Business Law Midterm Study

Describe the concept of Promissory Estoppel.

The promissory estoppel concerns broken promises from one party that brought harm to another. This "allows aggreived parties to pursue justice [...] even in the absence of any consideration", however, the ways in which it can be applied differ from one state to the next. Overall, there must be a legal relationship between the concerned parties and a promise must have been made; action relying on the promise must have been taken before consideration was exchanged, and this must have resulted in harm as a result of the promise being broken.

The crime of larceny includes:

The trespassory taking and control of personal property.

Describe the 2 types of Due Process.

The two types of Due Process are substantive and procedural. Substantive due process is concerned with laws that deprive someone of their life, liberty, or property; these laws must be "fair and not arbitrary" and laws passed must meet the rational-basis test. Procedural due process "means that governments must use fair procedures when depriving an individual of their life, liberty, or property."

Distinguish between corporate social responsibility and social marketing.

These terms are actually used interchangeably despite there being key differences. "Social marketing attempts to change the attitudes and behaviors of consumers by using a variety of marketing methods." On the other hand, CSR lends to the measuring of sustainable efforts. So one deals with customers and the other is directly involved in brand behind the scenes.

What is an Unfair Trade Practice and which Administrative Agency regulates it?

Things like false advertisement, which would be a fraudulent business practice. The Federal Trade Commission (FTC) is the agency that regulates these practices.

What's the definition of Corporate Responsibility?

This "refers to the idea that a business is given the opportunity and privilege to make the world a better place."

What is the Foreign Corrupt Practices Act?

This act prohibits briberies from being paid to U.S. companies by foreign officials as a means of influencing business.

Where did the term Corporate Responsibility originate?

This term originated in Corporate Responsibility of the Businessman from 1953. At least, this is the earliest known publication of the term.

All of the following are the most common applications of arbitration in the business context except: - Labor. - Business Transactions. - Property Disputes. - Torts.

Torts.

True or False: Businesses can be charged with crimes.

True.

True or False: Some of the rights in the Constitution's Bill of Rights extends to Corporations.

True.

True or False: The 14th Amendment is a part of the Bill of Rights.

True.

True or False: The Age Discrimination Act only applies to employers with 20 or more employees.

True.

Which country is the United States legal system derived from?

United Kingdom.

Where can you find a codification of federal laws?

United States Code

As a judge, Baxter applies common law rules. These rules develop from:

decisions of the courts in legal disputes.

What is the function of the National Labor Relations Board? - To monitor the conduct of the unions and employers during union elections. - To remedy and prevent unfair labor practices by unions or employers. - To establish rules interpreting the NLRA. - All of the above.

All of the above.

What regulation protects employees who are terminated from their employment? - COBRA. - ERISA. - Unemployment Compensation. - All of the above.

All of the above.

Which of the following is correct with regards to the powers of state government in the United States? - All powers not specifically enumerated to the federal government are reserved to the states. - The power over crimes is reserved to the federal government. - The power over the militia is reserved to the states. - The powers over the federal government are superior to every state power.

All powers not specifically enumerated to the federal government are reserved to the states.

What's the main benefit of e-mediation?

Allows mediation when the parties are far apart physically, but one benefit shown by research is that e-mediation allows a "cool down" period.

Describe the difference between an express and implied warranty.

An express warranty is explicitly stated and guarantees the quality of the good or service sold by the seller. When no express warranty was made, the implied warranty arises due to law automatically because a sale was made.

What is a trade union?

An group of workers organizing to come together in order to lobby employers regarding work conditions.

Roger and Larry are having a dispute regarding their joint business. They want to have a binding resolution to their dispute, but they would prefer to have the dispute handled privately and by someone with special expertise. The best form of dispute resolution for their problem would be:

Arbitration.

When can a mentally incompetent person void a contract?

At any point uness the contract involves necessities.

True or False: All of the sections of the Bill of Rights apply to corporations and commercial activities.

False.

True or False: Securities are only regulated by federal laws.

False.

True or False: The Patient Protection and Affordable Care Act's (also known as Obamacare) provision that mandated that individuals not insured through employment obtain minimum essential health insurance or face a penalty was upheld as constitutional by the 11th Circuit.

False.

What is the difference between state and federal law?

Federal law applies to everyone in the United States where state law only applies to those living or working in that given state.

All of the following are methods to enforce an arbitrator's decision except: - Writs of Execution. - Garnishment. - Fines. - Liens.

Fines.

Which of the following is most likely to be classified as a necessity for which a minor will be held liable on a contract? - A television. - School supplies. - Education. - Food.

Food.

Courts of equity will not grant specific performance of contracts:

For a personal service contract.

Which of the following is a special relationship giving rise to a duty to act to aid or protect one in peril? - Hotel and guest. - Cousin to cousin. - School principal and student. - Hotel and guest, and school principal and student.

Hotel and guest, and school principal and student.

What does At-Will Employment mean?

It is the right to terminate employees with no reason. While some states have protections and there are protections for things such as discrimination, states like California and Oklahoma continue to be at-will. At-will employment also means employees can quit without notice.

Distinguish between larceny and embezzlement.

Larceny is the unlawful taking of someone else's personal property whereas embezzlement is when a person entrusted with something of value refuses to return it/doesn't return it.

Who decides the business ethics for a company?

Leadership.

Forms of Alternative Dispute Resolution ("ADR") include all of the following except: - Mediation. - Settlement. - Litigation. - Arbitration.

Litigation.

All of the following are examples of results of unethical business actions except: - Recruitment and retention problems. - Lower employee salaries. - Negative employee relations. - Poor company reputation.

Lower employee salaries.

A process in which a third party selected by the disputants helps the parties to voluntarily resolve their disagreement is known as:

Mediation.

What's the first step in Alternative Dispute Resolution?

Negotiation.

Employers are required provide a work environment that is safe and healthy for their employees by which law?

OSHA.

According to Kimberlee Leonard of the Houston Chronicle the elements that belong in a Code of Conduct for a company include all of the following except: - Office Hours. - Professional behaviors. - Regulatory ethics. - Legal considerations.

Office Hours.

Distinguish between rescission and reformation.

Parties no longer have to perform contracted obligations with recission, whereas reformation allows the courts to change contracts.

What happens when a person lacks the legal capacity to enter into a contract?

Persons entering a contract must have the capacity to do so - meaning they must mentally sound and of legal age, and not under the influence at the time. When this is not the case, they are considered to not have legal capacity and the contract is considered voidable.

Examples of a defect in a breach of the implied warranty of merchantability, include all of the following except: - Design defect. - Manufacturing defect. - Inadequate instructions. - Product defect.

Product defect.

The elements of a contract include all but the following element:

Promissory Estoppel.

The three dimensions of the triple bottom line include all of the following except: - Profits. - People. - Planet. - Promotion.

Promotion.

Define restitution.

Restitution occurs by restoring status quo or returning money/property.

Regulations are:

Rules adopted by administrative agencies.

The doctrine aimed at dividing the governing powers between the federal governments and the states is:

Separation of powers.

Which of the following practices are illegal? - Picketing. - No strike clause. - Sit-Down strike. - A secure shop.

Sit-Down strike.

Mediation focuses on:

Solutions.

What is an attractive nuisance?

Something that could lead to liability such as a pool, a trampoline in your yard where other kids may jump, owning a pet that's cute and kids want to pet it but can hurt them. Basically anything that can attract a minor but result in harm.

Which clause of the U.S. Constitution provides that, within its own sphere, federal law is supreme and that state law must, in case of conflict, yield?

Supremacy Clause.

What is the definition of a good?

Tangible items according to Section 2-105 of the UCC.

Explain Title VII of the Civil Rights Act of 1964.

The 1964 Civil Rights Act is directly related to the civil rights of citizens. Title VII deals with employment discrimination, banning employers from discriminating in both hiring and firing as well as promotion. This is on the basis of sex, origin, ethnicity, religion, and race. This applies to all commercial employers with 15+ employees for 20 consecutive weeks.

What is the supreme law of the land? What are statutes? What are ordinances? What is an administrative rule?

The Constitution, State laws and laws enacted by Congress, Local laws, Administrative agency-issued laws/regulations

Explain the Thomas-Kilmann Conflict Mode Instrument.

The TKI (Thomas-Kilmann Conflict Mode Instrument) is a questionnaire. This questionnaire provides the five negotiation styles mentioned above. Work by Dean Pruitt and Jeffrey Rubin is most closely associated with this instrument.

What source of law governs sales contracts?

The Uniform Commercial Code.

Define business ethics.

The acceptable levels of behavior for each individual that makes up a given organization.

The elements of res ipsa loquitor that a plaintiff must establish in a product liability lawsuit include all of the following except:

The defendant breached his or her duty of care.

Which of the following is a goal of an arraignment? - The defendant is informed of the charge and enters a plea. - Requires the defendant to bear the burden of proof - Begins the inquisitorial system of adjudication. - All of these are correct.

The defendant is informed of the charge and enters a plea.

To bring a successful claim under the Americans with Disability Act ("ADA"), the plaintiff must prove all of the following except: - He or she suffered an adverse employment decision because of a disability. - The disability was not a mental disability. - He or she was qualified for a position. - He or she has a disability.

The disability was not a mental disability.

How does the process of negotiation work?

The process of negotiation works based on the objective, style, and type. For example, there is dyadic negotiation and group negotiation, relational goals and outcome goals, zero-sum negotiation, and then styles like forcing, collaborating, compromising, avoiding, and yielding.

The following are possible remedies to buyers under the UCC: - Cancel the contract. - Obtain Cover. - Sue. - All of the above.

All of the above.

Typical remedies available for a breach of contract include: - Money damages. - Rescission. - Specific Performance. - All of the above.

All of the above.

What are the ways an agreement can be invalidated? - Fraud. - Misrepresentation. - Undue influence. - All of the above.

All of the above.

Distinguish a shipment contract from a destination contract.

A shipment contract is the seller's responsibility to ship/transfer goods becoming the buyers responsibility to bear risk of loss whether they recieve the goods or not, while a destination contract means the seller is responsible for everything up to the point of delivery.

Define torts.

A tort is a wrong committed against others who suffer some form of damage as a result, such as slander.

Describe Negligence.

A type of tort where one isn't meeting the reasonable standard of care

_____ is a place of employment where the employee is required to join the union within a specified number of days after being hired.

A union shop.

If an activity causes a foreseeable and highly significant risk of physical harm even when reasonable care is exercised by all actors, and the activity is not one of common usage, it is:

Abnormally dangerous.

The criminal act necessary to commit a crime is known as:

Actus reus.

What is the function of law in the United States? - Establish standards. - Promote consistency. - Promote, provide, and maintain order. - All of the above.

All of the above.

What is a warranty in a sales contract?

"A guarantee on the good that comes as part of the sales contract"

Explain the term labor relations.

"Labor relations is the general term used to describe the relationship between employers and employees, as well as governance of that relationship."

Explain Police Power and the Dormant Commerce Clause.

"Police power refers to the residual powers granted to each state to safeguard the welfare of" those residing there. This authority was granted due to instances where federal government regulation conflicts with the state, and as such, is limited by the dormant commerce clause so that police power cannot interfere with interstate commerce.

What's the definition of negotiation?

"The process by which parties with nonidentical preferences allocate resources through interpersonal activity and joint decision making."

Name the steps in Mediation.

- Mediator's opening statement - Opening statements of plaintiff and defendant - Joint discussion - Private caucus - Joint negotiation - Closure

Describe the typical steps in Arbitration.

- Number of arbitrators is decided - A timeline is established - Arbitrator will make a decision and make one or more awards

How many weeks of unpaid leave does the Family Medical Leave Act guarantee to eligible workers?

12.

An example of an intentional tort is: - Defamation. - Assault. - Malicious prosecution. - All of the above.

All of the above

When an individual creates and promotes malicious falsehoods about another that individual may be liable for: - Libel. - Slander. - Defamation. - All of the above.

All of the above

A minor can avoid a contract to purchase a car if: - The car has been destroyed. - The car has been damaged. - He or she grows tired of it. - All of the above.

All of the above.

Ethical rules can be based on deep values of an organization which may include: - Quality of products and services. - Commitment to customers. - How the organization gives back to the community. - All of the above.

All of the above.

The Fair Labor Standards Act (FLSA) covers which category? - Child Labor. - Minimum wage. - Overtime pay. - All of the above.

All of the above.

What is a breach of warranty?

A breach of warranty occurs when the express warranty is identified as false.

What is a sales contract?

A contract wherin one party is obligated to deliver and transfer ownership of good(s) to a secondary party, who is obligated to pay for it in kind

Consideration may include any of the following except: - A promise. - A gift. - Property. - Money.

A gift.

What is the definition of a contract?

A legally enforceable agreement between two or more parties. Promise(s) that are legally binding.

Define a material breach.

A material breach is when the deliverables are substantially different from what was contracted.

A person trained in conflict resolution is considered:

A mediator.

What is a pump-and-dump scheme?

A pump-and-dump scheme involves the filing of false forms as a way to raise stock value, followed by releasing those shares into the market.

All of the following are elements of negligence except: - A reasonable person. - A duty by the defendant to either act or refrain from acting. - A breach of a duty owed by defendant. - Measurable harm.

A reasonable person.

The benefits of Corporate Responsibility for a business include: - Talent attraction. - Consumer influence. - Improved perception by investors. - All of the above.

All of the above.

The following are the type of awards that may be issued by an arbitrator: - Bare Bones. - Reasoned. - Both a and b.

Both a and b.

The following is valid defense under Title VII:

BFOQ

The burden of proof is a criminal case is:

Beyond a reasonable doubt.

Explain the differences between binding and non-binding arbitration.

Binding arbitration is when the decision is final, and typically no appeal can be made. Non-binding arbitration can be seen as a recommendation and is only finalized if both parties agree.

The _____ gives the federal government the authority to regulate interstate and international commerce.

Commerce Clause.

Four sources of law in the U.S. legal system are:

Constitutional law, judicial law, legislative law, and administrative law.

Examples of illegal contracts include all but the following: - Contracts for the sale or distribution of heroin. - Contracts for loansharking. - Contracts in consideration of marriage. - Employment contracts for the hiring of undocumented workers.

Contracts in consideration of marriage.

Describe the differences between contributory and comparative negligence.

Contributory is when the court determines the plaintiff is unable to recover damages, such as instances of assumption of risk and misuse. An example of this would be a saw with a defective cover, or simply using a product in a way other than intended. Comparative is when the plaintiff's own actions did contribute to the harm but may still recover damages, such as the determination that a defendant is 70% responsible for the damages and the plaintiff is responsible for 30%...then the plaintiff would recover 70% of the damages.

Distinguish between civil and criminal law.

Criminal law "addresses behaviors that are offenses against the public, society, or state" whereas civil laws address those concerning private rights of individuals like divorce, slander, property, etc.

All of the following are features of sales contracts except: - Consensual. - Bilateral. - Cumulative. - Principal.

Cumulative.

Alex has been sued by Will for failure to pay rent for their apartment which source of law will govern this lawsuit?

Civil Law.

The _____ of the constitution offers the most extensive protection for businesses.

Due Process Clause.

Consequences of being convicted a crime include all of the following except: - Prison. - Fines. - Community service. - Damages.

Damages.

Explain White Collar Crime.

Deceit, concealment, and violations of trust are characteristics of white collar crime. These are crimes committed by business professionals, typically involving fraud, and motivated by the desire for financial gain or fear.

How do you prove a disparate impact case?

Disparate impact occurs when discrimination is unintentional. These cases are difficult to prove as they occur "when the employer engages in a practice that has a disproportionately injurious impact on a protected class."

The legislature of the state of Wyoming enacts a new statute that sets standards for the liability of businesses selling defective products. This statute applies in:

Wyoming only.