Highlighted All Below is Important (New Stuff)
Everything at the Very Bottom is Important (Old Stuff)
Unit 3
Chapter 11
Creditors and Debtors
I. Credit Cards and ATM Cards
a. Liability for lost cards
i. Credit cards- congress passed consumer law protecting us, which limited
the liability of a lost credit card to $50.
1. Could be less if you notify your bank prior to fraudulent charges
2. If the bank doesnt believe that you truly lost the card, you will be
liable for more. The losing of the card must be in good faith.
3. If you didnt actually lose it, you are more liable be ready to argue!
ii. ATM Cards
1. Of no value without PIN
2. Dont write it on the card! You will be liable!
3. Liability is limitless
iii. Debit Cards are the same liability as ATM Cards
1. Liability is limitless
iv. Hybrid cards (debit/ATM cards)
1. It is dependent upon the use of the card that determines how liability
will be determined.
v. Bank Marketing Tools
1. Sometimes banks will have limits to lure customers. But this is not a
required norm. For test purposes, the federal limit on credit cards is
$50 and limitless for ATM/Debit cards.
b. Errors in billing
i. Credit card companies cannot accrue interest on the disputed billings
ii. All it takes is one phone call to the company, and a written document may
need to be filed thereafter.
iii. In Credit Cards, there is a provision about disputes. (stop payments)
1. Quality of goods or services
a. To qualify the service or good must have taken place in the home
state or within 100 miles of the cardholders home address.
b. The credit card company will investigate the matter.
II. Collection by creditors
a. Mechanics Lien: (basically collateral)
i. In almost every state, circumstances where the creditor has the right to
seize property if they are not paid. Mechanics Lein has to do with
services done on personal property.
ii. If you do not pay for services on your car, the mechanic can
seize/repossess your car to obtain payment
iii. DO not have to maintain possession of the object.
1. They are able to go into your driveway and take your car, but they
cannot break the peace
b. Garnishment:
i. Garnishment of wages: once papers have been filed, a certain % of your
wages will be withheld and paid to the creditor to pay off the debts.
ii. Statutory maximum: 25%, some states differ though
c. Artisans Lien: for personal property, they must maintain possession
throughout. (They cannot go into your house and take your TV, it must be in
their possession to qualify for the ability to take possession of it.)
d. Mortgages/Self Help Doctrine
i. Mortgages are a type of lien.
ii. Self Help: under laws of state, the creditor can repossess property through
court process or by going to get it himself, or by hiring someone to get it
1. All of this is under one condition: CANNOT BREECH THE PEACE
iii. Deficiency Judgment
1. If the possessed item is sold and it is not sold for enough to cover the
debts, the creditor is entitled to a deficiency judgment, which means
the debtor has to come up with more money.
iv. Fair Debt Collections Practices:
1. Federal law regulates collectiongs AGENCIES
a. Doesnt include creditors claiming their own debt
b. Only to agencies
c. More particular in the normal state level
i. Can only call between __ and ___
ii. Limits the ability to collect
III. Surteyship: cosigning for the debtor
a. Creation
i. Reason: individual (debtor) cannot afford what is being bought on credit,
so must be cosigned with another person.
ii. Statute of Frauds (must be in writing)
iii. Consideration requirement
iv. Right of surety to obtain reimbursement
v. Discharge of the debtor also releases the surtey
IV. Truth in Lending and Ursey
a. Truth in Lending
i. Federal Disclosure law
1. On your statement, you must know the interest charge ($ amount)
2. Also must know APR (Annual Percentage Rate %)
b. Usury
i. Changing excessive interest (Definition)
ii. State laws, historically, have limited the amount of interest creditors can
charge
1. There is a limit and it is regulated by state law
2. Arkansas: 5% higher than Federal Reserve Discount Level
a. There is no longer a Federal Reserve Discount Level
3. Exceptions: by Federal Law
a. To buy a home, w/ mortgage, there is no limit
i. Must be a first mortgage (late 1970s)
ii. I.E. not refinance
b. Credit by financial institution (lend $ or cc)
i. Can charge highest amount allowed by the out of state doing
business from allows.
ii. All financial institutions are created/treated the same
iii. These lenders with offices in the other state that is who it
applies to
iv. All financial institutions on level playing field
v. Only applies to Financial Institutions (doesnt apply to normal
creditors like used car dealers)
c. Payday loans get to change more because they operate in other
states and do the contract out of state under the laws of the other
state
V. Bankruptcy: The debtors last resort
a. Bankruptcy was contemplated by our founding fathers. Article I allowed
congress to adopt the bankruptcy laws (First Bankruptcy Code of 1790)
i. Combines federal and state laws:
1. Filed in federal court
b. Bankruptcy Reform Act of 2005
i. Went into effect October 17, 2005
ii. Did not change basic structure of kinds (chapters) of bankruptcy
c. Kind of Bankruptcy (Ch. 7, 11, 12, 13)
i. Chapter 7 Straight Liquidation
1. Fastest and Easiest: Hand over assets and debts to courts. They pay
off as many debts as possible and then forgive the debtor of the other
debts.
ii. Chapter 13 Wage Earners Plan
1. Takes 3-5 Years
2. Limited to consumer cases/debtors
3. Essentially, Chapter 13 is a plan to get the debtor out of debt by
automatically taking out a portion of his paycheck every time and
paying it toward his creditors.
d. Bankruptcy Reform Act (BRA) Changes
i. Forces consumer debtors to file Ch. 13 if they can pay their debts
ii. Limits consumers ability to file Ch. 7
iii. Determined by the Means Test ?? (means or median test?)
1. If you look at median Family income of state, and your gross income
is above it, then you will probably not be allowed to file Chapter 13.
2. For most states: (Arkansas) $50,000 ish
iv. In determining the ability of the debtors to pay debts, the court will look at
your spending habits/financial transactions and will compare them to
guidelines prepared by the IRS
1. Filer may be required to adjust spending and a budget may be prepared
to allow the filer to file Ch. 13
2. If filer makes less than $50,000, this does not apply to them because
they will probably file Ch. 7
e. Procedures for Filing
i. Date of filing = date of bankruptcy
ii. Forms filled out under oath under punishment of perjury
1. Will require many documents
iii. Trustee chosen (represents all creditors there to collect the moolah!)
1. In straight liquidation, the process is quick
2. In Ch. 13/11, there is a reorganization, and debts are paid over 3-5
years.
3. The debtor must be able to afford filing fees to file for bankruptcy
4. Must have credit counseling: new part of BRA
a. Before you file, you must go to credit counseling agency, who
reviews financial filings, who then provide you with necessary
paperwork that shows you were counseled.
iv. Procedures for Straight liquidation
1. Anything earned after file date is yours to keep
2. passive income will be lost you cant keep that!
a. Ex: Rental properties, dividends, (Stuff you dont earn by the
sweat of your brow)
b. Cannot keep gifts or inheritance within six months of filing date
i. If amount received exceeds the debts, you keep the remainder
of the value.
PASSIVE INCOME- INCOME RECEIVED ON ASSETS PREVIOUSLY OWNED
f. Protection for Creditors from abuse by debtors
i. Fraudulent Transfer
1. A transfer by debtor to third party within statutory period of time
where the debtor did not receive fair value for the exchange (the time
period in Arkansas is 2 years)
a. Basically, if I sell my computer to Norwood for $1, b/c Im going
to lose it anyway, this is not allowed, SELL PROP BELOW
VALUE
b. The transfer is cancelled and the person who received the transfer
will have to turn it over to the creditors
i. Can come under prosecution of federal courts
ii. Will receive compensation back that was paid
ii. Preference (CANNOT!!)
1. Paying one creditor before another, and then filing for bankruptcy.
Paying one off rather than another
a. Preferred creditor must give the money back!
VI. Exemptions in Straight Liquidation
a. Debtor chooses either congress guidelines or States exemptions whichever
he likes better
b. State Exemptions:
i. Homestead exemptions (in Florida and Texas): creditor cannot take the
home (unless there is a mortgage, then the mortgage holder can take it).
ii. Dealing with these pesky exemptions (TX and FL)
1. Congress stated:
a. Must live in state for 720 days (2 years)
b. Cap of $125,000 placed on homestead exemption for property
acquired in the last three years
VII.
Priority Creditors
a. Must be paid in full before anyone else can be paid
i. Child/spousal support obligations
ii. Administrative expenses
iii. Wages and salaries up to dollar amount
iv. Taxes (all included state, local, federal)
VIII.
Non Dischargeable Debts
a. Those that cannot be forgiven in bankruptcy:
i. Taxes
ii. Any debt resulting from intentional fraud
iii. Liability for willful torts (Keyword: willful/deliberate)
iv. Alimony and Child Support
v. Any debts not listed by debtor
vi. Student loans, unless undue hardship (meaning, if you must go to undue
hardship to pay off the debts, you can get out of it; otherwise you cant).
vii. Luxury Purchases
viii.
Debts resulting from DWI
IX. Denial of Discharge (The Death Penalty)
a. Reasons a judge will deny discharge through bankruptcy
i. Destroying/falsifying records
ii. Making a false statement under oath (perjury)
iii. Secretly transferring or concealing property
iv. Failing to explain loss of assets
v. Having received a discharge in prior eight years used to be six
Chapter 12: Employment
I. Employment
a. At will doctrine
i. You can be fired for any reason or for no reason and without advance
notice or severance pay.
1. Nothing is easier!!
ii. Corollary: an employee can quit at any time without reason and without
advance notice.
b. The exceptions to the at will doctrine
i. Term Contract
1. When a contract employment has stated a term the term must be
completed
2. Power v. Right: you have the power to fire, but not the right in a term
contract. Damages result from breech of contract when the power is
executed without the right.
ii. Labor Union
1. The reason people unionize: employment stability
2. If there is a union forget about at will
iii. Anti-discrimination laws
1. We dont care how you hire/fire but you cant fire because of:
a. Religion
b. Race
c. Gender
2. Any other reason is legitimate
iv. Judicially Created Exceptions
1. Implied contract theory:
a. Applied by Arkansas supreme court
b. If in personnel manual, an exception express provision against the
termination except for cause
c. If the employer promises things the in manual, they will be held to
it!
i. In response: They take these provision out of the manual! IN
fact, they often go to the next level: explicitly stating that it is
an at will employment.
ii. There is no two weeks notice rule/law.
2. Public Policy Exception
a. An employee has a cause of action for wrongful termination if he
or she is fired in violation of a well established policy of the
state.
i. But what is it?? What is that well established public policy of
the state?
ii. Perhaps: dismissal because of service on Jury Duty
1. But how long does that last?
3. Protection under Federal Law
a. Whistleblower Protection Act (For Government/Federal
employees)
i. Encourages government employees to reveal
unethical/unlawful activity
b. Federal laws in response to Enron and WorldCom, for employees
of private companies, but whose shares are publicly traded
publicly traded stock covered in Sarbannes-Oxley.
v. Fair Labor Standards Act
1. Affects businesses engaging in Interstate Commerce
a. Child labor
b. Overtime applies only if a covered worker who works more
than 40 hours a week.
c. Minimum Wage ($5.15)
i. States/cities can impose a higher minimum wage than Feds.
But this is not required
vi. OSHA
1. Must affect interstate commerce
2. Derailed safety regulations
3. Search Warrants or consent required for search of business
II. Workers Compensation
a. State Law not federal law they can differ across state lines
i. No fault system providing compensations to workers who somehow get
hurt on the job
ii. Even if the employer has no negligence, workers compensation is still
valid
iii. The fault does not matter. Irresponsibility does not matter
iv. Unless you intentionally hurt yourself you are covered by workers
compensation
v. You must be on the job to qualify
1. What if you are working at home? Grading papers?
a.
vi. Sole remedy against employer for injury is workers comp
1. Pain and suffering does not apply
2. You only get what the law allows
3. Punitive damages are not allowed
4. Tort option is not available: the only remedy is workers compensation
vii. You can sue a third party, but it is subject to subrogation
1. Third party cannot be employer
2. Subrogation means that if you sue the third party, and win, the
employer is entitled to what he paid you, and then you keep everything
that is above and beyond
3. If you dont get workers comp, you can sue for workers
compensation
viii.
You are not covered when under the influence of drugs or alcohol
III. FICA (Federal Insurance Contributory Act) Social Security
a. Tax paid by both the employer and the employee (7.5% each)
b. Cap on social security is taxation on the first $90,000 in wages
i. Any money made after the first $90,000 is not taxed for social security
IV. Unemployment/COBRA
a. Unemployment ta: paid solely by the employer. Both federal and state tax.
Usually insurance is purchased. Rate is affected by the number of claims that
are affected by your actions
i. If you start firing a lot of people, then your rate will be bumped higher
b. COBRA: extends group insurance coverage for up to 18 months after
termination. Group insurance is usually health insurance. Premiums must be
paid entirely by ex-employee.
V. Family and Medical Leave Act
a. Company must have 50 employers or more
b. Requires 12 weeks of unpaid leave allowing employees to care for a newborn
baby, a sick family member, etc.
c. During this tiem, health coverage must continue, and the job must remain
available to the employee
d. Exception for key personell
e. Must be employee for at least one year prior to the leave
VI. Electronic Monitoring and Drug Testing
a. Electronic communications privacy act: does this actually protect the
employee? Not really
i. Employer can:
1. Monitor (read) email
2. Monitor computer usage
3. Monitor website usage
ii. Drug Testing
1. Public sector v. private sector
a. College professors dont have to take drug tests because they are
under the protection of the constitution they b/c are employees of
the Govt.
b. Difference between the two:
i. Public sector: covered by the fourth amendment (unreasonable
search and seizure)
ii. Private Sector is not covered by the fourth amendment
iii. Possible protections:
1. Common law right of privacy
a. Direct observation is not allowed for drug tests except
in NCAA
2. Statutory Law in some states
a. Varies state by state
Chapter 13: Employment Discrimination
I. Civil Rights Act of 1964 (Title VII)
a. Discrimination is a necessary and real action in American Business.
i. Not everyone will be hired when applying!
ii. Mantra: why is it legal to discriminate on this basis? It is legal because it
is not illegal!
b.
c.
d.
e.
1. US Supreme Court: There is a balance between employee rights and
employers prerogative
iii. Prior to 1964, all forms of discrimination were permitted because they
were not illegal
1. But in July 1964, Congress passed Civil Rights Act
a. Now illegal to discriminate based on:
i. Race
ii. Color
iii. Religion
iv. Gender (sex)
v. National Origin
The basis of the Act
i. Based on Commerce Act
1. Congress has ability to control interstate commerce (which is pretty
much everything)
2. Only applies to businesses doing interstate congress (which is all of
them)
ii. The business must have 15 or more employees for this act to be enforced
1. If you have 14 or fewer, you are exempt from the law
iii. No preferential treatment for under-represented groups.
1. Just because you cannot discriminate against a person because of the
above does not at all mean that you have to give them special
treatment
2. You are only required to consider them equally across the board in that
aspect
iv. Sources of Law
1. Statute (legislative body) is the #1 source
2. Court Decisions: common law: how they apply it: #2
3. Guidelines issued by EEOC stating their understanding of the law and
how they will enforce it
a. Guidelines are not considered law.
Proving Discrimination
i. Plaintiff must overcome burden of proof
ii. Defendant must give non-discriminatory reason for dismissal
iii. Burden goes back to plaintiff to prove #2 was merely a pretext (an excuse
for other behavior)
iv. No employer will give you the real reason for firing you especially when
it is illegal this is the essence of pretext
State Law
i. Each of the 50 states have their own laws regarding discrimination and
they may make it more specific
1. More than half of states have made it illegal to discriminate on the
basis of marital status
2. Arkansas does not
Examples
i. Good looks dont count
f.
g.
h.
i.
1. Unless you are only looking for good looking women
ii. You cannot be hired unless you are six feet tall or taller
1. Illegal because it discriminates against women
iii. Weight: legal because it is not illegal (unless it can be a proven disability
discrimination)
iv. Spanish language (illegal because of national origin)
v. Working on Saturdays if you cannot work on Saturdays because of
religious convictions, then discrimination is illegal because reasonable
accommodations must be made by the employer
vi. Bankruptcy we dont want deadbeats
1. Legal because it is not illegal
2. Except: Bankruptcy law states that you cannot be fired from job you
currently have because of filing for bankruptcy
vii. No hire because of being arrested many times
1. Illegal because: This has a disparate impact on racial minorities.
Under EEOC guidelines, an employer may consider convictions, but
not arrests. However, courts do not always follow the guidelines, as
they are not law
viii.
You just got out of jail for murder
1. Legal because it is not illegal
ix. Sexual Preference/orientation: legal because not illegal and not protected
1. However, some states have provided protection thus making it illegal.
Furthermore, the Feds have established this in the civilian workforce
through Executive Order
x. Marked by the devil: Legal because it is not illegal
xi. Graduate of Texas: Legal because no one should get hired from Texas
Diseparate Impact Theory
i. Supreme Court has ruled it illegal to have reasons that discriminate against
classes unless it is a qualified characteristic necessary to do the job (Greg
vs. Duke Power Company about this!)
Which of the following forms of employment discrimination is not covered by
1964 Civil Rights Act? Disability
Implementing tests that are discriminatory on one gender/race/religion/ over
another is in violation of Civil Rights Act of 1964
i. Disparate Impact Theory
1. A seemingly non-discriminatory factor that inadvertently discriminates
against a protected class
Equal Employment Opportunity Commission (EEOC)
i. More than 40 years old (1964 Civil Rights Act)
(Age Protection Act)
ii. Commission that regulates the 1964 Civil Rights Act
iii. Procedures:
1. To claim a violation of 1964 Act, you must do so within 180 days (six
months) with EEOC
2. At this point, they will investigate the violation and will grant you the
right to sue
a. Doesnt mean that they agree, they are just saying that you
followed procedure. Filing with the EEOC gives you the right to
sue. Without filing, you cannot sue.
j. Gender Discrimination:
i. 1971 PanAm Male flight attendants not hired sued and won
ii. Late 1990s: Hooters: The company claimed the right to hire only female
wait-staff: BFOQ (Bona Fide Occupational Qualification)
1. EEOC eventually dropped the case
2. Hooters claimed male servers would be inconsistent with their goals
and claimed BFOQ
3. BFOQ: Bona Fide Occupational Qualification
iii. 1989: Adella Gray claimed that she was fired as academic coordinator for
Razorback football team because she was a woman. U of A won at both
trial and appellate court; court cited coachs articulation of her problems
and inability to comply with demands
k. Sexual Harassment
i. EEOC Guidelines in 1980: take position that harassment equals
discrimination
ii. Doctrines of Sexual and other Harassment
iii. This is only covered for employment harassment
iv. Types of Harassment
1. Quid pro quo: Exchanging one thing for another
a. Requiring sexual favors to be hired or obtain promotion
2. Hostile Environment: Severe enough to alter the conditions of
employment
a. Single act not normally sufficient
b. Must be a series of events
c. Telling one crude joke against women is not enough; it must be a
series of events
d. Conduct need not be romantic
v. Can employer be held liable for harassment if they didnt know about it?
1. Employer is liable if there is a tangible result
2. If not case, the company may raise the defense that it exercised
reasonable care, such as communicating an anti-harassment policy and
that
a. The plaintiff failed to use the corrective procedures in place
b. This shows the importance of policy implementation
II. Other Civil Rights Acts
a. Civil Rights Act of 1866, 1870
i. In 1866: making of contracts, racial discrimination is not allowed
1. This is sometimes preferred because need not go through the EEOC
2. ONLY APPLIES TO RACE!
b. ADEA: Age Discrimination Act: must have at least 15 employees
i. The plaintiff must be at least 40 years or older
ii. The plaintiff must be able to do the JOB!
iii. No protection for anyone under the age of 40
c. Americans with Disabilities Act (ADA) (1992)
i. Employees given 2 years to comply
ii. Congress defines disability: Physical or mental impairment that
substantially limits major life activity
iii. Employee must be able to perform the essential functions of the job, with
or without reasonable accommodation by the employer.
iv. Employer is not required to incur undue hardship
v. What is a disability?
1. Substantially affect life activity
2. Obesity/ Overweight is not normally covered
3. Neurological disorders often disabilities
4. High depression is a disability
5. Homosexuality is not covered
6. Current drug user = no covered, but a rehab individual is a disability
a. Alcohol is the same
b. Current users are not covered
7. Kleptomaniacs are not covered.
d. Affirmative Action
i. Present Lindon B Johnson thought passing of 1964 CRA would not be
enough to rid America of Discrimination
1. So he issued executive order: to do business with Government a
company must show active effort to provide increased job opportunity
to those previously discriminated against (Women and minorities)
ii. There is no statutory law that requires affirmative action
iii. Some have questioned whether or not affirmative action hiring violates
the 1964 Civil Rights Act
1. This is not true because affirmative action represents the spirit of the
law
2. But.Quotas are not allowed
a. Ex: 50% minority and 50% white
iv. Arkansas Civil Rights Act (1993)
1. Protected classes: race, religion, ancestry or national origin, gender
(including pregnancy), and disability
2. Applies to:
a. Employment of 9 or more employees
b. Public accommodation (private club excluded)
c. Property transaction
Chapter 14: Ethics
I. 2002 Sarbanes-Oxley Act: Congress reaction to Enron and related scandals
a. Requires companies whose stock is publicly traded to set up a confidential
system to allow employees and others to report questionable activities
b. Provides whistleblower protection to employees who provide evidence of
fraud
c. Establishes independent board to oversee audits of publicly traded companies
d. Prevents auditing firms from certain non-auditing services that can be
provided by the audit firm
e. Requires rotation of audit partner, generally every 5 years
f. Requires SEC to direct the national securities exchanges to delist a company
that does not comply
g. Both CEO and CFO must personally attest that he/she has reviewed the
financial report and that it does not contain any untrue statements and fairly
presents the financial status of the firm
h. If the company is required to prepare a restatement of the financial report as a
result of misconduct, the CEO and CFO must forfeit any profits associated
with the report
i. In other words, if they are paid according to performance, they must
forfeit any profits associated with that particular report.
i. Companies must disclose if it has adopted a code of ethics that applies to the
companys principal executive officer and other high ranking officers.
Companies that do not have a c ode must disclose this fact and explain why
they do not.
j. Code of ethics must be reasonably designed to deter wrongdoing and promote
honest and ethical conduct.
k. It must promote full, fair, accurate, timely, and understandable disclosure in
reports and documents filed with the SEC
l. Philosophical Reasoning:
i. Religious based ethical reasoning
1. Golden Rule
ii. Philosophical reasoning:
1. Kant
a. Individuals should evaluate their actions in light of the
consequences of what would happen if everyone in society acted
the same way
2. Principle of rights: humans have certain fundamental rights.
Consistent with this, a business decision should take into account how
that decision affects the rights of others
3. Utilitarianism: the greatest good is for the greatest number
iii. Ethics on a personal level
1. Positive law v. natural law
a. Positive law:
b. Natural Law:
2. A couple of practical suggestions for making ethical decisions:
a. Front page of newspaper
i. Would you want what you are doing to be reported on the front
page of a newspaper
b. Mom Test
i. Would you want your mom to know what you are doing?
iv. Ethics in Academia (Academic Honesty)
1. It is wrong to cheat, even if you feel there has been injustice in the
class
2. Doing the right thing is not always easybut it is always right.
3. You cannot disclose the content of a test to another person in a
different section that is academic dishonesty
4. You cannot turn in the same paper for both English and History
a. This is without permission. If you have permission, then it is okay.
5. You cant buy papers off of the internet
v. Corporate Social Responsibility:
1. Inherence (AKA the invisible hand)
a. Managers answer only to the shareholders. Follow the rules but
no more. Maximize shareholder wealth.
2. Enlightened self interest: A manager serves the shareholders best by
being responsive to the larger society.
a. If society is better, we are better.
3. Recall the movie with the New England Wire and Cable Company
with Gregory Peck and Danny DeVito.
Golden Rule One: Obey The Law.
Golden Rule Two: Tell the Truth.
Golden Rule Three: Keep Your Word.
Golden Rule Four: Follow Instructions of Employee.
Golden Rule Five: Set Right Ethical Tone.
Information from Past Tests Necessary
Common Law- (Judge Made Law)
Precedent trial judge follows prior cases from higher jurisdiction.
3 types of cases go to federal court. (Cases which involve the USA,
exclusive jurisdiction with over $75,000 at stake.
Personal Jurisdiction- can always sue defendant in state where he lives.
Minimum contacts dont matter. Can you sue him in your home state?
Yes, if he has minimal contacts. Can sue in federal court? If minimal
contacts is approved and over $75,000.
Burden of Proof- Civil and criminal. Criminal- guilty of crime beyond a
reasonable doubt. Civil- Preponderance of evidence- more believable than
not.
Summary Judgment- when judge is convinced that the case doesnt need
trial because one side is titled to win because of a matter of law.
Torts:
Defamation- A false statement about a person or business that greatly hurts their
reputation. If victim is public figure then malice has to be proven.
Negligence Case- duty, breach of duty, causation, damages.
Comparative Fault- subtracts percentage of fault by amount rewarded. Jury must
do 2 things. Amount of damages. Percentage of fault from that amount.
Contracts:
Elements: Mature agreement, consideration, capacity to contract, for lawful
purpose. Fairness NOT an element.
Consideration: offering 100,000 in bonus but employee doesnt do anything in
return.
If I make an offer, you have time until offer is accepted to take it back.
Advertisement- is not an offer, just invitation to make offer.
Conditional Precedent Contract- Something must be done before contract has to
be paid/done.
Never find award of punitive damages in contract case, only tort case.
Partnership- Partners are individually responsible for contract delt. Does
not pay income tax. Absolute no limit on how many people can be in an
LLC.
Never see names of directors or officers in Articles of Confederation.
Servant- direct supervision of principle.
Independent Contractor - no supervision necessary.
Implied Authority Agency- If agent makes full disclosure only principle is
responsible for breach of contract. However, if agent doesnt make full
disclosure then he and the principle are responsible.
Adverse Possession- Occupying property of someone elses. If in 7 years
the actual owner hasnt noticed then the party has right to claim and is his
own.
Fixtures- Built in. Chandeliers, Fans, etc.
Fair Use Doctrine- use copyrighted material if it is for insignificant
purpose.
Trademark(Longest), Patent(20 Years), Copyright(Life Plus 70)