FIN240 Key Terms

tort

A civil wrong not arising from a breach of contract. A breach of a legal duty that proximately causes harm or injury to another.

cost benefit analysis

A decision-making technique that involves weighing the costs of a given action against the benefits of that action.

Complaint

A formal written document that begins a civil lawsuit; contains the plaintiff's list of allegations against the defendant, along with the damages the plaintiff seeks.

Transferred Intent

A legal doctrine that holds that, when the intention to harm one individual inadvertently causes a second person to be hurt instead, the perpetrator is still held responsible.

summons

A legal document issued by a court and addressed to a defendant that notifies him or her of the lawsuit and how and when to respond to the complaint. A summons may be used in both civil and criminal proceedings.

compensatory damages

A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party.

Good Samaritan Statute

A state statute that provides that persons who rescue or provide emergency services to others in peril—unless they do so recklessly, thus causing further harm—cannot be sued for negligence.

long arm statute

A statute that gives a court jurisdiction over someone who commits a tort, signs a contract, or conducts "regular business activities" in the state

Contributory Negligence

A theory in tort law under which a complaining party's own negligence contributed to or caused his or her injuries. Contributory negligence is an absolute bar to recovery in a minority of jurisdictions.

comparative negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence.

mediation

A type of intensive negotiation in which disputing parties select a neutral party to help facilitate communication and suggest ways for the parties to solve their dispute

intentional tort

A wrongful act knowingly committed.

defamation

Any published or publicly spoken false statement that causes injury to another's good name, reputation, or character.

motion for summary judgment

In a civil case, a request made by either party that asks a judge or a court to promptly and expeditiously dispose of the case without a trial. Any evidence or information that would be admissible at trial may be considered on a motion for summary judgment. The court may hold oral arguments or decide the motion on the basis of the parties' briefs and supporting documentation alone.

question of fact

In a lawsuit, an issue that involves a factual dispute that can only be decided by a judge

privilege

In tort law, the ability to act contrary to another person's right without that person's having legal redress for such acts. Privilege may be raised as a defense to defamation.

proximate cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.

punitive damages

Money damages that may be awarded to a plaintiff to punish the defendant and deter future similar conduct.

acceptance

The contractual communication of agreeing to another's offer. The acceptance of an offer creates a contract.

duty of care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the reasonable person standard, constitutes the tort of negligence.

reasonable person standard

The standard of behavior expected of a hypothetical "reasonable person." The standard against which negligence is measured and that must be observed to avoid liability for negligence.

goodwill

the valuable reputation of a business viewed as an intangible asset

business tort

a civil wrong not arising from a breach of contract

actual malice

a condition that exists when a person makes a statement with either knowledge of its falsity or a reckless disregard for the truth

express contract

a contract in which all elements of a contract are specifically stated

Arbitration clause

a contract provision mandating that all disputes arising under the contract must be settled by arbitration

executed contract

a contract that has not yet been fully performed or fully executed

quasi contract

a contract that is created by a court order, not by an agreement made by the parties to the contract

formal contract

a contract where the parties have signed under seal

intellectual property

a creative work of art, writing, film, or software that belongs to a legally protected owner

Trademark

a distinctive name, symbol, word, picture, or combination of these that a company uses to identify products or services.

typo squatting

a form of cybersquatting that relies on mistakes by internet users when inputting info into a web browser

patent

a grant from the government that gives an inventor the exclusive right to make or sell the invention for a period of twenty years

phishing

a method of identity theft carried out through the creation of a fraudulent

promisee

a person to whom a promise has been made

deposition

a pretrial interrogation of a witness

libel

a published false statement that is damaging to a person's reputation; a written defamation.

Arbitration

a type of alternative dispute resolution wherein disputes are submitted for resolution to private non-official persons elected selected in a manner provided by law or the agreement of the parties

certification mark

a type of trademark that is used to show consumers that particular goods and/or services, or their providers, have met certain standards

Brief

a written legal argument which a party presents to a court that explains why that party to the case should prevail

contract

agreement to buy, sell, lend, swap, or repurchase, or other similar individually negotiated transaction

valid contract

all parties must be in agreement

implied contract

an agreement created by actions of the parties involved but is not written or spoken

license

an agreement, or contract, permitting the use of a trademark, copyright, patent, or trade secret for certain purposes

copyright

an intangible property right granted by federal stature to another author or originator of a literary or artistic production of a specified type

rule of four

at least four the nine justices of the supreme court have to approve the writ of cert

actionable

capable of serving as the basis of a lawsuit

offer

communication of interest in buying or selling an asset

forgery

consists of creating or changing something with the intent of passing it off as genuine, usually for financial gain or to gain something else of value

shrink wrap agreement

contracts packaged with products

slander

defamation in oral form

informal contract

defined as contracts conducted without seal of a government agency

duress

describes the act of using force, false imprisonment, coercion, threats or psychological pressure to compel someone to act contrary to his or her wishes

Strict Liability

exists when a defendant is liable for committing an action, regardless of what the intention or mental state was when committing the action

Negligence

failure to take proper care in doing something

indictment

formally charges a person with a criminal offense

ethics

general ethical norms encompass truthfulness, honesty, integrity, respect for others, fairness, and justice

motion for judgment N.O.V

granted if the jury's verdict was unreasonable and erroneous

principle of rights

how specifically a business decision will affect the rights of others

malpractice

improper, illegal, or negligent professional activity or treatment, especially by a medical practitioner, lawyer, or public official.

trade secret

information of commercial value, such as customer lists, plans, and research and development

default judgement

judgment for the plaintiff that occurs when the defendant fails to respond to the complaint

concurrent jurisdiction

jurisdiction that exists when two different courts have the power to hear a case

promise

legally binding only when they are made in a contract or by a deed

unilateral contract

offeror makes a promise in exchange for an act by another party

promisor

one who makes a promise

probable cause

requirement found in the Fourth Amendment that must usually be met before police make an arrest, conduct a search, or receive a warrant

small claims court

special civil courts in which parties may litigate small claims; usually $2,500 or less

beyond a reasonable doubt

standard of proof that must be met in order to convict a criminal defendant of a crime

revocation

the annulment or cancellation of an instrument, act or promise by one doing or making the offer

pleadings

the complaint and answer taken together

mailbox rule

the default rule under contract law for determining the time at which an offer is accepted, states that an offer is considered accepted at the time that the acceptance is mailed.

exclusionary rule

the government from using most evidence gathered in violation of the United States Constitution

stakeholder

the groups of people affected by a firm's decisions

offeror

the party who makes the offer

offeree

the person who either accepts or does not accept the offer

jurisdiction

the power of a court to hear cases and resolve disputes

judicial review

the power of a court to review a legislative and executive actions such as a law or an official act of a government employee or agent, to determine whether they are constitutional

litigation

the process of resolving a dispute through the court system

cyber tort

tort done online

voidable contract

valid contract which may be either affirmed or rejected at the option of one of the parties

partnering agreement

written agreement between two or more individuals who join as partners to form and carry on a for-profit business