business law final

procedural law

establishes the rules for how legal cases are conducted and enforced

substantive law

defines rights, duties, and illegal acts; defines what the law is

monetary damages

legal remedy that involves the payment of money to compensate for losses

equitable damages

non-monetary remedies ordered by a court when money is not an adequate solution

duties rights framework

the interplay between individual entitlements and corresponding obligations within society, establishing moral and legal structures for governance and conduct

trial courts

lowest court level where cases are first heard, evidence is presented, and juries make factual findings (94 total)

intermediate appellate courts

If a party loses, they can appeal to this next level. These courts review the trial courts proceedings for legal errors. (13 total)

supreme court

Highest court, serving as the final arbiter for federal law

original jurisdiction

court’s authority to hear a case for the first time, acting as the initial trial court, rather than reviewing a decision from a lower court.

subject matter jurisdiction

fundamental authority to heart a specific type of case, like bankruptcy, family law, r federal questions, ensuring the dispute is heard in the correct legal forum

general jurisdiction

court's broad authority to hear almost any type of case—criminal, civil, family, probate—unless specifically prohibited

special jurisdiction

courts or legal powers limited to specific types of cases (like bankruptcy, tax, or family law) or specific geographic areas

limited jurisdiction

court's authority to hear only specific types of cases, defined by subject matter (like bankruptcy, small claims, family law) or monetary limits (e.g., under $10,000)

special jurisdiction

court's authority to hear only specific types of cases, defined by subject matter (like bankruptcy, small claims, family law) or monetary limits (e.g., under $10,000)

mediation

voluntary, informal process where a neutral third party helps disputing parties reach their own mutually acceptable agreement, focusing on preserving relationships and control

positive law

if an act is legal, it is moral

natural law

higher standard of conduct than positive law

kants categorical imperative

core principle in deontological ethics, a universal moral law commanding us to act only on rules (maxims) we could want everyone to follow as a law of nature, and to treat people as ends in themselves, not just means, because of their inherent dignity, providing a reason-based framework for moral duty

Locke and Rawls social contract

Locke grounds his contract in natural rights (life, liberty, property), arguing people consent to a government that protects these rights, with the right to revolt if it fails, while Rawls uses a hypothetical "original position" behind a "veil of ignorance" to design fair principles of justice

rights theory

broad concept that explores the nature of rights, which are considered safeguards protecting individual interests, dignity, and autonomy`

ethical egoism theory

a normative theory stating that individuals ought to act in their own self-interest, meaning what's morally right is what benefits oneself

utilitarian theory

normative ethical theory that posits the right action is the one that maximizes overall happiness or well-being for the greatest number of people

moral relativism

he view that moral judgments are true or false only relative to some particular standpoint

blanchard-peale test

To evaluate situations: ask the following: is it legal? Is it balanced? How does it make me feel?

front of the newspaper test

simple ethical guideline asking: "How would I feel if my decision or action was reported on the front page of the local newspaper

Laura Nash model

guides ethical decision-making through a step-by-step process: recognizing the dilemma, gathering facts, evaluating alternatives against ethical principles, considering stakeholders' perspectives, and reflecting on potential consequences

horizontal restraints

price fixing, monopolization, mergers among competitors

vertical restraints

price discrimination, exclusive dealings and territories, mergers along the supply chain, resale price maintenance, tying

tying

a practice where a seller conditions the sale of one product on the buyer also purchasing a second, separate product

price fixing

an illegal agreement between competitors or entities in a supply chain to control prices, preventing competition and harming consumers by raising costs, reducing choices, and stifling innovation, with common forms including setting minimums, eliminating discounts, or using algorithms to coordinate pricing

monopoly

a single company controlling an entire market for a unique product or service, facing no significant competition due to high barriers to entry like patents, exclusive resources, or natural market structures (e.g., utilities), allowing it to set prices and influence supply, though often regulated to prevent abuse

supply chain regulations

laws, standards, and ethical guidelines governing product creation, movement, and disposal, focusing on safety, fair labor (like forced labor prevention), environmental impact (ESG), and trade compliance (customs, tariffs)

freedom of information act

U.S. federal law that grants any person the right to request and access information and records held by government agencies, ensuring transparency and accountability.

exhaustion of administrative remedies

legal doctrine that requires a person to pursue all available and appropriate procedures within a government agency before they can sue in court

arbitrary and capricious

an action, often by a government agency, that is unreasonable, lacks a rational basis, seems random, or is based on whim rather than evidence or law, violating the Administrative Procedure Act (APA) in the U.S. and allowing courts to overturn such decisions by proving they were impulsive, unsupported by data, or failed to consider important factors

congressional enabling act

 statute where Congress creates an administrative agency (like the EPA or SEC), delegating authority for specific tasks, setting broad goals (e.g., "safe workplaces"), and granting the agency power to issue regulations (rules) that businesses must follow, effectively turning agency rules into law, though subject to judicial review and Congressional oversight

public comment period

a set timeframe, usually 30-60 days, where government agencies solicit feedback (written or spoken) from the public on proposed rules, regulations, or decisions, making government transparent and allowing citizens to influence policy by pointing out errors, suggesting alternatives, or highlighting impacts before finalization

beginning enforcement

the start of actively applying rules, laws, or policies, often marked by a specific date or trigger, seen in areas like the TSA's REAL ID enforcement (May 2025)

administrative hearing

a formal process, like a mini-trial, held before an Administrative Law Judge (ALJ) or panel for disputes involving government agencies (e.g., licenses, benefits, regulations) where parties present evidence, question witnesses, and make arguments, leading to a binding decision, but offering more flexibility and speed than traditional court trials

consent decree

a court-approved, legally binding agreement resolving a dispute, often between a government agency (like the DOJ) and another party (like a police department or company) to fix systemic issues, requiring specific reforms (e.g., better policing, environmental cleanup) under federal oversight with strict deadlines, ensuring compliance, and preventing future lawsuits while establishing enforceable change for constitutional or legal violations

cease and desist

a formal demand to stop an illegal or infringing activity, often sent as a letter threatening legal action if the behavior (like copyright infringement, harassment, or defamation) doesn't end immediately

actus reus

the physical component of the crime- the voluntary act or omission that the law prohibits

mens rea

required mental state or intent at the time of the act, which can range from purpose and knowledge to recklessness or negligence

conspiracy

agreement between two or more people to commit a crime, and one or more of them must take an "overt act" to further the plan. It is considered an inchoate crime, meaning it can be prosecuted even if the underlying crime is never completed

money laundering

the process of making illegally obtained money appear legitimate by disguising its illegal source through complex financial transactions, typically involving three stages: placement (introducing illicit funds into the financial system), layering (moving money through complex transactions to obscure its origin), and integration (returning the money to the criminal as if it were from a legal source)

Racketeering

engaging in a pattern of illegal activities for profit, often through an organized criminal enterprise, involving crimes like extortion, bribery, fraud, drug trafficking, and money laundering, specifically targeting or using legitimate businesses.

bribery

mutual agreement where someone offers value (money, favors) for a desired action, with both parties often guilty

extortion

extortion involves threats (harm, damage) to force someone to give something, where the person making the demand is the primary wrongdoer, and the victim is coerced into complying, making it an unwilling transaction

forgery

criminal act of creating or altering a document, signature, or object with the intent to deceive or defraud someone, involving the making of a false imitation of something valuable, like a signature on a check, a government ID, or currency, and carries legal penalties, from fines to imprisonment, depending on the severity and jurisdiction

embezzlement

fraudulent appropriation of property, money, or assets by someone to whom they were entrusted, like an employee or fiduciary, for personal gain. It's a breach of trust where a person in a position of authority legally possesses the assets but then steals or misuses them, often by creating false records to hide the theft, distinguishing it from simple larceny. 

fraud

intentional deception for unlawful or unfair gain, involving trickery, misrepresentation, or concealing facts to deprive someone of a legal right, money, or property, and can range from identity theft and scams to complex financial schemes, impacting individuals, businesses, and governments

common law crimes

robbery, larceny, burglary, arson

robbery

taking property directly from a person using force or threats (a violent crime against a person)

burglary

is illegally entering a structure (like a home or business) with intent to commit any crime inside, often theft (a property crime)

larceny

the unlawful taking and carrying away of someone else's property with the intent to permanently deprive the owner of it, without using force or threat

arson

the criminal act of deliberately setting fire to property

criminal burden of proof

beyond a reasonable doubt

civil burden of proof

more likely than not

crime

wrong against society, prosecuted by the government, and punished with penalties like imprisonment or fines

tort

a civil wrong against an individual, where the victim sues for compensation (damages) to be made whole for their losses

assault

Intentionally causing another person to fear or apprehend immediate harmful or offensive contact

battery

The completion of an assault, involving actual harmful or offensive physical contact that was not consented to. 

false imprisonment

The unlawful restraint or confinement of another person against their will and without justification.

defamation

Making false statements about someone that harm their reputation. It can be written (libel) or spoken (slander).

intentional infliction of emotional distress

Engaging in extreme and outrageous conduct that intentionally or recklessly causes severe emotional distress to another person.

trespass

enter the owner's land or property without permission.

intentional tort

a deliberate wrongful act by one person that causes harm or injury to another, requiring the defendant to have intended the action (or known it would likely cause harm)

trademark

Protect brands, such as logos, words, and other branding elements

patent

protect inventions and new processes

copyrights

Protect original creative works, including art, writing, music, and computer programs.

trade secrets

 Protect confidential business information that provides a competitive edge, such as formulas or customer lists. 

utility patent

protects New and useful processes, machines, articles of manufacture, or compositions of matter, or improvements to existing ones.

design patent

protects The ornamental, non-functional appearance of an article.

plant patent

protects New and distinct asexually reproduced plants.

Disney effect on copyright

aggressive lobbying, famously influencing the Sonny Bono Copyright Term Extension Act (1998), nicknamed the "Mickey Mouse Protection Act," to extend copyright duration and keep iconic characters like early Mickey Mouse out of the public domain

six elements of a contract

Offer, Acceptance, Consideration, Capacity, Legality, and Awareness (or Mutual Assent/Intention)

offer

A clear, specific proposal from one party (the offeror) to another, outlining the terms of the potential agreement.

acceptance

The other party's unqualified agreement to the terms of the offer, creating a mutual understanding.

consideration

Something of value (money, goods, services, a promise) exchanged between the parties; it's the "bargained-for exchange"

capacity

The legal ability of the parties to enter a contract, meaning they are of sound mind, age, and not under duress.

legality

contract is lawful

mutual assent/intention

All parties must genuinely understand and intend to be bound by the terms, often called a "meeting of the minds"

definiteness

an agreement's essential terms (like parties, subject matter, price, quantity, and time) must be clear and certain for it to be an enforceable contract; if terms are too vague, a court can't determine the parties' obligations, rendering the contract unenforceable, though courts often supply missing details using business custom or prior dealings to save contracts from being voided. 

incorporation

legally adding terms from one document or source into a main contract, making them binding through signature, reasonable notice (especially for onerous terms), or a consistent course of dealing

implied terms

unwritten, unstated provisions automatically added to contracts by law, custom, or necessity to fill gaps, ensure fairness, and make agreements work, covering things like goods being fit for purpose or parties acting in good faith, preventing disputes over obvious details not explicitly mentioned

requirements contract

a legal agreement where a supplier promises to provide a buyer with all of a specific good or service the buyer needs over a period, and the buyer agrees to buy only from that supplier, ensuring reliable supply without fixed quantities but requiring good faith from both sides

output contract

a business agreement where a seller agrees to sell their entire production of a specific good or service to a single buyer, who in turn agrees to purchase all of it, creating a stable, long-term supply for the buyer and a guaranteed market for the seller, common in agriculture, energy, and manufacturing for predictability and locked-in prices

options contract

a financial derivative allowing the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price before a set expiration date. The seller is obligated to fulfill the contract if the buyer exercises this right

capacity

ability to make decisions and manage ones own affairs

incompetence

a specific legal finding (usually criminal) about understanding proceedings, often temporary, leading to treatment to restore the ability to stand trial, with incapacity being a prerequisite for this

mutual mistake

when both parties share the same mistaken belief about a core contract fact, potentially voiding the deal

unilateral mistake

only one party errs, usually not voiding the contract unless the other party knew or should have known and took advantage, making enforcement unfair

negligent misrepresentation

someone makes a false statement about a key fact, not necessarily intending to deceive, but without reasonable grounds to believe it's true, causing financial harm to someone who justifiably relied on it, differing from fraud by lacking intent to deceive but requiring carelessness

duress

overt threats or coercion, such as physical harm or economic threats, forcing a party into an agreement against their will

undue influence

a subtler form of pressure, where one party exploits a position of trust or authority over another (often due to age, illness, or dependency) to gain an unfair advantage

adequacy

whether the value exchanged (money, goods, services, promises) is sufficient to make a contract legally binding, with courts generally not questioning the fairness (adequacy) of the bargain, only its sufficiency (legal value)

forbearance

a creditor's intentional delay in enforcing a legal right or debt, such as pausing foreclosure or collection, in exchange for the debtor's promise (often a new payment plan or other actions) to eventually pay or meet obligations, acting as valid legal consideration for a new contract that temporarily relieves the borrower while preserving the lender's rights, notes

illusory promise

a statement that looks like a commitment but isn't legally binding because the promisor retains complete discretion to perform or not, lacking real substance, definite terms, or consideration, making the purported contract unenforceable

unconscionable

contract or clause so extremely unfair, oppressive, or one-sided that it "shocks the conscience" of the court, often due to vastly unequal bargaining power or hidden, harsh terms, making it unenforceable, allowing judges to void the whole contract, strike bad clauses, or limit their application to prevent injustice, particularly in consumer settings. 

non-compete

a contract provision preventing an employee from working for a competitor or starting a similar business for a specific time and geographic area after leaving a job