laws
the rules that a society accepts as its minimum accepted behavior; they are rules that society has created to govern what is acceptable and unacceptable behavior
Business laws
that rules that society has created to govern what is accepted and not acceptable behavior for businesses
statutory law
laws enacted by the votes of the people or by representatives elected by the government
administrative rules and decisions
lawes developed by individuals or agencies, empowered by the goovernment
common law
laws created throughout the court system by interpreting laws or settling disputes
criminal law
deals with breaches of duty to society; penalties are imprisonment or fines; prosecutor charges accused defendant
civil laws
deals with breaches of duty between parties; plaintiff is harmed party that can file a lawsuit against the accused party defendant
compensatory damages
intent of law to compensate plaintiff for damages incurred; relate the value lost by the plaintiff
punitive/exemplary damages
if the court finds an act to be outrageous, these are extra damages that can be pursued
statue of limitations
the law requires that certain wrongful acts must be proven within a stated period of time
arbitration
where an independent party, arbitrator, reviews the facts and makes a decision
court
a place, designated by the government, where it is decided if an illegal or wrongful act has occurred
judge
oversees and manages courts, sometimes decide guilt, sometimes juries decide guilt
juries
a group of citizens selected to decide guilt or innocence
jurisdiction
something the court has, power, to resolve a dispute
Federal court
deals with 1) disputes regarding federal laws or 2) disputes involving parties of multiple states (interstate issues) with an amount in controversy that exceeds $75,000; has multiple levels of courts: district court, court of appeals, US Supreme Court
district court
lowest level fed court, designated to hear low or special cases
court of appeals
if one does not like the ruling they have received, they can appeal it to the court of appeals and have it re-examined; second level in fed court system
the US Supreme Court
third and highest level of fed courts, can choose whether or not to rule on cases
state courts
deal with intrastate disputes not covered by federal law, each state has its own system; typically has inferior courts, trial courts and appellate courts
inferior courts
first level of state courts, judge hers the facts and makes a decision judgement
trial courts
second level of state courts, uses judges and juries to decide all disputes
appellate court
if either party does not agree with the judgement of inferior or trial courts, they can appeal to have it heard here; the higher version of this is the state supreme court
contract
when two or more parties enter into an agreement
expressed contract
when the details of the contract are explicitly lined out, ex: when buying a house
implied contract
when the circumstances and facts imply that a contract exists
statutes of frauds
statutes that clearly state what contract must be in writing to be enforceable in that particular state
property
an item of value that a person or business owns
real property
land and items attached to land
personal property
all property not classified as real property
tangible property
can be seen or touched, it physically exists
intangible property
all property that is not tangible
public property
owned by the govt
lease
agreement between owned of the property and another party where the owner gives the other party the right to use the property
lessor
owner
lessee
person renting property
eminent domain
govt can seize someone's land without their permission if they find it necessary to do so
tort
wrongful act that injures another person; battery, slander, invasion or property
fraud
an intentional tort where one intentionally misrepresents facts
negligence
unintentional torts where one does not take reasonable care in the conduct of its affairs
warranty
a seller's promise or guarantee regarding the property's quality and quantity; expressed when the seller explicitly makes statements to the buyer that become part of the transaction, implicit when it exists but is not explicitly stated
strict liability
holds a seller liable for damages incurred by the buyer or other parties when the product was unreasonably unsafe
Sherman Anti-Trust Act
Clayton Act
Robinson-Patman Act
Hart-Scott-Rodino Antitrust Improvements Act
acts intended to foster competition by preventing businesses or a business from restraining and thus controlling trade; in other words a business cannot do anything that inhibits competition > aka price fixing, monopoly power, and price discrimination
price fixing
when a company or group of companies works together to set prices instead of letting the market do it
monopoly
where one business controls the whole market
oligopoly
where a few firms control the market
price discrimination
when a business charges different customers different prices; law requires them to charge all people the same price unless they have a good reason not to do so
Equal Credit Opportunity Act
prohibits lenders from discriminating based on race, color, religion, sex, marital status, national origin or age
Fair Debt Collection Practices Act
prohibits lenders form using abusive collection tactics like harassment
Gramm-Leach-Bliley Act
protects a borrower's privacy
Fair Credit Reporting Act
ensures credit information is accurate
Consumer Product Safety Act (created the Consumer Protection Safety Commission, (CPSC))
laws that protect buyers from unsafe products, CPSC is a govt agency that sets product safety standards
Environmental Protection Agency (EPA)
responsible for administering the federal laws dealing with the environment, including air quality, water quality and waste disposal
Interstate Commerce Commission (ICC); Federal Food and Drug Administration (FDA). Federal Deposit Insurance Corporation (FDIC) and Federal Aviation Administration (FAA)
regulatory agencies created buy the govt to regulate selected industries or business relationships
indemnified
when an employee is indemnified, a business agrees to defend the employee for any wrong doing
fiduciary
one who is entrusted with responsibilities and expected to act in the business' best interest
Fair Labor Standards Act
requires employers to pay employees no less than minimum wage
debt/liabilities
borrowed money
owner's equity
owner's money
financial instruments
documents that represent debt and equity; called notes, bonds and loans
financial intermediary
middleman between the ultimate provider of the money (depositor) and the user of the money (loan customer)
capital market
where the provider of money lends money directly to the borrower and does not use an intermediary
commercial paper
a financial substitute for money, a promise to pay money in the future under certain conditions; can be negotiable (can be sold w out asking borrower) or non-negotiable (cannot be sold w out consent of borrower)
collateral
an asset used to guarantee a loan; "secures" a debt
surety
someone who cosigns a loan
public capital market
market where anyone can buy/sell a financial instrument
Securities and Exchange Commission (SEC)
regulates public where financial instruments are bought and sold, does so to ensure that market participants are well informed and the market is not being unfairly manipulated
insider trading
when someone buys or sells a financial instrument based on insider or preferential information
primary market
when a corporation sells stock, the business receives money and the buyer of the stock receives stock
secondary market
when a stockholder sells his or her stock to anyone other than the issuing company
bankruptcy
a regress for the honest debtor, governed by the us federal Bankruptcy Act
priority claims
when a business goes into bankruptcy, the first loan taken out is given priority and the second one is subordinated