Business Law Midterm Review PDF

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Ronald Scheinberg...

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BUL Midterm 50 multiple choice and 20 point ethics exam no scantron Go over end of chapter questions. Chapter 1- Introduction -Business law- enforceable rules of conduct on commercial relationships. -Public law- controls disputes between private individuals/groups and their government. -Private law- regulates disputes between private individuals/groups -Violation of local, state or federal law is public. -Case law- also known as common law is legal interpretations made by judges. -Case law interpretations are law unless revoked later by new statutory law. -Constitutions and statutes never cover all detailed rules between gov and business -Laws are enforced by courts. -Civil law- body of law that governs the rights and responsibilities between persons and gov. -Criminal- classification of law involving rights and responsibilities the individual has with respect to the public. Schools of jurisprudence “legality” -Natural law- e.g. declaration of independence -Legal positivism- follow the law not moral code -Identification with the vulnerable(social justice) -Historical school- tradition -Legal realism- consider social and economic matters -Cost benefit analysis e.g industrial safety or syllabus review Chapter 2- Ethics - Law provides floor to business ethics -Ultimate duty is to shareholders, but the profit motive drives duty to customers, community, employees -Ethics are guideline or standard but no right or wrong answer to ethical dilemmas -Who- is being affected by the decision -Purpose- values behind the decision (freedom, security, justice, efficiency) -How- guidelines to the decision (public disclosure, universalization, golden rule) -Public disclosure- would the company act different if information were public? -Universalization- consider what the world would be like if your decisions were copied -Ethical firewalls (relationships)- anti-nepotism rules and corporate policies Chapter 3- US Legal System -Original jurisdiction- power to hear and decide new cases to legal system -Appellate jurisdiction- power to review previous judicial decisions to determine trial error -In personam- power to render decision of person before the court -In rem- power to render a decision of specific property before the court -Subject-matter- power to hear certain kinds of cases

-Federal jurisdiction- admiralty, bankruptcy, federal criminal prosecutions, claims against US, federal patent/trademark/copyright, federal statutes. -Subject-matter concurrent federal jurisdiction- federal-question cases, diversity of citizenship + $75000, can be brought to state unless parties chose to become federally heard -Litigation requirements- standing (to sue), controversy, ripeness Chapter 4- Alternative Dispute Resolution -ADR- resolution of disputes with alternative methods such as negotiation, mediation, arbitration -Unconscionable arbitration- unfair and dictated by dominant party -Decisions made during mediation and arbitration that are signed are binding. -Court-annexed ADR- district courts can decide whether to require ADR -Litigation is challenging internationally so ADR is preferred Chapter 5- Constitutional Principles -Federalism- authority is divided between state and federal governments, allocates power among 3 federal branches (legislative, executive, judicial) -Checks and Balances -Legislative over Executive- refuse approval of president budget, override presidential vetoes, refuse ratification of treaties, impeach president -Legislative over Judicial- pass amendments to overrule judicial rulings, impeach judges -Executive over Legislative- veto laws by legislative, call special sessions of Congress -Executive over Judicial- appoints federal judges, can pardon offenders -Judicial over Legislative- can declare laws by Congress unconstitutional, judicial review(marbury vs madison written by chief justice john marshall) -Judicial over Executive- declare acts of executive branch unconstitutional, gives no independent enforcement ability -Supremacy Clause- Supreme law of the land, any state or local law is void if conflicts with fed -Commerce Clause- primary source of authority for federal regulation of business -1st Amendment- protects freedom of speech -2nd Amendment- right to bear arms -3rd Amendment- gov cannot house soldiers in private residences -4th Amendment- protects from unreasonable search without warrant -5th Amendment- privilege against self incrimination, prevents double jeopardy, government cannot take private property for public use without comp -Procedural due process- procedures for taking life, liberty, and property -Substantive due process- fairness of laws for taking life, liberty, and property -6th Amendment- right to speedy trial and attorney. -7th Amendment- right to jury trial where monetary value is over $20 -8th Amendment- no excessive bail or cruel punishment -9th Amendment- bill of rights names some but not all rights -10th Amendment- power not given to federal gov is given to states -14th Amendment- “equal protection of the law” -Strict scrutiny test- applies to classifications based on race, national origin or citizenship that prevent exercising of fundamental rights

-Intermediate scrutiny test- applies to classifications based on gender or legitimacy of children -Rational-basis test- applies to all other matters 21st Amendment- repealed prohibition Chapter 7- Crime and the Business Community -Actus reus- wrongful behavior -Mens rea- wrongful state of mind -Corporations can be held criminally accountable for almost any crime except those punishable with prison. -Corporate executives may be personally liable for a business crime. -Vicarious crime- when employers are liable for wrongful acts of employees in some instances -Exclusionary rule- definition all evidence obtained in violation of the 4th, 5th and 6th amendments is not admissible in court “fruit of the poisonous tree” “inevitable discovery” -Williams Act- prohibits bribery (criminal act in US) overseas as well -Important to keep in mind that when doing business overseas, the laws of both countries must be followed -Sarbanes Oxley Act- made certain laws in light of Enron, WorldCom etc. cases to set higher standards for business activity (corporate and criminal fraud accountability act) -RICO Act- prohibits racketeering(organized crime) by persons involved in the corrupt organization(mob) -False Claims Act- allows whistleblower employees to sue on behalf of the federal government and retain share of recovery Chapter 8- Tort Law -Tort- interpersonal harm other than a breach of contract -Purpose of tort law is to compensate innocent injured parties, prevent private retaliation, reinforce justice in society, deter future wrongs -Intentional torts- when defendant take actions intending a certain result -Negligent torts- when defendant acts in a way that subjects others to harm -Strict liability torts-when defendant takes action that cannot ever be undertaken safely -Compensatory damages- an award that makes plaintiff whole again -Nominal damages- minimal amount ($1) to represent wrongful behavior -Punitive damages- damages that punish defendant and deter future misconduct Chapter 9- Negligence and Strict Liability -Negligence- behavior that creates an unreasonable risk to others -Duty- standard of care a reasonable person owes to another -Breach of duty- failure to live up to the standard of care -Actual cause- defendants breach of duty resulted directly in plaintiff’s injury -Proximate cause- as a matter of policy a defendant may be held liable for the consequences of his actions -Damages- compensable loss suffered by plaintiff -Palsgraf case- fireworks going off at train station, questions liability for unforseeable damage

-Compensatory damages- damages intended to reimburse plaintiff for losses -Punitive damages- imposed to punish defendant and deter others from similar acts -Res ipsa loquitur- “the thing speaks for itself” lack of due care -Negligence per se- permits plaintiff to prove negligence by offering evidence of defendants violation -Contributory negligence- allows defendant to avoid liability by showing plaintiff’s own harmful conduct contributed -Comparative negligence- allows appointment of liability between plaintiff and defendant. -Assumption of risk- allows defendant to avoid liability by showing plaintiff willingly engaged -Strict liability doctrine- imposes liability without fault, persons who engage understand danger, dram shop acts, product liability Chapter 12- Intellectual Property -Trademark- distinctive mark, word, design, picture or arrangement used by producer that customers identify a product with, good for 10 years renewable forever -Copyrights- original not “new” tangible good that is an expression of an idea, not functional, good for authors life +70 years or 95 years (work for hire) -Patents- limited monopoly that excludes others from making, using and selling, good for 20 years, can be a process, software, machine -Trade secret- sufficiently secret information to derive economic value, efforts to remain secret...