Business Law Final

What is a case of first impression?

It's a case with circumstances that are being seem for the same time, meaning there's never been another case with a similar argument before

What is stare decisis?

It's the legal practice of basing court decisions on what was decided in previous cases, so similar cases can generally have similar results

What is a treaty?

An agreement between the president and a head of a foreign country which once ratified by the senate becomes the supreme law of the land

What is the difference between civil and criminal law?

Civil law deals with disputes when an injured party brings actions against another party  whereas criminal law deals with wrongs against society and are brought about by the government (state or federal). Criminal cases generally result in jail time and fines and civil cases result in the plaintiff being awarded damages

What is the difference between a petit and grand jury?

A petit jury is a jury of 6-12 people that are selected to hear the proceedings of a trial in civil or criminal cases. A grand jury is bigger than a petit jury and is only used in criminal cases where it decides whether or not there is probable cause that a crime has been committed and whether a trial should be held.

What are minimum contacts?

Minimum contacts means that a nonresident defendant has had enough contact with the state to give the court jurisdiction over the case

What is the Commerce Clause?

The Commerce Clause is a part of the Constitution which grants Congress the power to regulate commerce among the states, giving congress regulatory authority and creating an innate check on state regulation that burdens interstate commerce.

What are checks and balances?

Checks and balances describes the articles of the Constitution that create a system to prevent any one of the 3 branches of the government becoming more powerful than the others and gives each branch a power specific just to them that can be used to keep the other branches in line.

What is Sovereign Immunity?

Sovereign immunity requires that the courts of one country decline to hear any cases brought against another country as acknowledgement of their status as independent and sovereign states. Basically means that a state cannot commit a legal wrong and is immune from civil or criminal prosecution.

What are the components of a contract?

A contract consists of an offer, acceptance, consideration, awareness, capacity, and legality.

 What is accord and satisfaction? 

Accord and satisfaction is when someone tries to legally settle a debt by paying/tendering a lesser amount than what was owed.

What is a guardian ad litem? 

A guardian ad litem is a person who serves as an advocate for another party that can’t legally advocate for themselves (generally children and incapacitated adults) in a court of law.

What is sales puffing?

Sales puffing is when a seller talks up a product to a buyer in order to try and make a sale. A small amount is expected with any good or service but a seller is not allowed to exaggerate too much or straight up lie without fear of legal consequences.

What does it mean to do a deal at arms length?

To do a deal at arms length means each party is acting in their own self interest and they don’t owe each other any special duties.

What is a fiduciary relationship?

A fiduciary relationship is a relationship of trust and confidence where one party places trust and confidence in another individual to act in the interest of the first party.  

What is employment at will?

An employment at will arrangement is when an employer can fire an employee at any time for any reason and an employee can quit at any time for any reason both with no notice basically meaning that the employment relationship can end at any time.

What is precedent?

A rule or example set by previous cases for future ones, like the outcome of a first impression case.

What is a license?

A license is permission from an authority to do something that would otherwise be prohibited and can either be used to set the standards of conduct or to raise revenue.

What is a covenant not to compete?

Restriction preventing a party from engaging in activities that increase competition for another party. A covenant not to compete is a clause where a party is restricted from engaging in any conduct that could increase competition for the other party and it can be from a seller or an employee.

What are trade secrets?

Information giving a business a competitive advantage over others.

What is public policy?

Public policy acts as a legal value judgment that guides the courts on the nature and types of contracts society will recognize and enforce.

What is novation?

Substituting a new contract for an existing one, abandoning the previous agreement.

What are punitive damages?

Punitive damages are used to punish a guilty party for intentional misconduct to make an example of them and to deter the wrongdoer and others from engaging in similar conduct in the future.

What are nominal damages?

Small monetary awards recognizing a breach of contract without provable damages.

What are liquidated damages?

A predetermined amount of cash in a contract to be paid in case of a breach.

What is mitigation?

Nonbreaching party's duty to minimize damages resulting from a breach.

What is an agent?

An agent is someone who acts on behalf of another person, the principal, in a fiduciary type relationship.

What is a sole proprietorship?

Business owned by one person, where the business is considered an extension of the owner.

What is a partnership?

A partnership is when two or more people act as co-owners of a business in order to make a profit wherein the partners pool resources or talents to achieve this goal.

What is disparate treatment?

Disparate treatment is intentional discrimination where someone can prove that they were treated differently because of their race, gender, sex, religion, or nationality.

What is disparate impact?

Unintentional discrimination where a neutral action disproportionately affects a specific group.

What is respondeat superior?

Employer's liability for employee's torts committed within the scope of employment.

What does it mean to pierce the corporate veil?

Piercing the corporate veil is when the courts hold the shareholders personally liable for a corporation's debts when the business is a corporation only in name.

What are ultra vires acts?

Actions by a corporation beyond its authorized powers granted by its charter or statutes.

Name a protected class.

Disabled individuals, minorities, and veterans.