Business Law Review
*- Means it was written on the board, automatic question
Jurisprudence and Natural Law
Juris (law) prudence (a cardinal virtue)- Practical Wisdom or Common Sense; a system or body of law
4 Jurisprudential schools:
1. Historical-law expresses experience of the people.
2. Realist- (sociological)- law should do greatest good for greatest #.
3. Positivist- social contract, Thomas Hobbes said “life is nasty brutish and short”. Gives up freedom for security. Concerned with self-preservation.
4. Natural Law- Cicero, Aristotle, Thomas Aquinas, John Locke
Natural Law-“an ordering of reason, promulgated by the person in charge of a community for the common good.”-Aquinas
• All law must(should) be reasonable
• All law must(should) be publicly disclosed
• All law must issue from someone with authority.
• All law must (should) be for common good, not for self interest
Types of Law According to Aquinas
Eternal Law: God’s providential ordering of natures to their ends
Divine Law: For Christians this would be the 10 commandments, how God’s work is revealed
Natural Law: Inner Voice/ Part of nature as a human
Human Law: Laws enacted by human political entities. “Positive or Enacted Laws” should never violate natural law.

Chapter 4- The Constitution
Declaration of Independence- 1776; written mainly by Thomas Jefferson, it is in the form of a criminal indictment (charges brought against King George).
The United States Constitution-1789; Adopted from James Madison’s Virginia Plan. Federalists (John Jay,
James Madison, Alexander Hamilton) all wrote in favor of its adoption. It featured 4 powers
• Delegated Powers- powers expressly granted to the national government.
• Shared Powers- Powers delegated to national government that may be excised by the state.
• Police Power-power to govern; power to adopt laws for the protection of the public health, welfare, and safety.
• Prohibited Powers- Prohibits state and Federal Gov. from doing certain things. Ex. Ex Post Facto Law.
Preemption-Federal Government’s superior over state law on the same subject area.
Articulated Powers- Article 1 section 8 lays out 18 articulated powers for which Congress has to follow
• * Commerce Clause- Article 1 section 8 clause 3. The most important business clause. “Power to regulate commerce with foreign nations, among the several states, and with Indian tribes.” Allows for
Interstate Commerce regulation
• * Affectation Doctrine-expanded authority of federal government in regulating interstate commerce.
* Due Process- Power of the government is limited by the 5 th and 14 th deprive you of “life, liberty, or property without due process of law.” 14 protection under the law.
amendments. Government can’t th amendment also guarantees equal
• Substantive-The what; in the case, decides the nature of penalty, signify attitude to particular judicial review
• Procedural- the how; notice and hearing. How the charges will be brought about, generally laid out in constitution in form of trial by jury.
• Imminent Domain- Government has to pay you if they take your land
• Privileges and Immunities- that entitles a person going into another state to make contracts, own property, to the same extent as citizens of that state.
14th Amendment- Have to have a basis to treat people, but can still treat people differently.
• * Rational Relations- the law is constitutional so long as it is "reasonably related" to a "legitimate" government interest
• * Heightened Scrutiny-(basis of sex) the law is unconstitutional unless it is "substantially related" to an
"important" government interest

• * Strict Scrutiny- (basis of race color religion, age) law is unconstitutional unless it is "narrowly tailored" to serve a "compelling" government interest
Chapter 8
* Fourth Amendment- Protects against unreasonable search and seizures. The highest level of protection is home, then person, then curtilage (area in fence). Lowered expectation of privacy in business then in home.
• * Exigent Circumstances- means you can enter a structure without a warrant if; imminent danger, evidence faces imminent destruction, or a suspect will escape.
• * Plain View- you can see it
• * Hot Pursuit- if a delay would endanger lives, or lead to an escape.
* Exclusionary Rule- Where evidence will be excluded if it is either:
If illegal search without warrant, evidence is dropped.
• * Fruit Of The Poisonous Tree Doctrine: Once a search is completed by the warrant or becomes illegal, everything collected afterwards is excluded.
• Wong Sun - Search for cocaine, found heroin - search went bad at not finding cocaine
• * Compelled to self-incriminate by the police, in violation of 5 th amendment.
• Business people have 4th ammendment rights but not the same as a person.
Fifth Amendment-No person can be held for a capital crime without grand jury indictment.
Also no person shall be compelled in any criminal case to be a witness against himself , nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation - Eminent domain. Rights don’t apply in the military.
• * Grand Jury- 23 People
• * Petit Jury- try you for murder, 12 people or 6 on a district court
• Double Jeopardy- Can’t be charged twice for the same crime
Miranda Warnings- Came from Miranda v. Arizona. Required that certain warnings must be given to persons who face custodial interrogation for the purpose of possible criminal proceedings. Failure to give
Miranda warnings means. If going to use a confession, rights must be read first.
Sixth Amendment- “confrontation clause” : can confront a witness, right to a lawyer (Gideon v

Wayneright), right to speedy, public trial by jury - leads to a lot of cases being dismissed.
• Pro Se- Acting as own lawyer
• Why speeding was decriminalized so that state doesn't have to provide a lawyer.
Seventh Amendment- Jury Trial - only based in law
Eighth Amendment- Cruel and Unusual Punishment, Excessive Bail (has to be proportional to the crime)
• Recognizance- Promise to return if released on bond
Ninth Amendment- Not limited to enumerated rights
* Enumerated Rights- Written specified rights such as speech, press, assembly, search and seizure
* Penumbral Rights- Not specified, laws like privacy that came from Roe V. Wade
Umbrella rights - the rights that fall under the umbrella of the basic given rights
• Common Law- Court created law found in USA, England, India, Canada
Tenth Amendment- Power Reserved to states/people.
• Not given to the federal or restricted from states, state and people get everything else
Criminal Law - crimes
Civil - Tort and Contract
Crimes- Breach of public duty imposed by law. Public peace/dignity are affected. 2 Elements of a crime that have to be causally linked. Crime represents interest of the public.
• * Intent- mens rea- mental action. General which means basic intent or specific where there was higher thinking. Wont be charged unless you intend to do something.
• * Action/Omission- “actus rea” - physical act or omission
General Intent: You intended the natural consequences of your actions. Logical/Probable
Jurisdiction- Power to hear and decide a case

Responsible Officer Doctrine- held responsible for supervisional authority.
Corporate Law - people inside of corporation criminally responsible for actions of the company.
Crimes - usually intentional tort
• * Conspiracy- An agreement and act of furtherance on that agreement to commit a crime
• Attempt - actually trying to commit crime
• Money Laundering- Taking money from one wrongful source then running them through legitimate accounts in order to conceal it.
• Racketeering - Directed towards mafia, if organize yourself in organization for purpose of committing crimes
• Bribery- Act of giving money, property, or any benefit to a particular person to influence that person’s judgment in favor of the giver.
• Extortion- illegal demand by a public office r acting with apparent authority.
• Blackmail- extortion demands made by a nonpublic official .
• Lobbying - tell our officials what they can do
• Counterfeiting- making with fraudulent intent, a document or coin that appears to be genuine but is not because the person making it had no authority.
• ForgeryFraudulently making or alerting an instrument that apparently creates or alters a legal liability of another.
• Perjury- consists of knowing false testimony in a judicial proceeding after having been sworn to tell the truth.
• Uttering/Bad checks-Crime by statute. Crime to pass a bad check with intent
• Embezzlementcrime against trust. Stealing Accountant stealing money.
• Theft - stealing without someone trusting you with there money
• Obstruction- having to maintain papers
Common Law Crimes
• Larceny- wrongful or fraudulent taking of the personal property of another by any person with fraudulent intent. Shoplifting is common form.
• Robbery- taking of personal property from the presence of victim by use of force or fear.

• Burglary- Breaking and entering during the night into the dwelling with intent to commit a felony. Vulnerable times
• Arson-willful and malicious burning of another’s’ dwelling. - open flame
• Riots and Civil Disorder- form of disturbance caused by a group of people.
• Product Liability- Suing producers of products, which ultimately ends up increasing price on product.
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Chapter 9- Tort Law
* Tort Law- civil wrong that interferes with one’s property or person. Breach of private duty imposed by law . Only some torts are crimes. Based on a lack of prudence
Prudent - practical wisdom(common sense)
Only liable of your negligent
Gross negligence - going too fast tire blows out hit people
Willful and wanton misconduct - no excuse for behavior
Tort - injury
Three Theories of Tort
• * Intentional-These are also crimes. Civil wrongs that result from intentional conduct Criminal
• * Grounded-based on negligence. Failure to exercise due care under the circumstances in consequence of which harm is proximately caused to whom the defendant owed the duty of care.
• * Strict Liability-a civil wrong in which there is absolute liability because of the inherent danger in the underlying activity. Example- explosives. Liability without regard to fault
• * Strict Liability-automatically liable if 1 thing happen Does not matter how careful you are
• * Maintenance of hazardous conditions (making a pond that breaks and floods neighbors, dynamite contractors)
• * Harboring wild animals - every dog gets one free bite, wolfdog your liable on first bite
• * Product liability- 99% burden of proof on the manufacturer- just have to prove the defect (Car design, design of product causes a person to hurt themselves)
Intentional Torts: usually crime

• Assault-intentional conduct that threatens a person with a well founded fear of imminent harm. No contact necessary - know some kind of danger is coming
• Battery- intentional or wrongful touching of another person without their consent. Everyone has right to their own person. Non privileged contact. Hit with no warning
• False Imprisonment- intentional detention of person without that persons consent
• Civil side of kidnapping
• * Shopkeeper’s Privilege- Right of store owner to detain a suspected shoplifter based on reasonable cause for a reasonable time without the possibility of false imprisonment.
• Intentional Infliction of Emotional Distress – Tort that produces mental anguish caused by conduct that exceeds all bounds of decency and was intended to cause emotional injury. (Race, Religion)
• Invasion of Privacy- Tort of intentional intrusion into another private affairs. This is okay for public person’s who have no expectation of privacy.
• * Defamation- Is an untrue and injurious statement by one party about another to a third party.
• * Slander- defamation of character by spoken words
• * Libel- written or visual defamation without legal justification
• * Product Disparagement- slander of someone’s product, knowingly false
• * Qualified Privilege- Media privilege to print inaccurate information so long as a retraction is printed and there was no malice. Attaches to what your doing when your doing it.
• Tortious Contract Interference- in which a third party interferes with other’s freedom to contract
• Trespass- unauthorized action with respect to person or property. Wrongfully utilize
• Conversion-civil side of theft. Take something and claim it as your own.
• Foreign Corrupt Practices Act
- * Prima facie - Tort of Negligence, every cause of action needs to have facts to support cause of action for it to be negligence. All negligence cases have to prove is preponderance of evidence- more true then not true.
• When you act negligently it’s everything that negligence affects afterwards
• *Requires Voluntary Ac t- not intentional, forced you know what your doing - driving a car voluntary act so whatever happens while driving is your responsibility
• *A Breach of Duty of Care - reasonable man of ordinary prudence (not being careful)
• *Proximate Cause - “lack of carefulness” (legal cause) - who is responsible

• *Damage/Injury -actual loss or breach of duty.
• *Res Ipsa Loquitor - Thing Speaks for Itself
* Types of Damages from Liability
Driving after breaks aren’t hooked up properly pwith truck full of fish and bear eats you after you crash
• * Personal Injury - pain and suffering, lose of spouse,
• * Property Loss - truck wrecked
• * Economic Loss - cant work
Vicarious Liability-If someone is doing something under your ownership she is acting as an agent of the
* Defenses To Negligence-
• * Contributory Negligence- negligence of the plaintiff that contributes to injury bars from getting compensation although the defendant may have been more negligent. Most states have gotten rid of this.
• * Comparative Negligence-If you are part to blame you assume part of the claim. 20% to blame you lose that 20% of the claim.
• * Assumption of the risk-attendance of an athletic event. Assume the risk of going into an activity.
• * Sovereign immunity- can only sue the government when they say you can.
1.Mere preponderance - majority of evidence goes one way - Civil 51/49
2. Clear Cogent and Convincing - Fraud 75/25
3.Beyond a reasonable doubt - 99% - Criminal
Pie = plaintiff
Triangle = defendant
Chapter 37- Agency
Agency- An agency relationship is created by an express or implied agreement whereby one person, the agent , is authorized to make contracts with third persons on behalf of and subject to the control of another person, the principal. Must have capacity including:

*Agent works for you and makes contracts on your behalf “scope of his authority
• Means you are legal age (18) only for principal
• * Must be consensual
• * Fiduciary - fides - fate/trust relationship - owed by agent to the principal
• No writing required unless by statute (except real estate)
Agency - most of the time is employee, makes contracts on your behalf with third parties
Employment - If my employee, compensated as function of time I control what you do how you do it and provide you the tools to do it.
Independent Contractor - result orientated, works on his own time
* Agency Vs Independent Contractor- An agent differs from an independent contractor in that the principal, who controls the acts of an agent, does not have control over the details of performance of work by the independent contractor. Likewise, an independent contractor does not have authority to act on behalf of the other contracting party.
Classifications of An Agent: 4 ways :
(1) Agency by Appointment
(2) Agency by Conduct
(3) Agency by Ratification - you werent my agent but could have been so ill stand behind the deal
(4) Agency by Operation of Law
• * Special Agent-authorized by the principal to transact or handle specific business transactions for a limited period of time
• * General Agent- authorized by principal to transact all affairs in connection with a particular type of business or trade. Broad range of powers. A manager of a store.
• * Universal Agent-”power of attorney” Authorized by principal to do all acts that can be lawfully delegated to a representative.
• * Attorney in Fact- Authorized to act for another under power of attorney.
• Express authorization- Authorization of an agent to perform a certain act

• Power of Attorney- Written authorization to an agent by the principal, universal agent for specific purpose, allows people to conduct business and affairs of a non-personal nature
• Express
• Implied in Fact - Agency by conduct, by estoppel leads to APPARENT AUTHORITY
• Implied in law
Types of Authority-
• * Express Authority- P tells A to perform a certain act. Example would be buy new office furniture. Send a purchasing agent to do something.
• * Incidental Authority-An act reasonably necessary to perform the act expressly authorized. Example buy furniture on credit when funds are not made immediately available. Principal responsible to pay for expenses agent incurs while making purchase.
• * Customary Authority- An act that, according to the custom of similar businesses in the community, usually accompanies the act performed under express authority. Example issue receipts for furniture sold
• * Apparent Authority : Principal leads 3 rd party to believe that A has authority. Principal was present when third party purchased furniture but did nothing to stop sale. 3rd party Have to look through principal to determine if he is really an agent. Occurs when agents are fired but third party not informed
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* Duty To Ascertain Extent of Agents Authority: 3 rd party has a duty to ascertain agent’s authority.
Required to take notice of any acts adverse to principal. Have to inquire about the validity to principal.
Who can be agent? Any age, the principal has to be 18 but agent can be any age. Cannot be 17 and get adult to be agent.
* Fiduciary Duties: Duties of agent to principal - See these in context on the test
• Being loyal,
• Full disclosure
• Must put other peoples benefits before yours
• Obeying all lawful instructions,

• Exercising reasonable care
• Accounting for all property or money belonging to the principal, and
• Informing the P of all facts relating to the agency that are relevant to the P’s interests.
Duties of Principal To Agent:
• Perform the contract;
• Compensate the agent for services;
• Make reimbursement for proper expenditures; and
• Indemnify the agent for loss (under certain circumstances)
* Terminating a Contract- Terminates the authority to act but not the power. It is principles job to inform the third party.( For test know what terminates contract True/False)
• The death of the P or the A;
• Insanity of the P or A;
• Bankruptcy of the P or A;
• Impossibility of performance; or
• War.
Durable Power of attorneys - Read in text BOOK 832
• Uniform durable power of attorney - wife and husband in power of each other when one cant act on own affairs. Designed for short term disabilities and to avoid necessity of guardianship
• Regular - power of attorney terminates at
Chapter 38- Third Party in Agency Contracts
* Agent’s contracts-
• * Fully Disclosed-Principal whose identity is made known by the agent as well as the fact that the agent is acting on the principal’s behalf. James Bond, Agent, for the Queen. Principal is liable
• * Partially Disclosed/Undisclosed- Principal whose existence is made known but whose identity is not.
James Bond, Agent. P rincipal & Agent is Liable
• * Undisclosed- Principal on whose behalf an agents acts without disclosing to third party. James Bond.
Principal & Agent is liable
Agents are always responsible for what they do themselves.

Liability- (853)Principal is held Liable for agent only if there is history of misaction.
1.
* Crime - Agent responsible, Principal probably not responsible
2.
* Fraud - Agent responsible, Principal usually responsible
3.
* Tort of negligence - Agent responsible Principal almost always responsible. Principal is responsible if they are within work time, and activity is related to work.
4.
* Tort of intentional - Agent responsible Principal usually not responsible
* Vicarious Liability- Imposing liability for fault of another. Taking responsibility for others actions. Whether the principal answers
• * Respondeat Superior- “let the master answer” Doctrine that the principal or employer is vicariously liable for the unauthorized torts committed by an agent while acting within scope of employment .
* Scope of Employment-
• Time - during work hours
• Distance - where they should be working
• Scope - breadth of Activity - close to working activity
Dangerous Propensity- Do they have likelihood to act in a certain function?
• Negligent Hiring- If employer knew job applicant would create undue risk of harm. Or has a criminal record. Can hire if crime is not related to job
• Negligent retention- keeping the employee after discovering some dangerous propensity - tendency to act in a particular fashion
• Negligent supervision- Obligation to supervise and put systems in place.
Independent contractors - principle not liable for there actions
Cannot carve out dangerous activity to sub contractor to protect yourself from liability
Test:
30 T/F- equal from all chapters

30 MC - equal from all chapters
40 other - constitution, criminal/ constitution, agency
Packet - know juris prudential schools, Different ways of looking at law
Emphasize terms and definitions
Constitution is supreme law of land, what supreme court says it is, who wrote D of I, Constitution, and what constitution protect, Commerce clause, Equal protection,
Bedrock or living document not on there
State powers reserved, Federeal delegated
Enumerated
1st 4th 5th and 6th ammendment
Types of due process
Types of tests under equal protection
Crimes - elements of a crime, common law crimes, know crimes in one sentence
Conspirac - agreement to commit and an act to enfurther crime
Miranda, exclusionary, fruit of poisioness theory
Tort - prima facie case, three defenses to tort
Questions have a correct and an incorrect answer built i