deceived party may rescind the transaction and receive restitution
occurs when one party's wrong act overcomes the free will of another party. ex: threats, physical harm, or economic pressure
occurs when one party to a contract is in a position of trust and wrongfully dominates the other party
both parties to a contract have an incorrect belief about an important fact
the parol evidence rule
meant to protect the sanctity of the contract. provides that if a contract is reduced to writing and the parties intend the writing to be the final and complete evidence of the agreement, prior or contemporaneous representations or agreements may not be used to vary or contradict the writing
third party beneficiary contract
One for whose benefit a promise is made in a contract but who is not a party to the contract
occurs when one party fulfills enough of its contract obligations to warrant payment
A legal action to compel a party to carry out the terms of a contract if money damages would not provide an adequate remedy
A sum on money specified in a contract as compensation to be paid to one of the parties if the other defaults
marriage, sales of goods over $500, transfers of property other than a lease under one year, cannot be performed within one year, and to answer for the debt of another
what are the requirements for promises for the statue of frauds or 2-201 of the ucc
YOU MIGHT ALSO LIKE...
Bus 18 Exam #3
The Legal Environment of Business
law 3800 exam 2
OTHER SETS BY THIS CREATOR
CSE 3232 Final pt 1
ACCTMIS 4620 Chapter 14
ACCTMIS 4620 Chapter 13
ACCTMIS 4620 Chapter 12