Exam 2: Week 9, 10, 11 Vocab words

Assumption of risk

A defense in negligence cases that prevents an injured party from recovering if it can be established that the injured party realized the risk and engaged in the conduct anyway.

Bait and switch

An advertising technique in which a low-price product is advertised, then the customer is told that the product is unavailable and is talked into a higher-priced product; prohibited by the FTC.

Caveat emptor

Latin term meaning 'Let the buyer beware'.

Comparative negligence

A negligence defense that allocates responsibility for an accident between the plaintiff and defendant when both were negligent, and allocates the recovery in proportion to liability.

Consent decree

A type of plea bargain; a settlement document for an administrative agency’s charges.

Contributory negligence

A negligence defense that bars an injured party from recovering any damages if they acted in a negligent way and contributed to their own injuries.

Corrective advertising

FTC remedy requiring a company to run ads explaining previous deceptive ads or run a new statement in future ads.

Disclaimers

Provisions in a contract that eliminate liability, such as a warranty disclaimer.

Express warranty

An explicit promise by the seller regarding the quality, abilities, or performance of a product.

Federal Trade Commission (FTC)

Federal agency responsible for regulating unfair and deceptive trade practices, including deceptive advertisements.

Implied warranty of fitness for a particular purpose

Warranty given by seller to buyer that promises goods will meet the buyer’s specified needs.

Implied warranty of merchantability

A warranty that the goods are of average quality; given in every sale of goods by a merchant.

Misuse

In product liability, a defense based on the plaintiff’s failure to follow instructions or use a product for improper purposes.

Privity

Direct contractual relationship between parties.

Strict liability

Liability without fault.

Unconscionable

A defense to an otherwise valid contract that is grossly unfair to one side in the contract.

Age Discrimination in Employment Act

Federal law that prohibits job discrimination on the basis of age.

Americans with Disabilities Act

Federal law that prohibits discrimination in the workplace against persons with disabilities and requires employers to make reasonable accommodations.

Bona Fide Occupational Qualification (BFOQ)

Justification for discrimination if it can be established that gender, religion, or national origin is required for a job.

Civil Rights Act of 1964

Law that prevents discrimination in housing, education, and employment.

Disparate Impact

Theory for establishing discrimination using statistical analysis to demonstrate that a practice adversely affects protected classes.

Disparate Treatment

Application of different rules or standards to people of different races, genders, or national origins in discrimination law.

Equal Employment Opportunity Act of 1972

Federal law that established the EEOC to enforce Title VII.

Equal Employment Opportunity Commission (EEOC)

Federal agency responsible for enforcing Title VII and other federal antidiscrimination laws.

Equal Pay Act of 1963

Law that prohibits wage discrimination on the basis of age, race, sex, or ethnicity.

Lilly Ledbetter Fair Pay Act

Law extending the statute of limitations for employees to bring discrimination suits for pay discrimination.

Pattern or Practice of Discrimination

Theory for establishing employment discrimination based on a pattern of dealing with minorities and certain ethnic groups.

Pregnancy Discrimination Act

Federal law prohibiting discrimination in hiring or promotion decisions on the basis of pregnancy.

Quotas

Affirmative action plans dictating a specific number of minority or female applicants accepted, outlawed by the Supreme Court.

Rehabilitation Act of 1973

Federal law prohibiting discrimination by federal contractors based on handicapping conditions.

Right-To-Sue Letter

Letter issued by the EEOC to a complainant allowing them to pursue court action after administrative steps.

Sexual Harassment

Unlawful suggestions, contact, or advances in the workplace; prohibited under federal law.

Title VII

Portion of the Civil Rights Act of 1964 prohibiting employment discrimination.

American Competitiveness in the Twenty-First Century Act

Federal law increasing the number of skilled immigrants allowed to work in the US.

Antiterrorism and Effective Death Penalty Act

Federal statute increasing grounds for deportation and penalties for terrorist activities.

Employee Retirement Income Security Act of 1974 (ERISA)

Act establishing requirements for disclosure related to employees’ retirement plans.

Fair Labor Standards Act (FLSA)

Federal law covering minimum wages, maximum hours, overtime, and compensatory time.

Federal Insurance Contributions Act (FICA)

Federal law requiring joint contributions by employers and employees for Social Security funding.

Immigration Act of 1990

Federal law requiring an I-9 form for every employee.

Immigration and Naturalization Act (INA)

Original act governing employer obligations on employing immigrants.

Independent Contractor

Person who works for another but is not controlled in day-to-day conduct.

Minimum Wage

Legally required minimum payment for workers under FLSA.

Occupational Safety and Health Administration (OSHA)

Federal agency developing and enforcing workplace safety standards.

Overtime Pay

Required pay rate for work beyond a forty-hour workweek for covered workers.

Pension Protection Act of 2006

Federal law imposing additional funding and disclosure requirements on employer pension plans.

Right-To-Work Laws

State laws prohibiting closed and union shops from requiring union membership for employment.

Social Security Act of 1935

Federal legislation providing Social Security benefits and payment mechanisms through FICA.

U.S. Department of Homeland Security (DHS)

Federal agency designed to unify functions related to emergencies, immigration, and antiterrorism.

USA Patriot Act

Federal law permitting expanded investigation techniques for suspected terrorists and regulating cash transactions.

Unemployment Compensation

Funds paid to individuals involuntarily terminated from jobs while seeking new employment.

Workers’ Compensation

State system providing payments for workers injured on the job.

Acceptance

Offeree's positive response to offeror's proposed contract.

Article 2 of the Uniform Commercial Code (UCC)

Uniform laws governing sales contracts for tangible, movable goods.

Bilateral Contract

Contract where both parties promise to perform, with a promise given in return.

Bill of Lading

Receipt for goods issued by a carrier used for transferring title in exchange for payment.

Charitable Subscriptions

Promises to make payments to charities, enforceable even without consideration.

Common law

British laws adopted in the US through judicial precedent, applying primarily to contracts for services and real estate.

Consideration

Money or something of value representing a legal detriment.

Counteroffer

A new offer made in response to an unsatisfactory initial offer.

Digital Signature

Authorization for a contract provided via electronic means.

Electronic Signatures in Global and National Commerce Act of 2000 (E-SIGN)

Federal law recognizing digital signatures as valid for contract formation.

Executed Contracts

Contracts in which performance has been completed.

Executory Contracts

Contracts that have been entered into but not yet performed.

Express Contract

Contract agreed to orally or in writing.

Force Majeure

Clause in a contract that excuses performance due to unforeseeable events.

Implied Contract

Contract arising from circumstances, not explicitly stated.

Mailbox Rule

Acceptance is effective upon mailing if properly done.

Merchant's Firm Offer

UCC requirement that an offer by a merchant must be held open if written, even without consideration.

Merchants' Confirmation Memoranda

UCC rule stating that confirmations sent by one party are effective unless rejected by the recipient.

Offer

Indication of present intent to enter into a contract.

Offeree

The person to whom the offer is made in contract negotiations.

Offeror

The person who makes the offer in contract negotiations.

Option Contract

An agreement to hold an offer open for a period in exchange for consideration.

Parol Evidence Rule

Oral evidence cannot contradict or add to a written contract's terms.

Promissory Estoppel

A promise that causes reliance; if reliance is reasonable, promise is enforceable.

Quasi-Contract

Theory preventing unjust enrichment when no actual contract exists, treated as if a contract was formed.

Revocation

Retraction by the offeror of an outstanding offer.

Statute of Frauds

Statutes requiring certain contracts to be in writing.

Stipulated Means

Method of acceptance specified in the offer, necessary for the mailbox rule to apply.

UN Convention on Contracts for the International Sale of Goods (CISG)

U.N. rules governing certain international sales of goods.

Unenforceable Contract

Contract that cannot be enforced due to procedural error.

Uniform Computer Information Transactions Act (UCITA)

Uniform law governing sales of software and databases.

Uniform Electronic Transactions Act (UETA)

Uniform law providing rules for forming electronic contracts.

Unilateral Contract

Contract where one party promises to perform in exchange for the other party's performance.

Void Contract

A contract that is not enforceable by either party.

Voidable Contract

A contract that one party can choose not to perform.

Accord and Satisfaction

An agreement to pay a certain amount that constitutes full satisfaction of a debt.

Assignment

Transfer of benefits under a contract to a third party, subject to any contract defenses.

Bill of Lading

Receipt for goods issued by a carrier used to transfer title.

Capacity

Ability to legally enter into a contract.

Commercial Impracticability

Contract defense under UCC excusing nonperformance due to unforeseen circumstances.

Compensatory Damages

Damages intended to put the nonbreaching party in the position they would have been in had the breach not occurred.

Conditions

Events that must occur before contract performance is due.

Conditions Concurrent/Contemporaneous

Conditions that must occur simultaneously for contract performance to be required.

Conditions Precedent

Event or action that must happen before a contract must be performed.

Confidential Relationship

A relationship characterized by a high degree of trust and reliance.

Consequential Damages

Damages that arise from a contract breach, such as penalties or lost profits.

Contract Defense

Situation that renders an otherwise valid contract invalid.

Covenants not to Compete

Promises to protect against loss of goodwill through employee or seller competition.

Delegation

Transfer of obligations under a contract, typically accompanied by benefit assignment.