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Chapter 1 A violation of a criminal law is a wrong against society. Criminal violations have penalties such as fines and imprisonment.

Running a red light is a criminal violation. A violation of a civil law is a wrong against another person or persons. Violations of civil law require restitution. The party who violated the civil law must compensate the harmed party. Stare decisis is the principle of following other decisions. It means let the decision stand. Injunction - is prohibiting certain conduct or ordering acts. Jurisprudence means wisdom of law. It is also called an area of study focusing on the philosophy of law and the legal system.

Chapter 2 Ethics has to do with what a persons feelings tell them what is right or wrong. Categories of ethics: 1. Taking things that dont belong to you 2. Saying things you know are not true 3. Giving or allowing false impressions 4. Taking unfair advantage 5. Committing acts of personal decadence 6. Violating rules Rationalize - Why we fail to reach good decisions in ethical dilemmas: 1. Everybody else does it 2. If we dont do it, someone else will 3. Thats the way it has always been done 4. It doesnt really hurt anyone 5. The system is unfair 6. I was just following orders

Sarbanes-Oxley Act imposes many requirements on accountants, lawyers, and officers, it also mandates the federal sentencing commission to examine the types of things companies could do that would improve the ethical culture, thereby reducing the risk of misconduct and earning sentence reductions for companies that attempt to create an ethical culture but still have an ethical or legal lapse.

Chapter 3 Judicial Review Appellate courts do not hold trials. Rather, they review what has been done by trial courts to determine whether the trial court, made in error in applying the substantive or procedural law in the case through the process of judicial review. Stare decisis means let the decision stand. Plaintiffs are the parties who initiate a lawsuit and are seeking some type of recovery. In some types of cases they are referred to as petitioners. Defendants are the ones from whom plaintiffs want recovery. They are the ones charged with some violation of civil rights of the plaintiff. Petitioner The party appealing the case is called an appellant or some courts also call them the petitioner. Respondent - The other party (the one not appealing) is called the appellee or respondent. Jurisdiction - is the authority or power of a court to speak the law. The subject matter of a case controls which court has jurisdiction. Venue it addresses the issue of the location of the court in the system. For example, a criminal case in which a defendant is charged with a felony can be tried in any of a states general trial courts.

Chapter 4 ADR (Alternate Dispute resolution) offers parties alternate means of resolving their differences outside actual courtroom litigation and the costly preparation for it. Types of ADR: 1. Mediation is the process in which both parties meet with a neutral mediator who listens to each side explain its position. The mediator is trained to get the parties to respond to each other and their concerns. Mediator does

not issue a decision; the role of the mediator is to try to get the parties to agree on a solution. 2. Arbitrator is the resolution of disputes in a less formal setting than a trial. It can be binding or non-binding. Binding means that the decision of the arbitrators are final. Nonbinding arbitration is a preliminary step to litigation. Complaint - The first step in a lawsuit is the filling of a document called a complaint or petition. Answer The defendants position is found in the answer, another pleading in a case. Discovery Before the trial, the parties engage in a mandatory process of mutual disclosure of all relevant documents and other evidence. This court-supervised process of gathering evidence is called discovery. Depositions are the oral testimony of parties or witnesses that are taken under oath but outside the courtroom before the trial. Voir dire it determines if a potential juror is qualified to serve. Peremptory challenge Sometimes a juror cannot be excused for cause but an attorney feels uncomfortable about the juror or the jurors attitude. In these circumstances the lawyer issues a peremptory challenge, which excuses the juror. Cross-examination The defense questioning of plaintiff witnesses is called crossexamination. Judgement NOV NOV stands for non obstante veredicto, which means notwithstanding the verdict. In other words, the moving attorney is asking the trial judge to reverse the decision of the jury.

Chapter 5 US Constitution has twenty-seven amendments, the first ten of which are the bill of rights. Police power is the states power to pass laws that promote the public welfare and protect public health and safety. Eminent domain The right of a government body to take title to property for public use is called eminent domain. Due process Procedural due process is a right that requires notice and the opportunity to be heard before rights or properties are taken away from an individual or business.

Equal protection The fourteenth amendment grants citizen the right to the equal protection of the law.

Chapter 8 White-collar crime The crimes committed for and against a business are often referred to as white-collar crime. Elements of business crime: 1. Mens rea a crime implies some voluntary action, which is to say that a criminal wrong is calculated or intentional; this element of criminal intent is the mens rea of a crime. It is the required state of mind for a crime the intent to commit the act that is a crime. 2. Actus reus All crimes include, in addition to the mental intent, a requirement of some specific action or conduct, which is the actus reus of the crime. Embezzlement The action of employees who take their employers property is theft or embezzlement. Fraud Criminal fraud is an example of this type of crime, the elements of which are the same as those the person defrauded would use to establish a contract defense. RICO The RICO act a complex federal statue, was passed with the intent of curbing organized crime activity. For RICO to apply, a pattern of racketeering activity must be established. Racketeering acts are defined under the federal statute to include murder, kidnapping, gambling, arson, robbery, bribery, extortion, counterfeiting, embezzlement etc. Miranda rights Miranda warnings must be given to all people who are subjected to custodial interrogation. Custody doesnt really mean locked in jail, but it is generally based on an individuals perceptions of a situation. If a person feels he is without freedom to leave a place by choice, the level of custody at which Miranda rights must be issued has been reached. Preliminary hearing in preliminary hearing, the prosecution presents evidence to a judge to indicate that the accused committed the crime. The prosecution presents witnesses, and the defendant and the defendants attorney are present for cross-examination of those witnesses.

Arraignment is the proceeding at which the defendant enters a plea of guilty, not guilty or no contest (nolo contendere).

Chapter 9 Tort vs. Crime A tort is a private wrong. When a tort is committed, the party who was injured is entitled to collect compensation for damages from the wrongdoer for the private wrong. Crime on the other hand, is a public wrong and requires the wrongdoer to pay a debt to society through a fine or by going to prison. Defamation is an untrue statement made by one party to another about a third party. It consists of either slander or libel. Slander is oral or spoken defamation and libel is written. Intentional Infliction - this tort imposes liability for conduct that goes beyond all bounds of decency and results in emotional distress in the harmed individual. It has 3 different torts which include invasion of privacy. HIPAA controls how medical information is being collected, used and conveyed. Negligence The tort of negligence is one that applies in a variety of circumstances, but it is always used when the conduct of one party does not live up to a certain minimal standard of care we are all expected to use in driving, in our work, and in the care of our property. The elements are the breach of duty, causation and proximate cause. but for test A test often used to determine causation is the but for test but for the action or lack of action of the defendant, the plaintiff would not have been injured. Contributory negligence is simply negligence by the plaintiff that is part of the cause of the accident. Comparative fault under this defense, the jury simply determines the level of fault for both the plaintiff and the defendant and, based on this assessment of fault, determines how much each of the parties will be awarded. Assumption of risk defense requires the defendant to prove that the plaintiff knew of potential risk of injury in the conduct he or she undertook but decided to go forward with it anyway. Strict liability - is absolute liability for conduct with few if any defenses available.

Chapter 12

Contract is a promise or set of promises for breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. This definition comes from the Restatement (second) of contracts, a statement of contract law by the American Law Institute (ALI), which recognizes a contract as a set of voluntary promises that the law will enforce for private parties. These are the sources of contract: a) Common Law was the first law of contracts. It consists today of those traditional notions of law and that body of law developed by judicial decisions dealing with contract issues. b) Uniform Commercial Code (UCC) One of the problems with common law was its lack of uniformity. The states did not follow the same case decisions on contract law, and some states do not follow the Restatement; the result is that different rules apply to contracts in different states. To address the need for uniformity, the National Conference of Commissioners on Uniform State Laws and the American Law Institute worked to draft a set of commercial laws which is called the Uniform Commercial Code. Types of Contract: a) Bilateral Contract is one in which both parties promise to perform certain things. b) Unilateral Contract is one in which one party issues the promise and the other party simply performs it. c) Express Contract is a contract that is written or orally agreed to. d) Implied contract is a contract that arises from circumstances and not from the express agreement of the parties. Two types of Implied contracts are Implied-in-fact contract and Implied-in-law contract or the quasi contract. The term quasi means as if and describes the action of a court when it treats parties who do not have a contract as if they did. e) Valid Contract - Agreement signed by both parties that meets the requirements of state law and is therefore in force. f) Void contract is an agreement to do something that is illegal or against public policy, or one that lacks legal elements. Ex. Contract to sell weapons to a country under a weapons ban is a void contract

a) Voidable contract is a contract that can be unenforceable at the election of one of the parties. Ex. A minor who signs a contract can choose to be bound by the agreement or can choose to disaffirm the contract.

b) Unenforceable contract is a contract that cannot be honored judicially because of some procedural problem. A contract that should be in writing to comply with the statute of frauds but is not written is unenforceable. c) Executed contract are contracts when the parties have performed according to their promises or required actions (under unilateral agreements). d) Executory contract are the ones when the promise to perform is made but the actual performance has not been done. A contract could be wholly executed, wholly executor, or partially executed.

Formation of contract A contract is formed when two parties with the correct mental intent, under the correct circumstances, within the boundaries of the law, and with some detriment to each of them agree to do certain acts in exchange for the others acts. Offer - is the first part of a contract. The person who makes the offer is called the offeror, and the person to whom the offer is made is called the offeree. Revocation occurs when the offeror notifies the offeree that the offer is no longer good. It is subject to some limitations. One such limitation has already been mentioned: Acceptance by the offeree cuts off the right to revoke. Options cannot be revoked. An option is a contract in which the offeree pays the offeror for the time needed to consider the offer. Counteroffers An offer also ends when the offeree does not fully reject the offer but rejects some portion of the offer or modifies it before acceptance. These changes and rejections are called counteroffers. Acceptance is the offerees positive response to the offerors propose contract, and only persons to whom the offer is made have the power of acceptance. Stipulated means Some offers give a required means of acceptance called a specified or stipulated means. If the offeree used the stipulated means of acceptance, the acceptance is effective sooner than the offerors receipt; No Stipulated means If the offeror does not stipulate a means of acceptance, the offeree is free to use any method of communication of the acceptance. Consideration is what distinguishes gifts from contracts and is what each party offeror and offeree gives up under the contract; it is sometimes called bargainedfor exchange. The courts are not concerned with the amount of nature of consideration as long as it is actually passed from one party to the other.

Detrimental reliance/Promissory Estoppel is also used as a substitute for consideration in those cases in which someone acts in reliance on a promise that is not supported by consideration. Statute of Fraud Contracts that must be in writing to be enforceable, are the ones covered under each states statute of fraud. Charitable subscriptions are agreements that are enforced by courts despite the lack of consideration. Parol evidence Once a contract is reduced to its final written form and is complete and unambiguous, the parties to the contract are not permitted to contradict the contract terms with evidence of their negotiations or verbal agreements at the time the contract was executed. This prohibition on extrinsic evidence for fully integrated contracts is called the parol evidence rule and is a means for stopping ongoing contradictions to contracts that have been entered into and finalized. Force majeure are the provisions in international contracts allow the parties to agree what will happen in the event of sudden changes in government or in the global political climate rather than rely on a court to determine after the fact what rights, if any, the parties had.

Chapter 13 Contract defense is a situation, term or event that makes an otherwise valid contract invalid. These defenses ensure that the parties enter into contracts voluntarily and on the basis of accurate information. Capacity Both parties to a valid contract must have capacity, which includes both age and mental capacity. a) Age capacity requires that both parties be at least the age of majority. In most states, that age is 18. b) Mental capacity contracting parties must also have mental capacity, which is the ability to understand that contracts are enforceable, that legal documents have significance, and that contracts involve costs and obligations. Misrepresentation when one party to a contract is not given full or accurate information by the other party about the contract subject matter, misrepresentation occurs. In case of misrepresentation of a contract, the law allows a rescission of the contract. Rescission means the contract is set aside.

Fraud is the knowing and intentional disclosure of false information or the knowing failure to disclose relevant information. Fraud has the same elements of proof as misrepresentation, with the added element of scienter, or knowledge that the information given is false. Duress occurs when a party is physically forced into a contract or deprived of a meaningful choice when deciding whether to enter into a contract. Undue Influence occurs when one party uses a close personal relationship with another party to gain contractual benefits. Usury is charging an interest rate higher than the maximum permitted by law. Exculpatory clauses - is a clause which firms include in their contract that purport to hold the firms completely blameless for any incidents occurring on their premises. Unconscionable contract A contract that gives all the benefits to one side and all the burdens to the other is an unconscionable contract.

Chapter 19

EEOC (Equal Employment Opportunity Commission) its basic purpose is to prohibit discrimination in employment on the basis of race, color, religion, sex or national origin. Steps in EEOC Case are: a) The complaint b) Notification of the Employer c) EEOC Action d) The Right-to-Sue letter ADEA (Age Discrimination in Employment Act) prohibits employment discrimination because of age against employees over 40

ADA (Americans with Disabilities Act) prohibits discrimination against those with covered disabilities FMLA (Family Medical Leave Act) Establishes 12 weeks of unpaid leave for medical or family reasons Disparate treatment it is treating employees of one race or sex differently from employees of another race or sex. Disparate impact Many employment hiring, promoting or firing practices are not intentionally discriminatory. In fact, the basis for such decisions may be quite rational. Even so, the effect or impact of many employment standards is to discriminate against particular races or on the basis of sex. Sex discrimination (usually in employment) that excludes one sex (usually women) to the benefit of the other sex. Sexual Harassment - is a violation of the Title VII of the Civil rights act. It comes in two forms: a) Quid Pro Quo an employee is required to submit to sexual advances in order to remain employed, secure a promotion, or obtain a raise. b) Hostile work environment - the invitations, language, pictures, or suggestions become so pervasive as to create a hostile work environment. Pregnancy Discrimination Act prohibits the following specific acts: a) Forcing a resignation due to pregnancy b) Demoting or limiting an employees job upon her return to work c) Refusing to allow a mother to return to work after pregnancy d) Refusing a hire or promote on the basis of pregnancy or family plans Religious discrimination Employers are required to make reasonable efforts to accommodate an employees religious practices, holiday and observances. Not all religious or church activities however are protected. Affirmative action - is a remedial step taken to ensure that those who have been victims of discrimination in the past are given the opportunity to work in positions they would have attained had there not been discrimination. Reverse discrimination is a controversial specific form of discrimination against members of a dominant or majority group, or in favor of members of a minority or historically disadvantaged group.

BFOQ (Bona fide occupational qualification) is a job qualification based on sex, religion, or national origin that is necessary for the operation of the business.