LAW final

Bankruptcy

A legal process that helps people or businesses who cannot pay their debts either eliminate or reorganize them.
Example: A business that cannot pay suppliers files for bankruptcy protection

Creditor

A person or business that is owed money.
Example: A bank that gave someone a loan.

Debtor

A person or business that owes money.
Example: Someone with unpaid credit card debt.

Secured Creditor

A creditor whose loan is backed by collateral.
Example: A bank with a lien on a car loan.

Unsecured Creditor

A creditor without collateral backing the debt.
Example: Credit card companies.

Lien

A legal claim on property to secure payment of a debt.
Example: A mortgage lender having rights to a home if payments stop.

Bankruptcy Estate

All of the debtor’s assets that are gathered during bankruptcy proceedings.
Example: Property, bank accounts, and equipment owned by the debtor.

Automatic Stay

A court order that immediately stops creditors from collecting debts once bankruptcy is filed.
Example: Collection calls and lawsuits must stop after filing bankruptcy.

Bankruptcy (Liquidation)

A bankruptcy process where nonexempt assets are sold to pay creditors and most remaining debts are discharged.
Example: Someone with overwhelming debt has nonessential property sold to repay creditors.

Liquidation

Selling assets to pay debts.
Example: Selling company equipment to repay loans.

Trustee

A person appointed to oversee the bankruptcy process and manage the debtor’s estate.
Example: A trustee selling assets in Chapter 7.

Exempt Property

Property protected from being taken during bankruptcy.
Example: Certain clothing, tools for work, or part of a home’s value.

Discharge

A release from personal liability for certain debts.
Example: Medical debt being wiped out after bankruptcy.

Bankruptcy (Reorganization)

A bankruptcy process allowing businesses to continue operating while reorganizing debts.
Example: A struggling retail chain restructuring payments while staying open.

Reorganization Plan

A plan explaining how debts will be repaid under Chapter 11.
Example: A company negotiating lower monthly payments with creditors.

Good Faith Requirement

Bankruptcy petitions must be filed honestly and not to abuse the system.
Example: A court rejecting a filing made only to avoid paying one creditor.

Antitrust Law

Laws designed to promote competition and prevent unfair business practices.
Example: Preventing companies from fixing prices together.

Sherman Antitrust Act

A federal law prohibiting monopolies and restraints on trade.
Example: Prosecuting companies for price-fixing agreements.

Restraint of Trade

Actions that unfairly limit competition.
Example: Competitors agreeing to charge the same high prices.

Monopoly

When one company dominates a market and reduces competition.
Example: A company controlling nearly all internet service in an area.

Section 1 of the Sherman Act

Prohibits contracts or conspiracies that restrain trade.
Example: Businesses secretly agreeing to divide territories.

Price Fixing

Competitors agreeing on prices instead of competing.
Example: Gas stations agreeing to charge identical prices.

Bid Rigging

Competitors secretly deciding who will win a contract bid.
Example: Construction companies taking turns winning city contracts.

Market Allocation

Competitors dividing markets or customers to avoid competition.
Example: Two companies agreeing to sell only in separate states.

Section 2 of the Sherman Act

Prohibits monopolization and attempts to monopolize.
Example: A company using unfair tactics to eliminate competitors.

Clayton Act

Federal law prohibiting specific anticompetitive practices not clearly covered by the Sherman Act.
Example: Preventing mergers that greatly reduce competition.

Exclusive-Dealing Contract

A contract requiring a buyer to purchase only from one seller.
Example: A store only being allowed to sell one soda brand.

Tying Arrangement

Requiring a buyer to purchase one product to get another.
Example: Requiring customers to buy software updates with a computer.

Antitrust Enforcement

Government actions used to investigate and punish antitrust violations.
Example: The Department of Justice suing a monopoly company.

Federal Trade Commission (FTC)

Agency that enforces antitrust and consumer protection laws.
Example: Investigating unfair mergers.

Department of Justice (DOJ)

Federal department that prosecutes antitrust violations.
Example: Bringing criminal charges for price fixing.

Horizontal Restraint

An agreement between competitors at the same level of business.
Example: Two phone companies agreeing on prices

Vertical Restraint

An agreement between businesses at different levels of production or sales.
Example: A manufacturer controlling retail pricing.

Tort

A wrongful act causing harm that leads to civil liability.
Example: Defaming a business and causing it to lose customers.

Civil Law

Law dealing with disputes between individuals or businesses.
Example: Suing after a car accident

Criminal Law

Law involving crimes prosecuted by the government.
Example: The state charging someone with theft.

Compensatory Damages

Money awarded to cover actual losses.
Example: Paying hospital bills after an accident

General Damages

Compensation for nonfinancial harm.
Example: Pain and suffering after an injury

Punitive Damages

Damages meant to punish especially bad conduct.
Example: A company knowingly selling dangerous products.

Negligence

Failure to use reasonable care.
Example: Texting while driving and causing an accident

Plaintiff must prove to be negligent

1. Duty

2. Breach

3. Cause in Fact

4. Proximate Cause

5. Damages

If one missing → no negligence.

Duty of Care

A legal obligation to avoid causing harm.
Example: Drivers following traffic laws.

Breach of Duty

Failing to meet the required standard of care.
Example: A store not cleaning a dangerous spill.

Proximate Cause

Foreseeable connection between conduct and injury.
Example: Speeding causing a predictable car crash.

Defenses to Negligence: Assumption of Risk

A person knowingly accepts a danger.
Example: Attending a baseball game and risking foul balls

Defenses to Negligence: Comparative Negligence

Damages are reduced based on the plaintiff’s own fault.
Example: A driver who was 20% at fault only recovers 80% of damages.

Strict Liability

Liability without needing to prove negligence.
Example: Injuries caused by blasting explosives

Product Liability

Manufacturers and sellers being responsible for defective products.
Example: A defective airbag injuring drivers.

Main defects of Product Liability: Manufacturing Defect

A problem occurring during production.
Example: One bottle of medicine contaminated during packaging.

Main defects of Product Liability: Design Defect

A flaw in the overall product design.
Example: A car model prone to rollovers.

Main defects of Product Liability: Inadequate Warning

Failure to properly warn consumers of dangers.
Example: Medication missing serious side effect warnings.

Misrepresentation

False statements intended to induce a purchase.
Example: Falsely advertising a product as completely safe

Felony

A serious crime punishable by more than one year in prison.
Example: Armed robbery

Misdemeanor

A less serious crime punishable by up to one year in jail.
Example: Minor shoplifting.

Actus Reus

The guilty act in a crime.
Example: Stealing money.

Mens Rea

The guilty mental state or criminal intent.
Example: Intentionally committing fraud

Criminal Liability Requires BOTH

Actus Reus (guility act) and Mens Rea (Guilty mind/intent)

White-Collar Crime

Nonviolent crimes committed for financial gain.
Example: Insider trading

White-Collar Crimes: Embezzlement

Wrongfully taking money entrusted to you.
Example: An employee stealing company funds

White-Collar Crimes: Fraud

Intentional deception for financial gain.
Example: Lying on loan applications

White-Collar Crimes: Bribery

Offering something valuable to influence someone improperly.
Example: Paying an official for special treatment

Indictment

A grand jury’s formal criminal charge.
Example: A fraud suspect being indicted by a grand jury.

Information

A criminal charge filed by a prosecutor without a grand jury.
Example: A misdemeanor theft charge filed directly by a prosecutor.

Administrative Law

Law created and enforced by administrative agencies.
Example: EPA environmental regulations.

Administrative Agency

A government body created to regulate specific areas.
Example: FDA regulating food and drugs

Main Agency Powers: Rulemaking

The process agencies use to create regulations.
Example: EPA creating pollution standards.

Main Agency Powers: Enforcement

Agencies investigating and punishing violations.
Example: OSHA fining unsafe workplaces.

Main Agency Powers: Adjudication

Agency process for resolving disputes internally.
Example: An administrative judge hearing an OSHA violation case.

Separation of Powers

Government powers divided among branches (Legislative, Executive and Judicial)
Example: Congress makes laws while courts interpret them.

Checks and Balances

Each branch limiting the power of the others.
Example: Courts overturning unconstitutional agency actions.

Jurisdiction

A court’s authority to hear a case.
Example: Bankruptcy courts only hearing bankruptcy cases.

Venue

The proper geographic location for a trial.
Example: A Virginia lawsuit being heard in Virginia.

Standing to Sue

The plaintiff must have suffered actual harm.
Example: Someone injured by a product can sue the manufacturer.

Long-Arm Statute

A law allowing courts to reach out-of-state defendants.
Example: Virginia suing a company that sells dangerous products there.

Types of Jurisdiction: Minimum Contacts

Enough connection with a state to make jurisdiction fair.
Example: A business regularly selling products in Virginia

Discovery

The process of gathering evidence before trial.
Example: Companies exchanging documents and emails.

Deposition

Oral testimony under oath before trial.
Example: Lawyers questioning a witness before court.

Interrogatories

Written questions answered under oath.
Example: A business responding to written lawsuit questions.

Motion to Dismiss

A request to end a case because of legal problems.
Example: Dismissing a case for lack of jurisdiction

Summary Judgment

A ruling without trial because no major facts are disputed.
Example: The judge deciding based on evidence already gathered.

Voir Dire

The jury selection process.
Example: Removing biased jurors.

Mediation

ADR using a neutral third party to help settlement.
Example: A mediator helping divorcing spouses negotiate.

Arbitration

ADR where an arbitrator makes a decision.
Example: An employee dispute settled through binding arbitration.

Commerce Clause

Gives Congress power to regulate interstate commerce.
Example: Federal laws regulating businesses operating across states

Dormant Commerce Clause

States cannot unfairly burden interstate commerce.
Example: A state cannot heavily tax out-of-state businesses only.

Supremacy Clause

Federal law overrides conflicting state law.
Example: State laws conflicting with federal law being invalid.

Full Faith and Credit Clause

States must recognize other states’ legal decisions.
Example: A court judgment from Virginia being enforced in Maryland

Privileges and Immunities Clause

States generally cannot discriminate against citizens of other states.
Example: States allowing out-of-state citizens access to courts.

Preemption

Federal law taking priority over state law.
Example: Federal aviation rules overriding state regulations.

ADR (Alternative Dispute Resolution)

A way to resolve legal disputes without going through a full court trial. ADR is usually faster, cheaper, and more private than litigation.

Main Types of ADR

Negotiation, Mediation, Arbitration