Business Law FINAL exam

chapters 11-15

Real Property

land and everything permanently on it

Personal Property

everything besides real property, removed from land

Fixtures

personal property that has been affixed to real property

Trade Fixtures

installed by a tenant with a business in the leased space

Devise

transfer of land by Will upon death

Convey

grantor transfers legal title to grantee

Fee simple ownership

perpetual ownership of real property that can be passed to an heir

life estate

ownership that lapses at death

leasehold estate

possess for a period of time, renting

absolute ownership

perpetual ownership of personal property

Easement

interest in land allowing another to use it as if they are the owner

License

right to enter the land of another

Covenant

promise to (not) do something with one’s property

zoning

process by which government divides geographic locations and limits permissible use

Eminent Domain

process of government confiscating land for public purposes with just compensation

tenancy for years

ending after a certain date, no notice

periodic tenancy

fixed period but renewed unless notice is given

tenancy in common

multiple owners of distinct shares of an undivided property

Joint tenancy with right of survivorship

undivided co-ownership, surviving owners get ownerships of deceased party

tenancy by the entirety

ownership by husband and wife as one unit

Rule of Capture

ownership given to the first person who captures property including natural resources and undomesticated animals

Percolating water

water existing underground

Correlative rights doctrine

joint owner of percolating water with others who’s land is over it

Prior Appropriation Rights doctrine

first user has highest priority over following users

Surface water

rain water, and water with no natural passageway

Common Enemy Doctrine

use any means possible to divert water from property

Natural Servitude Doctrine

can not interfere with natural flows of water

Riparian Rights

owner of land adjoining to water has right to water, but can not interfere with other adjacent owners use

Abandoned Property

intentionally left or discarded, finders keepers

Lost Property

finder becomes owner subject to prior owner’s interest

Mislaid property

intentionally placed but forgotten, finder becomes caretaker and must return to owner

Adverse Possession

ownership acquired by continuous possession or occupation

Continuous possession

uninterrupted possession for a state determined period of time

Hostile Possession

occupying without consent of owner

Open and notorious possession

notice given to true owner

Gift

donor gives to donee, requires no consideration and not revocable

Gift inter vivos

living donor, irrevocable

Gift Causa mortis

death imminent for donor, revoked if recovery occurs

testamentary gift

property gifted by will, rule of perpetuities

Warranty Deeds

promise that seller has good title from claims of others

quitclaim deeds

seller guarantees nothing besides interest in the property

Special Warranty Deed

promised ownership claims only applies to the period the seller owned the property

Bailments

lawful possession of property by a non-owner

Federal Trade Commission (FTC)

regulates fair trade and consumer protection

Federal Communications Commissions (FCC)

regulates tv, radio, and phone communications

US Food and Drug Agency (FDA)

regulates food, cosmetics, drugs, and medical devices

Deceptive Advertising

misleading a consumer about a material fact

Unfair Advertising

may cause unavoidable, substantial injury

False Advertising (Lanham Act)

standing to sue for false/misleading communication that materially influenced consumers decision AND resulted in injury

Prohibited material

obscene (miller test, banned), indecency and profanity - limited 6am-10pm

Required Advertising

products must state where they were made

State law of certain disclosures

disclosure statements for cars and houses

As-is clauses

required to take at current state, seller relieved of duty to repair

State licensing

required to operate as a restaurant/bar, for professional businesses - lawyers, CPA, plumbers, cosmetologists

Warranties

promises about a product

Implied Warranty of Merchantability

product being sold fits its general purpose and is free of defect

Sales tax

taxes levied on gross price, seller pays

Value Added Tax (VAT)

a tax on additional value contributed by manufacturer/distributor

Fair Debt Collections Practices Act

agents have rules of when and how they can contact a debtor to collect

Regulation Z

clear disclosure of all credit terms

Credit score

Consumers have certain rights to information and actions involving their credit and the influence of credit factors

Cease and Desist

document informing of unlawful action that must stop

At-Will employment

can be fired anytime for any reason without liability (generally assumed to be true)

wrongful discharge

fired in violation of employment law

Title VII Civil Rights Act

protects against discrimination at all levels of employment regarding race, color, national origin, religion, or sex

Equal Employment Opportunity Commission (EEOC)

enforces compliance with Title VII

Disparate Treatment

intentional discrimination based on an indentifying characteristics

Disparate Impact

nondiscriminatory criteria but having a discriminating impact on protected classes

Business Necessity

discrimination defense proving need for employment criteria

Bona Fide Occupational Qualification

hiring discrimination defense that can not be requirement of race

Bona Fide seniority system

length of service as primary reason for discriminatory action, must be uniform

Fair Labor Standards Act of 1938

regulates minimum wage and overtime pay

Social Security and Medicare

wage supplement programs contributed to by employer and employee - taxes

Worker’s Compensation

employer contribution to programs for workers injured on the job

Unemployment Compensation

tax paid by employer for unemployment support program (fed and state)

ERISA

retirement and health coverage plans

COBRA

can still buy insurance through previous employer at the full price

Norris LaGuardia Act

right of workers to form a union and collective bargaining

National Labor Relations Act

employers can not discriminate based on union affiliation, interfere with formation of unions, or refuse collective bargaining efforts

Expectation of privacy

company can monitor employee communication activity if providing notice, electronic communication excluded

Ch 7 Bankruptcy

liquidation and distribution of debtor’s assets (individuals, partners, corporations)

Ch 11 Bankruptcy

reorganization (repayment) of debts, businesses continue to operate

Ch 13 bankruptcy

individual and voluntary debt repayment

Automatic Stay

Creditors can no longer collect

Adequate Protection Doctrine

required to make payments to certain creditors even when bankrupt

Proof of Claim

documented statement by creditor of a debt owed

Secured Debt

debt with security interest in collateral

Reaffirmation

voluntary agreement to fulfill certain debt claims

Joint Liability

One partner can be held liable for the full amount of a judgement

Members

name for owners of an LLC

S-Corp

special election corporation, small businesses, ownership restrictions

C-corp

entity subject to double taxation

Limited Liability Limited Partnership

ALL parties have limited liability

Limited Partnerships

a general partner and a limited partner

Vicarious Liability

liability for the party who didn’t commit the act but has a special relationship with the party who did commit the act

Respondeat Superior

holds employers strictly liable for actions of employees when acting in the scope of their employment

Employee

hired to perform services under the control of the business

Independent Contractor

hired to perform a service not as an employee

Agency

a principal with a representative agent acting under their control and with their authority

Agent

a fiduciary acting in the best interests of the principal