Business Law CLEP Flashcards

law

a representation of a set of rules or principles established by government or other controlling body that members of society must follow and obey

legal system

a system of established laws

civil law (code law)

a legal system which has a single comprehensive code as the core of its law

common law (case law)

judge-made law, whereby judges make decisions on a case-by-case basis, and those decisions generate a body of rules and principles

precedent

previous decisions that set an example or guide for future cases

stare decisis

the notion that judges must make decisions based on precedent

Congress

the legislative branch of the US

Supreme Court

the highest federal court in the US

judicial review

the doctrine by which a higher court can overturn a decision made by a lower court

checks and balances

the system whereby each branch of the US government has specific power and authority so that they balance (or check) the power exercised by other branches

Bill of Rights

the first ten amendments to the US Constitution; meant to protect citizens from government intrusion

Necessary and Proper Clause

a clause in the US Constitution that gives power to Congress to make laws that are deemed "necessary" for the upholding of the Constitution

Supremacy Clause

a clause in the US Constitution that establishes that federal law supersedes all state laws

uniform laws

an effort to harmonize all state law by unifying legislation on a given topic

Uniform Commercial Code ("UCC")

an organization that seeks to establish uniform laws for various aspects of commercial law

commercial speech

speech regarding commercial or economic activities

strict scrutiny

a form of judicial review that requires a law to further "a compelling government interest" and that the law must serve a narrow purpose

Due Process Clause

a clause in the US Constitution that protects a person from being "deprived of life, liberty or property without *due process*"

discriminatory laws

laws that differentiate between people

suspect classification

a classification of groups meeting certain criteria suggesting they are the subject of discrimination

quasi-suspect classification

a suspect classification involves gender and legitimacy

intermediate scrutiny

a test used to determine a law's constitutionality; the law must be substantially tailored to meet an important government interest

rational basis test

a test, referring to the lowest levels of scrutiny; requires that laws must be rationally related to a legitimate government interest

criminal law

law that addresses crimes and punishment of crimes

civil law

law that regulates the relationships between parties

federal district court

the federal trial court in the US

federal circuit court of appeals (federal court of appeals)

the federal appeals court in the US

writ of certiorari

a formal appeals petition to bring a case before the Supreme Court

original jurisdiction

the power of a trials court to hear a case for the first time

appellate jurisdiction

the power of an appeals court to review decisions of a lower court

remand

an action by an appellate court to send a case back to a lower court for a new trial

de novo

a supreme court's power of interpreting legal rules, while not deferring to a lower court

Federal Rules of Civil Procedures ("Federal Rules")

governing procedures for filing a civil suit in federal court

standing

the legal right to bring a suit

injury-in-fact

a legally recognizable injury

plaintiff

the person bringing a suit

defendant

the person being sued in a suit

pleadings

the documents parties file in connection with their lawsuit

complaint

a filing by the plaintiff setting forth the basis of his lawsuit

summons

notice that a lawsuit has been filed against the defendant

answer

the defendant's response to a complaint

affirmative defenses

defenses that would prevent the plaintiff from holding the defendant liable

counterclaims

claims that the defendant has against the plaintiff

Rule 12b(6) motion

a motion by the defendant to dismiss a claim

petit jury

a jury that hears evidence at trial

verdict

the decision by the jury to hold (or not to hold) the defendant liable for the charges

burden of proof

the obligation for the plaintiff to establish his claim(s) first

motion for dismissal (motion for a directed verdict)

a motion by the defendant claiming that the plaintiff has not established sufficient evidence to prove his case

deliberation

the process of the jury retiring to a separate room to discuss the outcome of the case

preponderance of the evidence

the greater weight of the plaintiff's evidence against the defendant

hung jury

a jury that does not reach consensus

judgement n.o.v (judgement notwithstanding the verdict)

an overturning of the jury's verdict that requires the court to find evidence against the jury's verdict

appellant

the party seeking to appeal a decision

appellee (respondent)

the party against whom an appeal is taken out

oral arguments

arguments presented by each party in an appeals court

res judicata

final judgement on a case; prevents the parties from re-ligating the same action

prosecution

the body of officials that brings charges against a party

indictment

written charges against the defendant

grand jury

a group between 16-23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime

Reasonable doubt

the standard of evidence required to establish the defendant's guilt

writ of habeas corpus

the defendant's request for a new proceeding to determine whether he is being unlawfully deprived of his liberty

subject matter jurisdiction

the authority of a court to hear cases of a specific subject matter

personal jurisdiction

the authority of a court to pass judgment on the parties involved in a case

limited jurisdiction

the courts' jurisdiction on only certain types of cases

federal question jurisdiction

the courts' power to hear cases arising under the Constitution, federal laws or US treaties

diversity jurisdiction

the courts' power to hear cases where the parties are citizens from different states, or one party is from a foreign country and the amount in question exceeds $75,000

general jurisdiction

the courts' power to hear any case not reserved for federal courts

domicile

a person's permanent residence

long-arm statutes (long-arm jurisdiction)

the court's power to exercise personal jurisdiction over defendants having sufficient minimum contacts within their state

venue

a geographical limitation that requires the plaintiff to bring his suit against the defendant in the geographic area in which he resides or where the events occurred

Restatement of Contracts

a set of statements reflecting generally agreed upon pronouncements of common law contract rules

contract

a promise of set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty

express contract

a promise stated in words, either oral or written

goods

all things movable at the time of a contract

implied contract

a promise inferred from a person's conduct or circumstances of the transaction

promise

an undertaking or commitment to act or refrain from acting in a specified way in the future

executed exchange

an exchange in which each party has fully performed his obligation and no promises have been made

promisor

the person who makes a promise

promisee

the person to whom a promise is made

beneficiary

a person who will benefit from a promise not made to him

quasi-contract

a transaction that creates a basis for recovery to prevent unjust enrichment

unjust enrichment

a situation in which one person unfairly benefits from a transaction

restitution

an action to avoid unjust enrichment

mutual assent (meeting of the minds)

agreement of both parties to a contract

objective standard

a neutral analysis of the words and conduct of parties in a case

subjective standard

an analysis of the words and conduct of an individual taking into account the mindset of the individual

offer

a proposal to enter into an agreement

acceptance (of an offer)

the agreement by the offeree to enter into an agreement with the offeror

solicitation

an invitation to make an offer

revocation

the termination of an offer by the offeror

option contract

an agreement that gives the purchaser of the contract the option to buy or sell a particular asset at a later date

counteroffer

a rejection of the original offer and a proposal of a new offer

mirror image rule

a rule that treats any response by the offeree that changes the terms of the agreement to be a rejection

mailbox rule

the rule that an acceptance is effective as soon as it is dispatched

unilateral contract

a contract in which one party has already performed his obligation

bilateral contract

a contract in which both parties have outstanding performances at the time of the contract's formation

consideration

the benefit that each party expects to get from the contract

bargained-for exchange

an exchange that is sought for by the promisor and is given by the promisee in exchange for the promise

legal detriment

a loss, harm, or relinquishment of something of value