business exam three study guide 11'7'11

business exam three study guide 11'7'11 - Legal...

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Legal relationships and obligations for the business decision maker originate from four successes. 1. Statutory or regulatory law a. Legislative branch passes laws and creates administrative agencies b. Examples are National Labor and Health act and National Labor and Health agency c. These agencies create regulations, overall law is very general, so these agencies make the law more specific d. Written law that includes federal constitutions, legislative enactments, treaties of the federal government and ordinance of local governments e. Basically any agency that was formed to protect the stakeholder groups 2. Contract law a. Negotiated agreements which create and legally enforceable rights and responsibilities between the negotiating parties b. Must state all rights and responsibilities, there must be an offer and acceptance c. Contracts can only be negotiated by parties who are legal age and have legal mental capacity d. Both parties must give something up in negotiation e. Breach of Contract- A violation of a valid contract, the injured party can go to court f. Four elements of an enforceable contract f.i. Agreement f.ii. Consideration f.iii. Capacity f.iv. Legal and Serious purpose 3. Law of Agency a. When one party has the trust of another and is to act in the others best interest, creating a fiduciary relationship b. CEO acts in behalf of owners so CEO is called Fiduciary or agent c. The owners are called the principal
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business exam three study guide 11'7'11 - Legal...

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