short and long answers

Intellectual Property

Consists of the “fruits of one’s mind” and is protected by trademarks, trade secret protection, patents, and copyrights.

Trademarks

A distinctive word, design, picture, or arrangement used with a product that helps consumers identify the product with the producer.

Trade Dress

The overall appearance and image of a product. Brands want to prevent other brands from creating confusion from consumers.

Copyrights

Protect the expression of creative ideas, like books, musical composition, plays, movies, works of art, etc. but not the ideas themselves.

Fair-Use Doctrine

Allows another person to reproduce a portion of a copyrighted work for the purposes of criticism, comment, news reporting, teaching, scholarship, and research.

Patents

Protect a product, process, invention, machine etc. The owner of the patent may allow others to manufacture and/or sell the patented object.

Trade Secrets

The process, product, method of operation, or compilation of information that gives a business person an advantage over his or her competitors.

Enforcement of Intellectual Property

The party who created the IP will sue the violators by filling a complaint and seek compensation, punitive damages, or have the court order the other party to stop using the legally protected materials.

Contract

A promise or set of promises where the law gives remedy for a breach of that promise, creating a duty to perform the terms.

Agreement

An offer by one party (offeror) to enter into a contract, and an acceptance of the terms by the other party (offeree).

Consideration

The bargained-for exchange, where each party gets something in exchange for a promise from the other under the contract.

Contractual Capacity

The legal ability to enter into a binding agreement; the person must have the ability to understand the contract and accept the terms.

Legal Object

The contract relates to matters that the law allows to be governed by a contract; it cannot be illegal or against public policy.

Lack of Genuine Assent

A defense to contract enforcement if acceptance of terms was secured through improper means like fraud, duress, or misrepresentation.

Express Contract

Terms of the contract are clearly created in either written or spoken words.

Implied Contract

The contract is created by the conduct of the parties; it is implied that there is a contract based on their behavior.

Valid Contract

One that can be enforced, meaning a court can hold you accountable for not following its promises.

Unenforceable Contract

A contract that is valid, but the law prohibits the court from enforcing it (e.g., statute of limitations).

Void Contract

A contract that is illegal or has a defect so serious that it is not a contract.

Voidable Contract

A contract where one or both parties has the ability to either withdraw from the contract or enforce it.

Executed Contract

A contract where all the terms have been fully performed.

Executory Contract

A contract in the process of being completed, with only some terms completed and some not.

Plain-Meaning Rule

If a writing appears plain and unambiguous on its face, the meaning should be determined from 'the four corners' of the document without outside evidence.

Option Contract

The offeree gives the offeror consideration in exchange for holding the offer open for a specified period of time.

Detrimental Reliance

When the offeree reasonably relied on the offeror's promise and took action, the court may prevent the offeror from revoking the offer.

Mirror Image Rule

The terms of the acceptance of a contract must mirror the terms of the offer; if not, it is considered a counteroffer.

Sole Proprietorship

When an individual decides to open their own business

Sole Control in Sole Proprietorship

The sole proprietor is in sole control of the management and the profits.

Benefits of Sole Proprietorship

Opening a sole proprietorship requires very few legal formalities; A sole proprietor has complete control of the management of the organization; The sole proprietor keeps all the profits from the business; These profits are taxed as the personal income of the sole proprietor.

Disadvantages of Sole Proprietorship

You are personally liable for any losses or obligations associated with the business; If you accrue large debts because of your business, you might have to sell your home to cover them; the owner and sole proprietor, can be personally sued; terminated automatically when the sole proprietor dies.

Separate Legal Entity

A firm’s having its own legal identity, distinct from that of the individuals who participate in it

Typical Sole Proprietorship

Trying to generate a regular salary as an option to working for someone else for a paycheck

Entrepreneurs

Have larger ambitions and want to scale their activities; growth is their focus. Usually, they do best when they focus on one element, such as creating new ideas, and depend on team members with complementary talents to grow the enterprise.

Partnership

A voluntary association between two or more persons who co-own a business for profit

Advantages of a Partnership

Formation is easy; income from the business is taxed as individual income for each partner; partners can also deduct business losses from their taxable income.

Major Disadvantage of Partnership

Partners are personally liable for the firm’s debts.

General Partnership

A partnership in which the partners equally divide the profits and management responsibilities and share unlimited personal liability for the partnership’s debts

Limited Partnership (LP)

A partnership consisting of one general partner and at least one limited partner who does not have any part in the management of the business

Limited Liability Partnership (LLP)

A partnership in which all partners are liable only to the extent of the partnership’s assets

Cooperative

A business organization consisting of individuals who join together to gain an advantage in the market that mutually benefits all members; can be incorporated or unincorporated

Joint Venture

A relationship between two or more persons or corporations that is created for a specific business undertaking

Limited Liability Company (LLC)

Each member has limited liability dependent on the investment he or she makes, while still receiving the tax breaks often afforded to those in a partnership

Corporation

A legal entity formed by selling shares of stock to investors, who then become shareholders and the owners of the company

Employment and Labor Laws

Laws that protect workers and employers, setting rules for wages, hours, safety, and discrimination.

Employer Liability

Legal responsibility of employers for following all employment laws, including vicarious liability for employees' actions.

Vicarious Liability

Being held responsible for employees’ actions (like harassment) on the job.

At-Will Employment

Employment where an employee can be fired or quit at any time.

Independent Contractors

Workers who are not employees and don’t receive the same legal protections.

Fair Labor Standards Act (FLSA)

The Act that sets minimum wage and overtime rules.

Overtime Pay

Pay rate of 1.5x normal rate for hours worked over 40 in a week.

Exempt Employees

Employees who may not qualify for overtime pay, such as salaried managers.

Family and Medical Leave Act (FMLA)

Act allowing up to 12 weeks of unpaid leave for family and medical reasons.

OSHA (Occupational Safety and Health Administration)

Administration that sets workplace safety standards to ensure a safe and healthy work environment.

Unemployment Insurance

Insurance that helps workers who lose jobs through no fault of their own.

Workers’ Compensation

Covers medical care and lost wages for job-related injuries; prevents workers from suing employers if they accept it.

Employment Discrimination

Treating someone unfairly because of protected characteristics such as race, gender, religion, national origin, age, disability, or pregnancy.

Equal Employment Opportunity Commission (EEOC)

Commission where discrimination claims can be filed.

Harassment

Unwanted behavior that creates a hostile work environment.

Sexual Harassment

Unwanted touching, comments, or advances and demanding sexual favors for job benefits.

Americans with Disabilities Act (ADA)

Act protecting workers with physical or mental disabilities, requiring employers to provide reasonable accommodations.

Reasonable Accommodations

Modifications to a job or work environment that enable a qualified individual with a disability to perform the essential functions of the job.

Age Discrimination in Employment Act (ADEA)

Act protecting workers 40+ from age-based bias.