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Overview of Business Law Principles

May 8, 2025

Business Law Lecture Notes

Important Dates

  • Final Exam: 10 AM, Monday, May 6th
  • Quizlet: Worth 20% of the grade

Key Concepts and Terms

Arbitration

  • Involves an arbitrator who hears disputes and imposes resolutions.

Binding Authority

  • A source of law courts must follow.

Corporate Social Responsibility (CSR)

  • Combines good citizenship with ethical decisions, societal improvement, environmental impact.

Defendant

  • The individual against whom a lawsuit is brought.

Mediation vs. Negotiation

  • Mediation: Uses a neutral third party to settle disputes.
  • Negotiation: Parties settle disputes without court involvement.

Stakeholders

  • Groups affected by corporate decisions, e.g., employees, customers.

Statutes of Limitations

  • Sets the maximum time periods for bringing actions.

Utilitarianism

  • Ethical actions are those that produce the greatest good.

Venue

  • Proper location for filing and hearing cases.

Ethics

  • Moral principles guiding social behavior.

Concurrent Jurisdiction

  • Two courts having the power to hear a case.

Principles of Law

  • Minimum Contacts: Jurisdiction justified by a defendant's contacts with a state.
  • Supremacy Clause: U.S. Constitution takes precedence over state constitutions.

Appeal Process

  • Appellant presents a brief to judges to reverse a decision.

IRAC

  • Issue, Rule, Analysis, Conclusion.

Standing

  • Requirement for sufficient stake in controversy to bring a lawsuit.

Jurisdiction

  • Authority to hear and decide specific actions.

Diversity of Citizenship

  • Parties are from different states/countries, dispute exceeds $75,000.

Sources of Law

  • Constitution, statutes, regulations, case law.

Triple Bottom Line

  • A corporation's impact on people, profits, and the planet.

Influences on American Law

  • Heavily influenced by England.

Negligence and Liability

Comparative Negligence

  • Liability computed and apportioned between plaintiff and defendant.
    • Pure: Plaintiff can recover if liability is greater than defendant's.
    • Modified: Plaintiff's liability subtracted from total award.
    • 50/51 Percent Rule: Limits on recovery based on liability percentage.

Contributory Negligence

  • Plaintiff's contribution to injury bars recovery.

Defamation: Libel and Slander

  • Libel: Written defamation.
  • Slander: Oral defamation.

Puffery

  • Seller's exaggerated talk, not legally binding.

Product Liability

  • Manufacturer's liability for harm caused by defective products.

Contracts

Types

  • Quasi Contract: Imposed by courts to avoid unjust enrichment.
  • Unilateral Contract: Accepted by completing the performance.

Valid Contract Elements

  • Agreement, consideration, capacity, legality.

Damages in Torts

  • Compensatory: Reimburse actual losses.
  • Punitive: Punish and deter future conduct.

Torts

Intentional Torts

  • Assault: Threat of harmful contact.
  • Conversion: Exceeds rights of personal property use.

Negligence

  • Failure to live up to a duty of care.

Employment Law

At Will Employment

  • Termination at any time unless specified otherwise.

Whistleblowing

  • Employee disclosure of unsafe/illegal activities.

Agency Relationships

Principal's Duties to Agent

  • Compensation, reimbursement, cooperation.

Agent's Duties to Principal

  • Performance, notification, loyalty, obedience, accounting.

Corporations

Types

  • Alien Corporation: Formed abroad, does business in the U.S.

Shareholder Rights

  • Approve changes, elect board, file derivative suits.

Business Structures

Sole Proprietorship

  • Owner has complete control and liability.

Partnerships

  • General and limited partners with varying liabilities and responsibilities.

LLCs

  • Limited liability, flexible taxation, ease of formation.

Miscellaneous

Good Samaritan Statute

  • Protection for aid rendered to injured persons.

Business Judgment Rule

  • Immunity for directors for good faith decisions.

Crowdfunding

  • Collective networking to fund ventures.