Year 10 Business and the Law Exam Revision

Legal rules

Created by law making bodies that apply to all members of society. If legal rules are breached or broken, they are enforceable through the courts

Example of a Legal rule

Murder, Manslaughter,

Non-Legal Rules

Created by leaders of groups and organisations that apply to members of groups and organisations. If breached or broken, they are enforceable by the people who make the rule

Example of a Non-Legal rule

Students must follow dress codes or punctuality guidelines

Criminal law

An area of law that aims to protect society from harm by defining prohibited behaviours and outlining sanctions for those who participate in illegal conduct

Parties involved in criminal law

Prosecution and defendant

Prosecution - Criminal law

Refers to the legal team that brings charges against someone accused of a crime.

Defendant - Criminal law

Refers to the person being accused of a crime and defending themselves against those charges

Beyond a reasonable doubt - CRIMINAL

The standard of proof for beyond a reasonable doubt is so high that there leaves no reason for a reasonable alternative or alternative explanations in the minds of the judge or jury hearing the case

Burden of proof - CRIMINAL

The burden of proof is on the prosecution in a criminal case, meaning they bear the responsibility of proving the facts of the case and guilt of the accused/defendant

Civil law

An area of law that defines the rights and responsibilities of individuals, government entities, and organisations, and provides legal framework for when these parties interact with each other

Civil law example

A landlord might have to compensate for damage caused by failing to fix a leaking roof

Parties involved in civil law

Plaintiff and defendant

Plaintiff

The part making the claim that their rights have been allegedly breached

Defendant - Civil law

Party who allegedly inflicted the plaintiffs suffering or loss

The role of evidence in civil law

The burden of proof is on the plaintiff, meaning they have the responsibility of proving the defendant is liable for the action that caused harm, loss or damage

Burden of proof "Balance of probabilities" in civil law

The plaintiff must prove the defendant is liable on the balance of probabilities, meaning it is more probable than not that the defendant was responsible for the plaintiffs loss or suffering.

50% or more - Judge and jury

Crime

A act or omission that is against an existing law which is punishable by law

Crime example

Arson, Murder, Theft, Manslaughter, Assault

First feature of a crime

Crime is an act which is against an existing law

Stealing property is illegal - Crime

Being rude is not illegal - Not a crime

Second feature of a crime

Crime causes harm to individuals and society; Physical, psychological or financial loss

Third feature of a crime

Crimes are prosecuted by the state. E.g police or the office of public prosecution; This separates crimes from civil wrongs, where individuals/organisations sue each other

Characteristics of an effective law

Reflects societies values, is enforceable, is known, is clear and understood, is stable

Reflects societies values

The law upholds what the majority of society accepts and believes in for example same sex marriage

Is enforcable

It is possible to monitor people whether people abide by the law allowing consequences to be provided for example road rules

Is known

individuals can comprehend it and abide by it for example road homicide

Is clear and understood

People are aware of a law and any changes to it with adequate time for example road signs

Is stable

The law does not change too often for example market share

Bail

The temporary release of an individual who has been charged with a criminal offence, pending trial or hearing

Remand

Refers to the act of sending a person who has been arrested into custody while awaiting trial

Prosecutor

The state or federal government attorney in a criminal case, to prove that the person accused of the crime did commit the offence with beyond a reasonable doubt

Jury

A group of people sworn to abide by the laws to determine the truth with a unbiased opinion

Judge

a person chosen to interpret laws, decide on a winner, or settle a controversy

Suspect

The person who is suspected of having committed a crime

Charge

When the police formally allege that a person has committed a crime

Sentence

The punishment handed out to a guilty offender

Conviction

When an offender has been found guilty, the court records a conviction (the guilty verdict) to keep a criminal record of that person

Actus Reus

A guilty act that forms for the physical element that refers to the physical acts or omissions that the offender must have undertaken

Mens rea

A guilty act that forms the mental element of a crime and refers to an offenders awareness of their criminal behaviour and its potential consequences

Summary offence

A minor criminal offence usually heard in the Magistrates court

Summary offence examples

Minor offences like disorderly conduct, driving offences, common assault, property damage

Indictable offence

A serious criminal offence generally heard by a judge and jury in the country or supreme court

Indictable offence examples

Major offences such as murder, kidnapping, stalking and culpable driving causing death

Age of criminal responsibility

The age at which the law considers a child capable of understanding their wrongful actions which the child can face criminal charges

Criminal Court Hierarchy

The hierarchy of the court system based on severity of the crime

High court of Australia

The highest court in the country that interprets and applies the law of Australia, deciding the cases of federal significance. E.g Constitutional Matters and hears appears for the lower courts

Supreme court (Court of appeal)

The court that specialises criminal appeals by hearing cases where someone wants to challenge a decision about serious crimes, focusing of making sure the law is applied correctly E.g Mokbel vs The King or Frank Orman Vs The queen

Supreme court (trial division)

The court that hears the most serious indicatable offences and has developed its own specialisation in those types of crime and the elements of each crime E.g Murder and manslaughter

County court

The court that has developed expertise in hearing particular types of indictable offences E.g Sexual offences and theft

Magistrates court

The court that is familiar with cases involving summary offences that need to be dealt with quickly and efficiently as well as committal proceedings E.g Drink driving and traffic offences

Original Jurisdiction

The legal power of a court or other authority to hear a case for the first time

Appellate Jurisdicition

The legal power of a court to review a decision of a lower court or tribunal on a appeal

Specialisation

The process of a court developing expertise in a particular area of a law as a result of hearing similar matters regularly

Administrative Convienience

The systemic benefit derived from legal matters being distributed against court according to their complexity and severity

Appeals

A legal process that a dissatisfied party may pursue having a courts decision revied by a higher court

Sanction

A penalty imposed by a court on an offender when they plead guilty or found guilty of a crime

Operations management

Involves coordinating activities involved in producing the goods and services that a business sells to its customers

Human Resources Management

The process of managing the relationship between employees and the business

Marketing

The process of implementing strategies to price, promote, and distribute products to customers

Finance

An area of management that handles the monetary requirements of a business so it can start, function and grow

What is a business? a business is …

an organisation that provides products (goods and/or services) to consumers to make a profit

Unincorporated

When the business owner and the business are viewed as the same legal entity

Incorperated

The establishment of the business owner and the business as separate legal entities

Unlimited liability

When the business owner is held personally responsible for the business's debts

Limted liability

When the business owner is not held personally responsible for the business's debts

Australian Securities Exchange (ASX)

Where companies can raise money by selling shares publicly to investors who will then have partial ownership of the company

Shareholders

Shareholders are part owners of a business as they purchase company shares

Profits

The total revenue earned minus total expenses incurred

Dividends

Regular sums of money paid out to shareholders for a business's profit

Sole Trader

a type of business owned by one person

Features of a sole trader

Simple and cost effective, Unincorporated, Unlimited liability, can retain all profits, makes all business decisions

Partnership

A partnership is a type of business owned by 2-20 people

Features of a Partnership

Simple and cost effective, partners share profits, unlimited liability, disputes between partners can occur, partnerships can be made verbally or in a written agreement

Private Limited Company

a type of business with 1-50 private shareholders who are specifically selected and approved by the business

Features of a Private Limited Company

Incorporated, Limited liability, greater ability to raise funds by inviting investors into the business

Public Listed Company

A public listed company is a type of business with unlimited number of shareholders, and whose shares are freely traded on a stock exchange

Features of a Public Listed Company

Incorporated, Shareholders earn a portion of business profits through dividends, strict government regulations, limited liability, greater ability to raise funds

Business objectives

Business objectives are the desired outcome that a business intends to achieve within a specified period of time, which guides the direction and decision making of the business

Expenses

are the cost of operating a business

Revenue

The amount of money a business generates from its normal business activities

To make a profit

Profit is the money earned from deducting expenses from revenue. Revenue is the income earned such as sales, where expenses are the costs of the business such as materials and wages

To increase market share

Market share is a business's portion of the total industry sales for a particular good or service expressed as a percentage, compared to its competitors

To meet shareholder expectations

To meet shareholder expectations involves ensuring shareholders receive a return on their investment

To fulfil a social need

To fulfil a social need involves focusing on providing goods or services with a purpose of making the world a better place

Communication Flow

Refers to the direction of information transfer between managers and employees

One way communication

Orders are one way usually from the manager to the employee directly (Top down)

Two way communication

Both the manager and the employee are communicating with each other

Decision making

Refers to determining a course of action for a business from a set of alternatives

Centralised Decision making

Manager makes all decisions

Decentralised Decision making

Manager and employees make decisions collaboratively

Control

Refers to managers using a level of supervision and direction when managing employees

Centralised Control

Manager has all the control in business decisions

Decentralised Control

Employees have a say in business decisions

Level of employee involvement

Refers to the level of engagement within the company: Low Medium High

Autocratic Management Style

When the manager tells employees the decisions that have been made and what to do

Characteristics of a Autocratic Management Style

One way communication, Centralised Decision making, Centralised Control, Low employee involvement

Persuasive Management Style

When the manager provides additional information in order to 'sell' the decisions and convince employees

Characteristics of a Persuasive Management Style

One way communication, Centralised Decision making, Centralised Control, Low employee involvement

Consultative Management Style

Where the manager seeks feedback from employees before making a decision

Characteristics of a Consultative Management Style

Two way communication, Centralised Decision making, Centralised control, Medium employee involvement