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.