The Legal Environment of Business Test One Flashcards

Terms Definitions
Fiduciary relationship
trust, respect, confidence
Bargain test
benefit to promisure
Parties may file written questions.
1. statement of courts jurisdiction
Valid/Void/Voidable Contract
valid- sufficiently met offer, acceptance and consideration/pimp-hoe, illegal purpose/statue of fraud
_____ consists of enforceable rules governing relationships among individuals and between individuals and their society.
The offering, giving, soliciting, or recieving of money or any object of value for the purpose of influencing the judgement or conduct of a person in a position of trust, especially a government officials.
Judicial decisions used to establish standards for subsequent similar cases
Lucy v. Zehmer
objective theory of contracts
To establish superior rights that is, to perfect the security interest the creditor must give notice of the existence of the security interest.
40. As a general rule, disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.
a. True
b. False
licensing requirements
requirements in some professions that a state license must be obtained and maintained in order to practice the profession; licenses usually require competency tests and the payment of fees; the requirements are intended to protect consumers
The material offering of anything in writing that if geniune might be the foundation of a legal liability.
4 Ethical Norms
1. Freedom
2. Security
3. Justice
4. Efficiency 
Checks and Balances
Each branch regulates the other.
Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved.
formal rulemaking
an agency develops and issues regulations after holding at least one public hearing.
The particular court location within a specific court system, where a case should be heard
Course of dealing created exception. A vaild contract.
Mechanic's Lien
imposed on real property to secure payment for work performed or materials furnished for construction or improvements on property
Joint tenancy
Co-ownership of real estate; when one of the owners dies, that interest goes to the remaining owners (right of survivorship)
Privacy Torts- FLICD
False light, Intrusion into seclusion, commercial appropriation-using anothers name or likeness, public disclosure of private fact
Relevant Evidence
Evidence that tends to prove or disprove a fact in question or to establish the degree of probability of a fact or action.
b. transportation
163. Which of the following would least likely considered a "necessary" as discussed in class?
a. food
b. transportation
c. medical care
d. clothing
a. may be unconscionable.
113. So-called "contracts of adhesion":
a. may be unconscionable.
b. are absolutely binding.
c. are always unenforceable.
d. are voidable at the option of the weaker party.
a work stoppage by employees to coerce their employer to give in to their demands
stare decisis
a common law doctrine under which judges are obligated to follow the precedents established in prior decisions
A trial court judge presides over the trial, making sure the case is heard with reasonable speed, rules on all motions are made in the case, and decides all questions of the law.
Fourth Amendment
Protects the rights of individuals to be secure in their persons, homes, and property by prohibiting the government from conducting unreasonable searches of individuals and seizing their property.
First Appearance
Appearance of the defendant before a magistrate, who determines whether there was probable cause for an arrest.
An ADR method in which lawyers for each side present the case for their side at a proceeding referred by a neutral adviser, but settlement authority usually resides with senior executives of the disputing corporations.
Miranda Rights
Certain legal rights that the suspect much be informed of upon arrest such as the right to remain silent, to avoid self-incrimination, and the right to an attorney.
motion to dismiss
A "motion to dismiss" asks the court to decide that a claim, even if true as stated, is not one for which the law offers a legal remedy.
substantitive law
the legal principles that define one's rights in specific subject areas
The person against whom a civil or criminal lawsuit is brought.
1. Plaintiff confers a benefit on defendant2. P expects to be paid3. D does not expect to pay4. P is an officious intermeddler5. It would be unjust enrichment for the D to have the benefits and not to pay the P *i.e. doctor saves an unconscious person.
officious intermeddler
Usually force or threat of force to compel another party to enter into a contract- can be rescinded -economic durress-B needs A.It is not a basis for recision
Implied Contract
a contract that comes about from the actions of the parties
Output contract
An agreement of a buyer to purchase the entire output of a seller's factory
secondary sources of law
a publication that summarizes or interprets the law such as a legal encyclopedia, a legal treatise, or an article in a law review.
b. Consideration
116. The Acme Corporation is having a "Happy Holiday Giveaway." To win, a person must guess the number of marbles in a large jar. No purchase is necessary. This is probably not an illegal lottery because what element is lacking?
a. A prize
b. Consideration
c. Chance
d. The lottery is illegal in most states
exculpatory clause
clause in a contract that releases one of the parties from liability for his/her wrongdoing (not favored in employment contracts)
Deontological Theories
Actions can be judged good or bad based on rules and principles that are applied universally.
Humanist Theories
Actions are evaluated as good or bad depending on whether they contribute to improving inherent human capacities such as intelligence, wisdom, and self-restraint.
the sale of a product in a foreign country for a lower price than that charged in the home country, or below the cost of production
contingency fee
when the lawyer's fee is a certain percentage of the total money obtained by the client, at trial or by settlement.
Civil cases in which the plaintiff seeks money damage
Actions at law
The power of a court to hear and decide a case.
Course of Dealing between parties
-Prior contracts/dealings between two parties-yr 1-A promise, B return promise-valid contract-yr 2- A renewal, B silence- contract performance (continues for years 2-10)yr 11- A renewal, B silence- B thinks "no I didn't accept"
Movable Good
if it can be carried from one location to another
all of the above
107. Ratification can occur in three ways. They are:
a. through express language.
b. as implied from contract.
c. through failure to make a timely disaffirmance.
d. all of the above.
e. none of the above.
collective bargaining
the process by which a union and an employer arrive at and enforce agreements regarding the employment conditions of workers
Nolo  Contendere
A plea of no contest that subjects the defendant to punishment but is not an admission of guilt.
statue of limitations
A statute of limitations is a statute in a common law legal system that sets forth the maximum period of time, after certain events, that legal proceedings based on those events may be initiated.
Those who hold that law is simply the body of rules enforced by the courts and society.
Legal Realists
When offeree properly dispatches the acceptance.
Exceptions to Mail Box Rule
purpose to avoid frauds
5 categories of contracts- if they're not in writing they're not enforceable
Where a negative injunction has been ordered the following five factors exist
1.uniqueness of employee services2.employer was ready to perform3. not close relationship (mom-son)4. injunction will not leave the employee with no way to live5. There is some competition b/w the plaintiff(employer) and some third party for whom the employee wants to work.
a. cannot relieve a party from liability for battery.
62. Exculpatory clauses:
a. cannot relieve a party from liability for battery.
b. always are enforceable if they are clearly and conspicuously stated in the agreement.
c. may relieve an employer from liability for workers' compensation benefits.
d. are effective only when the party benefited by them owes a duty to the public.
Act or an omission
Negligence can be an ____ or an ____.
Strict Liability Offense
An offense for which no state of mind is required.
exclusionary rule from the 4th amendment
prohibits evidence which was illegally seized from being used in court by the prosecutor
Can that be revoked? Yes! Any offer can be revoked prior to acceptance
*exception option contract (irrevocable)
b. legally binding on both parties.
101. Payne entered into a written agreement to sell a parcel of land to Stevens. At the time the agreement was executed, Payne had consumed alcoholic beverages. Payne's ability to understand the nature and terms of the contract was not impaired. Stevens did not believe that Payne was intoxicated. The contract is
a. void as a matter of law.
b. legally binding on both parties.
c. voidable at Payne's option.
d. voidable at Steven's option.
Causation of Injury to the Victim
The actions of the tortfeasor resulted in harm to the victim. This causation can be direct or indirect where several forces combine to cause harm. If the causation is indirect, the actions of the tortfeasor must have been a substantial factor in producing harm to the victim.
u.n. commission on international trade law
When world trade began to expand dramatically in the 1960s, national governments began to realize the need for a global set of standards and rules to harmonize national and regional regulations, which until then governed international trade.
Lack of capacity (minor)
Contract of a minor is voidable up to the age of majority (18) and a reasonable time after.
c. the minor cannot get the property back from the third person under the UCC.
138. When personal property is transferred to a third person who is unaware that it was originally purchased by a minor
a. the minor can avoid the sale to the third person under the UCC.
b. the third person can avoid the purchase under the UCC.
c. the minor cannot get the property back from the third person under the UCC.
d. the minor can recover the property from the third person under the UCC upon full restitution.
motion for a new trial
asks that the court order a new trial in the case because of some serious and prejudicial error that has occurred or because of the discovery of some imprtant new evidence that was not available at the first trial.
2. statement of claim, showing that plaintiff is entitled to relief, a cause to action, legal theoryof liability.
3. Demand for relief (usually money damages). What does plaintiff want? Civil case is compensatory not punitive
d. All of the above are true.
154. Which of the following is true with regard to an exculpatory clause?
a. An exculpatory clause excuses one party from liability for her own tortuous conduct.
b. Where one party has a superior bargaining position that has enabled him to impose an exculpatory clause upon the other, the courts are inclined to nullify the provision.
c. An exculpatory clause may be unenforceable for unconscionability.
d. All of the above are true.
Breach of that Duty by the Tortfeasor
this is, simply, the idea that the tortfeasor failed to act as a reasonable person would have.
4 different legal basis for which somone can rescind
-to undue the contract for any of these legal reasons (give back their things)1. Mutual mistake of fact2. misrepresentation-intentional (fraud)-negligent3. Undue influence-innocent4. Durress
b. can only be ratified after the person has regained his mental capacity.
6. A contract made by a mentally impaired person; who has not been adjudicated incompetent:
a. can only be disaffirmed after the person has regained his mental capacity.
b. can only be ratified after the person has regained his mental capacity.
c. normally is void rather than voidable.
d. a and b are true.
-Offerer may authorize a specific act- if offeree does that act, then it is an acceptance. Moment he "waves the red flag". It can't be something he usually does anyway.
"park the car in my driveway if you want to accept the contract"
c. may be divisible from the rest of the agreement, which means that the court will enforce the agreement without it.
5. A clearly illegal provision in an agreement:
a. infects the whole agreement and makes it unenforceable.
b. means criminal liability for the party who drafted it.
c. may be divisible from the rest of the agreement, which means that the court will enforce the agreement without it.
d. can be rescinded if the weaker party voluntarily waives it.
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