Legal Environments of Business (Mod 3)

Commerce Clause

Congress has the authority to regulate Commerce with foreign Nations, among the several States, and with the Indian Tribes

Dormant Commerce Clause

unjustifiably discriminate against or burden the interstate flow of articles of commerce

Tax and Spending Clause

The Congress shall have the power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States

Taxes

produces at least some revenue for the Government

State Action Doctrine

The Constitution’s references to individual liberties generally protect individuals only from government use of authority

First Amendment Text

Congress shall make no law . . . abridging the freedom of speech

Commercial Speech

Speech that proposes a commercial transaction

Defamation

A claim against someone who says or writes something that is false and defamatory

libel

written defamation

slander

spoken defamation

defamation per se

by itself-> so obviously defamatory you don’t need to go further and check boxes

Absolute Privilege

Statements made in judicial proceedings or by participants in legislative proceedings

Conditional Privilege

Privilege unless abused

Malice

Knowledge of falsity or with reckless disregard to the truth

Negligence

defendant did not act reasonably in efforts to determine whether published statement was true or false

sole proprietership

Business operated by someone as their own personal property.

Corporation

Control with the board and management, only indirectly through shareholders

Partnership

Voluntary association designed to carry on a business for profit between two or more persons

Limited Liability Corporations (LLCs)

A blend of partnership and corporation

Limited Liability Partnerships

Partnership files request with state and keeps professional liability insurance.

Public Benefit Corporation

Those running the corporation (e.g.,board of directors) must consider not just shareholder value but a specific benefit to particular people or area

Mutual Benefit Corporations

Run for benefit of a specific group of people (e.g., labor unions, social organizations)

Religious Organization

Run for benefit of a religious organization

“Pass-Through”

Earnings are reported directly by owners as individual income

S Corporations

Corporate form allowing a “pass-through” income treatment

Negligence

[E]very person is required to exercise the foresight, prudence, and caution which a reasonably prudent person would exercise under the same or similar circumstances. Negligence then, is a departure from that standard of care

Breach

Failure to use ordinary care of reasonably prudent person in situation

Proximate Causation

Reasonably foreseeable harm

Res Ipsa Loquitor

Rebuttable presumption of negligence

Strict liability

When liability is imposed without regard to fault