DECA - Business Law and Ethics

Business Law

Business Law

body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales

Law

a system of rules that are enforced through social institutions to govern behavior

Ethics

a set of moral principles

Injunction

a court order forbidding someone from carrying out an act

Legislative Branch

makes the laws (Congress)

Executive Branch

carries out the laws (President)

Judicial Branch

interprets the laws (Supreme Court)

Corporation

an independent legal entity owned by shareholders

Open Corporation

or public, stockholders invest money to share opportunity of growth and possible profits of corporation

Close Corporation

owned by a few people and does not offer its shares for sale to the general public

Sole Proprietorship

owned by one person

General Partnership

owned by two or more partners

Civil lawsuit

personal complaint in which one party believes that another party has violated his/her rights by acting in a negligent way

Appeal

a request to a higher court to review a lower court's decision

Compensatory Damages

payments that the court orders a wrongdoer to pay a victim

Fraud

deliberate deception to secure unfair or unlawful gain

Embezzlement

fraudulent use of another person's or a business's property, usually money

Liability

the state of being responsible for something

Insurance

contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premiums)

Liability Insurance

reduce risk of extreme financial losses due to certain circumstances

Commercial Property Insurance

protection against property loss

Credit Insurance

protects manufacturing or wholesale businesses from losses due to it customers' debt

Disability Insurance

provides a person with payment in the event the person is unable to work

Affirmative Action

an effort to give special employment consideration to disadvantaged groups

Whistle-blower

an employee who reports his/her employer's illegal or unethical business activities

Theft

one person takes someone else's property without his/her knowledge and consent

Price Fixing

an illegal business agreement in which competing businesses agree on prices of their products, resulting in little choice for the consumer

Monopoly

one supplier controls a market and there are no substitute goods or services readily available

Antitrust Laws

protect customers and businesses from monopolistic activities

Bribe

an illegal payment intended to secure business or products in return

Organizing

the management function of setting up the way the business's work will be done

Directing

the management function of providing guidance to workers and work projects

Controlling

the management function that monitors the work effort

Planning

the management function of deciding what will be done and how it will be accomplished

Code of Ethics

an established set of guidelines that people are expected to follow in regard to behaviors and actions while representing a group or organization

Consumer Protection

all efforts to safeguard consumers from any kind of injury to themselves, their property, or their rights as a result of the negligence, failure to act, or unlawful act of others

Full Warranties

cover the entire product

Limited Warranties

cover certain repairs or specific parts

Predatory Pricing

an aggressive pricing strategy that sells goods below cost in an effort to put the competition out of business, leaving fewer choices for consumers

Promotion

marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome

Pricing

determining and adjusting prices to maximize return and meet customers' perceptions of value

Distribution

moving, storing, locating, and/or transferring ownership of goods or services

Contracts

Agreements between two or more parties stating that one party is to do something in return for something provided by another party. Something must be offered then the offer must be accepted. Can be written or verbal.

Plaintiff

the accuser or alleged victim of a crime

Public Defender

the attorney that represents the defendant or the accused

Probate Courts

deal with cases involving wills and estates

Remedy

an action that a governing body imposes to correct a wrongdoing

Tort

Private wrongdoing against another person

Copywright

the legal protection of books and other artistic works that the government grants, and it gives the owners sole rights to the artistic works for a certain time

Civil Litigation Process

1. Pleading Stage 2. Pretrial Stage 3. Trail Stage 4. Appellate Stage

Acquisition

The act of assuming possession of another company or corporation

Administrative Law

Rules the administrative activities of government agencies

Affidavit

A written statement made under oath before an officer of the court, a notary public, or other person legally authorized to certify the statement

American Disabilities Act (ADA)

U.S. law that gives civil rights to disabled persons, including equal opportunities in access and use of places such as transportation and buildings

Arbitration

Procedure by which a dispute may be resolved by an impartial mediator who is not a judge, often used to limit legal cost to both parties.

Back pay

Money rewarded to an employee in a lawsuit that would have been earned of the employee was not fired or denies a promotion illegally

Bait and Switch

Dishonest sales practice in which a business advertises a bargain price for an item in order to draw customers into the store. The customer is then told that the advertised item is no longer available and attempts to sell them a higher price item

Breach of Contract

Failure to perform provisions of a contract

Business Ownership

Business ownership is how a business is legally established. Sole proprietorship, partnership, and corporations are examples

Bylaws

The rules and regulations enacted by an association or a corporation to provide gl framework for its operation and management. Bylaws govern matters such as holding meetings, voting, quorums, elections, and the powers of directors and officers

Cafeteria Plan

An employment benefits plan in which the employee selects benefits from a "menu" up to a specified dollar amount

Civil Law

Seeks to resolve non-criminal disagreements such as arguments over the meaning of contracts, property ownership, and divorce

Commercial Law

Govern businesses engaged in commerce, merchandising, trade, and sales. In recent years this body of law has been codified in the Uniform Commercial Code.

Common Counts

Claims for debt alleged in a lawsuit (included in the complaint) which are general and alleged together so the case will not be dismissed based on technicality

Common Law

Law established by following earlier judicial decisions. Common law changes over time

Comparable Worth

Requires people who work in similar jobs of similar worth to the employer must be paid the same amount regardless of differences such as gender

Consortium

A group of businesses that join together for a specific purpose such as engaging in a joint venture

Consumer Credit Protection Act

The US federal wage garnishment law designed to protect borrowers of money by requiring complete disclosure of the terms and conditions of finance charges in transactions. This is done by the limiting of garnishment wages and regulating the use of charge accounts

Consumer Product Safety Commission

Is charged with protecting the public from unreasonable risks of serious injury or death from thousands of types of consumer products under the agency's jurisdiction. Products such as cribs, power tools, and household chemicals are inspected

Consumer Protection