Business Law 3

Business 1012 with Norwood at University of Arkansas - Fayetteville

About this deck

By: Rachel Mooreland
Created: 2010-11-09
Size: 130 flashcards
Views: 214

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$50 Dollars

Maximum loss if you lose your credit card

ATM and Debit cards

Loss could be an unlimited amount

Credit card disputes regarding quality of goods/services

Must be in home state or within 100 miles of home address

Liens

For personal property as well as real property. Provides security to the creditor.

Statutory Lien

Created automatically by virtually state law; allows creditor to repossess property

Materialman's liens

Can repossess homes; can be attached to the home when the builders fail to pay for the materials used in the house.

Garnishment of Wages

Remedy creditors have- if the debtor doesn't pay, the employer will deduct money from the employee's paycheck. 25%

Self-help doctrine

If you have a valid mortgage you do not have to use legal processes to repossess the property.

Deficiency judgment

Property will be sold/auctioned and all remaining fees will be placed back on the debtor

Breach the peace

Something that creditors cannot do

Suretyship

Getting a co-signer or secondary debtor. Secondary promise to stand behind the debt of another.

Truth in lending law- what must show up on the statement

Finance charge-the dollar amount; and Annual Percentage Rate. Federal Law

Usury law

State Law- Regulates amount of interest charged

Bankruptcy

The debtor's last resort. Controlled by Congress.

Bankruptcy Reform Act 2005

Effected number of bankruptcy filings in the U.S. May force consumer debtors to file under Chapter 13 Bankruptcy

The means test

Compared to median income; Determines if you can file chapter 7 bankruptcy.

Newer mandatory requirement of the BRA

Credit counseling

Chapter 7 Bankruptcy

Straight liquidation. 70% Cheapest and simplest form of bankruptcy.

Chapter 11 Bankruptcy

Business reorganization under judicial supervision ex. Airlines, MGM

Chapter 12 Bankruptcy

Farmers

Chapter 13

Wage Earner's Plan, Slower and more expensive form of bankruptcy. Don't lose assets

Procedures of Bankruptcy

File in federal court, Form under oath, Selection of Trustee

Straight liquidation procedures

Earn after date of bankruptcy-yours to keep
Earn before date of bankruptcy- belongs the trustee (unless exempt)

Exemptions in straight liquidation in Arkansas

Wearing apparel, $200 if single, $500 if married, Homestead exemption

Homestead Exemption

If you are married or have a family

State exemptions for straight liquidation

To claim you must have lived in the state for 720 days. Cap of $125,000 on property acquired in the last 3 years

Fraudulent transfers- the 2 year rule

If you give away your property or sell it for less than fair value within 2 years before bankruptcy, the person you sold it to has to give it up.

Priorities in Bankruptcy

Child and spousal support obligations come first, then administrative, wages and salaries, and taxes

Non dischargeable debts

Most taxes, debt resulting from fraud, liability for willful torts, Alimony and child support, debt not listed, student loans, DWI

Denial of a discharge

Destroying or falsifying records, making a false statement under oath, secretly transferring or concealing property, failing to explain loss of assets, having received a discharge in the prior 8 years

At will doctrine

An employee can be fired for any reason or for no reason and without advanced notice or severance pay

Exceptions to the at will doctrine

Term contract, labor union, anti-discrimination laws, Judicially created exceptions

Term Contract

Can be terminated at any time. The employer has the power but not the right to terminate- will result in breach of contract

Judicially created exceptions

Implied contract theory, Public policy theory

Implied Contract theory 1987

Applies only if there is in the personal manual an express provision against termination except for cause

Public Policy Theory 1988

An employee has a cause of action for wrongful termination if he/she is fired in violation of a well-established public policy of the state

Whistle blower Protection act

Protection if someone reports illegal actions; for government employees

Sarbanes-Oxley Law 2002

Protects "Whistleblowers" of private companies whose shares are publicly traded

Fair Labor Standards Act- 1938

Businesses must affect interstate commerce- child labor, overtime, and minimum wage

Basics of overtime

No limit to total number of hours employers require, no averages for hours, 40+ hrs is overtime, professionals are not covered.

Minimum wage under the FLSA

Based on the commerce clause, states and cities can impose a higher minimum wage

OSHA

Occupational Health and Safety Act, Businesses must affect interstate commerce, detailed safety regulations, representatives must have a search warrant to search a business

Worker's Compensation

State law, not federal. Provides protection for workers who are injured on the job, mandatory, no fault system, must be in course and scope of employment, cannot sue employer in a tort case

FICA (Social Security)

Tax paid by both the employer and the employee, cap for social security tax

Unemployment Tax

Paid solely by the employer, both federal and state tax, usually insurance is purchased.

COBRA

Mandatory, extends group insurance coverage for up to 18 months after termination

Family and Medical Leave Act

50 or more employees, 12 weeks of unpaid leave, health care coverage continues and job remains available

Privacy Act

Employees are subject to being monitored if using employee or company electronic equipment

Drug Testing- Public Sector

Working for the government, covered by the 4th amendment

Drug Testing- Private Sector

Working for a private entity, not covered by the 4th amendment

Why is certain discrimination legal?

Because it is not illegal

Basics of the Civil Rights Act

Passed in 1964, the business must affect interstate commerce and have 15 or more employees

5 Protected Classes

Race, Gender (sex), National Origin, Color, Religion

EEOC

Equal Employment Opportunity Commission; understands laws and guidelines

Not hiring: Marital Status

Legal; but majority of state's civil rights laws prohibit it (women)

Not hiring: Attractiveness

Legal, but may be against women

Not hiring: Height

Illegal; Disparate impact theory

Not hiring: Weight

Legal, unless the applicant can prove disability discrimination

State that includes weight as a protected class

Michigan

Not hiring: Spanish Accent

Illegal, can only do this if speaking clear English is a large part of the job

Not hiring: Religious conflict

Illegal, employers must make a reasonable accommodation

Not hiring: Recently filed for bankruptcy

Legal and Common; cannot fire someone from current job because they file for bankruptcy

Not hiring: Been arrested 3 times in 2 months

Illegal; arrest does not prove guilt. Disparate impact on racial minorities

Not hiring: Homosexuality

Legal; 17 states and the District of Columbia have made this legal

Sexual Harassment

Antagonism against someone because of their gender. Must be an employer-employee relationship, has to be harassment against one of the 5 protected classes, need not be romantic.

Hostile Environment

Sever enough to alter the conditions of employment; allowed by the employer

Quid Pro Quo

Something for something else. Ex. Not hiring someone unless they participate in a sexual act.

If harassment is committed by a supervisor or fellow employee without employer knowing..

No defense if there was a tangible employment action such as discharge; The company may raise the defense that it exercised reasonable care, such as communicating an anti-harassment policy

Civil Rights Act of 1866

Everyone, regardless of race, should be able to enter into a contract, not limited to 15 or more employees, need not go through the EEOC

Age Discrimination

Independent of the 1964 Act, ADEA: must have 20 or more employees, plaintiff must be 40 years or older and must be able to do the job

8th Circuit is located

St. Louis, Missouri

Americans with Disabilities Act 1992

Significant,statutory;must be a physical or mental impairment that substantially limits a major life activity,must be able to perform the essential functions of the job w/w.o reasonable accommodations,employer not required to incur "undue hardship"

Disabilities

Neurological diseases, HIV/AIDS

Not a disability

Overweight, homosexuality, current drug/alcohol user

Most recent protected class

Gene testing; Gene Information Non-Discrimination Act

Affirmative Action

Executive order by Lyndon B. Johnson, applies to government contractors and sub-contractors, race/gender can be a factor

Quotas

Part of affirmative action; one cannot say they will only hire women or they will not hire someone because of their race

Arkansas Civil Rights Act 1993

Protected classes: Race, religion, ancestry/national origin, gender (including pregnancy) and disability. 9 employees not 15

First Rule of Ethics

Obey the law

Second Rule of Ethics

Tell the Truth

Third Rule of Ethics

Keep Your Word

Fourth Rule of Ethics

Follow Instructions

Fifth Rule of Ethics

Set the Right tone

Congressional Response to the business scandals of the late 20th Century

The Sarbanes-Oxley Act

Provisions of the Sarbanes Oxley Act

Applies to companies whose shares are publicly traded, confidential reporting systems, whistleblower protection, public accounting oversight board, limitation on non audit services, rotation of audit partner, delisting of companies that don't apply

More Provisions

CEO and CFO must sign off on financial reports, forfeiture of profits if restatement of reports is required, company must report whether or not it has a code of ethics, code is reasonably designed to deter wrongdoing and encourage ethical conduct

Inherence

AKA the invisible hand theory, managers answer only to the shareholders

Enlightened self-interest

A manager served the shareholders best by being responsive to the larger society, "If the society is better we are better"

Common Law

Based on judicial precedents, based on British Law

Beyond a reasonable doubt

Burden of Proof in a Criminal Case

By a preponderance of the evidence

Burden of Proof in a civil case

Constitution doesn't apply

In issues involving private entities, only those that involve the government

Equal Protection

Only applies when the government is involved ex. Different prison sentences because of race/gender, All men are created equal

Due Process

Basic fairness, used in criminal law- ex. right to an attorney

Marbury vs. Madison

The judicial branch has the right to interpret the constitution

What a federal trial judge would look to

First the circuit court of appeals, then the U.S. Supreme court for guidance

Issues of fact

Primary job of the jury

Issues of Law

Primary job of the judge

Cases only in federal court

Exclusive jurisdiction, When the U.S. is a party, Copyrights and Patents

Concurrent Jurisdiction

Can be tried in both courts, state or federal; Must raise a federal question.

Diversity Case

Litigants are from different states, dollar minimum $75,000

District Court

Trial Court in the Federal System, above that- Court of Appeals

Minimal Contact

Allows someone to be sued in both states

Forum Selection Clause

On a website where contracts are made over the internet ex. Purchasing a ticket on ticketmaster.com)

Service of Process

Defendant is physically given a copy of the complaint, occurs immediately after the filing of the complaint

Deposition

Taken under oath, made in the presence of attorneys, written form

Judgment NOV

Made in civil cases; the judge can overturn the jury's decision or modify the verdict

Summary Judgment

If the judge believes there's no need for a trial, the judge can make rulings based on filings already in court.

Arbitration

Legally binding

Mediation

Not legally binding

Assault

Issuing fear

Battery

The illegal striking

Defamation

If you tell someone other than the alleged victim that they are doing wrong. If it is true, it it NOT defamation.

Invasion of Privacy

Intrusion upon seclusion, public disclosure of private facts, false light, Misappropriation

Misappropriation

Using someone's name, picture or identity for commercial purposes. Communication NOT required.

Conversion

Whenever a personal wrongfully possesses or uses the personal property of another as if the property belongs to them.

Punitive Damages

Limit on these damages in tort reform

Required in a common law contract

Agreement, Consideration, Capacity, Legality

Bilateral Agreement

Promise for a promise- any purchase

Unilateral Agreement

Promise for an act

Lucy vs. Zehmer

Lost because there was no outward manisfestation

Option

Not a legal offer unless consideration is given to keep an offer option

Substantial Performance Doctrine

Performing party has to be in good faith, and the work has to be reasonably close to what the contract called for

Satisfaction Doctrine

Objective- something a reasonable person wouldn't be satisfied with
Subjective- taste or fancy

Discharge by operation of law

Outside of an agreement
Bankruptcy
Impossibility- Discharged by an unseen/unexpected event
Frustration of Purpose- If a contract can be performed but benefits cannot be gained

Equitable Remedies

Injunction- order not to do something
Specific Performance- order to do something

Benefit of an LLP

Not personally liable for unpaid tort debts

Directors and Officers

Must be fiduciary- exercise reasonable care

Not included in the Articles of Incorporation

The names of the directors

Subchapter S Corporations and LLCs have

Full and complete limited liability

About this deck

By: Rachel Mooreland
Created: 2010-11-09
Size: 130 flashcards
Views: 214

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj