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Business Law Notes

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Constitutional Law
1776- Articles of confederation
- No power to tax
- No power to raise a military force
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1787- US Constitution
1791- Bill of Rights (First 10 Amendments)
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Federalism
Division between Federal and State Rights
10th Amendment: any power not given to the federal government is reserved to the states
- Police Powers: for the general health, welfare, and safety of the citizens
Marbury Vs. Madison (US Sup. Ct. 1803)
John Marshall, the secretary of state for John Adams, was appointed to the head of the
supreme court
The Judiciary Act of 1789(federal law): gave supreme court the power to issue a writ of
mandamus (written mandate)
- Can congress pass a law giving another branch more power than it has under the
constitution? NO.
- First time a law was stricken down on the basis of unconstitutionality
- JUDICIAL REVIEW!!
-
Judicial Activism
-
-
Willingness to overturn precedent
Brown v. Board of Edu (1954)
- Willingness to create new
fundamental rights
Griswold v. Connecticut (1965)
● Penumbra of the BofR
Willingness to expand fundamental
rights
Roe v. Wade (1973)
- Lawrence v. Texas (2003)
Judicial Restraint
-
Stare decisis- let the decision stand
- Deference to the Leg. Branch
- “Judging from the grave”
● Original intent of the founding
fathers
- Bowers v Hardwick (1986)
This is the gay sex case from AP
GOV!!!! Don't forget!!!
Police entered private home
and witnessed them in the
throws of some recreational
funtime
Supreme Court
LIBERALS
CONSERVATIVE
Sonia Sotomayor
C.J. John Roberts
Ketanji Brown Jackson
Clarence Thomas
Elena Kagan
Brett Kavanaugh(Trump)
Amy Coney Barrett(Trump)
Samuel Alito
Neil Gorsuch(Trump)
3
6
Commerce Clause!!! Art. I, Sec. 8
Interstate commerce-between or among the states (federal)
Intrastate commerce-within one state (state)
Concurrent jurisdiction-both state and federal law
Dormant commerce clause-affects other states, you can’t disadvantage other states with laws
that benefit your own state
-
-
NLRB vs. Jones
- Employment law varies from state to state
Argued national defense issue trumps intrastate issues
Art. II, Sec I
Full Faith and Credit Clause
Requires states to uphold documents such as Weddings, Divorces, Wills, etc.
Bill of Rights
1st Amendment
1. Speech
2. Religion
a. Establishment
clause
b. Free Exercise
clause
3. Press
4. Assemble
5. Petition Govt
Hierarchy of Speech
1. Political
2. Commercial
3. Obscenity
a. Pornography?
YES
b. Obscenity? Child
Porn. Beastiality.
NO.
Miller v. Calif (1973) all three must be present
1. Prurient appeal?
2. SLAPS? Scientific, Literary, Artistic, Political,or Social value?
3. Local Standards?
2nd Amendment
3rd Amendment
4th Amendment
5th Amendment
6th Amendment
7th Amendment
8th Amendment
9th Amendment
10th Amendment
Contracts
Types of contracts:
- Academic
- Leasing
- Resident
- Waiver
- Employment
Contract: a set of legally enforceable promises
Elements of a Contract
Definition/Examples
1. Agreement (Chap. 14)
a. Offer
b. Acceptance
2. Consideration (Chap. 15)
Legally sufficient and bargained for
3. Capacity (Chap. 16)
Both parties are competent and an adult
4. Legal Object/Legality (Chap. 18)
“Meeting of the minds”
- parties understood each other
- intended to enter an agreement
The US follows the objective theory of contracts.
Objective theory: an agreement between parties is legally binding if, in the
opinion of a reasonable person who is not a party to the contract, an offer has
been made and accepted.
SOURCES:
1. Common Law
a. Majority Rules
b. Minority Rules
c. Exceptions
2. Uniform Commercial Code (UCC; Art. II-Sale of Goods)
UCC-Sale of Goods vs. Common Law—Real Estate; service; Employment
Bilateral vs. Unilateral
Bilateral Contract: a promise for a promise
Unilateral Contract: a promise for an act/performance
Express vs. Implicit(In fact or In law)
Implied In Fact: based on your actions you have entered into a contract whether you
realize it or not
Example: Tom the accountant did Linda’s taxes. Tom expects to be paid and
Linda should know this. Linda, the defendant, had an opportunity to say no or
change her mind about the service. They have entered into an implied in fact
contract.
Implied In Law(Quasi-Contract): the plaintiff conferred a benefit on the defendant. The
defendant knew that a benefit was bestowed upon them. The defendant retained the
benefit in which it would be unjust to not pay for it.
Quantum meruit- if you are found to have had knowledge of the benefit being
bestowed upon you without payment for it then you will have to pay what is
determined by the courts to be equitable payment for the benefit
Different kinds of contracts
1. Valid: all elements of the contract are present
2. Void: no contract at all
3. Voidable: a valid contract that can be terminated or ratified at the option of one
party (ex: minor, fraud, duress)
4. Unenforceable agreement: the parties intend to enter into a valid contract but
some legal requirement can’t be met deeming it unenforceable
5. Executory: a contract that has not yet been performed by one or both of the
parties involved
6. Executed: a contract that has been performed by both parties
7. Formal:
a. a contract under seal. 10 states allow for contracts to stand even without
consideration if it is under seal.
b. Recognizance-a bail bond. When you acknowledge in court that if you
don’t show up to court that your bail bond will be handed over to the court.
c. Letters of credit: very detailed contracts laying out steps for payment for
very large payment exchanges electronically
d. Negotiable instruments: a check, certificate of deposit
8. Informal: simple contracts. No formalities are required in drawing them up
AGREEMENT:
“Meeting of the minds”
-
parties understood each other
intended to enter an agreement
A) An Offer
a) Intent-a serious objective intent
b) Definite and certain terms
c) Communicated to the offeree
INTOXICATION
- Voluntary
- Involuntary
Chapter 15- Consideration
Accord (new agreement) and Satisfaction (payment)
- Debt has to be UNLIQUIDATED
- The amount of debt is disputed or disagreed upon
- Creditor agrees to a reduced amount or property
- Debtor pays the new amount
Statute of Fraud
- Contracts are unenforceable but not void
- Once fully executed no writing is not a problem
- Neither party may demand rescission
3 guideposts:
- How reprehensible?
- Ratio between harm suffered and the amount awarded
- Civil or criminal, precedents used in similar cases
Chapter 20:
1. Mitigation of damages: a party injured by a breach of contract may not recover
for damages that they could have avoided with reasonable efforts
a. Landlord/Tenant-joint and several liability
b. Employment Law
2. Nominal Damages: Nominal damages are a token sum, such as one dollar, given
to a plaintiff who can prove demonstrate that the defendant breached the
contract, but cannot prove damages
a. Think Taylor Swift suing for 1 dollar
b. Fired but gets a better job
c. To attach to other damages
3. Liquidated Damages: a clause in a contract stating in advance how much a party
must pay if it breaches
a. Two factors required:
i.
At the time the contract was created, it was very difficult to
estimate actual damages
ii. The liquidated amount is reasonable
4. Punitive Damages: punitive damages are NOT designed to compensate the
injured party. Punitive damages are designed to: 1) punish the wrongdoer and
2) deter both the defendant and others similarly situated from acting in the
same matter
NEGLIGENCE
1) Duty
2) Breach of Duty
3) Causation
a. Actual
b. Proximate
4) Damages
CHAP 43-Employment Discrimination
“At will” employee - can quit or be fired for any/no reason with no notice
Exceptions to “at will”
1. CBA-Collective Bargaining Agreement
2. Contract Employees
TITLE VII
Illegal Reasons
1. Protected Classes
a. Where to find?
i.
Legislative (state + fed)
ii. US/State Constitution
iii.
Case Law (Precedent)
iv. Policies
b. 1960-JFK vs. Nixon
i.
Civil Rights Act of 1964
1. Race
2. Religion
3. Sex
4. National Origin
5. Color
c. Not Protected Class Under Civil Rights Act Originally
i.
Transgender
ii. Sexual orientation
1. Both are now protected under Supreme Court Precedent
Disparate Impact vs. Disparate Treatment
1. Prima facie
2. Legitimate, non-discriminatory business reason
3. Mere pretext
Sexual Harassment
1. Quid pro quo
2. Hostile work environment
a. Sexually charged environment
i.
Pervasive
ii. Unwelcome (subjective; objective)
b.
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