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Appendix A
Business Law
• The judiciary is the court system, the brand of
government responsible for settling disputes
under the law.
– General jurisdiction courts, trial courts hear a wide
range of cases
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Both criminal and civil
U.S. District Courts
Circuit Courts
Superior Courts, Common Plea Courts, District Courts
– Lower probate courts settle estates and small claims.
• The appeals process allows a higher court to
review the case and correct any lower court
error.
• Both federal and state systems have appellate
courts.
• Appeals from decisions of the U.S. circuit courts
of appeals can go all the ay to the nation’s
highest court – The U.S. Supreme Court.
• U.S. Tax Court
• U.S. Court of Claims
• Administrative Agencies
– Bureaus, Commissions, Boards
– Decide cases at all government levels
– Derive power from state and federal statues
• Law – standards set by government.
• Common Law – law arising from judicial
decisions.
• Statutory Law – written law, state and federal
constitutions, legislative enactments, treaties and
ordinances.
• International Law – regulations that govern
international commerce.
• Business Law – law that influences the
management of business activity.
• Antitrust and Business Regulation
– Guard against monopolies
– Protecting employment
– USA Patriot Act
• Business Deregulation
– Strong deregulation push in the 1970s
– Utilities, airlines
– Led to lower prices
• Numerous laws have been passed to
protect consumers in the past 100 years.
– Consumer Product Safety Commission
– Food and Drug Administration Amendments
Act of 2007
• Many recent events/concerns have
required updates to existing laws.
• Employees must be protected from unfair
practices by employers.
• Employment law should be a large area of
concern for employers.
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Fair Labor Standards Act (1938)
OSHA Act (1970)
American with Disabilities Act (1991)
Family and Medical Leave Act (1993)
Uniformed Services Employment & Reemployment Rights Act (1994)
American Jobs Creation Act (2004)
Pension Protection Act (2006)
Securities Exchange Act (1934)
Bank Secrecy Act (1970)
Sarbanes-Oxley Act (2002)
• Computer Fraud and Abuse Act (1986)
• Children’s Online Privacy Protection Act (1998
• Identity Theft and Assumption Deterrence Act (1998)
• Anticybersquatting Consumer Protection Act (1999)
• Homeland Security Act (2002)
• Amendments to the Telemarketing Sales Rules (2003)
• Check Clearing for the 21st Century Act (2003)
• Contract Requirements
– Agreement
– Consideration
– Capacity
– Legal and Serious Purpose
• Breach of Contract – violation of a valid
contract
• Law of Agency – one party, the principal
is agreed to be represented by an agent
Basis for Most U.S. Business Law
• Sales Law
– Sale of goods and services for money or credit
• Warranties
– Warranties relied to sales transactions, either implied
or express.
• Negotiable Instruments
– Commercial paper like checks.
• Property rights are protected by the U.S.
Constitution.
– Tangible Personal Property
– Intangible Personal Property
– Real Property
• Bailment is the surrender of personal
property by one person to another.
• Trademark – words, symbols or other
designations used by a firm.
– The Landham Act (1946) provides for
registration of trademarks.
• Patent – guarantees an inventor exclusive
rights to an invention
• Copyright – protect written or printed
material.
• Torts may be intentional or caused
by negligence.
• Product liability is specific tort law
that holds businesses liable for
product negligence.
Multiple Plaintiffs
Efficient Processing under one
lawsuit
Class-Action Fairness Act of 2005
Bankruptcy is the legal nonpayment of
financial obligations
Personal Bankruptcy
More difficult under the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005
Business Bankruptcy
Mismanagement, plunging sales and changes in the
marketplace can drive a business to bankruptcy.
• Federal, state and local governments and
special taxing authorities all levy taxes:
– Income
– Sales
– Business Receipts
– Property
– Assets