Legal Environment of Business Final Exam

Jurisdiction

Is the legal authority to hear a case and make a judgment, or the territory over which that authority applies.

Examples of different jurisdictions.

subject-matter jurisdiction (e.g., a family court handles divorce cases), personal jurisdiction (e.g., a company can be sued in a state where it has "minimum contacts"), and territorial jurisdiction (e.g., a city police department's authority is limited to its city limits)

Know what type of courts handle different cases (there will be scenarios).

Courts handle cases based on general jurisdiction (state courts for most cases), limited jurisdiction (specialized courts like family or traffic court), or appellate jurisdiction (courts that hear appeals from lower courts). Federal courts have limited jurisdiction, primarily handling cases involving federal law, the Constitution, or interstate disputes. 

Appellate Court

Appellate courts review decisions from lower courts to ensure legal and procedural fairness, not to retry the case or hear new evidence.

Types of appeals that the appellate court handles

Appellate courts handle reviews of final judgments from lower courts in both civil and criminal cases. Their primary function is to correct errors of law or procedure, not to conduct new trials or hear new evidence. 

• Civil Case. Either side may appeal the verdict.

• Criminal Case. The defendant may appeal a guilty verdict, but the government may not appeal if a defendant is found not guilty.

• Bankruptcy Case. An appeal of a ruling by a bankruptcy judge may be taken to the district court.

Mediation

It is a voluntary and confidential dispute resolution process where a neutral third party, a mediator, helps disputing parties negotiate and reach their own mutually agreeable solution. 

Rationalization

Rationalization can refer to two distinct concepts: the psychological defense mechanism of creating a logical-sounding excuse for behavior, or a legal standard called the rational basis test used to review the constitutionality of a law. The term also refers to the process of justifying a legal decision with logic and reason, as outlined in the written opinion of a judge, often with the goal of showing the decision is principled and not just an arbitrary outcome. 

Business Ethics

Refers to the moral principles, values, and standards that guide how a business and its employees conduct themselves. They are crucial because they build trust and a positive reputation with customers, employees, and investors, which leads to long-term sustainability and profitability.

Cost benefit analysis

is a decision-making tool that compares the total costs of a project or decision against its total benefits, with both expressed in monetary terms. The purpose is to determine the financial feasibility and overall value of a project by calculating if the benefits outweigh the costs, helping businesses and organizations make informed choices and avoid losses.

Fifth Amendment

The Fifth Amendment protects individuals from certain government actions, including being compelled to testify against themselves, being tried for the same crime twice (double jeopardy), and having private property taken for public use without just compensation. It also includes the right to a grand jury indictment for serious crimes, and guarantees due process of law, meaning the government must follow fair procedures before depriving someone of life, liberty, or property.

Procedural Due Process / Due Process

Procedural due process refers to the constitutional requirement that when the government acts in such a manner that denies a person of life, liberty, or property interest, the person must be given notice, the opportunity to be heard, and a decision by a neutral decision-maker.

Bill of Rights

It spells out Americans' rights in relation to their government. It guarantees civil rights and liberties to the individual—like freedom of speech, press, and religion. It sets rules for due process of law and reserves all powers not delegated to the Federal Government to the people or the States.

Crimes

A crime is behavior that is punishable as a public offense. The elements of a crime generally come from statutes, but may also be supplied by the common law in states where the criminal common law still carries force.

What do crimes require?

To establish a crime, four essential elements are required: a guilty act (actus reus), a guilty mind (mens rea), concurrence (the act and intent happening at the same time), and causation (the act causing the harm). For a criminal conviction, prosecutors must prove all these elements beyond a reasonable doubt. 

Robbery, Burglary, Embezzlement

The act of taking or attempting to take property from a person by using force, the threat of force, or by putting the victim in fear. 

Is the unlawful entry of a structure with the intent to commit a felony or theft inside.

Is the fraudulent appropriation of property by a person to whom it was lawfully entrusted.

Implied Contract

Is a legally binding agreement created by the actions, conduct, or circumstances of the parties involved, rather than by explicit words.

Unilateral Contract

is a one-sided agreement where one party makes a promise in exchange for a specific action by another party, and the contract is accepted and completed only when the action is performed.

What is an Offer, Offeree, Offeror

An offer is a clear proposal made by one party to another, expressing a willingness to enter into a binding agreement under specific terms.

Is the person or entity to whom an offer is made in a contract negotiation. They have the power to accept, reject, or counter the offer, which is a crucial step in forming a binding contract.

The party that makes the offer is called the offeror. 

What is a Valid / Void Contract

It is a legally binding agreement that is enforceable in court and must include the following six elements: an offer, acceptance, consideration, legal purpose, mutual assent (or a "meeting of the minds"), and capacity from all parties.

It is an agreement that is not legally enforceable from its beginning because it is invalid from the start. This can happen if the contract involves an illegal act, is impossible to fulfill, or lacks legal capacity for one or more parties involved, such as a minor

Consideration

Consideration is the "bargained-for exchange" of something of value that is necessary for a contract to be legally enforceable. It ensures both parties are bound to the agreement and have a mutual obligation, and it can be a promise, an act, or a forbearance from acting

What happens when a minor or intoxicated person enters a contract?

Contracts entered into by a minor or an intoxicated person are generally voidable at their option, not automatically void. This means the contract is presumed valid unless the minor or intoxicated person chooses to cancel (disaffirm) it.

What is an E-signature?

is an electronic sound, symbol, or process that is legally binding and attached to a digital document with the intent to sign it.

Whistleblower

is a person who exposes wrongdoing within an organization, such as a government agency or a company.

Overtime Pay

Applies to covered, non-exempt employees who work more than 40 hours in a workweek. Independent contractors do not receive overtime pay.

Worker’s Compensation

is a state-mandated insurance program that provides wage replacement and medical benefits to employees who get injured or ill from their job.

Medicare

Medicare is a federal health insurance program for people aged 65 and older, younger people with certain disabilities, and people with End-Stage Renal Disease.

Affordable Care Act

is a comprehensive reform law, enacted in 2010, that increases health insurance coverage for the uninsured and implements reforms to the health insurance market. This includes many provisions that are consistent with AMA policy and holds the potential for a better health care system.

Family Medical Leave Act

Entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

Purpose of state’s workers compensation

is to provide a no-fault system for employees injured on the job, covering medical care and lost wages in exchange for the employee not being able to sue the employer for negligence.