Business Law Midterm Vocabulary

Important vocabulary from the constitutional law, torts, criminal procedure, intellectual property, and contracts notes.

Enumerated powers

Powers the Constitution expressly gives to the federal government.

Implied powers

Powers reasonably necessary to carry out enumerated powers.

Reserved powers

Powers kept by the states under the Tenth Amendment.

Concurrent powers

Powers shared by the federal and state governments.

Police powers

State authority to regulate health, safety, morals, and general welfare.

Commerce Clause

Gives Congress power to regulate interstate commerce and activities substantially affecting it.

Supremacy Clause

Federal law controls when it conflicts with state law.

Dormant Commerce Clause

Limits states from discriminating against or unduly burdening interstate commerce.

Privileges and Immunities Clause

Generally prevents states from discriminating against citizens of other states.

Full Faith and Credit Clause

Requires states to recognize valid public acts, records, contracts, and judgments of other states.

First Amendment

Protects religion, speech, press, assembly, and petition.

Content based restriction

A speech restriction based on the message or subject of the speech.

Content neutral restriction

A speech restriction based on time, place, or manner rather than message.

Commercial speech

Speech proposing a commercial transaction, such as advertising.

Defamation

False speech that harms another person's reputation.

Obscenity

Sexually explicit material that meets the legal test for unprotected speech.

Due process

The government must use fair procedures and respect protected rights.

Procedural due process

Requires notice and an opportunity to be heard before government deprivation of life, liberty, or property.

Substantive due process

Limits what the government may do or prohibit, especially when fundamental rights are involved.

Equal protection

Requires the government to treat similarly situated people alike.

Strict scrutiny

Review requiring a compelling government interest and a narrowly tailored law using the least restrictive means.

Intermediate scrutiny

Review requiring an important government interest and a substantially related law.

Rational basis review

Review requiring a law to be rationally related to a legitimate government interest.

Tort

A civil wrong that causes injury or interferes with another person's rights.

Intentional tort

A tort committed deliberately, such as assault, battery, false imprisonment, fraud, or defamation.

Negligence

Failure to use reasonable care, causing harm to another person.

Strict liability

Liability imposed without proving ordinary fault when specific elements are met.

Abnormally dangerous activity

An activity creating a high risk of serious harm that cannot be eliminated through reasonable care.

Product liability

Liability for injuries caused by defective products.

Manufacturing defect

A product differs from its intended design because of an error during production.

Design defect

The product's design is unreasonably dangerous even when manufactured correctly.

Failure to warn

A product lacks adequate warnings or instructions about foreseeable risks.

Preemption

The injured party can’t sue the manufacturer because of a product that has been approved by the FDA or EPA.

Probable cause

Reasonable grounds to believe a search will reveal evidence of a crime or that a person committed an offense.

Reasonable expectation of privacy

Privacy a person genuinely expects and society recognizes as reasonable under the circumstances.

Exclusionary rule

Generally prevents illegally obtained evidence from being used in court.

Double jeopardy

Prohibits trying a person twice for the same offense after jeopardy has attached.

Self incrimination

The Fifth Amendment protection against being forced to testify against oneself.

Trademark

A distinctive word, symbol, sound, or design identifying the source of goods or services.

Trademark infringement

Unauthorized use of a confusingly similar mark in commerce.

Trademark dilution

Unauthorized use that weakens a famous mark's distinctiveness or harms its reputation.

Copyright

Protection for original creative works such as writing, music, art, and software.

Fair use

A limited use of copyrighted material for purposes such as criticism, comment, teaching, scholarship, or research.

Patent

Exclusive protection granted for a qualifying invention, process, machine, manufacture, or composition.

Patent infringement

Making, using, selling, or importing a patented invention without permission.

Contract

A promise or set of promises for which the law provides a remedy if breached.

Offer

A communicated promise showing present intent to be bound on definite terms.

Acceptance

A clear agreement to the offer's terms in the required manner.

Consideration

Something of legal value bargained for and exchanged for a promise.

Capacity

Legal ability and competence to enter into a contract.

Legality

The contract's purpose must be legal and not against public policy.

Bilateral contract

A contract formed by an exchange of promises.

Unilateral contract

A contract formed when someone performs the requested act.

Express contract

A contract formed through stated oral or written words.

Implied in fact contract

A contract shown by the parties' conduct and circumstances.

Void contract

An agreement with no legal effect from the beginning.

Voidable contract

A valid contract that one party may choose to cancel because of a legal defect.

Unenforceable contract

A valid agreement that a court will not enforce because of a technical defense.

Revocation

Withdrawal of an offer before it is accepted.

Counteroffer

A response changing the original offer's terms and functioning as a rejection plus a new offer.

Mistake

An incorrect belief about a basic fact that may make a contract voidable in some circumstances.

Misrepresentation

A false statement that induces a party to enter a contract.

Undue influence

Improper pressure by a dominant or trusted party that overcomes another person's free choice.

Lack of capacity

A legal inability, such as minority or mental incapacity, that may affect enforceability.