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by: Mrs. Oleta Okuneva


Mrs. Oleta Okuneva
GPA 3.74

Christopher Bean

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Christopher Bean
Class Notes
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This 10 page Class Notes was uploaded by Mrs. Oleta Okuneva on Saturday September 26, 2015. The Class Notes belongs to COB 218 at James Madison University taught by Christopher Bean in Fall. Since its upload, it has received 72 views. For similar materials see /class/214041/cob-218-james-madison-university in College of Business at James Madison University.

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Date Created: 09/26/15
010912 Chapter One Business Law enforceable rules of conduct that govem the actions of buyers and sellers in market exchanges Areas Affected by Business Law 00000 0 Corporate Management Production and Transportation Marketing Research and Development Accounting and Finance Human Resource Management Purposes of the Law O 0000 0 Providing order Serving as an altemative to altercation Facilitating a sense that change is possible Encouraging social justice Guaranteeing personal freedoms Serving as a moral guide Classi cation of Law Private Law involves disputes between private individuals or groups Public Law involves disputes between private individuals or groups and their government Civil Law involves the rights and responsibilities involved in relationships between persons and between persons and their government Criminal Law involves incidents in which someone commits an act against the public as a whole Sources of Business Law 0 O Constitutions o Constitutional Law the general limits and powers of a government as interpreted from its written constitution Statutes 0 Statutory Law the assortment of rules and regulations put forth by legislatures o ModelUniform Laws laws created to account for the variability of laws among states these laws serve to standardize the otherwise different interstate laws 0 Cases 0 Case LawCommon Law the collection oflegal interpretations made by judges they are considered to be law unless otherwise revoked by a statutory law Precedent a tool used by judges to make ruling on cases on the basis of key similarities to previous cases Stare decisis standing by the decision a principle stating that rulings made in higher courts are binding precedent for lower courts Restatements 0f the Law summaries of common law rules in a particular area of the law do not carry the weight of law but can be used to guide interpretations of particular cases 0 Administrative Law 0 Administrative Law the collection of rules and decisions made by administrative agencies to full in particular details missing from constitutions and statutes 0 Treaties 0 Executive Orders Schools of Jurisprudence 0 Natural Law 0 The idea that there are certain ethical laws and principles that are morally right and above the laws devised by humans 0 Legal Positivism 0 Holds that because society requires authority a legal and authoritarian hierarchy should exist when a law is made therefore obedience is expected because authority created it 0 Identification With the Vulnerable 0 Holds that society should be fair particular attention is therefore paid to the poor the ill and the elderly 0 Historical School TraditionCustom 0 Uses traditions as the model for future laws and behavior 0 Legal Realism 0 Holds that context must be considered as well as law context involves factors such as economic conditions and social conditions 0 O O 0 CostBenefit Analysis 0 All costs and bene ts of a law are given monetary values those laws with the highest ratios of benefits to costs are then preferable to those with lower ratios Critical Thinking the ability to understand the structure and worth of an argument by evaluating the facts issue reasons and conclusion of that argument Structure for Critical Thinking as Applied to Legal Reasoning and Case Law Find the facts Look for the issue Identify the judge s reasons and conclusion Locate in the decision the rules of law that govern the judge s reasoning Apply critical thinking to the reasoning Useful Critical Thinking Tools for Business Managers When Considering Understanding and Applying Business Law 0 Look for potential ambiguity in the legal reasoning 0 Ask whether the analogies used in the decision are strong 0 Check the quality of the judge s use of evidence in his or her reasoning Consider the extent to which important missing information prevents you from being totally confident about the judge s reasoning Consider the possibility of rival causes when evaluating the issue of causation LWNH U 0 0 Chapter Two Ethics the study and practice of decisions about what is good or right Business Ethics the use of ethics and ethical principles to solve business dilemmas Ethical Dilemma a question about how one should behave that requires one to re ect about the advantages and disadvantages of the optional choices for various stakeholders Social Responsibility of Business the expectations that a community places on the actions of firms inside that community s borders WPH Process of Ethical Decision Making Who 00000 0 Customers Owners or Investors Management Employees Community Future Generations Purpose 0 O O 0 Freedom 0 To act without restriction from rules imposed by others 0 To possess the capacity or resources to act as one wishes 0 To escape the cares and demands of this world entirely Security 0 To possess a large enough supply of goods and services to meet basic needs 0 To be safe from those wishing to interfere with your property rights 0 To achieve the psychological condition of self confidence to such an extent that risks are welcome Justice 0 To receive the products of your labor 0 To treat all humans identically regardless of race class gender age and sexual preference 0 To provide resources in proportion to need 0 To possess anything that someone else is willing to grant you Efficiency 0 To maximize the amount of wealth in society 0 To get the most from a particular output 0 To minimize costs How 0 The golden rule Do to others as you want them to gratify you Be considerate of others feelings as you want them to be considerate of yours Treat others as persons of rational dignity like you Extend brotherly or sisterly love to others as you would want them to do to you Treat others according to moral insight as you would have others treat you 0 Do to others as God wants you to do to them 0 Public disclosure test 0 Universalization test White Collar Crime a variety of nonviolent illegal acts against society that occur most frequently in the business context Elements of a Crime 0 Actus Reus guilty act a wrongful behavior that is associated with the physical act of a declared crime 0 Mens Rea guilty mind the mental state accompanying a wrongful behavior Classi cation of Crimes o Felony a serious crime such as murder rape or robbery that is punishable by imprisonment for more than one year or death 0 Misdemeanor a crime that is less serious than a felony and is punishable by a fine andor imprisonment for less than one year 0 Petty Offense a minor crime that is punishable by a small fine andor imprisonment for less than siX months in jail Crimes o Bribery a corrupt and illegal activity in which a person offers gives solicits or receives money services or anything of value in order to gain an illicit advantage Extortion Blackmail a criminal offense in which a person obtains money property andor services from another by wrongfully threatening or in icting harm to his or her person property or reputation OO 00 O O 0 Fraud an intentional deception that causes harm to another 0 Elements 0 Insid A material false representation made with intent to deceive A victim s reasonable reliance on the false representation Damages er Trading illegal buying or selling of a corporation s stock or other securities by corporate insiders such as officers and directors in breach of a fiduciary duty or other relationship of trust and confidence while in possession of material nonpublic information about the security 0 Select ed types of fraudulent crimes Forgery the fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another Defalcation the misappropriation of trust funds or money held in a fiduciary capacity False entries the making of an entry into the books of a bank or corporation that is designed to represent the eXistence of funds that do not eXist False token a false document or sign of eXistence used to perpetrate a fraud such as making counterfeit money False pretense a designed misrepresentation of eXisting facts or conditions by which a person obtains another s money or goods such as the writing of a worthless check Fraudulent concealment the suppression of a material fact tat a person is legally bound to disclose Mail fraud the use of mails to defraud the public Health care fraud any fraudulent act committed in the provision of health care products or services Telemarketing fraud any scheme including cramming and slamming sing the telephone to commit a fraudulent act O OO O O O I Ponzi scheme an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later ones Check kiting drawing checks on an account in one bank and depositing them in an account in a second bank when neither account has sufficient funds to cover the amounts drawn39 just before the checks are returned for payment to the first bank the kiter covers them by depositing checks drawn on the account in the second bank39 due to the delay created by the collection of funds by one bank from the other known as the float time an artificial balance is created Pretexting using fraudulent means to obtain information about someone s phone use Embezzlement a wrongful conversion of another s funds or property by one ho is lawfully in possession of those funds or that property Computer crime crime committed using a computer Hacker a person who illegally accesses or enters another person s or a company s computer system to obtain information or to steal money Cyber Terrorist a hacker whose intention is the exploitation of a target computer or network to create a serious impact such as the crippling of a communications network or the sabotage of a business or organization which may have an impact on millions of citizens if the terrorist s attack is successful Virus a computer program that rearranges damages destroys or replaces computer data StrictLiability Offense offense for which no mens rea is required Vicarious Liability the liability or responsibility imposed on a person a party or an organization for damages caused by another39 most commonly used in relation to employment with the employer held Vicariously liable for damages caused by its employees Criminal Procedure 0 The government through a prosecutor always brings the criminal case The objective is punishment in the form of a criminal fine andor imprisonment 0 Numerous constitutional safeguards for the criminal defendant Civil Procedure 0 The party filing the case the plaintiff can be an individual business or government entity 0 The objective is to remedy a wrong done to the plaintiff so the defendant will either have to pay money damages or be subject to an equitable remedy injunction or specific performance Constitutional Safeguards Amendments 0 Fourth 0 Protection from unreasonable search and seizure 0 Restrictions on warrants 0 Fifth o Prohibition of double jeopardy 0 Right not to incriminate oneself 0 Right to due process 0 Sixth 0 Right to a speedy and public trial Right to a trial by an impartial jury of one s peers Right to be informed of the accusations against oneself Right to confront witnesses Right to have witnesses on one s side Right to counsel at various stages of the proceedings 0 Eighth 0 Freedom from excessive bail 0 Freedom from excessive fines 0 Freedom from cruel and unusual punishment 0 Fourteenth 0 Extension of the right to due process to all state matters 0 Extension of most constitutional rights to defendants at the state level O 0000 O Criminal Procedure Pretrial Procedure 1 2 U A U Arrest the action in which the police or a person acting under the law seize hold or take an individual into custody o Probable Cause any essential element andor standard by which a lawful of cer may make a valid arrest conduct a personal or property search or obtain a warrant Miranda Rights the rights that are read to an arrested individual by a law enforcement agent before the individual is questioned about the commission of a crime Booking after an individual is arrested the procedure during which the name of the defendant and the alleged crime are recorded in the investigating agency s or police department s records 0 First Appearance the initial appearance of an arrested individual before a judge who determines whether there was probable cause for the arrest39 if the judge ascertains that probable cause did not eXist the individual is freed o Bail a thing of value such as a money bail bond or any other form of property that is given to the cotut to temporarily allow a person s release from jail and to ensure his or her appearance in court Information a document prepared by the prosecutor and presented to the magistrate demonstrating that there is enough evidence to charge the defendant and bring him or her to trial 0 Indictment finding by the grand jury that there is adequate evidence to charge the defendant and bring him or her to trial Arraignment the first appearance in cotut by the defendant at which the defendant is advised of the pending charges the right to counsel and the right to trial by jury and he or she enters a plea to the charge Trial Procedure 1 Jury selection 2 Trial with burden of proof on prosecution 3 Jury deliberations 4 Jury verdict 5 Sentencing hearing if defendant is found guilty Posttrial Procedure 0 If jury returns a verdict of not guilty the government prosecution cannot appeal the acquittal o If jury returns a verdict of guilty the defendant may appeal verdict by claiming prejudicial error of law at trial 0 If no appeal the defendant sentenced after the judge receives additional information relevant to sentencing N010 C ontendere a plea in which the defendant does not admit guilt but agrees not to contest the charges Petit Jury a group of 6 or 12 citizens who are summoned to and sworn by the court to hear evidence presented by both sides and render a verdict in a trial Plea Bargain an agreement in which the prosecutor agrees to reduce charges drop charges or recommend a certain sentence if the defendant pleads guilty Bench Trial a trial before a judge with the judgment decided by the judge rather than a jLuy39 occurs when the defendant has waived his or her right to a jury trial Burden of Proof the duty of the plaintiff or prosecution to establish a claim or allegation by admissible evidence and to prove that the defendant committed all the essential elements of the crime to the jLuy s or court s satisfaction beyond any reasonable doubt n order to convict the defendant Defenses t0 Crimes o Infancy Mistake Intoxication Insanity Duress Entrapment Necessity Justifrable use of force OOOOOOO


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