Business law
Final exam/Post assessment
Review packet
September 2014-June 2015
Name: ______________________________________________
INTRODUCTION TO LAW/CONSTITUTIONAL RIGHTS
1. What is law?
 Enforceable rules of conduct that govern how individuals deal with each other and how each
individual interacts with society
2. What are the four major sources of law?
 Case Law: Laws created by the courts after a trial is heard
 Constitution
 Statutes: State Laws
 Administrative Laws
3. What is considered the supreme law of the land?
 The US Constitution
4. What does “Stare Decisis” mean?
 Let the decision stand
5. What is ethics?
 The practice of deciding what is right and what is wrong
6. What is probable cause?
 A reasonable belief, known personally or through reliable sources, that a person has committed a
crime
7. What are your Miranda rights?
 The right to remain silent
 The right to an attorney
8. What is double jeopardy?
 Forbids a defendant from being tried again for the same, or similar type of crime.
9. What are the 5 types of speech that are NOT protected under the 1st amendment?
 Obscenity: Anything that exceed the recognized standards of decency
 Fighting words: Words that are likely to cause an immediate breach of peace
 Hate Speech: Expressions that target a group of people by reason of their race, ethnicity or sexual
orientation.
 Defamation: Any speech that makes a false claim which results in harm to an individual’s
reputation
 Incitement of Illegal Activity: Any activity or speech that tries to start illegal activity such as riot,
looting etc.
10. What is the difference between civil law and criminal law?
 Criminal Law: An offense against society
 Civil Law: An offense against an individual
CRIME/ DEFENSES/PUNISHMENTS
11. What is the definition of a crime?
 A punishable offense against society
12. What are the three elements needed in order for an action to be considered a crime?
 Duty
 Violation of Duty
 Intent
13. What is the difference between a felony and a misdemeanor?
 Felony: Serious crimes, more than year in jail, cannot serve on a jury after, prevents you from
getting jobs, lose the right to vote, government is involved in the case.
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Misdemeanor: Smaller, less serious crimes, less than year in jail, fines and community service can
be issued.
14. What are the 5 classifications of murder?
 1st Degree: The premeditated, deliberate, and/or malicious act of causing the death of another
person
 2nd Degree: Murder without premeditation, Unplanned, Spontaneous but deliberate
 Voluntary Manslaughter: Murder in the “heat of passion,” A person acting during a period of
intense fear, rage, anger, or terror.
 Involuntary Manslaughter: Murder that was not intended , Is a result of reckless conduct
 Criminal Negligent Homicide: Causing the death of a person through a failure to exercise a
reasonable or ordinary amount of care.
15. What is the difference between assault and battery?
 Assault: Intentionally putting another person in reasonable fear of offensive or harmful bodily
contact.
 Battery: Harmful or offensive touching of another person.
16. What does it mean when the word “aggravated” is before a crime?
 Makes the crime stronger, usually done with a weapon or in conjunction with another crime. (Ex.
Aggregated assault)
17. What is arson?
 Setting fires to property or realty
18. What is the difference between procedural and substantive defenses?
 Procedural: Based on problems with the way evidence is obtained or the way in which a person is
arrested.
 Substantive: Disprove, justify, or excuse the alleged crime.
19. What are the three types of procedural defenses?
 Miranda Rights: Cannot be a witness against yourself , Entitled to an attorney
 Double Jeopardy: Can NOT be charged with the same crime twice
 Entrapment: Claims the defendant would not have broken the law if not tricked into doing it by law
enforcement officials
20. What are the three types of substantive defenses?
 Insanity: When a person is deemed legally “insane” at the time that the crime was committed.
 Self-Defense: When the crime is justified because your life was threatened at the time
 Immunity: Status of a person that places them beyond the law and makes them free from legal
obligations
21. How does the goal of the criminal justice system differ when dealing with juveniles instead of adults?
 For Adults: To punish
 For juveniles: To rehabilitate
22. What are the Mark F Abrams crimes?
 Murder, Arson, Rape, Kidnapping, Firearm near a school, Assault, Burglary, Robbery, Aggravated
Sexual Abuse, Manslaughter, Sodomy
TORTS
23. What is a tort?
 When the private legal rights on an individual are violated.
24. What are the four elements that need to be present in order to a situation to be considered a violation
of civil law?
 Duty
 Breach of Duty
 Injury
 Causation
25. What is false imprisonment?
 Confinement of a person against their will and without lawful privilege.
26. What is invasion of privacy?
 Uninvited intrusion into an individual’s personal relationships and activities.
27. What is intentional infliction of emotional distress?
 Purposely inflicting mental distress on a person.
28. What is coercion?
 Practice of compelling a person to behave in an involuntary way by use of threats, intimidation or
some other form of pressure or force.
29. What is nuisance?
 Violating the right to quiet enjoyment of life
30. What is the definition of negligence?
 Doing something which a reasonably prudent person would not do
 Carelessness
31. What is the difference between negligence and all of the other torts?
 Negligence is unintentional
32. What are the three defenses to negligence?
 Assumption of risk:
o If the defendant can show that the plaintiff knew of the risk involved and still took a chance
of being injured.
 Contributory Negligence :
o The plaintiff assisted in causing his or her injury.
o Plaintiff was more negligent than defendant
o No damages are awarded.
 Comparative Negligence :
o Reduces the amount of damages that a plaintiff can recover based upon the degree to
which the plaintiff's own negligence contributed to cause the injury.
33. What is strict liability?
 This is liability that exists even though the defendant was not negligent.
 In most cases, the plaintiff was actually the one who acted in a negligent fashion.
34. List three examples of strict liability?
 Ownership of dangerous animals
 Engaging in or organizing abnormally dangerous activities
 The sale or storage of goods that are unreasonably dangerous
 The sale of products which are defective..
THE COURT SYSTEM/TRIAL PROCESS
35. What is jurisdiction?
 The power or authority of a court to hear and try a case
36. What types of cases does the Federal court system have jurisdiction over?
 Actions in which the U.S. or state is a party.
 Cases that raise federal question between state and its own citizens.
 Actions between citizens of different states where the amount of money involved exceeds $50,000.
 Patent-right, copyright and bankruptcy.
37. What is the highest court in the United States?
 US Supreme Court
38. What is the goal of jury selection?
 To select a jury of your peers
39. What factors are taken into consideration when selecting a jury of your peers?
 Age, gender, race, religion, occupation, Hobbies, past experience, family life, income, location,
marital status
40. What is Voir Dire?
 The process by which potential jurors are questioned before being chosen to sit on a jury
41. What is the goal of the voir dire process?
 To determine any biases that may prevent a person from being a truthful jury member
42. What are the two types of challenges that can be used during the vior dire process?
 Challenge for cause: A request for a jury member to be dismissed based on a particular bias or
reason
 Peremptory challenge: A request for a jury member to be dismissed without a valid reason
43. What is the difference between an opening statement and a closing argument?
 Opening: The initial statement made by attorneys for each side, outlining the facts each intends to
establish during the trial.
 Closing: Last chance to talk to the jury and review all relevant facts of the case
44. What is the goal of the opening statement?
 To establish rapport with the jury
 Introduce your side of the case
45. What is the difference between a direct examination and a cross-examination?
 Direct: Questions your own witness. Ask open ended questions
 Cross: Question the opposing team witnesses. Ask close ended questions
46. What are the 8 most common courtroom objections?
 Leading: Guiding the witness on what to say
 Irrelevant: The question/answer has nothing to do with the case.
 Speculation: Asking the witness to take a guess
 Badgering the Witness: Being disrespectful to the witness or yelling at them
 Asked and Answered: A repeated question
 Beyond the scope: Outside the knowledge of the witness
 Hearsay: He-said/she-said
 Narrative: Telling a story
47. What is an expert witness?
 A witness with a specialized knowledge of a subject
 Allowed to give their opinion
48. What is the difference between overruled and sustained?
 Overruled: Objection was lost and the question can be answered
 Sustained: Objection was won and the question cannot be answered
CONTRACTS
49. What is a contract?
 An agreement between two or more people that creates a legal obligation
50. What is the difference between a unilateral and a bilateral contract?
 Unilateral : No Acceptance has to be spoken, The actual performance of the contractual task counts
as the acceptance.
 Bilateral: Requires that the offeree communicate their acceptance to the offerer, Most common
form of acceptance
51. List the 6 elements of a valid contract.
 Offer
 Acceptance
 Genuine Assent
 Capacity
 Consideration
 Statute of Frauds
52. What is genuine assent?
 Means there is a true and complete agreement on each side
53. What is duress?
 The use of improper, threatening or coercive actions
54. What is undue influence?
 This occurs when one party to the contract is in a position of trust and wrongfully dominates the
other party.
55. What is capacity?
 The mental ability to understand the consequences of a contract.
56. List the three types of people who lack capacity.
 Minors
 Mentally Ill
 People who are intoxicated
57. What is disaffirmance?
 A legal refusal to be bound by a previous agreement
 Receive back whatever was exchanged.
58. List the three categories of contracts that cannot be disaffirmed.
 Court Approved Contracts (Sports/Entertainment contracts)
 Major commitments (Armed services/marriage/school loans)
 Employment Contracts
59. What does the law of necessities state?
 When the people who lack capacity contract for an item of necessity they are held partially
responsible
 They can disaffirm but are still required to pay something
60. What is legality?
 The material within a contract must not be illegal.
61. What is consideration?
 Consideration is what each person receives in order to make a contract legally binding.
62. What is the one requirement of consideration?
 What each party trades must have legal value, that is, it must be worth something in the eyes of
the law.
63. What are the three exceptions to the rule of consideration?
 Promises made to charitable organization
 Promises enforceable by the doctrine of promissory estoppels
 Promises barred from the collection of statutes.
64. What does the statute of frauds say?
 A law that requires several of the most important and complex contracts to be put in writing.
65. List the types of contracts that fall within the statute of frauds.
 Contracts to buy and sell goods that are over $500.00
 Contracts to buy and sell property
 Contracts that require more than one year to complete
 Promises to pay the debtor or answer for a legal obligation of another person
 Promises to give something of value in return for the promise of marriage
66. What is specific performance?
 A court order that the breaching party do exactly what was required under the contract.
67. What is an injunction?
 A court order that requires a party to do or refrain from doing specific act.
68. What is the statute of limitations?
 States will deny any remedy if a lawsuit is not filed within a certain time after a legal claim, such as
a breach of contract arises.
69. What is a breach of contract?
 Occurs when one party fails to perform their duties as specified in a contract.
70. What is the difference between a material (major) breach and non-material (minor) breach?
 Non-Material: Minor Breach
o A breech that only includes minor details
o The overall outcome of the contract was not affected.
o An electrician installed white wires instead of black.
 Material Breach: Major Breach
o Breech was intentional, unfair, and important in nature.
o Ex: An electrician improperly installs unsafe wires in your home to save money
71. What are the five different types of damages?
 Compensatory Damages:
o Damages provided to the plaintiff in the monetary amount necessary to replace what was
lost, and nothing more.
 Consequential Damages:
o Damages you can prove occurred because of the failure of one party to meet a contractual
obligation.
o They go beyond the contract itself
 Liquidated Damages:
o Damages to which parties to a contract agree in advance if the contract is breached.
 Nominal Damages:
o Damages awarded when the non-breaching party sues the breaching party even though no
financial loss has resulted from the breach.
o Usually awarded in a small amount such as $1.
o Cases involving nominal damages are usually brought on “principle.”
 Punitive Damages:
o Damages that are awarded to:
o Punish the defendant
o Deter the defendant from similar conduct in the future
o Set an example for others
FAMILY LAW
72. What does PINS stand for?
 Person in need of supervision
73. What are the characteristics of a PINS kid?
 A child under the age of 18
 Does not attend school
 Behaves in a way that is considered dangerous or out of control
 Often disobeys their parents, guardian, or any authoritative figure
74. What happens after a person is legally labeled a PINS kid?
 Child will be placed into a foster or group home
 Child will be assigned a probation officer and sent home
 Child can be ordered to pay for any damages inflicted
 Child can be ordered to perform community service
75. What is emancipation?
 When a minor (under 18) is legally released from parental control and responsibility.
76. What do you have to prove to the court in order to become emancipated?
 You are financially independent
 This emancipation is in your best interest
 Agree to finish high school (in most cases)
77. What is domestic violence?
 It is a pattern of violent and coercive tactics
 It is committed by one intimate against another
 It is a learned pattern of behavior
 It uses techniques of control in order to influence the victims daily thoughts and conduct
78. What are the three phases in the cycle of violence?
 Tension Phase:
o Often emotional abuse and verbal attacks
o Victim endures in hopes that things will change
 Violent Phase:
o Abuse climaxes into major assault
 Honeymoon Phase:
o Batterer persuades victim to stay in relationship using manipulation, promises to change
and apologies
79. What are the four types of child abuse?
 Neglect: Failure of parents or caretakers to provide needed, age appropriate care.
 Sexual Abuse
 Emotional Abuse
 Physical
80. What does Nixzmary’s law say?
 States that if a person under the age of 14 is killed in a brutal way (due to child abuse), the abuser
is automatically sentenced to life without parole.
 It also allows the law to charge parents connected to the crime of the death of their children with
first degree murder.
81. What is a mandated reporter?
 Professionals the can be held liable by both the civil and criminal legal systems for failing to make a
report if child abuse is suspected
82. List 5 people who are considered mandated reporters.
 Social Worker
 Therapists and Mental Health Counselors
 Physician
 Surgeon
 Dentist
 Dental Hygienist
 Chiropractor
 Podiatrist
83. What are child protective services?
 Designed to safeguard the child when abuse, neglect, or abandonment is suspected, or when there
is no family to take care of the child.
84.
What is marriage?
 Marriage is a legal union of a man and a woman as husband and wife.
85. What is the legal age to marry?
 18
86. What are the ways in which a person can get married prior to the legal age of marriage?
 Parental consent
87. What is marital consortium?
 States that there are certain duties that a wife/husband has to fulfill.
o Procreation
o Economic Support
o Companionship
o Household Duties
o Intimacy Duties
o Affection
88. What is common law marriage?
 States that any single man and single woman that have lived together, shared common property,
and held themselves as husband and wife, for longer than 10 years………are LEGALLY considered to
be married.
89. What is a prenuptial agreement?
 An agreement in which the marital partners-to-be typically give up any future claim that they might
have to part or all of the other’s property.
90. What are the 4 elements of a valid prenup?
 Agreement must be in writing
 Must be executed voluntarily
 The agreement can’t be unconscionable
 It must be acknowledged by a notary public
91. What is a sunset provision?
 States that the prenuptial contract will expire after a certain date
92. What is an annulment?
 A court order that cancels a marriage because of a problem that existed from the BEGINNING.
93. What is the difference between a void and voidable marriage?
 Void Marriage:
o Invalid from the beginning because it is unlawful.
 Voidable Marriage:
o A marriage that is valid until someone challenges it.
o Usually one partner is deceived in some way.
94. What are the reasons for a voidable marriage contract?
 Married a relative
 Underage
 Drunk at the time
95. What are the reasons for a void marriage contract?
 Spouse lied about gender, ability to have children, age etc.
96. What is the legal definition of divorce?
 Court action that terminates the marriage and divides the property and responsibilities between
parties.
97. What is alimony?
 A legal obligation on a person to provide financial support to their spouse after marital separation
or divorce.
WILLS AND TRUSTS
98. What is a Will?
 A legal declaration by which a person names one or more persons to manage his/her property and
provides for the transfer of such property at death.
99.
What is the difference between dying testate and intestate?
 Testate: Dying with a will
 Intestate: Dying without a will
100. What is a holographic will?
 Completely hand written will
101. What is an executor?
 The person who you assign to carry our the terms of your will
102. What is an heir?
 The person who inherits the property
103. What is a decedent?
 The deceased person
104. What is a testator?
 The maker of the will
105. What is a living will?
 Term used for a document regarding a person’s choice about the use of life-support systems in
certain situations.
106. What happens if there is no will and no surviving family?
 See above
107. What is a trust?
 When a person transfers the immediate control of some of their property to another party with
instructions on how it is to be managed. Usually for a 3rd parties benefit.
108. What is a settlor?
 The person who has created the trust
109. What is a trustee?
 The person receiving title of the property
 Responsible for upholding directions of the trust
110. What is a beneficiary?
 The party for whose benefit the trust is managed
111. List the three reasons why someone would want to create a trust instead of a will.
 Privacy
 Protection from creditors
 Tax advantages
EMPLOYMENT LAW
112. What is Employment?
 Employment is a legal relationship based on a contract that calls for one individual to be paid for
working under another’s direction and control
113. What is the difference between an employer and an employee?
 Employer
o The party that pays someone in order to control their activities
 Employee
o Party that is paid by the employer to work under their control
114. What is an independent contractor?
 A person that is hired to produce a result in a manner that they see fit
 They are not under the employers control
115. What is employment discrimination?
 Treating individuals differently on the basis of a variety of factors.
116. What factors cannot be taken into consideration when choosing a person to hire/fire/promote?
 Race/Color
 Gender
 Pregnancy
 Age
 Religion
 Disability
 National Origin
117. When is employment discrimination justified?
 When someone’s disability prevents them from being able to complete the job requirements
118. What is Equal Employment Opportunity Commission?
 Forbids employers from discriminating in hiring, paying, training, promoting, and discharging
employees.
119. What are the four laws that prevent discrimination?
 Equal Pay Act of 1963
o Prohibits wage discrimination on the basis of gender
 Age Discrimination in Employment Act of 1967
o Forbids discrimination against workers over the age of 40
 Americans with Disabilities Act
o Employers can not engage in unjustified discrimination against a disabled person
 Pregnancy Discrimination Act
o Makes it illegal to discriminate based on pregnancy, childbirth, or related conditions.
120.
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121.
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What is OSHA?
Occupational Health and Safety Administration
Created by the federal government in 1970
Empowered to enact rules and regulations designed to achieve safety in the workplace
What are OSHA’s three responsibilities?
Assure a hazard free workplace
o Reduce risk of injury and death
 Develop and enforce specific regulations
o Safety training, protective clothing and equipment, maintenance of equipment, lighting,
ventilation, sanitation etc.
 Conduct workplace inspections
o Regular inspections and well as injury prompted inspections
BUYING A CAR
122. What is a lemon?
 A car that constantly breaks down is called a LEMON.
123.
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What are the four factors that determine if a car is a lemon?
The car has been back to the dealer 4 or more times for the same defect.
The car has been owned for less than 2 years.
Driven under 18,000 miles.
The car is used primarily for personal purposes
HOME OWNERSHIP/RENTING
124.
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125.
126.
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127.
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128.
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What are the four ownership rights that come with buying a home?
Airspace: Own the space above your land – cant prevent planes from flying over.
Mineral
Water
Surface Rights: Right to do almost anything you want with your land/home
What are the various limitations on ownership?- Listed below
What are Restrictive Covenants?
A promise (in writing) made by the buyer, which limits the use of land/property in some way.
o Maintain a reasonable state of repair
o Preserve a sight-line for neighboring properties
o Not to build on certain areas
What are Zoning Ordinances?
A set of laws which control the size, location and use of buildings within these different areas.
o Regulates the location of residential, business, and industrial districts.
o Controls what is built on the land
o Controls the activities that take place on the land
o *Cannot be used to eliminate already existing uses*
What is Eminent Domain?
The right of the government to take your land