Module 5 General Business Law - Contracts, Intellectual Property, Employment, Liability, Regulation

Assumption of Risk

A defense in the laws of torts that reduces a plaintiff's right to recovery if the defendant can demonstrate that the plaintiff voluntarily and knowingly assumed the risks associated with the activity at issue

Disparate Impact

A discriminatory employment practice that has a greater impact on one group over another

Disparate Treatment

A discriminatory employment practice where an employee is treated differently than other employees who were in a similar situation

Trademarks

A distinctive mark or feature that is particularly characteristic of or identified with an entity, product, or brand

Administrative Procedures (APA)

A federal statute that governs how administrative agencies of the government of the United States may propose and establish regulations

Duty

A legal obligation that entails mandatory conduct or performance

Business Necessity

A legitimate business purpose that justifies an employment practice as valid and necessary for the business

Failure to Adequately Warn

A party will be held liable for the injuries caused to another, where the party had the opportunity to warn of any dangers of the product but failed to do so

Design Defect

A problem with the product's design that makes the product inherently dangerous or useless, even it it is manufactured perfectly with the best quality materials

Express Warranty

A verbal or written statements that guarantees that a product is of a certain quality or will work in a certain way or for a certain amount of time

Which of the following characteristics indicate membership in a protected class under the Civil Rights Act of 1964? A. race B. color C. national origin D. religion E. age F. None of the above is the single best answer.

A. race B. color C. national origin D. religion E. age

Which law passed by Congress prohibits discrimination based on race, color, religion, gender, or national origin in any term or condition of employment? A. Equal Pay Act B. Title VII of the Civil Rights Act of 1964 C. Age Discrimination in Employment Act D. ADA E. Quid Pro Quo F. None of the above is the single best answer.

B. Title VII of the Civil Rights Act of 1964

In which the following circumstances will an original offer become terminated? A. When information is requested about the offer. B. When the offeree rejects the offer. C. When a counteroffer is made. D. When the offer is withdrawn. E. If thirty days pass without a response from the offeree. F. None of these circumstances will terminate an original offer.

B. When the offeree rejects the offer. C. When a counteroffer is made. D. When the offer is withdrawn.

Palming Off

Misrepresenting someone else's goods or services as one's own in business

Intellectual Property

Non-physical property that is the product of original thought and the law may protect

Quid Pro Quo Sexual Harassment

Occurs when a more senior manager or employee demands sexual favors in exchange for some workplace benefit

Hostile Environment Sexual Harassment

Occurs when a supervisor or other employee makes sexually suggestive comments, gestures, advances, pictures, text, touch, or humor that unreasonably interferes with work performance

Breach of duty

Occurs when one person or company has a duty of care owed towards another person or company but fails to live up to that standard

Fair Use Doctrine

Permits limited use of copyrighted material without acquiring permission from the rights holder

Actual Cause

Refers to a cause or action without which the event could not have occured

Failure to Adequately Package

Relates to a duty the manufacturer has to package products appropriately and safely for the consumer

Consideration

Something of value give by both parties to a contract that includes them to agree to exchange mutual performances

Capacity

The ability to understand both the nature and consequences of one's acts

Product Liability

The area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause

At-will employment

The contractual employment relationship where the business can fire a worker without warning and justification

Copyright

The exclusive rights to reproduce, publish, and sell, or distribute the matter and form of an artistic effort

Federal Register

The official daily publication for rules, proposed rules, and notices of federal agencies and organizations, as well as executive orders and other presidential documents

Quasi-Judicial Authority

The powers granted to a public administrative agency to objectively determine facts and draw conclusions from them to provide the basis of an official action, often resembling the procedures of a court of law

Reverse Engineering

The process of taking apart na object to see how it works to duplicate the object. It is legal to acquire a trade secret through reverse engineering

Mirror Image Rule

The requirement that a contract be accepted exactly as it is, without modifications

Legality

The state of being in accordance with the law

Disaffirm

To revoke or deny a contract

Sexual Harassement

Unwelcome sexual advances, requests for favors, and other verbal or physical harassment of a sexual nature

Quasi-legislative Authority

When an administrative agency exercises its rule-making authority. Administrative agencies acquire this authority to make rules and regulations that affect legal rights through statutes. This authority is an exception to the general principle that laws affecting rights should be passed only be elected lawmakers

Breach

When one party does not perform as promised in a contract

Intentional Tort

a civil wrong resulting from an intentional act of the defendant

Restatement of Contracts

a compilation of the general principles of contract common law

Manufacturing Defect

a defect in a product resulting from a departure from its design specifications during production

Due Process of Law

a fundamental, constitutional guarantee that all legal proceedings will be fair and that one will be given notice of the proceedings and an opportunity to be heard before the government acts to take away one's rights

Implied Warranty

a guarantee that the item sold is merchantable and fit for the purpose intended. An implied warranty is in addition to an express warranty provided at the time of sale to protect consumers who might otherwise pay for products that are not as represented by the merchant.

Administrative Law Judge

a judge who both presides and issues judgement over the claims and disputes involving administrative laws and agencies

Vicarious Liability

a legal doctrine that assigns liability for an injury to a person who did not cause the injury but who has a particular legal relationship (e.g. the employer-employee relationship) to the person who did act negligently

Strict Liability

a legal doctrine that makes a person or company responsible for their actions or products which causes damages regardless of any negligence or fault on their part

Respondeat Superior

a legal doctrine which states that an employer is responsible for the actions of employees performed within the course of their employment

Design Patent

a patent that offers protection for the way a product looks

Utility Patent

a patent that protects the way an invention is used and works

Uniform Commercial Code (UCC)

a set of suggested laws concerning commerce with the intent to provide uniformity across states in order to simplify business activity

Negligence

failure to use reasonable care, resulting in damage or injury to another. It has four key requirements.

Deep Pockets Theory

in tort law, employers will often be held liable for the actions of a negligent employee. Since employers usually have more money than the employee to pay for negligence, they would be in a better position to pay the victims.

Novelty, Utility, Non-obviousness

the three criteria that must be met in order to qualify for patent protection

Misappropriation

the unauthorized use of another's name, likeness, or identity without permission, resulting in harm to that entity

Infringe

to encroach upon in a way that violates law or the rights of another

Contract

A binding agreement between two or more parties

Tort

A civil wrong which unfairly causes someone else to suffer loss of harm resulting in legal liability for the person who commits the wrongful act

Implied in Fact Contract

A contract agreed upon by non-verbal conduct (i.e. actions) rather than by explicit words

Valid Contract

A contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it

Express Contract

A contract which specifically states all of its elements, either orally or in writing

Harry and Ron, who have been friends for many years, make a contract for the sale of a bike for $100. If Harry and Ron are not minors, would the contract be enforceable? A. Yes B. No C. Only if the contract is in writing D. Only if the third party witnesses the contract E. Not if either party decides to change its mind F. none of the above

A. Yes

A trade secret might include which of the following? A. a customer list B. a company slogan C. a manufacturing process D. a distinctive company logo E. a product name F. None of the above is the single best answer.

A. a customer list C. a manufacturing process

Which of the following are elements of an enforceable contract? A. agreement B. consideration C. fair-use D. written documentation E. respondeat superior F. None of the choices is an element of an enforceable contract.

A. agreement B. consideration

Quid pro quo sexual harassment occurs when ____________________. A. an employee loses benefits because they refused to grant a sexual favor B. a manager requests a sexual favor from an employee C. two employees go out on a date D. an employee is promoted because they granted a sexual favor E. inappropriate jokes or stories are repeatedly told in front of members of the opposite sex F. None of these statements correctly complete the sentence.

A. an employee loses benefits because they refused to grant a sexual favor B. a manager requests a sexual favor from an employee D. an employee is promoted because they granted a sexual favor

Which of the following is NOT an intentional tort? A. breach of contract B. assault C. theft D. disparagement E. palming off F. None of the above is the single best answer.

A. breach of contract

Fred agrees to lease his retail space to the George for nine months, with the lease to begin six months from the signing of the contract. Under the statute of frauds,_____________. A. the lease is required to be in writing B. the lease is not required to be in writing C. the contract is voidable D. a contract is not formed, and there is no current agreement E. a contract is not formed because the statute of frauds does not include leases F. None of these statements correctly complete the sentence.

A. the lease is required to be in writing

Which of the following are not specifically protected by intellectual property legislation? A. trade secrets B. trademarks C. copyright D. patent E. None of these choices is protected by intellectual property legislation.

A. trade secrets

All the following are the elements that a plaintiff must prove to be successful in establishing the defendant's negligence in a lawsuit, EXCEPT: A. warranty B. actual cause C. duty to exercise reasonable care D. breach of duty E. injury or damages resulted to the plaintiff F. None of the above is the single best answer.

A. warranty

Mutual Assent

An agreement by both parties to enter into a contract

Patent

An exclusive right granted by law to an inventor to make, use, and sell an invention for a limited period - 20 years from the date the patent application is filed

Trade Secrets

Any business information that is proprietary and give the business a competitive advantage

Hostile environment sexual harassment occurs when any of the following are present in the workplace EXCEPT ______________. A. inappropriate touching B. appropriate jokes or stories C. sexual pictures, calendars, or graffiti D. repeated unwanted phone calls, gifts, or letters E. a female employee asks a male coworker to go on a date F. None of these statements correctly complete the sentence.

B. appropriate jokes or stories E. a female employee asks a male coworker to go on a date

The role of administrative agencies is to _______________. A. develop, create and implement the law B. interpret, facilitate and enforce the law C. render decisions in court cases regarding employment law D. facilitate greater communication between courts E. persuade Congress to enact laws that are favorable to specific companies F. None of these statements correctly complete the sentence.

B. interpret, facilitate and enforce the law

Regulation refers to ______________. A. rules developed by a trade group B. rules administered by a government agency C. laws upheld by the Supreme Court D. laws created to prevent monopolies E. laws created to protect free trade agreements F. None of these statements correctly complete the sentence.

B. rules administered by a government agency

A defendant will NOT be held liable for a plaintiff's injuries in a negligence case if _____________. A. he did not know he had harmed the plaintiff B. the injuries the plaintiff suffered were not reasonably foreseeable C. he did not intend to harm the plaintiff D. he did cause the plaintiff's harm, but only because he was helping someone else E. the injuries the plaintiff suffered were minor F. None of these statements correctly complete the sentence.

B. the injuries the plaintiff suffered were not reasonably foreseeable

What is the Statute of Frauds? A. Any statute that lists the elements of fraud. B. A statute that determines whether a contract has been breached. C. A statute that requires certain contracts to be in writing and signed by the parties involved. D. A statute that says fraudulent contracts are voidable. E. A statute that says fraudulent contracts are void. F. None of the above is the single best answer.

C. A statute that requires certain contracts to be in writing and signed by the parties involved.

Which of the following is NOT a suggestion offered to assist a supervisor in preventing sexual harassment in the workplace? A. Take appropriate disciplinary action when an act of sexual harassment occurs. B. Inform employees of their right to raise sexual harassment claims. C. Express strong disapproval. D. Give employees information about how to file suits against sexual harassment offenders. E. Train employees in what constitutes sexual harassment. F. None of the above is the single best answer.

C. Express strong disapproval.

The liability of a manufacturer or seller for injury to purchasers, users, and third parties is known as ________________. A. customer care liability B. consumer liability C. product liability D. purchase liability E. disparagement F. None of these statements correctly complete the sentence.

C. product liability

Enabling Statute

Congress delegates its rule making authority to agencies via enabling statutes. These statutes establish and authorize administrative agencies to issue specific rules and regulations and carry out other activities to fulfill broad aims defined by Congress

Which of the following principles is NOT applicable to trademarks? A. A trademark should be distinctive. B. A trademark should not cause confusion with previous trademarks. C. A trademark should be capable of distinguishing goods or services. D. A trademark must be registered to be enforced. E. A trademark should not be deceptive. F. None of the above is the single best answer.

D. A trademark must be registered to be enforced.

Which of the following statements is incorrect? A. The employer-employee relationship is the most prevalent type of employment relationship. B. The formal agreement which specifies the employment terms and conditions for the employee and the employer is called an employment contract. C. There are some exceptions to employment-at-will, such as statutory requirements for nondiscriminatory termination. D. An employer does not incur any legal responsibilities or liabilities regarding its employees. E. A business must comply with any regulations imposed on them by an administrative agency. F. None of the above is the single best answer.

D. An employer does not incur any legal responsibilities or liabilities regarding its employees.

Dumbledore has just created a new software program that he wants to market and sell to the public. He has come up with a unique name. He is concerned that one of the big high-tech firms may try to steal his idea. What forms of intellectual property protection should he consider? A. A patent for the software program and copyright protection for the name. B. A patent for the software program and a trademark registration for the name. C. Copyright protection for the software program and a trademark registration for the name. D. Copyright protection for the software program and a patent for the name. E. A trademark registration for the software program and a patent for the name. F. None of the above is the single best answer.

D. Copyright protection for the software program and a patent for the name.

Hedwig delivers packages for Hogwarts Parcel Service. While making a delivery within the scope of her employment, Hedwig causes an accident in which Minerva is injured. Minerva can recover damages from _______________. A. Hedwig only B. Hogwarts only C. Hedwig or Hogwarts, but not both D. Hedwig and Hogwarts E. neither Hedwig nor Hogwarts F. None of the above is the single best answer.

D. Hedwig and Hogwarts

Lucius Malfoy agreed to paint the four bedrooms of Voldemort's house for $3,000 with the full amount paid at completion. After preparing the walls for painting and painting a primer coat in one bedroom, Voldemort tells Malfoy to quit painting the house because he has changed his mind about having the job done. Voldemort refuses to pay Malfoy anything for the work already completed since no payment was due until completion. Can Malfoy successfully sue Voldemort for breach of contract and, if so, for what amount? A. No, because Voldemort has a right to withdraw his offer at any time before completion. B. No, because no money was due before completion. C. Yes, for the full $3,000. D. Yes, for the value of the work Malfoy had completed. E. Yes, for the cost of the paint only, but nothing for Malfoy's labor F. None of the above is the single best answer.

D. Yes, for the value of the work Malfoy had completed. E. Yes, for the cost of the paint only, but nothing for Malfoy's labor

Which of the following terms stipulates that both an employer and an employee may terminate the employment relationship at any time and for any reason, so long as the termination does not violate a statutory law or an employment contract? A. restatement of contracts B. fair-use doctrine C. mutual assent D. at-will employment E. bona fide occupational qualification (BFOQ) F. None of the above is the single best answer.

D. at-will employment

Which of the following cannot be protected by copyright? A. musical compositions B. literary works C. computer software and hardware D. folklore tales E. paintings F. None of the above is the single best answer.

D. folklore tales

A liability without the necessity of proving fault is a ________________. A. business liability B. employer liability C. vicarious liability D. strict liability E. tortuous liability F. None of these statements correctly complete the sentence.

D. strict liability

Proximate Cause

Determining whether or not an event is sufficiently related to an injury to be held as the cause of that injury

Why would someone choose to incur the time and cost of obtaining a patent for an invention? A. To have the right to make the invention public. B. To have the right to sell the invention to the public. C. To have the exclusive rights in the invention for 90 years. D. To have the right to exploit the invention indefinitely without any competition. E. To have the exclusive rights in the invention for 20 years. F. None of the above is the single best answer.

E. To have the exclusive rights in the invention for 20 years.

On November 2, Bellatrix said to Neville that she would pay him $100 if he would rake all of the leaves in her yard. Neville does not say anything to Bellatrix about whether he will rake the leaves or not. On November 4, Neville rakes the leaves and asks Bellatrix for the $100. Bellatrix refuses to pay Neville and thanks him for the gift of raking. Can Neville force Bellatrix to pay him? A. No, because Bellatrix's statement to Neville on November 2 was not an offer. B. No, because Bellatrix's offer had lapsed so it could not be accepted. C. No, because Neville never communicated his acceptance of the offer to Bellatrix. D. Yes, because the owner of a house has to pay anybody who does work on the house. E. Yes, because Neville's conduct in raking the leaves amounted to the communication of acceptance. F. None of the above is the single best answer.

E. Yes, because Neville's conduct in raking the leaves amounted to the communication of acceptance.

Draco manufactures and sells fake Rolex watches. Consequently, Draco could be sued for the intentional tort of __________________. A. conversion B. copyright infringement C. theft of a trade secret D. negligence E. palming off F. none of the above

E. palming off

Bona Fide Occupational qualification (BFOQ)

Employment qualifications that employers are allowed to consider while making decisions about hiring and retaining employees

Negligence Action/Personal Injury

Harm done to a party through the unreasonable and foreseeable risky actions of the defendant

Disparagement

Intentionally making false statements about the quality of ownership of someone's goods

Defamation

Intentionally making untrue statements about an individual in the presence of another or communicated to a third party that has the effect of lessening the individual's reputation in the community

Tortfeasor

an individual who commits a wrongful act that injures another and which the law provides a legal right to seek relief