law final

What does “face value” mean relative to an insurance policy?

the original amount of coverage promised by the insurer — the sum printed on the policy itself.

What is apparent Authority

Subsequent authorization by the Principal’s Ratification. Ratification – Approving an act which was executed without authority; electing to be bound by a Voidable Contract.

Know what each branch of government performs

Legislative	Makes laws	Passing the Civil Rights Act
Executive	Enforces laws	Implementing immigration policy
Judicial	Interprets laws	Declaring a law unconstitutional

Know who/what is a secret partner

Partner whose name is kept secret from the public. Partnerships can have one or more Secret Partners.

If given a scenario, what is a FOB Destination?

means that ownership and risk of loss for goods do not transfer to the buyer until the goods reach their destination. 

Does tangible personal property apply to the UCC Article 2? 

Yes — tangible personal property does apply to UCC Article 2. 

“Members” can best be described as what in an LLC?

The owners of an LLC - usually only 1 person is needed to create an LLC

If you sign your name on the back of a check, who are you?

 Endorser – Signs their name on the back of a check

What court can rule on presidential directives

Judicial Branch 

What is a trial court? 

One in which a case originates or initially comes before a court

What is a probate court?

a specialized court that deals with matters related to the estates of deceased persons 

What is a law enacted by a legislative body called?

statute 

What is an express warranty

a clearly stated promise or guarantee made by the seller to the buyer about the quality, performance, or condition of goods 

What type of warranty can be described as being stated outright, makes a factual promise that the about the goods is an

express warranty 

Define usury

the charging of unlawfully high interest rates on loans — a practice prohibited by law to protect consumers. 

Define Wage

compensation paid by an employer to an employee for labor or services rendered. 

Who is a guarantor

promise to pay is secondary to the debtor who owes the money.

If given a scenario, know under what circumstances one is a drawee and who would be the drawer

The drawer is the one who writes or orders payment, and the drawee is the one who must make the payment — typically the bank. 

What is the Doctrine of stare decisis

“to stand by things decided” — it’s the legal principle that courts should follow precedent when making rulings 

If given a scenario, what is a bailor? 

Person (or party) who delivers and gives up possession, but not the title, of personal property in a bailment

When a tenancy acts intentionally to damage property, what waste has occurred?

voluntary waste 

Define corporation

a legal entity separate from its owners, capable of owning property, incurring debts, and paying taxes independently. 

What is a special agent

an agent authorized to perform a specific act or transaction on behalf of a principal 

What would consideration (bargain for exchange) be for an insurance policy?

is what each party gives up or promises to create a valid contract

What is a term life policy?

A policy that pays a death benefit only if the insured dies during the term of the policy

What is ratification?

occurs when a principal accepts or approves an act that was done on their behalf without authorization.

What is fraud?

the intentional deception of another party to secure an unfair or unlawful gain.

What is an injunction?

a court order that requires a person or entity to do or stop doing a specific act. 

What is (define) HIPPA

Health Insurance Portability and Accountability Act of 1996.

a federal law that sets national standards to protect individuals’ medical records and personal health information (PHI). It ensures that healthcare providers, insurance companies, and related organizations handle health data securely and confidentially

Know the levels of the federal court system

District Courts	Trial courts of the federal system	Hear cases first — both civil and criminal. They determine facts, apply law, and issue verdicts.
2⃣ Courts of Appeals (Circuit Courts)	Appellate courts	Review decisions from district courts to ensure the law was applied correctly. No new evidence is presented.
3⃣ Supreme Court of the United States	Highest court	Reviews selected cases from lower courts, focusing on constitutional or nationally significant issues. Its decisions are final.

Define Summonsa 

an official legal document issued by a court that notifies a defendant they are being sued or must appear in court. 

If given a scenario, what would describe an FOB Shipment? 

A sales contract term where risk of loss passes to the buyer when the goods are delivered to the shipper and transportation arrangements are made

What are antitrust laws?

exist to prevent monopolies and unfair business practices and to promote fair competition. 

What is the truth and lending act?

Protects consumers Against Inaccurate and unfair credit, billing and card practices. 

What is a LLC?

A hybrid business form combining features of both corporations and partnerships.

What is a bill of lading?

a legal document issued by a carrier to a shipper that serves as a receipt for goods, a contract for transportation, and evidence of title to the goods. 

Define tort

a wrongful act (other than a breach of contract) that infringes on someone’s rights and allows the injured party to seek damages in civil court. 

Define a court order execution.

allows a sheriff or other authorized officer to seize and sell the property of a debtor to satisfy a court judgment. 

What is a bailment 

Delivery and transfer of possession, but not ownership, of personal property under an agreement.

Define Title Abstracta

 condensed history of the title to land, showing all recorded documents

Define Civil Law

governs non‑criminal disputes, such as contracts, property, family matters, and torts. 

What is the Federal Unemployment Tax Act?

is a federal law that requires employers to pay taxes to fund unemployment compensation programs for workers who lose their jobs.

Define real property

the land itself, plus structures and fixtures that are permanently affixed 

If given a scenario, know what might be considered periodic tenancy

A lease that automatically renews at the end of each period unless either party gives notice. 

Know about disaffirmance and it most often appears in contract law especially with minors.

the legal right to cancel or avoid a contract — most often used by minors or individuals who lack full legal capacity. 

What is indemnification

means one party agrees to compensate or protect another from loss, damage, or legal liability arising from certain actions or events.

Define bill of sale

a legal instrument that records the details of a sale

Define negligence?

occurs when someone’s careless behavior causes damage or injury to another, even if they didn’t intend to cause harm. 

If given a scenario, how would “revocation” work

once revoked, the offeree can no longer accept it and form a contract. It’s one of the ways an offer can be terminated before acceptance. 

What is contractual Capacity?

means that each party has the mental competence, legal age, and authority to form a valid contract. 

What is a breach of contract?

is the violation of a binding agreement, meaning one party does not fulfill their promise, whether by nonperformance, defective performance, or refusal to perform. 

Know who would be the General Agent in a funeral home.

When a funeral director contracts with a cemetery or florist for a family’s service, they are acting as the general agent of the funeral home

What is duress?

the use of force, threats, or improper pressure to make someone act or agree to something they wouldn’t have done voluntarily.

Define sales contract

 a written agreement that defines the sale, price, and transfer of ownership between buyer and seller. 

What is a closed corporation?

a privately owned company with limited shareholders, where ownership and management are typically kept within a small, trusted group. 

What is misrepresentation?

making a false statement of fact that induces another party to enter a contract.

If given a scenario where a funeral professional makes a statement that promises a casket is waterproof and the casket later leaks, that situation would likely involve

misrepresentation — specifically, a false statement of material fact that influenced the buyer’s decision.

secure from water for 10 years, what type of warranty did this representative create?

creates an express warranty. 

Define General Partner.

if two directors co‑own and manage the business, they are general partners. 

Know what a misdemeanor is

a less serious crime, punishable by fines or short jail time, distinguishing it from a felony, which involves major offenses and longer imprisonment

A corporation operating in a different state is called?

A foreign corporation is a company that does business outside its state of incorporation. 

Define merchant.

defined as a person or business engaged in the buying and selling of goods as part of their regular trade or occupation. 

Define Common Law

refers to the body of law developed through judicial decisions rather than written statutes or legislation. 

Define trial court

a court of original jurisdiction, meaning it has the authority to hear cases for the first time and render a verdict or judgment based on the facts presented. 

If given a scenario, a daughter enters a funeral home to plan an “at need” funeral, can this be

A bilateral contract is one in which both parties make promises to each other. 

If given a scenario, know who might be a consignee

is the party named in the bill of lading (the shipping contract) who is authorized to accept delivery of goods from the carrier. 

Define/know what a principal is 

the person who authorizes another (the agent) to act on their behalf in business or legal matters.

Know definition of a certified check.

a check for which the bank verifies that sufficient funds are available in the drawer’s account and sets those funds aside, guaranteeing payment to the payee when the check is presented.

3 most common implied warranties.

Implied Warranty of Merchantability

Implied Warranty of Fitness for a Particular Purpose

Implied Warranty of Title

A partner may have civil liability in these three common areas

• Contracts – Partners can be held liable for contracts entered into by another partner acting within the scope of the partnership's business.

• Torts (Civil Wrongs) – Partners may be liable for wrongful acts committed by another partner or an employee while conducting partnership business, such as negligence.

• Debts and Obligations of the Partnership – Partners are generally personally liable for the debts and financial obligations of the partnership if the partnership cannot pay them.

Know the four essentials of a contract.

• Agreement (Offer and Acceptance)

  • One party makes an offer, and the other party accepts it.

• Consideration

  • Something of value is exchanged between the parties (money, goods, services, promises, etc.).

• Contractual Capacity

  • The parties must have the legal ability to enter into a contract (e.g., be of legal age and mentally competent).

• Legality

  • The purpose of the contract must be legal and not violate any laws or public policy.

secure from water for 10 years, what type of warranty did this representative create?

Express warranty.

Know the two important elements of consideration.

• Legally sufficient value

• Bargained-for exchange

What is estoppel?

prevents a person from denying a fact or promise when another has reasonably relied on it to their detriment.