DECA Flashcard Set - Principles Test Questions

Business Administrations Core Test: Business Law

Comply with the Spirit and Intent of Laws and Regulations: What is it relating to business?

Businesses must follow not only the letter (explicit wording) of the law but also its intent (underlying purpose).

Comply with the Spirit and Intent of Laws and Regulations: What is the ethical side of this?

Moral compliance includes avoiding loopholes and acting in good faith

Comply with the Spirit and Intent of Laws and Regulations: Examples of this?

Truthful advertising, fair labor practices, and transparent financial reporting.

Discuss the Nature of Law and Sources of Law in the United States: Nature of Law

Laws maintain order, resolve disputes, and protect rights.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Constitutional Law

U.S. Constitution (supreme law) and state constitutions.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Statutory Law

Laws passed by Congress or state legislatures.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law

Regulations from government agencies (e.g., SEC, FDA).

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (Examples)

The SEC (Securities and Exchange Commission) and FDA (Food and Drug Administration)

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (What is the SEC?)

• Regulates financial markets and protects investors.

• Ensures companies provide truthful financial disclosures (e.g., stock reports, earnings).

• Enforces laws against insider trading, fraud, and market manipulation.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (Example of what the SEC has done:)

Prosecuted Enron (a company) for fraudulent accounting practices.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (What is the FDA?)

• Regulates food, drugs, medical devices, and cosmetics.

• Ensures products are safe, effective, and properly labeled before they reach consumers.

• Enforces laws on food safety, prescription drugs, and tobacco products.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (What is an example of what the FDA can do?)

The FDA can recall unsafe food or drugs from the market.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Administrative Law (How does the SEC and FDA relate to Administrative Law?)

• Administrative law allows government agencies to create and enforce regulations based on laws passed by Congress.

• Agencies like the SEC and FDA function under administrative law, meaning they have the power to issue rules, investigate violations, and impose penalties.

• Businesses must comply with agency regulations or face fines, lawsuits, or even shutdowns.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Common Law

Court decisions and legal precedents.

Discuss the Nature of Law and Sources of Law in the United States: Sources of Law in the US - Case Law

Judicial rulings that interpret statutes and previous decisions.

Describe the United States’ Judicial System: Dual Court Systems - What are the two types of dual court systems?

• Federal Courts

• State Courts

Describe the United States’ Judicial System: Dual Court Systems - Federal Courts

U.S. Supreme Court, Courts of Appeals, and District Courts.

Describe the United States’ Judicial System: Dual Court Systems - State Courts

State Supreme Courts, Appeals Courts, and Trial Courts.

Describe the United States’ Judicial System: Types of Cases - What are the two types of cases?

• Criminal Law

• Civil Law

Describe the United States’ Judicial System: Types of Cases - Criminal Law

Government prosecutes individuals for crimes.

Describe the United States’ Judicial System: Types of Cases - Civil Law

Filing lawsuits, trials, appeals, and enforcement of rulings.

Describe the United States’ Judicial System: Legal Processes

Filing lawsuits, trials, appeals, and enforcement of rulings.

Describe Methods Used to Protect Intellectual Property: What are the four methods to protect intellectual property?

• Trademarks

• Copyrights

• Patents

• Trade Secrets

Describe Methods Used to Protect Intellectual Property: Trademark Definition + Example(s)-

• Protect brand names, logos, and slogans

• e.g., Nike swoosh

Describe Methods Used to Protect Intellectual Property: Copyright Definition

• Used to protect creative works, such as books, music, and software

Describe Methods Used to Protect Intellectual Property: Patents Definition + how long they last

• Protects inventions and new technologies

• Lasts 20 years

Describe Methods Used to Protect Intellectual Property: Trade Secrets Definition + Example(s)

• Protect confidential business information

• e.g., Coca-Cola formula

Describe Legal Issues Affecting Businesses: What are the 5 types of legal issues that affect business?

• Contracts

• Employment Law

• Consumer Protection

• Antitrust Laws

• Environmental Laws

Describe Legal Issues Affecting Businesses: Contract Definition + Example(s)

• Enforceable agreements between parties

• e.g., sales contracts, employment agreements

Describe Legal Issues Affecting Businesses: Employment Law Definition

Anti-discrimination laws, workplace safety, wage regulations.

Describe Legal Issues Affecting Businesses: Consumer Protection Definition

False advertising, product safety, data privacy laws.

Describe Legal Issues Affecting Businesses: Antitrust Laws Definition

Prevent monopolies and unfair competition.

Describe Legal Issues Affecting Businesses: Environmental Law

Regulations on pollution, sustainability, and waste disposal.

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - What are Torts

Torts are civil wrongs (not criminal) that cause harm to individuals or businesses.

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - What are the 3 types of torts

• Intentional Torts

• Negligence

• Strict Liability

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - Intentional Torts

Actions done on purpose

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - Types of Intentional Torts

• Fraud (deception for financial gain)

• Defamation (false statements harming reputation)

• Trespassing (unauthorized use of property)

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - Negligence Tort + Example(s)

• Failing to exercise reasonable care, leading to harm

• e.g., a store not cleaning up a spill, causing a customer to slip and fall

Understanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating toUnderstanding the Civil Foundations of the Legal Environment of Business: 1. Identify the Basic Torts Relating to Business - Strict Liability

Liability without fault, often applied to defective products.

Understanding the Civil Foundations of the Legal Environment of Business: 2. Describe the Nature of Legally Binding Contracts - What is it?

A contract is a legally enforceable agreement.

Understanding the Civil Foundations of the Legal Environment of Business: 2. Describe the Nature of Legally Binding Contracts - Key Elements in a Contract that’s Legally Enforcable

• Offer: One party proposes terms.

• Acceptance: The other party agrees to the terms.

• Consideration: Each party exchanges something of value (money, services, goods).

• Legality: The contract must follow the law.

• Capacity: Parties must be legally able to enter a contract (e.g., not minors or mentally incapacitated individuals).

Exploring the Regulatory Environment of US Businesses: 3. Describe the Nature of Legal Procedure - What is legal procedure?

Legal procedure refers to the rules courts follow to resolve disputes.

Exploring the Regulatory Environment of US Businesses: 3. Describe the Nature of Legal Procedure - What are the 3 types of legal procedures?

• Civil Procedure

• Criminal Procedure

• Due Process

Exploring the Regulatory Environment of US Businesses: 3. Describe the Nature of Legal Procedure - Civil Procedure

Lawsuits begin with a complaint, followed by pre-trial motions, discovery (gathering evidence), trial, and possible appeal.

Exploring the Regulatory Environment of US Businesses: 3. Describe the Nature of Legal Procedure - Criminal Procedure

Includes arrest, arraignment, trial, sentencing, and appeals.

Exploring the Regulatory Environment of US Businesses: 3. Describe the Nature of Legal Procedure - Due Process

Ensures fair treatment in legal matters (right to a fair trial, legal representation).

Exploring the Regulatory Environment of US Businesses: 4. Discuss the Nature of Debtor-Creditor Relationships - Debtors

Individuals or businesses that owe money.

Exploring the Regulatory Environment of US Businesses: 4. Discuss the Nature of Debtor-Creditor Relationships - Creditors

Lenders or suppliers owed money.

Exploring the Regulatory Environment of US Businesses: 4. Discuss the Nature of Debtor-Creditor Relationships - Laws Protecting Creditors & Debtors (3):

• Fair Debt Collection Practices Act (prevents harassment by collectors).

• Bankruptcy laws (help debtors discharge or restructure debt).

• Secured vs. unsecured credit (secured loans require collateral).

Explain the Nature of Agency Relationships: What is an agency relationship?

An agency relationship exists when one party (agent) acts on behalf of another (principal).

Explain the Nature of Agency Relationships: Types of Agency- What are the three types of agency?

• Express

• Implied

• Apparent

Explain the Nature of Agency Relationships: Types of Agency- Express

Clearly agreed upon (e.g., hiring a real estate agent).

Explain the Nature of Agency Relationships: Types of Agency- Implied

Based on actions (e.g., an employee making purchases for a company).

Explain the Nature of Agency Relationships: Types of Agency- Applied

When a third party reasonably believes an agent has authority.

Explain the Nature of Agency Relationships: Legal Duties

Agents must act in the best interest of the principal.

Discuss the Nature of Environmental Law: What are environmental laws?

Environmental laws regulate business activities that impact nature.

Discuss the Nature of Environmental Law: What are the three types of environmental laws?

• Clean Air Act (limits air pollution).

• Clean Water Act (regulates waste disposal into water).

• Environmental Protection Agency (EPA) enforces these laws.

Discuss the Role of Administrative Law: What is administrative law govern?

Government agencies (e.g., SEC, OSHA, FDA).

Discuss the Role of Administrative Law: What does administrative law agencies do?

Agencies create and enforce regulations, handle disputes, and issue penalties.

Discuss the Role of Administrative Law: What is the relationship between businesses and administrative law agencies?

Businesses must comply with agency rules or face fines, lawsuits, or shutdowns.

Applying Knowledge of Business Ownership: Applying Knowledge of Business Ownership - What are the types of ownership?

• Sole Proprietorship

• Partnership

• Corporation

• LLC (Limited Liability Company)

Applying Knowledge of Business Ownership: Applying Knowledge of Business Ownership - Sole Proprietorship

Single owner, easy to start, but unlimited liability.

Applying Knowledge of Business Ownership: Applying Knowledge of Business Ownership - Partnership

Two or more owners, shared profits/liabilities.

Applying Knowledge of Business Ownership: Applying Knowledge of Business Ownership - Corporation

Separate legal entity, limited liability, but complex regulations.

Applying Knowledge of Business Ownership: Applying Knowledge of Business Ownership - LLC(Limited Liability Company)

Mix of corporation and partnership benefits.

Acquiring Knowledge of Commerce Laws and Regulations: Explain the Nature of Import/Export Law - What are the three different types of import/export laws

• Import Laws

• Export Laws

• Trade Agreement

Acquiring Knowledge of Commerce Laws and Regulations: Explain the NatAcquiring Knowledge of Commerce Laws and Regulations: Explain the Nature of Import/Export Law - Import Laws

Govern goods entering a country (tariffs, safety regulations).

Acquiring Knowledge of Commerce Laws and Regulations: Explain the Nature of Import/Export Law - Export Laws

Control goods leaving a country (licenses, trade restrictions).

Acquiring Knowledge of Commerce Laws and Regulations: Explain the Nature of Import/Export Law - Trade Agreements

NAFTA (North America Free Train Agreement), USMCA (United States-Mexico-Canada Agreement), and the WTO (World Trade Organization) all affect global business operations.

Acquiring Knowledge of Commerce Laws and Regulations: Describe the Nature of Customs Regulations - What do Custom Agencies Do?

Customs agencies (like U.S. Customs and Border Protection) regulate imports/exports.

Acquiring Knowledge of Commerce Laws and Regulations: Describe the Nature of Customs Regulations - What two things apply to certain goods?

Duties and tariffs

Acquiring Knowledge of Commerce Laws and Regulations: Describe the Nature of Customs Regulations - Why is it important to comply with documentation requirements?

Prevents shipment delays or fines.