Fundamentals of Business Law

Contracts

legally binding agreements between two or more parties

Essential elements of a contract

offer, acceptance, consideration (exchange of value), capacity (legal ability to enter a contract), and legality (contract must be for a legal purpose)

Types of contracts

bilateral (both parties make promises), unilateral (only one party makes a promise), express (terms stated orally or in writing), implied (terms inferred from conduct), valid, void (legally unenforceable), voidable (can be canceled by one party), and unenforceable

Breach of contract

occurs when a party fails to fulfill their contractual obligations

Remedies for breach of contract

damages (monetary compensation), specific performance (court order to fulfill the contract), and restitution (restoring the non-breaching party to their original position)

Torts

civil wrongs that cause harm or injury to another person or their property

Intentional torts

purposeful actions (battery, assault, false imprisonment,trespass,etc)

Negligence

occurs when a person fails to exercise reasonable care, resulting in harm to another

Elements of negligence

include duty of care (legal obligation to act reasonably), breach of duty, causation (link between breach and harm), and damages (actual harm suffered)

Strict liability

holds a party responsible for damages regardless of fault, often applied in cases of product liability (defective or dangerous products) and abnormally dangerous activities (e.g., handling explosives)

Employment regulations

govern the relationship between employers and employees

Fair Labor Standards Act (FLSA)

sets standards for minimum wage, overtime pay, and child labor

Occupational Safety and Health Act (OSHA)

requires employers to provide a safe and healthful work environment

Equal Employment Opportunity Commission (EEOC)

enforces laws prohibiting discrimination based on protected characteristics such as race, color, religion, sex, national origin, age, disability, or genetic information

Family and Medical Leave Act (FMLA)

entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons (e.g., birth of a child, serious health condition)

Negotiation

a voluntary process where parties attempt to reach a mutually acceptable agreement without third-party intervention

Negotiation advantages

cost-effectiveness, confidentiality, and preservation of relationships

Mediation

involves a neutral third party (mediator) who facilitates communication and negotiation between disputing parties

Mediator

does not make decisions or impose solutions but helps parties reach a consensus

Mediation Benefits

include cost savings, confidentiality, and maintaining relationships

Arbitration

a process where a neutral third party (arbitrator) hears evidence and arguments from disputing parties and makes a binding decision

Arbitration Advantages

include faster resolution compared to litigation, lower costs, confidentiality, and enforceability of the arbitrator's decision