Intro to Business (Week 5)

To establish negligence a plaintiff must prove the defendant:

-failed to take actions and that this failure caused harm

The Uniform Commercial Code provides what types of warranties?

-implied warranties and express warranties

The principle of caveat emptor

-insufficient for consumers safety

The Federal Trade Commission Act created the Federal Trade Commission, an agency charged with:

-litigating cases involving deceptive trade practices

In a civil society, law is required to establish what personal behavior and business practices are right or wrong based on a society's values and circumstances. Specifically, law serves the following purposes:

-maintaining order -establishing standards -resolving disputes -protecting individual rights and liberties.

The Clayton Act prohibits mergers and acquisitions where the effect:

-may be substantially to lessen competition, or to create a monopoly

The Sherman Act is legislation focused on addressing:

-monopolistic business practices

An implied warranty of merchantability assures that a product is a reasonably fit for:

-ordinary use

An auto mechanic has an idea to make a tool that will make his job easier. He has a machinist friend make a prototype of it. To protect his idea he needs a:

-patent

Examples of compensatory damages include:

-payment for mental anguish

When a tort or harm is caused by a product, the legal question is whether there is a product defect and, therefore, product liability. In pursuing a product liability case based on negligence, plaintiffs generally claim a manufacturer failed to meet one or more of the following standards:

-product design, product manufacture, product warnings or instructions

The goal of antitrust legislation is to:

-promote competition and achieve associated price, quality, choice and innovation benefits.

Which of the following statements best describes the rationale for consumer protection legislation?

-protect and reassure consumers and support economic growth

The Fair Credit Reporting Act (FCRA) was intended to:

-protect consumers from willful and/or negligent inclusion of information in their credit reports

The United States Constitution sets limits on the branches of government. This is an example of what purpose of law?

-protecting individual rights and liberties

Strict liability is a ________ liability that applies when a tort or harm results from ________.

-significantly higher level of;ultrahazardous activity or defective products.

Most states have evolved product liability negligence into:

-strict liability tort law

Negligence is a category of tort that involves:

-the harm that arises from unintentional action

The USPTO defines a trademark as "a word, phrase, symbol, or design, or a combination thereof, that identifies and distinguishes the source of the goods of one party from those of others." In order to be registrable, a trademark/service mark must be perceived as unique or unlikely to cause confusion. Which of the following statements best describes the bases of that determination?

-the visual appearance, sound and meaning of a trademark and relatedness of goods and/or services

One of the basic objectives of antitrust laws is:

-to create and maintain a competitive market

The primary goal of antitrust legislation is:

-to protect businesses and consumers against unfair business practices that limit competition and control prices

A ________ gives the owner the right to prevent others from using a company's product name or logo.

-trademark

An independent designer creates a t-shirt that encourages struggling students to "Just Do It," mimicking Nike's slogan. This is an example of a:

-trademark violation

The Federal Trade Commission Act bans:

-unfair methods of competition

Strict product liability does not require:

-unreasonable conduct

A ________ is a guarantee that a product meets certain standards of performance.

-warranty

Consideration (definition)

Consideration is the exchange of value. Value can be an exchange of money for property or services or an exchange of property and/or services as long as both parties receive a measurable benefit

Proximate causation (definition)

This element requires the plaintiff to prove that the defendant could reasonably foresee the general type of harm. For example, it's reasonable for a mechanic to foresee that failure to fix a customer's brakes would result in an accident. If the court determines that an event leading to the harm is not foreseeable, the event is termed a "superseding" cause and the defendant is not liable.

The FDA has the authority to:

educate the public and establish and enforce regulations for goods under its authority

Copyrights are a form of intellectual property protection that give a creator: of Unlike patents and trademarks, that are administered by the USPTO, copyrights are administered by the Library of Congress. However, like patents and trademarks, a copyright gives its creator the exclusive right to his or her original work for a limited time.

exclusive right to an original's work for a term exceeding the author's life

Law is a body of rules defined by:

legal force and effect, prescribed, recognized, and enforced by a controlling authority.

A contract is a promise between two parties. However, in order for the contract to be legally enforceable it must meet certain criteria, such as:

the parties must agree to exchange something of value

Property rights are one of the factors that economists refer to as "rules of the game" or the institutions that give individuals and businesses an incentive to not only develop, but continuously improve, the goods and services they invent. The purpose of intellectual property law is:

to create a framework that incentivizes value creation—specifically, development of new ideas and inventions—while also providing for public access to the good or service.

A USPTO patent grants an inventor:

"the right to exclude others from making, using, offering for sale, or selling the invention in the United States or importing the invention into the United States" for the patent term.

The Fair Credit Reporting Act:

-creates guidelines under which credit reporting agencies may conduct business

Warranties can be either expressed or implied. Which of the following statements best explains an express warranty?

-An express warranty is created based on a seller's words or actions

The four elements of a legally enforceable contract are:

-An offer and acceptance, consideration, legal capacity and legality

Law is defined as:

-Conduct approved and enforced by government

________ is a form of protection provided to the authors of "original works of authorship," including literary, dramatic, musical, artistic, and certain other intellectual works.

-Copyright

The ________ prevents unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce.

-Federal Trade Commission Act

Implied warranties of merchantability and warranties of fitness are categories of warranty that are:

-Implied warranties are those created by the Uniform Commercial Code

Intellectual property is intangible. How would you best describe its value to businesses?

-Intellectual property is intangible. How would you best describe its value to businesses?

Common law is the body of law that is based on:

-Legal precedent

Statutory law is the body of law that is based on:

-Legislation passed by Congress

Which of the following statements best describes the calculation of damages for breach of contract based on expectation interest?

-Monetary awards based on expectation interest may include direct damages, consequential damages and/or incidental damages

Common law is based on:

-Precedent

________ refers to the circumstance where a court orders a party to carry out their duties under the contract.

-Specific performance

The legal age for purchase of alcoholic beverages is defined by:

-Statutory law

Companies planning large mergers or acquisitions must notify the government in advance to abide by:

-The Clayton Act

In antitrust legislation, this act deals greatly with "monopolization":

-The Sherman Act

The unreasonable restraint of trade is a practice prohibited by:

-The Sherman Act

Which of the following best describe a contract?

-a legally enforceable agreement

Which is an examples of a tort suit?

-a tenant who damages a landlord's property

The word "tort" is derived from the French word meaning to harm or to be in the wrong. In a legal context, a tort is ________ that is generally remedied through payment of monetary damages.

-a violation of civil law

The rule of law is a principle that applies the authority of law to:

-all persons, businesses and other entities.

Sylvania claims that their light bulbs "last 10 times longer and use 75% less energy than standard bulbs." This is an example of:

-an express warranty

Sylvania provides light bulbs that, one might assume, are safe to use and will last for a reasonable period of time. This is an example of:

-an implied warranty

The Clayton Act is characterized as:

-antitrust legislation

An enforceable contract creates legal obligations, and failure to comply with them creates a:

-breach of contract

________ is the failure of a party to fulfill their obligations under the contract.

-breach of contract

David is looking to buy a used kayak through an online auction. He wants some type of protection, however this sale would be covered by the principle of:

-caveat emptor ("buyer beware")

The way a court "remedies" a wrong is by awarding monetary payment, referred to as "damages." Which of the following statements accurately describes the difference between compensatory and punitive damages?

-compensatory damages are intended to compensate a plaintiff for the wrong; punitive damages intended to punish the defendant and deter similar behavior

Specific performance refers to the circumstance where a court orders a party to carry out their duties under the:

-contract

Damage (definition)

The final element is proof of harm—an injury and/or other measurable loss. These can include emotional, economic, or reputational damages. Note that courts decide to award damages based on the single recovery principle; that is, they must factor in present and future damages.

Legal Capacity (definition)

The parties must be at least 18 years old and of sound mind. A minor who signs a contract has the right to cancel it. A person with mental illness or disability or who is under the influence of drugs or alcohol or who signs under duress does not have the mental capacity to enter into a contract.

Breach (definition)

The question posed by this point is whether the defendant failed to meet (breached) his or her duty of due care. See exception below.

Duty of due care (definition)

The question posed by this point is whether the defendant has a legal responsibility or duty of care to the plaintiff. The key test for proving this element is "foreseeability;" that is, whether the defendant could have foreseen that the plaintiff would be harmed by his or her action.

Factual causation (definition)

The question posed by this point is whether the defendants failure to meet his or her duty of due care caused the harm.

A warranty is defined as:

a promise that goods sold will meet stated standards that has legal implications

Antoine and David are 12 years old when they agree that if either one of them ever earns more than $200,000 in one year he will buy the other one a new car. After college, Antoine starts a company that provides transportation to senior citizens who cannot drive. When David reads in the newspaper that Antoine's business has been purchased by a healthcare provider for $5 million, David believes that he is owed a new car. The agreement for the new car between Antoine and David was not a legal contract because it fails to meet which requirement(s) of a contract?

-contractual capacityjjjj

A young author writes a novel that is based on the story of Harry Potter, including Harry and several of the other characters in his new story. This is an example of a:

-copyright infringement

The ________ in a contract describe the details of what the parties commit to do or not do.

-covenants

Offer & Acceptance (definition)

A contract begins with an offer, where one party proposes an agreement that includes specific terms. An offer can be accepted in writing, in person, over the phone or by performance that clearly communicates the accepting party agrees to the buyer's terms. Under the "Mailbox Rule" used in most states, an offer is deemed accepted when the accepting party places it in a mailbox or sends an email, even if the offering party never actually receives it.

________ is a principle under which there are four aspects: due process, separation of powers, an open and transparent system of making laws, and predictable and uniform application of the laws.

Rule of law

Legality (definition)

The contract must be for an activity that is legal. Courts will not enforce a contract to commit a crime—to commit murder or sell drugs, for example.

Which of the following best describes a "breach of contract"?

a failure, without legal excuse, to perform any promise that forms all or part of the contract