The Legal System Exam 3

mortgage fraud

intentional misrepresentation to obtain a mortgage (applies to lenders too)

subprime mortgage:

loans to those who don’t qualify for prime-rate loans

predatory lending:

excessive interest rates, ARM loans

T.A.R.P

troubled asset relief program, 700 million bank bailout

what was the shift in political philosophy of 2007-2008 

right to ownership resulted in lowered lending standards

what was the main purpose of Dodd Frank

restore stability and oversight to the financial system and prevent financial crisis

list the three provisions of the Dodd Frank Act

regulation of derivative investments, elimination of predatory lending, limits on how banks can invest (no speculative trading and making their own investments)

what’s the current deal with mortgage backed securities

now illegal, loans must be abled to get paid back

eminent domain:

authorized in takings clause of 5th amendment; requires compelling gov reason (public use and just compensation)

what are some examples of public use in eminent domain:

gov building, road/highway construction, defense related needs

true or false: gov can take property and sell to private developer for (f.e restaurants) and define it as a compelling reason

true

intestate

someone dies without a will

estate:

assets when you die

contract

agreement between parties enforceable by law

types of contracts (4)

express, implied, unilateral, and bilateral

what are the 6 requirements of contract:

offer, acceptance, mutual asset, consider, legal capacity, legality

express contract:

agreement is written down and signed

implied contract:

understood agreement (doesnt have to be written down)

unilateral contract:

one party promises to fulfill conditions

bilateral contract:

agreement between 2 parties

consideration in a contract is…

both sides get something out of it

legality in a contract is…

must be mutual assent, offer and an agreement

force majeure:

act of God that prevents a party from fulfilling a promise

parol evidence rule definition and list the exception to this

whatever is in the contract is what controls; coercion is the exception

uniform commercial code (UCC):

backbone of US commerce, uniform set of laws for all business transactions

antitrust:

corporate actions that restrict free competition and market fairness

price fixing:

agreement between competitors to set prices or price levels

bid rigging:

competitors illegally manipulate bidding process (high prices, low quality)

2023 DOJ v. Google lawsuit:

google default search engine through agreements which froze out competitors, ruling banned exclusive contracts

FTC Amazon lawsuit

(ongoing), amazon engaged in exclusionary conduct, competition complained they cant keep up

what is the purpose of bankruptcy:

fresh start for debtor and fair process for creditors

where are bankruptcy cases heard?

federal court

liquidation:

business closes its doors, assets sold and creditors pay at a percentage determined by court, secured creditors (banks) paid first

what happens under reorganization and rehabilitation:

business stays open, bankruptcy trustee works to cut costs and renegotiate debt, goal is to emerge as viable business

non-dischargeable debt (and 3 examples)

money you must pay back (school loans, child support, taxes)

chapter 13 bankruptcy:

follows 3-5 repay plan, protection from lawsuits, garnishments, helps keep valuable assets 

judge recusal

ethical obligation for judge to self-remove themselves

responsive pleading 

answer or motion to dismiss (21 to 30 days)

answer:

admit or deny allegations

motion to dismiss:

insufficiency of claims on their face

class representative in class action lawsuits:

person who reps entire class in court

class certification in class action lawsuits:

judge determines if class members are similarly situated

opt in v. opt out option in class action lawsuits:

opt in: stay in lawsuit and get compensation, opt out: must provide their own lawyer if they change their minds

discovery:

look at evidence opponent possesse

depositions:

sworn testimony under oath in informal setting thats transcribed and videotaped

spoliation:

when other side destroys the evidence

motion for summary judgement:

movant shows there’s no genuine dispute as to any material fact and entitled to judgement as matter of law

what is the settlement rate and why is it so high

90-95%, its expensive to litigate

motion to dismiss v. motion for summary judgement

dismiss: filed at beginning of case, doesnt allow case to go forward summary: happens later in case