Understanding Business Chapter A

Public utility commissions

set rates that can be charged by various public utilities to prevent unfair pricing by regulating monopolies(e.g natural gas, electric power companies)

Common Law

Body of law that comes from decisions handed down by courts; unwritten law

State licensing boards

License various trades and professions within a state(e.g state, cosmetology board, state real estate commission)

U.S v Standard oil

broken up 34 companies

Patent facts

(1) Patent applications should seek the advise of a attorney (2) Patent owners have the right to sell or license the use of their patent to others (3) Foreign companies are eligible to file for U.S patents.

a contract is legally binding when

(1) an offer is made (2) there is a voluntary acceptance of the offer (3) Both parties gave consideration-something of value (4) Both parties are competent (5) the contract covers a legal act (6) the contract is in proper form

Four conditions for using negotiable instruments

(1) must be written and signed by maker or drawer (2) must be made payable on demand or at a certain time (3) Must be made payable to bearer (4) must contain unconditional promise to pay specified amount

State Agencies

(1) public unity commissions (2) State licensing boards

the following may be ordered if a contract is breached

1. specific performance 2. Payment of damages 3. Discharge of obligation

Uniform Commercial Code (UCC)

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

Bankruptcy

A legal process to get out of debt when you can no longer make all your required payments

Truth in Lending Act

An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.

Civil Law Proceedings

Cover non-criminal acts- marriage, perosnal injury lawsuits and more

precedent

Decisions judges have made in earlier cases that guide the handling of new cases

Criminal Law

Defines crimes, establishes punishments, and regulates the investigation and prosecution of people accused of commiting crimes

FTC (Federal Trade Commission)

Enforces laws and guidelines regarding unfair practices and acts to stop false and deceptive advertising and labelling.

Administrative agencies

Federal or state governmental bodies formed to carry out particular laws

Clayton act of 1914

Forbids exclusive dealing, typing contracts, interlocking directorates, buying large amounts of stock in competing corporations

Implied Warrenties

Guarantees legally imposed on the seller.

Appellate Courts

Hear appeals from the losing party at the trial court level

product liability

Holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market.

Judges and precedent

In the US judicial system, judges are guided in their decisions by the percepts of common law.

Chapter 11 bankruptcy

Reorganization of a business where company can operate with pre-bankruptcy management in place while the entitlement of lenders and investors are reorganized to replace a failed capital structure.

Business Law

Rules, statutes, codes, and regulations that provide a legal framework within which businesses may be conducted

examples of administrative agencies

SEC, FCC, EEOC

express warrenties

Specific representation by the seller that buyers rely on regarding the goods they purchase

Statutory Law

State and federal constitutions, legislative enactments, treaties of the federal government, and ordinances-in short, written law.

Chapter 7 Bankruptcy

The forfeiture of an individual's assets in exchange for the discharge of debts.

Fair packing and labeling act

This government law mandates that product labels identify the product, provide the name and address of the producer, and describe the contents of the package.

consumer product safety act

a 1972 law that set up the Consumer Product Safety Commission to encourage more awareness of safety in product design and better quality control

contract

a legally enforceable agreement between two or more parties

Consumerism

a movement advocating greater protection of the interests of consumers

Chapter 13 Bankruptcy

a reorganization form of bankruptcy for individuals that allows the debtors to keep their property and use their income to pay a portion of their debts over three to five years

intensional tort

a willful act that results in injury

Tort

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

FDA (Food and Drug Administration)

an agency in charge of ensuring the safety of all foods sold except meat, poultry, and seafood. Prevent distribution of adultuered or misbranded foods, drugs, medical devises, cosmetics, veterinary products, and any hazardous consumer products

Child Protection Act

bans the sale of hazardous toys and articles. sets standards for child resistant packaging

Negligence

behavior that causes unintentional harm or injury

Federal Trade Commission Act of 1914

created the FTC and prohibits unfair methods of competition in commerce

Sherman Antitrust Act (1890)

forbids contracts in restraint of trade and creation of a actual monopolies or attempts to monopolize

negotiable instruments

forms of commercial paper that are transferrable among businesses and individuals

Wheeler-Lea Amendment of 1938

gave the FTC additional control over false and misleading ads.

Patent

gives inventors exclusive rights to their inventions for 20 years

Deregulation

government withdrawal of certain laws and regulations that seem to hinder competition. deregulations were active in telecommunications

warranty

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

Trial courts

hear cases of criminal and civil law

patient protection and affordable care act

increased government regulation of the insurance industry

Strict Product Liability

legal responsibility for harm or injury caused by a product regardless of fault

Trademark

legally protected name, symbol, or design that identifies the goods or services of a seller.

Robinson-Patman Act (1936)

makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly

county planning commission

oversee land use proposals, long term development objectives, and other long range issues

Taxes

primarily used as a source of funding

Copyright

protects the creative work of authors, composers, and artists

Magnuson moss warranty federal trade commission improvements act

provides disclosure standards for warranties.

Zoning board

recommends policy regarding zoning of commercial and residential property

Nutrition labelling and education act

required truthful and uniform nutritional labeling on every food

Contract Law

specifies what constitutes a legally enforceable agreement

Judiciary

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

breach of contract

when one party fails to follow the terms of a contract

Federal Agencies

• FTC (Federal Trade Commission) • FDA (Food and Drug Administration) • FCC (Federal Communications Commission)