Business Law Midterm

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132 Terms

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Requisites of a legal system

Certainty (stability), flexibility (technology), knowable (lawyers).

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Common Law

Rules and principles existing in a state resulting from judicial decisions where legislatures have no enacted comprehensive statutes.

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Statutory Law

Rules adopted by legislative bodies rather than by the courts.

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Plaintiff

The person bringing an action in a civil legal dispute.

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Defendant

The person or entity against whom the plaintiff is making a claim.

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Civil Laws

Laws that spell out rights and duties existing among individuals, business firms, and sometimes government agencies.

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Criminal Law

Legal cases that can only be brought by the government.

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Felony

A crime for which the legislature has provided a maximum penalty of imprisonment for more than a year or death.

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Misdemeanor

A less serious crime, typically punishable by less than one year of imprisonment.

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Adversarial System

A legal system where each party presents its case to an impartial judge or jury.

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Jurisdiction

The authority of a court to hear a case and make a ruling.

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Discovery

The pretrial phase in a lawsuit during which each party can obtain evidence from the other party.

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Depositions

Sworn out-of-court testimonies used to gather information as part of the discovery process.

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Spoliation of Evidence

The destruction of evidence that can lead to sanctions.

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Personal Jurisdiction

The authority of a court to make a ruling over a specific defendant.

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Federal Question Jurisdiction

The power of federal courts to hear cases arising under the U.S. Constitution, federal laws, or treaties.

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Diversity of Citizenship

A basis for federal court jurisdiction that requires parties from different states.

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Voir Dire

The jury selection process.

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Bench Trial

A trial where the judge serves as the fact-finder instead of a jury.

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Long-arm statutes

Laws that allow a court to reach beyond its borders to exercise jurisdiction over an out-of-state defendant.

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In Rem Jurisdiction

Court jurisdiction over a specific item of property within the forum state.

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Judgment Proof

A situation where a defendant does not have enough assets to satisfy a judgment.

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Peremptory Challenges

A right in jury selection for the attorneys to reject a certain number of potential jurors without stating a reason.

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Hearsay

An out-of-court statement offered to prove the truth of the matter asserted.

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Direct Examination

The initial questioning of a witness by the party that called that witness.

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Cross Examination

The questioning of a witness by the opposing party.

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Judicial Review

The power of courts to assess whether a law is in compliance with the constitution.

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Supremacy Clause

The constitutional provision that federal law takes precedence over state law.

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Commerce Clause

The clause in the Constitution that empowers Congress to regulate commerce with foreign nations and among the states.

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Equal Protection of the Law

The principle that laws must provide equivalent protection to all individuals.

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Intermediate Scrutiny

A standard of review used by courts to evaluate laws that discriminate based on gender.

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Strict Scrutiny

The highest standard of review used by courts to evaluate laws that infringe upon fundamental rights.

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Imminent Domain

The right of the government to take private property for public use, with just compensation.

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Freedom of Religion

The right to practice any religion or none at all, protected from government interference.

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Corporate Speech

Commercial speech that is subject to stricter scrutiny than other forms of speech.

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Utilitarianism

An ethical theory that suggests an action is right if it promotes the greatest happiness for the greatest number.

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Deontological Ethics

An ethical framework that emphasizes the importance of following rules or duties.

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Virtue Ethics

An ethical theory that focuses on the character of the moral agent rather than on the consequences of actions.

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Corporate Culture

The shared values, beliefs, and behaviors that shape how a company's employees interact and work.

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Digital Marketing Ethics

Principles that guide the moral obligations of marketers in digital spaces.

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Common Law

The rules and principles in any state that result from judicial decisions in areas where legislatures have not enacted comprehensive statutes. Also known as Case Law or judge-made law.

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Statutory Law

Legal rules formally adopted by legislative bodies rather than the courts, often referred to as "written law." Examples include Criminal Law and Tax Law.

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Federal Law

Laws created by the national government (U.S. government), such as the 1st Amendment.

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State Law

Rules determined by individual states that apply within their borders, governing matters not covered by federal law.

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Plaintiffs

The accusers in a legal case who start lawsuits and seek to enforce obligations against defendants.

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Defendants

The accused parties in a legal case who seek to escape responsibility for allegations made by plaintiffs.

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Civil Actions

Lawsuits where a plaintiff is seeking to enforce private obligations against the defendant.

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Criminal Law

Statutes that prohibit certain conduct and impose fines or imprisonment for violations; cases brought by the government.

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Burden of Proof in Civil Cases

For a plaintiff to win, they must display a preponderance of the evidence.

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Burden of Proof in Criminal Cases

The government must prove its case beyond a reasonable doubt, showing significant conviction of the defendant's guilt.

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Laws

Rules that must be followed, with penalties for non-compliance, such as loss of money or freedom.

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Ethics

Standards that should be followed in a moral sense but do not carry specific penalties.

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Courts of Limited Jurisdiction

Low-level courts with limited authority that hear specific types of cases, such as municipal or traffic courts.

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General Trial Courts

Low-level state courts where important cases, like contract and criminal law, commence; typically called district or superior courts.

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Appellate Courts

High-level state courts that hear appeals from lower courts and decide legal questions without hearing new evidence.

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Specialized Trial Courts

Federal courts with specific subject matter jurisdiction, such as U.S. Tax Court.

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U.S. District Courts

Basic trial courts in the federal system where most federal cases are handled.

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Trial vs. Appellate Courts

Trial courts settle questions of both fact and law, whereas appellate courts rule on law only.

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Podias v. Mairs

A case that explored legal responsibility of passengers in an accident involving a driver under influence; the appellate court found liability might extend to passengers.

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Adversarial System

A legal system where parties and their attorneys have primary control over the issues and evidence, while the trial judge exercises supervisory authority.

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Inquisitorial System

A legal process where the trial judge has much more control over the proceedings, authority over the issues addressed, leads the investigation, and makes rulings.

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Pleadings Stage

The initial phase of a lawsuit where the plaintiff files a complaint and the defendant responds with an answer or motion to dismiss.

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Default Judgment

A ruling in favor of the plaintiff when the defendant fails to respond to the complaint within the specified period.

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Discovery Stage

The pretrial phase where parties gather evidence, including depositions, interrogatories, and requests for documents.

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Deposition

Testimony taken outside of court under oath from a witness, requiring presence from both parties.

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Interrogatories

Written questions submitted to one party by another, which must be answered under oath.

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Summary Judgment

A motion arguing that there is no genuine issue of material fact and that the case should be decided in favor of one party based on the evidence presented.

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Subject Matter Jurisdiction

The power of a court to hear and decide a particular type of case.

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Federal Question Cases

Civil cases in federal court that arise from the U.S Constitution or federal statutes.

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Diversity of Citizenship Cases

Cases in federal courts where parties are from different states or countries, and the amount in controversy exceeds $75,000.

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Personal Jurisdiction

The court's power over the parties involved in a case, requiring compliance with due process.

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Long-Arm Statute

Laws permitting jurisdiction over non-resident defendants who have sufficient contacts with the forum state.

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General Personal Jurisdiction

Jurisdiction established if a non-resident has substantial physical presence or engagement in the forum state.

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Specific Personal Jurisdiction

Jurisdiction established if a non-resident engages in specific acts within the forum state related to the dispute.

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In Rem Jurisdiction

The court's power to decide cases regarding property located within its jurisdiction, regardless of personal jurisdiction over the parties.

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Ford Motor Company v. Montana Eighth Judicial Court

A landmark case illustrating the differences between general and specific personal jurisdiction.

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Most cases that reach trial are decided by a jury.

A jury is a fact-finding body that considers evidence and determines what happened during the events leading to the trial.

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Arguments against the jury system

Jurors lack expertise, are easily influenced, and are subject to complicated rules and procedures for the trial.

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Arguments in support of the jury system

Juries provide valuable community input, serve as a check on judicial power, and compel attorneys to simplify their cases.

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Voir Dire

The preliminary questioning of prospective jurors to assess their ability to be impartial.

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Challenge for cause

An attorney's request to remove a juror due to an indication that they would not be capable of impartiality.

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Peremptory challenges

Limited removals of prospective jurors without a stated reason, not to be used for discriminatory purposes.

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Burden of proof

The plaintiff's duty to prove the facts alleged in their complaint.

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Direct examination

The initial questioning of a witness by the attorney who called them.

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Cross-examination

The questioning of a witness by the opposing party's attorney.

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Rules of evidence

Regulations ensuring that the evidence presented in court is relevant, accurate, and reliable.

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Types of excluded evidence

Irrelevant evidence, hearsay, and opinion evidence are often excluded by legal rules.

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Motion for directed verdict

A defendant's request to win the case without presenting evidence due to inadequate plaintiff evidence.

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General charge

Instructions outlining legal principles for the jury to decide relevant facts and reach a verdict.

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Special charge

Series of questions directed to the jury regarding disputed facts requiring yes or no answers.

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Writ of execution

Empowers a law enforcement official to seize and sell a defendant's nonexempt property to satisfy a judgment.

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Writ of garnishment

Orders a third party to deliver the defendant's property to the custody of the court.

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Negotiated settlement

An out-of-court resolution between parties often reached through their lawyers.

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Arbitration

A binding dispute resolution process where an arbitrator makes a decision enforceable like a court judgment.

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Mediators

Neutral third parties who facilitate out-of-court settlements without the power to render binding decisions.

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Advantages of mediation

Maintains relationships post-dispute and allows for options like arbitration or court if mediation fails.

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Organization of the Federal Government

The Constitution divides federal power into three branches: executive (President), legislative (Congress), and judicial (Supreme Court), each with specific powers.

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Legislative Power

The authority to make laws, which is granted to Congress by the Constitution.

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Executive Power

The authority to enforce laws, which is held by the President.

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Judicial Branch

The branch of government that interprets laws, represented by the Supreme Court.