Business Law Final Exam: Torts, Contracts, Bankruptcy, and Regulations

What are the elements needed to establish negligence in torts?

Duty of care, breach of duty of care, causation, and damages.

What is meant by 'duty of care' in negligence?

The legal obligation to avoid causing harm to others.

What does 'breach of duty of care' refer to?

The failure to meet the standard of care that a reasonable person would exercise in a similar situation.

What is 'causation' in the context of negligence?

The connection between the breach of duty and the damages incurred.

What are 'damages' in negligence cases?

The actual losses suffered by the plaintiff as a result of the defendant's actions.

What are the differences among Chapter 7, Chapter 11, and Chapter 13 bankruptcy?

Chapter 7 involves liquidation of assets, Chapter 11 is for business reorganization, and Chapter 13 is for individual debt reorganization.

What is a copyright?

A legal right that grants the creator of original works exclusive rights to its use and distribution.

What is a trademark?

A symbol, word, or words legally registered or established by use as representing a company or product.

What is a patent?

An exclusive right granted for an invention, which provides the patent holder the right to exclude others from making, using, or selling the invention.

What is a trade secret?

Information that is not generally known or reasonably ascertainable, which gives a business advantage over competitors.

What types of contracts are considered void and voidable?

Void contracts are unenforceable from the beginning, while voidable contracts are valid until one party chooses to void them.

What is 'employment at will'?

A type of employment relationship where either party can terminate the employment at any time without cause.

What are Title VII Rights?

Rights under the Civil Rights Act of 1964 that prohibit employment discrimination based on race, color, religion, sex, or national origin.

Who does Title VII apply to?

It applies to employers with 15 or more employees, labor unions, and employment agencies.

What are some exceptions and defenses available to employers under Title VII?

Bona fide occupational qualifications (BFOQs) and business necessity.

What is an insurance policy?

A contract between an insurer and a policyholder outlining coverage, terms, and conditions.

What are the two broad categories of insurance?

Public and Private insurance.

What governmental agencies regulate business?

The Federal Trade Commission (FTC) and the Equal Employment Opportunity Commission (EEOC).

What types of damages are available in civil suits?

Compensatory damages and punitive damages.

What judgments can be rendered in a criminal suit?

Confinement, fines, and probation.

What is the UCC?

The Uniform Commercial Code, which governs commercial transactions in the United States. (the sale of goods)

What are the differences among strict liability, negligence, and intentional torts?

Strict liability does not require proof of negligence or intent, negligence involves a breach of duty, and intentional torts involve deliberate actions.

What are the elements of a contract?

Offer, acceptance, consideration, capacity, and legality.

What are alternatives to litigation in dispute resolution?

Mediation and arbitration.

What is the significance of filing a complaint in litigation?

It initiates the lawsuit process, followed by an answer and discovery.

Where did privacy laws originate?

Privacy laws originated primarily in Europe, designed to protect personal information.

State Insurance Departments

Body of government entrusted to regulate insurance - Government agencies at the state level responsible for overseeing the insurance industry, ensuring compliance with state laws and protecting consumers.

National Association of Insurance Commissioners (NAIC)

A collective organization of state insurance regulators that develops model laws and regulations to promote uniformity across states.

Consumer Financial Protection Bureau (CFPB)

A federal agency that oversees certain aspects of insurance products, particularly those related to consumer finance.

Federal Trade Commission (FTC)

An independent agency of the U.S. government that aims to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices.

Consumer Protection

A key function of the FTC that involves safeguarding consumers from fraud, misleading advertisements, and unfair business practices.

Equal Employment Opportunity Commission (EEOC)

A federal agency responsible for enforcing laws against workplace discrimination and ensuring equal employment opportunities for all individuals.

Title VII of the Civil Rights Act

A major law enforced by the EEOC that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Workplace Harassment

A form of discrimination that the EEOC addresses, which includes unwelcome conduct based on protected characteristics that creates a hostile work environment.

Discrimination Claims

Complaints filed with the EEOC by individuals who believe they have been discriminated against in the workplace, which the agency investigates.

Mediation and Settlement

Processes offered by the EEOC to resolve discrimination disputes between employees and employers before they escalate to litigation.

Uniform Commercial Code (UCC)

A comprehensive set of laws governing commercial transactions (sale of goods) in the United States, aimed at harmonizing and standardizing laws across states.

Article 2

A section of the UCC that deals specifically with the sale of goods, outlining the rights and obligations of buyers and sellers.

Article 9

A part of the UCC that governs secured transactions, detailing how security interests in personal property are created and enforced.

What is the basis of the lawsuit filed by Sarah Silverman and others against OpenAI?

The lawsuit alleges that OpenAI unlawfully copied books written by the plaintiffs without permission and used them to create derivative works.

What are large language models (LLMs) considered in relation to the works of authors?

LLMs are considered derivative works because they rely on the creative content derived from the authors' works.

What specific allegations are made against OpenAI in the lawsuit?

The allegations include direct copyright infringement, vicarious copyright infringement, violation of the U.S. Digital Millennium Copyright Act, unfair competition, and negligence.

What two web-based corpora did OpenAI reveal were part of GPT-3's training set?

One is Project Gutenberg, and the other includes books that were unlawfully copied.

What privacy law violations are alleged against OpenAI and Microsoft?

The lawsuit alleges they collected large amounts of personal data from the Internet without consent.

What types of personal data were allegedly collected by OpenAI and Microsoft?

Data collected included private interactions from social networks, photos, location data, musical preferences from Spotify, and conversations from Slack and Microsoft Teams.

What did the lawsuit against Google claim regarding data collection?

It claimed that Google collected massive amounts of personal and professional data, copyrighted works, photographs, emails, and more without consent.

What are the four factors considered in determining fair use of copyrighted material?

1. Purpose of use (e.g., criticism, comment, news reporting, education); 2. Nature of the copyrighted work; 3. Amount used; 4. Potential impact on the market value of the original work.

What historical case established the principle of judicial review in the U.S.?

Marbury v. Madison.

What was the Supreme Court's ruling in Marbury v. Madison regarding Marbury's commission?

The Court ruled that Marbury had a legal right to his commission and that his remedy was a writ of mandamus.

What did Chief Justice Marshall argue about the Judiciary Act of 1789 in Marbury v. Madison?

He argued that the provision granting the Court the power to issue writs of mandamus was unconstitutional because it exceeded the Court's jurisdiction.

What is the significance of the decision in Marbury v. Madison?

It established the principle that it is the Court's duty to determine the constitutionality of laws and invalidate those that conflict with the Constitution.

What does consideration in contract law refer to?

Consideration refers to the value exchanged between parties in a contract, where both parties provide something of value.

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a contract.

Offer

A proposal made by one party to another indicating a willingness to enter into a contract.

Acceptance

The agreement by the offeree to the terms of the offer, resulting in a binding contract.

Consideration

Something of value exchanged between parties in a contract, which is necessary for the contract to be enforceable.

Capacity

The legal ability of parties to enter into a contract, typically requiring them to be of sound mind and of legal age.

Void Contract

A contract that is not legally enforceable from the moment it is created.

Voidable Contract

A valid contract that can be legally voided at the option of one of the parties.

Unilateral Contract

A contract in which one party makes a promise in exchange for the performance of an act by another party.

Bilateral Contract

A contract in which both parties exchange promises to perform certain actions.

Legislature

The branch of government responsible for making laws, typically consisting of elected representatives.

Congress

The national legislative body of the United States, composed of the Senate and the House of Representatives.

Parliament

The supreme legislative body in the United Kingdom, consisting of the House of Commons and the House of Lords.

Assembly

A group of representatives or delegates convened to discuss and make decisions on legislative matters.

Senate

A legislative chamber in various governments, often serving as the upper house in a bicameral legislature.

House of Representatives

The lower chamber of a bicameral legislature, typically representing smaller districts and larger populations.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, among the several states, and with the Indian tribes.

Interstate Commerce Commission (ICC)

A regulatory agency in the United States established to oversee and regulate railroad rates and practices, later expanded to include other forms of transportation.

Supremacy Clause

A clause in the United States Constitution stating that federal law takes precedence over state laws when there is a conflict.

What is cyber insurance?

A type of insurance designed to protect businesses and individuals from financial losses resulting from cyber incidents.

What recent insurance trend is likely to be a major factor for businesses in the future?

Cyber insurance.

What types of incidents does cyber insurance protect against?

Data breaches, hacking, and other cyber threats.