Business Law

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Primary Sources
Documents where the laws themselves are contained, such as a constitution, statute or case law
Civil Law
Enforcement of disputes among private individuals, and business entities, by preponderance of evidence
Criminal Law
Wrongs committed against society, Burden of proof beyond a reasonable doubt
Plaintiff
Party initiating the suit
Defendant
Person the suit is brought against
Commerce Clause
Gives congress the right to regulate interstate commerce b/w states
Gibbons V. Ogden
Expanded this power to regulate all activities that “substantially affect” interstate commerce, had bigger impact than the constitution
Power of the states
The police power of the tenth amendment allows states to regulate for public order, health safety, morals, and general welfare within their borders
The “Dormant” commerce clause
States do not have the right to regulate interstate commerce – this is exclusive to the federal government
The supremacy clause
Article VI of the U.S. Constitution provides that the Constitution, laws, and treaties of the U.S. are “the supreme law of the land”, In case of direct conflict b/w state and federal law, state law is invalid
Ethics
The study of right and wrong behavior; whether an action is fair, right or just.
Ethics in Business
Ethical decisions are the application of moral and ethical principles to the marketplace and workplace
Profit Maximization
Resources flow to more highly valued organizations
The Rise of Corporate Citizenship
Today, investors look more at the “triple bottom line,” which is the business’s profits, treatments of people, and treatment of the planet
The Moral Minimum
Complying with the law is the minimum degree of ethics required by a business
Jurisdiction
A courts authority to decide a case, the court must have jurisdiction over the person the suit is brought against or the property involved
In Persona Jurisdiction
The control of a person or corporation by the court within its geographic area
In Rem Jurisdiction
The courts control over an object
Long Arm Statutes
The court can exercise jurisdiction over out-of-state defendants if they had sufficient minimum contacts to warrant it
Original Jurisdiction
The trial court where the dispute takes place
Appellate Jurisdiction
Reviews the trial courts decision for legal errors
Sliding Scale
used to determine if courts have jurisdiction over defendants in internet cases, when the defendant conducts substantial business over the internet, jurisdiction is proper
Venue
The physical location of the trial, usually the same jurisdiction as where the incident occurred
Standing to sue
The party bringing suit suffered a harm, must be a justiciable controversy, meaning an actual claim and not a hypothetical one
Negligence
A legal duty of care, Breach of that duty, Causation, damages
Causation in fact
The harm would not have occurred “but for” the conduct of the defendant
Proximate cause
The link b/w the action and the cause was sufficiently strong to warrant liability, reasonably for seen
Contributory Negligence
Used in a few states if the plaintiff is also negligent
Strict Liability
Or liability without fault, imposed for certain activities
Warranties
an assurance by the seller concerning the goods
Breached warranty
if seller breaches a warranty, buyer can recover damages or rescind the contract
Express warranty
The seller makes representations about the quality of the goods
Affirmation of fact or promise Description
Sample or model The buyer must rely on the warranty when entering into the contract
Opinions are not warranties
Puffery
an opinion that does not equal fraud
Product Liability
liability regardless of fault which is imposed on those engaged.
The Palsgraf Case
Fireworks went off, girl sued, lost
Utilitarianism
the best course of action is the one that promotes the greatest good for the greatest number of people.
Stake Holder Approach, What are the ways that a business can deter unethical behavior?
Keeping all information confidential and keeping employees accountable for their actions
Who can be affected by a business’s unethical behavior?
Employees, management, consumers, stockholders
What is all involved in a lawsuit?
Plaintiff, defendant, judge, attorneys, mediators, court reporter, jurors
What are the alternatives to litigation and how does each alternative work?
Mediation, Deposition, Interrogatory, Settlements, Dropped charges
Bait and switch
falsely advertising a product at a low price lure customers to buy more expensive products
Counteradvertising
advertising that opposes the advertisement that came before it.
Categories: Business Law