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Exam 1 Study Guide - MGMT 455 (Business Law)

by: boilermaker2016

Exam 1 Study Guide - MGMT 455 (Business Law) MGMT 455

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Comprehensive study guide for exam 1. Covers all relevant chapters and has exclusive notes from class.
Business Law
Study Guide
business law, Management, MGMT455, MGMT 455
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This 17 page Study Guide was uploaded by boilermaker2016 on Thursday March 3, 2016. The Study Guide belongs to MGMT 455 at Purdue University taught by Gothard in Fall 2015. Since its upload, it has received 33 views. For similar materials see Business Law in Business, management at Purdue University.

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Date Created: 03/03/16
MGMT$455$Exam$1$–$Material$&$Study$Guide$ $ Chapter$1:$ ! •! Rights!&!Duties! o! Right&–&legal&capacity&to&require&another&person&to&to&perform&or&refrain&from& an&action! o! Duty&–&an&obligation&of&law&imposed&on&a&person&to&perform&or&refrain&from&a& performing&a&certain&act! o! Ex.&For&example,&if&the&terms&of&a&lease&provide&that&the&premises&will&remain&in& a&condition&of&good&repair&so&that&the&tenant&can&live&there&comfortably,&the& landlord&has&a&corresponding&duty&to&provide&a&dwelling&that&has&hot&and&cold& running&water.!! •! EPA/Affordable!Care!Act! •! Violent!Crime!Compensation!Act! o! Apply!for!compensation! o! Not&entitled&to&compensation&from&pain&and&suffering& o! Right&to&be&reimbursed&by&Violent&Crime&Fund&out&of&Indy& o! $15,000&cap& •! Juror!Qualifications!(Indiana)& o! 18&years&old,&US&Citizen,&County&Resident,&Can’t&be&in&jail,&English&language& requirement,&can’t&have&a&hearing&disability& •! Juror!Exemptions& o! Certain&random&criteria& o! The&only&Indiana&exemption& &served&in&jury&duty&in&the&last&365&days& •! Juror!Exclusions& o! Know&or&have&biased&due&to&people&involved&in&a&lawsuit& o! Deferral&for&jury&duty& 1.! Hardship& 2.! Extreme&Inconvenience& 3.! Necessity& o! Must&ask&judge&for&deferral& •! Sources!of!law& o! Constitutional&law& 1.! Constitutional law is the branch of law that is based on the constitution for a particular level of government. 2.! Private!law!consists!of!the!rules!and!regulations!parties!agree!to!as!part!of!their! contractual!relationships!! o! Statutory&law& 1.! Statutory law includes legislative acts. Both Congress and the state legislatures enact statutory law. & o! Administrative&Regulations& 1.! Administrative$regulations$ are!rules!promulgated!by!state!and!federal! administrative!agencies,!such!as!the!Securities!and!Exchange!Commission! and! the!National!Labor!Relations!Board.! o! Private&law& 1.! Even!individuals!and!businesses!create!their!own!laws,!or! private$law$! o! Case&law& 1.! Law!also!includes!principles!that!are!expressed!for!the!first!time!in!court! decisions.!This!form!of!law!is!called! case$law.! ! o! Common&Law & 1.! In!many!cases,!courts!apply!rules!as!they!have!been!for!many!years,!even! centuries.!These!timeOhonored!rules!of!the!community!are!called!the! common$ law$ ! & ! Chapter$8:$ ! •! Racketeer!Influenced!and!Corrupt!Organizations!(RICO)!Act! o! The&first&element&of&RICO&is&conduct.&It&simply&requires&the&defendants&who& participated&in&the&enterprise&to&carry&out&the&directions&of&the&enterprise. & o! An&‘enterprise’&is&defined&in&18&U.S.C&section&1961&(4)&to&include&“any&individual,& partnership,&corporation,&associatio n,&or&other&legal&entity,&and&any&union&or&group&of& individuals&associated&in&fact&although&not&a&legal&entity” & o! A&‘pattern&of&racketeering&activity’&requires&at&least&two&acts&of&racketeering&activity. & o! The&element&of&‘racketeering&activity’&is&extremely&br oad.&The&statute&includes& kidnapping,&gambling,&arson,&robbery,&bribery,&extortion,&or&a&list&of&many&other& criminal&statutes.&The&more&common&statutes&include&fraud,&obstruction&of&law& enforcement,&forgery,&and&trafficking&statutes. & o! Criminal&Penalties & "! The&statute&calls&for&imprisonment&of&not&more&than&20&years&unless&one&of&the& racketeering&activities&for&which&the&claim&is&based&carries&a&higher&maximum& penalty & o! Civil&Penalties & "! A&defendant&found&guilty&under&a&civil&RICO&action&will&be&subject&to&recovery & of&damages&at&three&times&the&amount&of&actual&damages,&including& reasonable&attorney&fees & •! Expungement!of!arrest!record!! o! The!request!to!remove!records!occurred!during!arrest! o! Now!removes!criminal!history!from!everyone!but!Police,!etc.! o! If;&mistaken&identity,&no&offense&was&in&fact&committed,&absence&of&probable& cause,&no&charges&pending&against&you,&don’t&have&a&suspended&driver’s&license,& and&haven’t&been&convicted&for&a&crime&for&a&number&of&years! o! Must&file&for&expungement! •! Conditional!Discharge!agreement! o! Ex.&Small&amount&of&Marijuana&Possession! o! Lasts&one&year&given&that&the&items&are&upheld! o! Must&plead&guilty! o! DO&NOT&have&to&say&“Yes”&to&conviction&in&a&job&application! •! Bonds!(maybe)! o! Free&bond&(own&recognicence)! o! Cash&bond&–&small&amount&down;&get&money&back&minus&10%! o! Surety&bond&d&&pay&10%&of&bond,&rest&is&paid&by&a&bondsman,&and&bondsman& keeps&all&money&in&the&end! o! Property&Bond&–&lien&is&placed&on&property.&Property&is&used&as&bond.! •! Diversion!Agreement! o! Gives&one&year&to&do&things&required&(fines,&volunteering,&etc.)! o! No&conviction! o! One&year&=&case&goes&away! o! DO&NOT&have&to&say&“Yes”&to&conviction&in&a&job&application! •! Defenses! o! Selfddefense! "! Whatever&force&is&reasonably&necessary,&including&deadly&force! "! Can’t&use&deadly&force&to&protect&personal&property! o! Shoplifting! "! Probable&cause&can&allow&shopkeepers&to&stop&and&search! •! Corporate!Integrated!Agreements!(CIA)! "! Corporate&version&of&diversion&agreement! ! Chapter$2:$ ! •! Small!claims!court! o! SelfOrepresented! o! $6000&limit! •! Four!stages!of!a!lawsuit! 1.! Pleadings! a.! The&pleadings&are&a&statement&of&the&case&and&the&basis&for&recovery&if&all& the&facts&alleged&can&be&proved! 2.! Discovery&and&PredTrial! a.! Each&side&name&its&potential&witnesses&and&provide&each&side&the&chance&to& questions&those&witnesses&in&advance&of&the&trial! i.! Depositions! ii.! Examine&material! iii.! Medical&exams! 3.! Trial&and&Appeal! a.! Jury&selection&(unbiasedly)! b.! Opening&statements! c.! Presentation&of&evidence! d.! Summation&or&closing&argument! 4.! Collection! a.! Posttrial&Procedures! i.! Recovery&of&Costs/Attorney&Fees! ii.! Execution&of&judgement! 1.! Garnishment! 2.! Seizure&of&goods! •! Summons!–!notice!of!being!sued! o! Service&By&Sheriff! "! Personal&summons! "! Leaving&at&address&with&person&of&suitable&age! "! Sheriff&leaves&on&door&AND&mails&to&address,&if&not&returned,&assume& retrieval! o! Service&By&Mail! o! Service&By&Publication! "! Once/week&for&3&weeks! •! Subpoena! o! Order&for&someone&to&do&something&(appear&in&court;&must&legally&appear)! •! Garnishment!order! o! Directed&to&person’s&employer&requiring&them&to&withhold&money&to&pay&off& judgment&or&owed&money! •! Garnishment!of!Wage!(memorize)! o! Lessor&of;&! "! A.&25%&of&disposable&income! "! B.&Amount&of&which&disposable&earnings&exceed&30&times&the&federal& minimum&hourly&wage&($217.50)! •! One!At!A!Time! o! Only&one&garnishment&order&at&a&time! •! Child!support!takes!precedence! o! Child&support&trumps&garnishment&order! •! Indiana!Resident! o! Indiana&judgment&isn’t&enforceable&in&Illinois&(suit&on&a&foreign&judgment)! •! Judgment! o! Good!for!20!years! •! Exemptions! o! Tangible&personal&property&d&$9,350& "! See,&touch,&throw,&smell& o! Intangible&personal&property&d&$350& "! Bank&accounts,&CD’s,&and&stocks& o! Retirement&Accounts&–&Unlimited& o! Family&Residents&d&$17,600& o! Joint&Ownership&–&cannot&be&sold&be&sheriff& o! Sole&Ownership&–&Can&be&sold&be&sheriff& •! & & Chapter$4:$ ! •! Fifth!amendment! o! Freedom&from&selfdincrimination! "! Can’t&be&compelled&to&testify&about&yourself! o! Miranda&–&In&custody&and&police&interrogation! •! Miranda!Rule! o! Requires;! "! In&custody! "! Police&interrogation! "! Say&something&to&police! "! Say&something&incriminating! o! A&rule&of&evidence&that&will&prohibit&the&state&from&using&incriminating&oral& statements&of&a&defendant&if&such&statements&are&in&response&to&police& questions&while&the&defendant&is&in&custody! •! Federal!financial!powers! o! Taxing!Power! o! Spending!Power! o! Banking!Power! ! Chapter$5:$ ! •! Sherman!Act! o! Directed&at&contracts,&combination,&and&conspiracies&in&restraint&to&trade! o! Prohibition&on&Price&Fixing! o! a&federal&statute&prohibiting&combinations&and&contracts&in&restraint&of& interstate&trade,&now&generally&inapplicable&to&labor&union&activity.&& o! The&Sherman&Act&requires&that&the&monopoly&position&be&gained&because&of&a& superior&product&or&consumer&preference&& o! No&“tying”&products& •! Clayton!Act! o! a&federal&law&that&prohibits&price&discrimination.& o! Applies&to&vertical&mergers&& o! Price&discrimination,&exclusive&contracts,&combinations,&mergers,&acquistions,& and&interlocking&directorates! o! Clayton&Act&provides&that&“no&corporation&...&shall&acquire&the&whole&or&any&part& of&the&assets&of&another&corporation&...&where&in&any&line&of&commerce&in&any& section&of&the&country,&the&effect&of&such&acquisition&may&be&substantially&to& lessen&competition,&or&to&tend&to&create&a&monopoly.”&& •! RobinsonOPatman!Act! o! Predatory&pricing&and&selling&to&one&at&a&lower&price&than&another,&not& involving&quality! o! a&federal&statute&designed&to&eliminate&price&discrimination&in&interstate& commerce.&& •! Federal!Trade!Commission!Act!! o! Deals&with&unfair&and&deceptive&acts&and&practices! •! Exceptions!under!the!antitrust!acts! o! Governments! o! Patents! o! Labor&Unions! o! Baseball! •! Affordable!Care!Act!(Obamacare)! o! Taxed&if&you&don’t&health&insurance! o! Can&stay&on&parent’s&plan&until&26&years’&old! o! No&cap! o! Predexisting&medical&condition&cannot&result&in&denial! o! Every&employer&that&employs&50+&employees&(fulltime),&they&must&provide& group&insurance! "! Fulltime&=&30&hrs/week! ! Chapter$6:$ ! •! Administrative!agency! o! A&governmental&body&charged&with&administering&and&implementing&legislation! •! Administrative!Procedures! o! Hearing! o! Notice! o! Right&to&Counsel! o! Right&to&Impartial&Hearing&Officer! o! Right&to&Review! •! Keynote!Example:!Workmen’s!Compensation!Unemployment!Claim!(Indiana)! o! “employment&“at&will”&state”! o! Just&Cause! "! Lied&on&a&job&application! "! Violation&of&reasonable&and&uniformly&enforced&rule! "! Unsatisfactory&attendance&at&work! "! Damaging&employee&properly! "! Refusing&to&obey&instructions! "! Reporting&to&work&under&the&influence! "! Conduct&endangering&safety&of&self&or&others! "! Being&convicted&and&being&staged! •! Constitutional!limitations!on!Administrative!Investigation! o! Inspection!of!Premise! o! Aerial!Inspection! o! Production!of!Papers! o! Compliance!Verification! ! Chapter$9:$ ! •! Elements!of!a!tort! o! Existence!of!a!duty! "! malpractice! o! Breach!of!that!duty! o! Damage!caused!by!the!breach/causation! •! Kinds!of!torts! o! Intentional! o! Negligent! o! Strict&Liability! o! Other&torts&include:! "! Premise&liability&tort&(control&of&premise)! "! False&imprisonment&tort&(shopping,&etc.)! •! Strict!Liability! o! Product!liability! "! If!a!manufacturer!produces!a!defective!product,!manufacturer!is!liable! o! Animals! •! Intentional!torts! o! Assault! o! Slander/libel/Defamation& "! Slander&=&verbal&untrue&statements& "! Libel&=&written&untrue&statements& o! Battery! o! False!Imprisonment! "! Shopkeeper’s&privilege&gives&storeowners&the&right&to&detain&a&suspected& shoplifter&based&on&reasonable&cause&and&for&a&reasonable&cause&and&for& a&reasonable&time& o! Intentional!Infliction!of!Emotional!Distress! "! Tort!that!produces!mental!anguish!caused!by!conduct!that!exceeds!all! bounds!of!decency! o! Conversion! o! Invasion!of!Privacy! o! Product!Disparagement! o! Wrongful!Interference!with!Contracts! o! Trespass! •! Defenses!for!Intentional!torts! o! Truth! o! Absolute&Privilege! "! Congressman,&lawyers,&judges,&and&witnesses! o! Qualified&Priviledge! "! Media&privilege&to&print&inaccurate&information&w/o&liability&for& defamation! •! Negligent!Tort! o! The&injury&must&be&proximately&caused&by&the&defendant&and&the&injury&must&be& forseeable! •! Tort!claim!Act! o! 180!days!to!sue!the!state!of!Indiana! o! 90!days!for!the!state!to!respond! •! Respondeat!Superior! o! A&legal&doctrine&which&states&that,&in&many&circumstances,&an&employer&is& responsible&for&the&actions&of&employees&performed&within&the&course&of&their& employment! •! Defenses!to!Negligent!Claim! o! Act!of!God! o! Comparative&fault& "! Comparative&negligence&is&a&defense&that&permits&a&negligent&plaintiff& to&recover&some&damages&but&only&in&proportion&to&the&defendant’s& degree&of&fault.&& o! Contributory&Negligence& "! A&plaintiff&who&is&also&negligent&gives&the&defendant&the&opportunity&to& raise&the&defense&of&contributory&negligence& o! Assumption&of&Risk& "! Express$assumption$of$the$risk$involves$a$written$exculpatory$ agreement$under$which$a$plaintiff$acknowledges$the$risks$involved$in$ certain$activities$and$releases$the$defendant$from$prospective$liability$ for$personal$injuries$sustained$as$a$result$of$the$defendant’s$negligent$ conduct$ o! No!Duty!Is!Owed! •! Damages! o! Compensatory!Damages! o! Punitive&Damages& "! In&Indiana,&cap&is&greater&of;&50k&or&3&times&compensatory&damages& "! Plaintiff&only&gets&25%,&rest&goes&to&violent&act&compensation&fund& o! Nominal!Damages! ! ! ! Chapter$1:$The$Natural$and$Sources$of$Law $ ! right of privacy– the right to be free from unreasonable intrusion by others. constitution– a body of principles that establishes the structure of a government and the relationship of the government to the people who are governed. statutory law– legislative acts declaring, commanding, or prohibiting something. administrative regulations– rules made by state and federal administrative agencies. private law– the rules and regulations parties agree to as part of their contractual relationships. case law– law that includes principles that are expressed for the first time in court decisions. precedent– a decision of a court that stands as the law for a particular problem in the future. stare decisis–“let the decision stand”; the principle that the dec ision of a court should serve as a guide or precedent and control the decision of a similar case in the future. common law– the body of unwritten principles originally based upon the usages and customs of the community that were recognized and enforced by the courts. substantive law– the law that defines rights and liabilities. procedural law– the law that must be followed in enforcing rights and liabilities. equity– the body of principles that originally developed because of the inadequacy of the rules then applied by the common law courts of England. Chapter 8: Crimes crime–violation of the law that is punished as an offense against the state or government. misdemeanor – criminal offense with a sentence of less than one year that is neither treason nor a felony. felony–criminal offense that is punishable by confinement in prison for more than one year or by death, or that is expressly stated by statute to be a felony. Federal Sentencing Guidelines–federal standards used by judges in determining mandatory sentence terms for those convicted of federal crimes. White-Collar Crime Penalty Enhancement Act of 2002– federal reforms passed as a result of the collapses of companies such as Enron; provides for longer sentences and higher fines for both executives and companies. white-collar crimes–crimes that do not use nor threaten to use force or violence or do not cause injury to persons or property. conspiracy – agreement between two or more persons to commit an unlawful act. Racketeer Influenced and Corrupt Organizations (RICO) Act–federal law, initially targeting organized crime, that has expanded in scope and provides penalties and civil recovery for multiple criminal offenses, or a pattern of racketeering. predicate act–qualifying underlying offense for RICO liability. extortion–illegal demand by a public officer acting with apparent authority. blackmail–extortion demands made by a nonpublic official. Foreign Corrupt Practices Act (FCPA)–federal law that makes it a felony to influence decision makers in other countries for the purpose of obtaining business, such as contracts for sales and services; also imposes financial reporting requirements on certain U.S. corporations. grease payments–(facilitation payments) legal payments to speed up or ensure performance of normal government duties. facilitation payments– (grease payments) legal payments to speed up or ensure performance of normal government duties. forgery–fraudulently making or altering an instrument that apparently creates or alters a legal liability of another. uttering–crime of issuing or delivering a forged instrument to another person. embezzlement – statutory offense consisting of the unlawful conversion of property entrusted to the wrongdoer. computer crimes–wrongs committed using a computer or with knowledge of computers. Economic Espionage Act (EEA)–federal law that makes it a felony to copy, download, transmit, or in any way transfer proprietary files, documents, and information from a computer to an unauthorized person. Fourth Amendment–privacy protection in the U.S. Constitution; prohibits unauthorized searches and seizures. search warrant–judicial authorization for a search of property where there is the expectation of privacy. Fifth Amendment– constitutional protection against self-incrimination; also guarantees due process. Miranda warnings–warnings required to prevent self- incrimination in a criminal matter. due process–the▯constitutional right to be heard, question witnesses, and present evidence. Sixth Amendment–the U.S. constitutional amendment that guarantees a speedy trial. Chapter 2: The Court System and Dispute Resolution court – a tribunal established by government to hear and decide matters properly brought to it. jurisdiction–the power of a court to hear and determine a given class of cases; the power to act over a particular defendant. subject matter jurisdiction– judicial authority to hear a particular type of case. original jurisdiction–the authority to hear a controversy when it is first brought to court. general jurisdiction–the power to hear and decide most controversies involving legal rights and duties. limited (special) jurisdiction–the authority to hear only particular kinds of cases. appellate jurisdiction–the power of a court to hear and decide a given class of cases on appeal from another court or administrative agency. appeal–taking a case to a reviewing court to determine whether the judgment of the lower court or administrative agency was correct. (Parties– appellant, appellee) reversible error–an error or defect in court proceedings of so serious a nature that on appeal the appellate court will set aside the proceedings of the lower court. affirm–action taken by an appellate court that approves the decision of the court below. reverse–the term used when the appellate court sets aside the verdict or judgment of a lower court. remand–term used when an appellate court sends a case back to trial court for additional hearings or a new trial. federal district court–a general trial court of the federal system. en banc–the term used when the full panel of judges on the appellate court hears a case. writ of certiorari–order by the U.S. Supreme Court granting a right of review by the court of a lower court decision. small claims courts–courts that resolve disputes between parties when those disputes do not exceed a minimal level; no lawyers are permitted; the parties represent themselves. plaintiff–party who initiates a lawsuit. prosecutor–party who originates a criminal proceeding. defendant–party charged with a violation of civil or criminal law in a proceeding. judge–primary officer of the court. attorney-client privilege– right of individual to have discussions with his/her attorney kept private and confidential. jury–a body of citizens sworn by a court to determine by verdict the issues of fact submitted to them. complaint – the initial pleading filed by the plaintiff in many actions, which in many states may be served as original process to acquire jurisdiction over the defendant. process–paperwork served personally on a defendant in a civil case. answer–what a defendant must file to admit or deny facts asserted by the plaintiff. motion to dismiss–a pleading that may be filed to attack the adverse party’s pleading as not stating a cause of action or a defense. demurrer–a pleading to dismiss the adverse party’s pleading for not stating a cause of action or a defense. counterclaim–a claim that the defendant in an action may make against the plaintiff. pleadings–the papers filed by the parties in an action in order to set forth the facts and frame the issues to be tried, although, under some systems, the pleadings merely give notice or a general indication of the nature of the issues. discovery–procedures for ascertaining facts prior to the time of trial in order to eliminate the element of surprise in litigation. deposition–the testimony of a witness taken out of court before a person authorized to administer oaths. impeach–using prior inconsistent evidence to challenge the credibility of a witness. interrogatories – written questions used as a discovery tool that must be answered under oath. request for production of documents–discovery tool for uncovering paper evidence in a case. motion for summary judgment–request that the court decide a case on basis of law only because there are no material issues disputed by the parties. expert witness–one who has acquired special knowledge in a particular field as through practical experience or study, or both, whose opinion is admissible as an aid to the trier of fact. voir dire examination–the preliminary examination of a juror or a witness to ascertain fitness to act as such. opening statements– statements by opposing attorneys that tell the jury what their cases will prove. admissibility–the quality of the evidence in a case that allows it to be presented to the jury. direct examination– examination of a witness by his or her attorney. cross-examination – the examination made of a witness by the attorney for the adverse party. redirect examination– questioning after cross- examination, in which the attorney for the witness testifying may ask the same witness other questions to overcome effects of the cross- examination. recross-examination – an examination by the other side’s attorney that follows the redirect examination. directed verdict–a direction by the trial judge to the jury to return a verdict in favor of a specified party to the action. summation–the attorney address that follows all the evidence presented in court and sums up a case and recommends a particular verdict be returned by the jury. mistrial–a court’s declaration that terminates a trial and postpones it to a later date; commonly entered when evidence has been of a highly prejudicial character or when a juror has been guilty of misconduct. instruction–summary of the law given to jurors by the judge before deliberation begins. judgment n.o.v.–or non obstante veredicto (notwithstanding the verdict), a judgment entered after verdict upon the motion of the losing party on the ground that the verdict is so wrong that a judgment should be entered the opposite of the verdict. execution–the carrying out of a judgment of a court, generally directing that property owned by the defendant be sold and the proceeds first be used to pay the execution or judgment creditor. garnishment–the name given in some states to attachment proceedings. arbitration–the settlement of disputed questions, whether of law or fact, by one or more arbitrators by whose decision the parties agree to be bound. trial de novo – a trial required to preserve the constitutional right to a jury trial by allowing an appeal to proceed as though there never had been any prior hearing or decision. mediation–the settlement of a dispute through the use of a messenger who carries to each side of the dispute the issues and offers in the case. reference to a third person – settlement that allows a nonparty to resolve the dispute. association tribunal–a court created by a trade association or group for the resolution of disputes among its members. summary jury trial–a mock or dry-run trial for parties to get a feel for how their cases will play to a jury. rent-a-judge plan–dispute resolution through private courts with judges paid to be referees for the cases. minitrial–a trial held on portions of the case or certain issues in the case. judicial triage–court management tool used by judges to expedite certain cases in which time is of the essence, such as asbestos cases in which the plaintiffs are gravely ill. Chapter 4: The Constitution as the…. federal system–the system of government in which a central government is given power to administer to national concerns while individual states retain the power to administer to local concerns. constitution–a body of principles that establishes the structure of a government and the relationship of the government to the people who are governed. tripartite–three-part division (of government). legislative branch–the branch of government (e.g., Congress) formed to make the laws. executive branch–the branch of government (e.g., the president) formed to execute the laws. judicial branch–the branch of government (e.g., the courts) formed to interpret the laws. bicameral–a two-house form of the legislative branch of government. delegated powers–powers expressly granted the national government by the Constitution. shared powers–powers that are held by both state and national governments. police power–the power to govern; the power to adopt laws for the protection of the public health, welfare, safety, and morals. ex post facto law–a law making criminal an act that was lawful when done or that increases the penalty when done. Such laws are generally prohibited by constitutional provisions. preemption–the federal government’s superior regulatory position over state laws on the same subject area. bedrock view–a strict constructionist interpretation of a constitution. living-document view– the term used when a constitution is interpreted according to changes in conditions. commerce clause–that section of the U.S. Constitution allocating business regulation between federal and state governments. due process clause–a guarantee of protection against the loss of property or rights without the chance to be heard. quasi-judicial proceedings– forms of hearings in which the rules of evidence and procedure are more relaxed but each side still has a chance to be heard. privileges and immunities clause–a clause that entitles a person going into another state to make contracts, own property, and engage in business to the same extent as citizens of that state. Chapter 5: Government Regulation of Competition and Prices Sherman Antitrust Act–a federal statute prohibiting combinations and contracts in restraint of interstate trade, now generally inapplicable to labor union activity. market power–the ability to control price and exclude competitors. divestiture order–a court order to dispose of interests that could lead to a monopoly. Clayton Act–a federal law that prohibits price discrimination. Robinson-Patman Act–a federal statute designed to eliminate price discrimination in interstate commerce. price discrimination–the charging practice by a seller of different prices to different buyers for commodities of similar grade and quality, resulting in reduced competition or a tendency to create a monopoly. tying–the anticompetitive practice of requiring buyers to purchase one product in order to get another. treble damages–three times the damages actually sustained. Chapter 6: Administrative Agencies administrative agency– government body charged with administering and implementing legislation. administrative law – law governing administrative agencies Administrative Procedure Act–federal law that establishes the operating rules for administrative agencies. Freedom of Information Act–federal law permitting citizens to request documents and records from administrative agencies. open meeting law–law that requires advance notice of agency meeting and public access. Federal Register Act–federal law requiring agencies to make public disclosure of proposed rules, passed rules, and activities. Federal Register–government publication issued five days a week that lists all administrative regulations, all presidential proclamations and executive orders, and other documents and classes of documents that the president or Congress direct to be published. informal settlements– negotiated disposition▯of a matter before an administrative agency, generally without public sanctions. consent decrees–informal settlements of enforcement actions brought by agencies. cease-and-desist order– order issued by a court or administrative agency to stop a practice that it decides is improper. exhaustion of administrative remedies–requirement that▯an agency make its final decision before the parties can go to court. Chapter 9: Torts tort–civil wrong that interferes with one’s property or person. intentional tort–civil wrong that results from intentional conduct. negligence – failure to exercise due care under the circumstances in consequence of which harm is proximately caused to one to whom the defendant owed a duty to exercise due care. strict liability–civil wrong for which there is absolute liability because of the inherent danger in the underlying activity, for example, the use of explosives. false imprisonment– intentional detention of a person without that person’s consent; called the shopkeeper’s tort when shoplifters are unlawfully detained. shopkeeper’s privilege–right of a store owner to detain a suspected shoplifter based on reasonable cause and for a reasonable time without resulting liability for false imprisonment. intentional infliction of emotional distress–tort that produces mental anguish caused by conduct that exceeds all bounds of decency. invasion of privacy–tort of intentional intrusion into the private affairs of another. defamation–untrue statement by one party about another to a third party. slander–defamation of character by spoken words or gestures. libel–written or visual defamation without legal justification. absolute privilege–complete defense against the tort of defamation, as in the speeches of members of Congress on the floor and witnesses in a trial. qualified privilege–media privilege to print inaccurate information without liability for defamation, so long as a retraction is printed and there was no malice. slander of title–malicious making of false statements as to a seller’s title. trade libel–written defamation about a product or service. product disparagement– false statements made about a product or business. contract interference–tort in which a third party interferes with others’ freedom to contract. trespass–unauthorized action with respect to person or property. malpractice–when services are not properly rendered in accordance with commonly accepted standards; negligence by a professional in performing his or her skill. contributory negligence– negligence of the plaintiff that contributes to injury and at common law bars from recovery from the defendant although the defendant may have been more negligent than the plaintiff. ! ! !


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