Business Chapter 21 - Working within the Legal Environment

Intentional Tort

willful act that results in injury.

Major amendments to the bankruptcy code:

1) Bankruptcy amendments and federal judgeship act of 1984 2) Bankruptcy Reform Act of 1994 3) Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Order of Paying Unsecured Claims

1. Costs of the bankruptcy case. 2.Any business costs incurred after bankruptcy was filed. 3. Wages, salaries, or commissions owed. 4. Contributions to employee benefit plans. 5. Refunds to consumers who paid for products that weren't delivered. 6.Federal and state taxes.

Fraud

A deliberate deception intended to secure an unfair or unlawful gain

Precedent

Decisions judges have made in previous cases that guide the handling of new ones.

Negotiable Instruments (commercial paper)

Forms of commercial paper (such as checks) that are transferable among businesses and individuals and represent a promise to pay a specified amount.

Business Law

Refers to the rules, statutes, codes and regulations that provide a legal framework for the conduct of business and that are enforceable by court action.

Judiciary

The branch of government chosen to oversee the legal system through a system of courts.

Uniform Commercial Code (UCC)

a comprehensive commercial law that covers sales laws and other commercial laws.

Tort

a wrongful act that causes injury to another person's body, property, or reputation.

Bankruptcy amendments and federal judgeship act of 1984

allows a person who is bankrupt to keep part of the equity (ownership) in a house and car, and some other personal property.

Express Warranties

are specific representations by sellers that buyers rely on regarding the goods they purchase. (example: the warranty you receive in the box with an iPad is an express warranty.)

Taxes

are the way federal, state, and local governments raise money.

Warranties

can either be full or limited (full = replace whole product...)

Warranties (two types)

guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it

Negligence

in tort law, behavior that causes unintentional harm or injury.

Statutory Law (written law)

includes state and federal constitutions, legislative enactments, treaties of the fed. gov, and ordinances - in short, written law. You can read the statutes that make up this body of law, but they are often written in language whose meaning must be determined in court.

Common Law (unwritten law)

is the body of law that comes from decisions handed down by courts.

Bankruptcy

is the legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court.

Implied Warranties

legally imposed on the seller, specifying that a product will conform to the customary standards of the trade or industry in which it competes

Product Liability

part of tort law that holds businesses liable for harm that results from the production, design, or use of products they market.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

passed to reduce the total number of bankruptcy filings and to eliminate the perceived ease of filing bankruptcy. Increased cost of filing and made it difficult for people (especially those with high incomes) to escape overwhelming debt.

Involuntary Bankruptcy

the creditors start legal action against the debtor.

Voluntary Bankruptcy

the debtor applies for bankruptcy.

Straight Bankruptcy (Chapter 7)

used by businesses and individuals. It requires the sale of nonexempt assets. (turns all assets to a trustee to sell and give money to creditors) First, creditors with secured claims receive the collateral for their claims or repossess the claimed asset (such as an automobile, equipment, or building); then unsecured claims (backed by no asset) are paid