Business Law Test 1

case (common) law

the collection of legal interpretations made by judges, they are considered to be law unless otherwise revoked by a statutory law

sarbanes oxley act

a U.S. federal law that sets strict rules for financial record-keeping, corporate accountability, and auditing in public companies

intentional tort

a civil wrong resulting from an act committed on the person, property, or economic interest of another

intentional tort categories

assault, battery, conversion, false imprisonment, intentional infliction of emotional distress, trespass to land, and trespass to chattels

tort classifications

a violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability

alternative dispute resolution

the resolution of legal problems through methods other than litigation

jurisdiction

the power of a court to hear cases and resolve disputes

civil law

lays out the rights and responsibilities implied in relationships between persons and between persons and their government

criminal law

regulates situations in which someone commits an act against the public as a whole

international law

interactions between multiple countries

national law

matters within a single country

stare decisis

latin for “standing by the decision”; a principle stating that rulings made in higher courts are binding precedent for lower courts

administrative law

the collection of rules and decisions made by agencies to fill in particular details missing from constitutions and statutes

statutory law

the assortment of rules and regulations set forth by legislatures

original jurisdiction

power to hear and decide cases when they first enter the legal system

appellate jurisdiction

power to review previous judicial decisions to determine whether the trial court erred in their decision

service of process

the procedure by which a court delivers a copy of the statement of claim or other legal documents, such as a summons, complaint, or subpoena, to a defendant

answer

the defendant’s response to the complaint; in this document, the defendant denies, affirms, or claims no knowledge of the accuracy of the plaintiff’s allegations

complaint

specifies the factual and legal basis for the lawsuit and the relief being sought that the plaintiff seeks

counterclaim

a claim made by the defendant against the plaintiff that is filed along with the defendant’s answer

defendant

the person, party, or entity against whom a civil or criminal lawsuit is filed in a court of law

plantiff

the person or party who initiates a lawsuit (an action) before a court by filing a complaint with the clerk of the court against the defendant(s)

depositions

a pretrial sworn and recorded testimony of a witness that is acquired out of court with no judge present

interrogatories

a formal set of written questions that one party to a lawsuit asks the opposing party during the pretrial discovery process to clarify matters of evidence and help determine what facts will be presented at a trial in the case

discovery

the pretrial phase in a lawsuit during which each party requests relevant documents and other evidence from the other side in an attempt to find pertinent facts and to avoid any surprises in the courtroom during the trial

district court

a court in which most civil or criminal cases start when they first enter the legal system, the parties present evidence and call witnesses to testify

circuit court of appeals

a higher court, usually consisting of more than one judge, that reviews the decision and results of a lower court (either a trial court or a lower-level appellate court) when a losing party files for an appeal (11 total + district court)

supreme court

court of last resort, hears cases where the constitution was violated

diversity jurisdiction

rule that lets a U.S. federal court hear a civil lawsuit when the parties are from different states or countries

diversity of citizenship

plaintiff does not reside in the same state as defendants and controversy amount is in excess of $75,000

personal jurisdiction

power to render a decision affecting the rights of specific persons before the court

jurisdiction over property

a court's power to control or decide the rights to an object, land, or asset instead of having personal authority over the owner

subject matter jurisdiction

power to hear certain types of cases (exclusive federal jurisdiction, state jurisdiction, concurrent jurisdiction)

standing to sue requirements

plaintiff must have an injury that’s concrete and actual or imminent; injury must be fairly traceable to challenged action of defendant; and it must be likely the injury will be redressed by a favorable decision

venue

court’s geographic location that will hear the case; where defendant resided or the incident took place

commerce clause

primary source of authority for federal regulation of business

supremacy clause

provides that federal law is the “supreme law” of the United States

mediation

a type of intensive negotiation in which disputing parties select a neutral party to help facilitate communication and suggest ways for the parties to solve their dispute

arbitration

a type of alternative dispute resolution wherein disputes are submitted for resolution to private nonofficial persons selected in a manner provided by law or the agreement of the parties

negotiation

A bargaining process in which disputing parties interact informally to attempt to resolve their dispute or the transfer of the rights to a negotiable instrument from one party to another

elements of a crime

actus reus (guilty act): wrongful behavior and mens rea (guilty mind): wrongful state of mind, such as purpose, intent, knowledge, recklessness, or negligence

classification of a crime

felonies, misdemeanors, petty offenses

white collar crimes

a variety of nonviolent illegal acts against society that occur most frequently in the business context like bribery, extortion, fraud, embezzlement, computer (cyber) crimes

liability for crimes

are corporations liable, are executives liable, are employees/corps. liable for wrongful acts by officers and employees

defenses to crimes

infancy, mistake of fact, involuntary intoxication (lack of capacity), duress, insanity, entrapment, necessity, justifiable use of force

felonies

serious crimes punishable by imprisonment for more than one year or death

misdemeanors

less serious crimes punishable by fines or imprisonment for less than one year

petty offenses

minor misdemeanors punishable by small fines or short jail sentences

defamation

intentionally publicizing or communicating to a third party a false statement harmful to an individual’s reputation

libel

published claim that harms a person or companies’ reputation

slander

spoken claim that harms a person or companies’ reputation

disparagement

publishing a false statement of material face about a business’s product or service that results in a loss of sales; includes the torts of slander of quality

fraudulent misrepresentation

intentionally using a false statement to deceive and facilitate personal gain from another who reasonable relies on the deception

interference with contact

a valid and enforceable contract between the parties existed, defendant knew of the existence of the contract and its terms, defendant intentionally took steps to cause one of the parties to breach the contract, and plaintiff was injured as a result of the breach

unfair competition

entering an industry with the sole intent of driving another firm out of business

duty of care

standard care a reasonable person owes another

causation

actual cause and proximate cause (foreseeability)

negligence

behavior that creates an unreasonable risk of harm to others; failure to exercise reasonable care to protect another’s person or property

negligence per se

plaintiff can prove negligence by offering evidence of defendant’s violation of a legal statute enacted to prevent certain types of harm, negligence in and of itself

res ipsa loquitor

permits judge/jury to infer defendant’s negligence caused plaintiff’s harm

strict liability

liability without fault (involved a risk of serious harm to people or property, is so inherently dangerous it cannot ever be safely undertaken, is not usually performed in the immediate community)

assumption of risk

allows defendant to avoid liability by showing plaintiff willingly engaged in activity where harm was foreseeable

comparative negligence

allows apportionment of liability between plaintiff and defendant, according to degree of responsibility each bears for plaintiff’s harm

contributory negligence

allows defendant to avoid liability by showing plaintiff’s own conduct contributed to plaintiff’s harm (only in some states)

compensatory damages

damages to reimburse plaintiff for losses

punitive damages

imposed to punish offender and deter others from committing similar acts