Business Law Exam 1
Terms
undefined, object
copy deck
- what is law?
- a set of rules creating order and expectations
- what makes law voluntarily enforceable?
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1. we have the ability to change them
2. have legitimate gov't
3. vote in legislature - why do we need law?
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keep order, influence conduct, promote equality, honor expectations, and offer compromises.
Decides punishment, so people follow the same rules - What are the sources of US law?
- US Code, US administrative regulations, US executive order, case law and precedent, constitution, state versions, counties, cities
- What is a source of international law?
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treaties-agreements between and among nations regarding their political and commercial relationships
uniform laws-contracts for the International Sale of Goods - who owns a corporation?
- shareholders, but it is overseen by a board of directors
- what is a plaintiff?
- complaining party
- what is a defendant?
- accused party
- what is jurisdiction?
- power of court to decide
- give an example of subject matter jurisdiction.
- traffic court for a ticket
- what is diversity jurisdiction?
- when there is a case involving people from two different states and over $75,000 can be held in a federal court
- what is a partnership by estoppel?
- a person cannot deny being a partner if he permits the partnership use his name. arises when others are led to believe there is a partnership.
- what is a trial court?
- hears cases, takes evidence, jury decides facts, and issue decisions.
- what is an appelate court?
- hears appeals on questions of law. writes opinions (no juries, no evidence, just reads arguments)
- Criminal court
- go to court found guilty or not guilty (ex/ violating a state law)
- what is jurisdiction over the person?
- the power of a court to require that a party or a witness come before the court
- what is a civil proceeding?
- person found guilty can still be sued by individually private person v. private person; individual person brings the claim, only can award money, no jail time
- what is a writ of certiorari?
- mechanism through which appeals to the US Supreme court are granted (about 100 out of 7000 will be chosen)
- How many justices are in the supreme court?
- nine
- how long is the term of office in the supreme court?
- lifetime appointments
- how do the supreme court justices get there?
- they are nominated by the president and confirmed by 2/3 vote of the Senate
- how does the constitution divide power?
- legislative, executive, and judicial
- what is common law?
- a system of law which allows judges to write opinions of law
- what is civil law?
- laws affecting the private rights of individuals
- what is the commerce clause?
- clause in the Constitution that gives Congress the power to regulate international trade
- what is interstate commerce?
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goods, instrumentalities (businesses, any franchise), channels (transportation route).
goods flowing between states - what are a state's police powers?
- the power to rule over public health, welfare, and public safety
- can a state burden interstate commerce? what is the balance test?
- yes, the federal courts decide and they balance the tow to see if the good for the state outweighs the hurt on interstate commerce
- what is the supremacy clause?
- Article VI. federal acts under the supreme law of the land if acting under proper authority
- what is the reservation clause?
- 10th amendment. all powers not delegated to the feds is reserved to the states
- what is garnishment?
- judicial process of taking funds or wages for satisfaction of a judgment (ex/ how one collects in situations such as child support)
- what does the 5th amendment say about property?
- persons haave a right to be secure in their property and that they have a right to be secure in their property and that they will not be deprived of it without due process of law
- what is eminent domain?
- taking private property for public use
- what is a sole proprietor?
- have personal liability, must protect your tradename, tax return is a personal return, and can transfer ownership
- what is a corporation?
- limited liability for owners, corp is a person under the law, for profit v. non-profit, domestic v. foreign, professional: CPAs and physicians
- what is political free speech?
- unrestricted; businesses can have political opinions
- what is commercial speech?
- substantial interest to regulate and no other way to accomplish goal
- can a state condemb property through regulation?
- yes, a state passes a law prohibiting a property owner from building a home on their beachfront lot
- what is procedural due process?
- must be a notice, must be allowed to be heard (opportunity to be heard, notice of proceedings)
- what is substantive due process?
- requires laws to apply equally to all and not deny property or rights without prior notice. must give justification. (what law is about; what is it designed to do or achieve)
- when can a state deny someone equal protection of its laws?
- on a rational basis
- what is a postivist?
- believes law is ethics
- what is a relativist?
- based on the situation, applies ethical standards (thinks through decision)
- what is pragmatism?
- very practical, doesn't impose value or judgment
- what are the benefits of ethics to a business?
- gives you a good reputation leading to good business. employees follow the code. reputation valuable, repeat business is a strategy
- what are the models of ethics?
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1. golden rule-most religions
2. peale-blanchard-is it legal? is it balanced? how does it make you feel? can you sleep at night? - what are the rights of shareholders?
- attend regular meetings, vote if stock allows them to, vote by proxy, inspect books and records for a proper purpose, pooling arrangement or voting trust
- what is the business judgment rule?
- can make mistakes, but have to be reasonable. cannot benefit personally over a corporate opportunity.
- what is piercing the corp. veil?
- courts can pierce the corp. veil if the corp. is undercapitalized or under alter ego theory (individual avoiding liability)
- US v. Morrison
- congress cannot regulate criminal conduct even if it has an aggregate affect on the economic situation
- Santitary landfill v. Michigan
- when one is involved in Interstate Commerce one must be current on regulations that affect one's industry
- Quill Corp. v. North Dakota
- any company doing substantial amount of business in a state should expect to pay taxes to the state regardless of whether or not they have a physical presence in the state because there is a nexus, a sufficient connection between the corp.
- Geier v. Honda
- a business should aspire to manufacture the recommended passive safety restraints, but is not legally liable for having the recommended passive safety restraints
- nike v. kosky
- not engaging in mistreatment within labor force (providing good working conditions. realize effect of false advertising.
- boston v. betotti
- corporations have individual rights. they have rights to political free speech. it interferes with the 1st amendment for the state to take away this right