ARE 18 Fall 2014 2nd Midterm
1. A[n] is a promise or set of promises for the breach of which the law gives a remedy or the
performance of which the law in some way recognizes a duty.
_ D. foer
Department of Agricultural and Resource Economics
University of California, Davis
Agricultural and Resource Economics 15
Population, Environment and World Agriculture
Midterm Examination Answer Key
Global Warming. Answer the follo
Chapter 30 - Debtors and Creditors
Person who borrows: debtors
Expected to repay as outlined in contract (should be in writing, most are)
Person who lends money: creditor
Different Types of Loans
1. Student loan:
1. Secured by real estate.
Bankruptcy means the debt is no longer owed (dischargeable)
Person cannot file the same type of bankruptcy for 8 years.
Types of Bankruptcy
Chapter 7: normal type.
Chapter 9: local government (municipal) bankruptcy.
Examples: Detroit, Stockton
For the most part, every square inch of land is fixed wherever it is. Each piece of land is separate from every other piece of land on the
face of the Earth. And, we can identify every piece of land. That makes land different from everything e
A contract where in the contract (written trust document evidencing the trust) there are different parties.
1st: creator of the trust - trustor / grantor / creator (could also be the beneficiary!)
2nd: beneficiaries of the trust.
Is someone an employer or an employee?
Many times, employers would rather not have employees. Rather, have independent workers (contractors).
It is somewhat expensive to have employees.
If the employer can control the actions of the employee, then the con
Business Entity: a separate legal and financial item. It has its own resources, assets, liabilities, etc. It is a legal
separation. A corporation in the eyes of th law is considered to be a separate person. Can have assets, raise money,
have employees, et
A preference relation that is complete,
reflexive, transitive and continuous can be
represented by a continuous utility
function (as an alternative, or as a
complement, to the indifference map of
the previous lecture).
A single person is in control of the management and the profits.
Very few legal formalities.
Complete control of management and organization.
Can keep all profits (which are taxed as personal income of sole proprietor).
Contracts in Writing
Written contracts smooth the conduct of business transactions.
STATUTE OF FRAUDS
1. Requires reliable evidence to back up a contract.
2. Prevent unreliable oral interference.
3. Prevent disagreement
CONTRACTS FALLING WITHIN THE STATUT
Available to individuals, partnerships, and corporations.
The Bankruptcy Act and Its Goals
Provide protection to creditors.
Provide protection to debtors who don't pay in a timely fashion.
Bankruptcy law is federal law, however, state laws may affect bank
ARE 18 Spring 2016 lst Exam
1. A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules
describing what behavior is permitted and encouraged in their community. These rules are what we refer
to as th
business ethics requires a weighing of the benefits of a situation compared to the harm.
ethics is the study of decisions that are good, or right.
business ethics is the study of ethics applied to a business environment.
an ethical dilemma occurs when the
mediation: when both parties voluntarily select a mediator who works with them to resolve the dispute. Allows parties to fully explain the
incidents. Reframes the dispute. Its like counseling. Then create a resolution. CONFIDENTIAL
Contract: legally enforceable promises
Covenant not to compete: restrict employee behavior when not with the company.
Elements of A contract:
1. Consists of an offer and acceptance.
1. What each party gets out of the contract
Legal Assent: a promise that the courts will require the parties to obey.
Best practice firms aim for legal assent in their contracts.
misunderstanding about the transaction.
mistake of fact: an erroneous belief about the facts of the contract at
The Nature of Real Property
real property: realty, the land and everything permanently attached to it.
fixtures: items that were originally personal property but became realty after it was permanently attached to the real property.
Ex. Installing a built-
Laws Assisting Creditors
lein: a claim to property
3 types of liens:
a secured interest - the parties agree to the secured partys claim to the debtors property.
a statutory lien is a lean that is created solely through a statute
if not employed under contract, considered an at-will employee.
Civil Rights Act of 1964 - Title VII
Prohibits emlpoyment discrimination.
>15 employees for 20 consecutive weeks.
Disparate treamtnet and disparate impact.
Treatment: treated differently.