Bus Law..Spr 2015
March-April 2015
BUSINESS LAW:
Wednesday, March 18, 2015
 EQ:
Understand sales and consumer law
 Sales
and special rules for sales contracts
 Ownership
and risk of loss
 Consumer
Protection
BUSINESS LAW:
Wednesday, March 18, 2015
 EQ:
Understand sales and consumer law
 Story
 What
of Deborah Rosado Shaw .. Pg 213
types of sales contracts and other
contracts does she encounter?
Monday, March 20, 2015
 Last
week: Ownership consists of: Use,
Possession, destruction and transfer.
 This
week, we continue. Chapter 13
defines the ownership bundle to rights to
include: title/possession; use; profit and
alienation/transfer.
Tuesday, March 24, 2015
Ch 13 .. Ownership and Risk In Sales
 Last
week: Ownership consists of: Use,
Possession, destruction and transfer.
 This
week, we continue. Chapter 13
defines the ownership bundle to rights to
include: title/possession; use; profit and
alienation/transfer.
Tuesday, March 24, 2015
Ch 13 .. Ownership and Risk In Sales

Exceptions to Rule of Ownership
 AUTHORIZED
PERSONS
 FRAUDULENT
BUYERS
 HOLDERS
OF NEGOTIABLE DOCUMENTS
 MERCHANTS
WITH POSSESSION OF GOODS
Tuesday, March 24, 2015
Ch 13 .. Ownership and Risk In Sales

Requests for Ownership Transfer

Focus on “what are the goods?”

Also focuses on when transfer occurs/occurred?

Key terms…
 Existing
goods
 Identified
 Future
goods
goods
Tuesday, March 24, 2015
Ch 13 .. Ownership and Risk In Sales

Common Situations in Ownership Transfer
 Seller
Delivers Goods to Their Destination
 Seller
Ships, but does not deliver goods to their
destination
 Seller
Delivers Document of Title
 Buyer
Take Possession at Place of Sale
Tuesday, March 24, 2015
Ch 13 .. Ownership and Risk In Sales

Risk of Loss and Insurable Interest in Sales

Some “Ifs”
 If
sellers ships goods by carrier
 If
goods are held by bailee
 If
either party breaches
 Other
 On
Cases
to Insurable Interest
Monday, April 6, 2015
Business Law

Chapter 14 focuses on Consumer Protection

via Government Action

Via Consumer’s Own Action

EQ: Understand consumer law from legislative and judicial action to
specific law initiatives.

Look over outline in Workbook on page 82

Complete definitions on page 83 as pre-reading

Go over Hot Debate and What’s Your Verdict
Monday, April 6, 2015
Business Law

Reading Recap

What were some of your thoughts?

Caveat emptor vs. caveat venditor

Class action

Examples
Monday, April 6, 2015
Business Law

Cease and Desist Orders

Improper Weights and Measures
Monday, April 6, 2015
Business Law

Troubles with Competition and Trusting

Price Fixing

Bait and Switch

Confidence games … chain letters …
Pyramid
and Ponzi Schemes
Tuesday, April 7, 2015
Business Law
Review
14-1 Work on
Governmental Action to
protect consumers.
Tuesday, April 7, 2015
Business Law

14-2 Protection through Action by Customers

QUESTION:
What legal action can
individual consumers take
to protect themselves?
Tuesday, April 7, 2015
Business Law

Key Terms

Product liability

Warranty

Privacy of contract

http://www.google.com/search?q=+worst+warranties&safe=active&hl=
en&gbv=2&tbm=vid&surl=1&oq=&gs_l=
Tuesday, April 7, 2015
Business Law
EXPRESS WARRANTY: assurance of quality or promise of
performance made explicitly by the seller. NEED following based on
Magnuson-Moss Warranty Act:


Whom extended

Description of product and any excluded parts

What warrantor/product maker will do if a breach of warranty

Beginning and end date of warranty

Step by step procedure to obtain performance of warranty
obligations

Availability of any informal methods of settling disputes
Tuesday, April 7, 2015
Business Law

Continued .. Needs for an Express Warranty:

Any limitation on how long implied warranties last

Any exclusion or limitation on incidental or consequential damages

The words include: “This warranty gives you specific legal rights, and
you may also have other rights which vary from state to state.”
Tuesday, April 7, 2015
Business Law

FULL WARRANY: express warranty that obligates seller to repair or
replace a defective product without cost to the buyer and within a
reasonable time.

Vs.

LIMITED WARRANTY: any warranty that provides less protection than
a full warranty and the seller must identify it as such
Tuesday, April 7, 2015
Business Law

Puffing

Encumbrances

Warranty of Merchantability
Tuesday, April 7, 2015
Business Law

IMPLIED WARRANTY
Tuesday, April 7, 2015
Business Law

DISCLAIMER = notice of exclusion

Statement needs to cover both merchantability and fitness.
Tuesday, April 7, 2015
Business Law

End of Chapter 14 assignment:

Match vocabulary #1-13 on pg. 260

On page 261, answer #14,15,19,21
Business Law
 Chapter

15-1 TYPES OF PROPERTY
EQ:
What does society define as property?
What are types of property?
Business Law
 Property:
a thing, tangible or intangible,
that is subject to ownership; group of
related legal rights
 Legal
rights include:
 Possess,
 Dispose,
 Give
use, enjoy it
consume, destroy
it away by will after death
Business Law
 Real
Property = defined as land, buildings,
and those things permanently affixed to
them (fixtures)
 Personal
Property = anything that is not
real property and can be either tangible
or intangible
Business Law
 COPYRIGHTS
 TRADEMARKS
 PATENTS
Business Law
Chapter
15-2
EQ:
What are legal aspects of
acquiring and holding
property??
Business Law
How
have you
acquired
property?
Ways to Acquire Property
 By
gift
 By contract
 By intellectual labor
 By inheritance
 By accession
 By finding
 By occupancy
Ways to Own and Co-Own
Property
 Via
co-ownership
 Via Joint tenancy with right of survivorship
 Via tenancy in common
 Via tenancy by the entireties
 Via community property
 Are
there limitations? What are they?
Types of Co-Ownership

Read over 4 types aloud

Get into 4 groups
16-1 EQ: WHY IS THE LEGAL
CONCEPT OF BAILMENT SO VITAL?

Hot Debate on page 284 … read and discuss
16-1 EQ: WHY IS THE LEGAL
CONCEPT OF BAILMENT SO VITAL?

BAILMENT = transfer of possession and control of personal property
subject to an agreement to return or deliver it to a third party

What are examples of?

BAILOR = party who gives up possession of the property

BAILEE = party who accepts possession

ACTUAL BAILMENT = bailees receive and transfer goods themselves

CONSTRUCTIVE BAILMENT = receive and accept symbol of personal
property
16-1 EQ: WHY IS THE LEGAL
CONCEPT OF BAILMENT SO VITAL?

BAILMENTS for various reasons …….

TRANSPORT

HIRE

SERVICES

SALE
16-1 EQ: WHY IS THE LEGAL
CONCEPT OF BAILMENT SO VITAL?

More on BAILMENTS FOR TRANSPORT

A common carrier has the right to do the following:


1. Enforce reasonable rules and regulations for conduct of its business

2. Charge an amount negotiated with bailor or scheduled rate

3. Charge demurrage

4. Enforce a carrier’s lien
BAILMENTS FOR SALE ….

Consignment = ownership remains with the manufacturer or wholesaler
until the goods are sold
16-2 EQ: WHAT ARE THE RIGHTS
AND DUTIES OF BAILOR & BAILEE?

CHARACTERISTICS OF BAILMENT
1. Personal property
2. Transfer of temporary possession
3. Transfer of temporary control
4. Both parties intend to return goods
16-2 EQ: WHAT ARE THE RIGHTS
AND DUTIES OF BAILOR & BAILEE?

LEVELS OF CARE
1. Ordinary
2. Extraordinary
3. Minimal
16-2 EQ: WHAT ARE THE RIGHTS
AND DUTIES OF BAILOR & BAILEE?

MODIFICATIONS OF LEVEL OF CARE
16-2 EQ: WHAT ARE THE RIGHTS
AND DUTIES OF BAILOR & BAILEE?

DUTY TO RETURN THE GOODS
EQ: How to best understand
ownership, transfer, and leasing real
property?

SURFACE RIGHTS

RIGHTS TO AIR SPACE

MINERAL RIGHTS

WATER RIGHTS
EQ: How to best understand
ownership, transfer, and leasing real
property?

Limitations on Ownership:
 Easements
Easement
Appurtenant
Easements
in gross
Easements
by necessity
Easement
by prescription
EQ: How to best understand
ownership, transfer, and leasing real
property?

More on Limitations of Ownership
 Restrictive
 Zoning
 Duties
Covenants
Ordinances
owed to Entrants on Land
 Trespass
 Licensee
 Invitee
EQ: How to best understand
ownership, transfer, and leasing real
property?

FORMS OF REAL PROPERTY OWNERSHIP
EQ: How to best understand
ownership, transfer, and leasing real
property?

TRANSFER OF OWNERSHIP
EQ: What does leasing real
property mean?





Lease = an agreement in which one party receives
temporary possession of another’s property in exchange
for rent
Rent = consideration given in return for temporary
possession
Landlord = lessor
Tenant = lessee
Leasehold Estate = grants certain rights in subject
property to the tenant
EQ: What does leasing real
property mean?

TENANT’S RIGHTS
 Right
of Possession
(…eviction)
 Right
to Use the
Property
 Right
to Assign the
Lease or Sublet the
Premises

TENANT’S DUTIES
 Duty
to Pay Rent
 Duty
to Take Care of
the Property
 Torts
Duty
EQ: What does leasing real
property mean?

LANDLORD’S RIGHTS
 Receive
the Rent
 Ensure
the Property is
Taken Care of
 In
many ways,
corresponds to
Tenant’s Duties!

LANDLORD’S DUTIES

Duty to Provide Habitable
Premises

Duty to Conform to
Governmental Requirements

No exposed electrical wiring

Roof should not leak

Ceiling and Wall smooth

Tight fitting screens on doors and
windows

Every unit private bathroom

Gas stoves properly vented and
connected
Tuesday, April 21, 2015
 IS
INSURANCE NEEDED?
Why might you need?
 Key
parts: insurer, insured,
beneficiary, face value, premium,
company and financial
representative.
Tuesday, April 21, 2015
Tuesday, April 21, 2015
Tuesday, April 21, 2015
Tuesday, April 21, 2015
 Life
Insurance (term and whole life)
 Fire
Insurance
 Casualty
 Marine
Insurance
Insurance
 Fidelity and Surety Bonding Insurance
Tuesday, April 21, 2015
What
is an Insurable Interest?
Insurable
Interests in Property
Insurable
Interests in Life