Business Law Exam 2 Chapt 9,10,11,12,16

  1. Types of contracts

    a promise for a promise
  2. Types of contracts

    promise for an act
  3. Types of contracts

    a contract in which the terms of the agreement are stated in words, oral, and written
  4. Types of contracts

    Implied-in fact
    a contract that is implied from the conduct of the parties.

    • Requirements:
    • 1. plantiff furnished some service or property.
    • 2. plantiff expected to be paid for that service or property, and the defendant knew or should have known that paymemt was expected.
    • 3. defendant had a chance to reject the service or property and did not.
  5. Types of contracts

    terms of contract completion

    • executed- completely performed by bith parties
    • executory-contract that has not yet been fully performed by both parties
  6. Types of contracts

    contract element is missing
  7. Types of contracts

    Void able
    one party can get out of the contract
  8. Types of contracts

    valid contract that can't be enforced
  9. What are the sources of contract law?
    • 1) Common law- real estate & services (hired 4 a job)
    • 2) Uniform Commercial Code (UCC)- apply article 2 (sale of goods)
  10. Click-on Agreement
    a binding contract can arise when a person accepting a online by clicking on a box indicating "I agree" or "I accept". All terms does not have to have been read by the acceptee in order for the terms to be effective.
  11. Consideration
    value given in return for a promise. must be bargained for.
  12. Elements of Consideration

    Legal Value
    • 1) a promise to do something that one has no prior legal duty to do
    • 2) performance of an action that one is otherwise not obligated to undertake
    • 3) refraining from an action that one has a legal right to undertake (forbearance)
  13. Lack of Consideration
    Preexisting duty- if its your job,can't seek reward.

    past- it was not bargained for before the act occurred.

    exception: promissory estoppel
  14. Promissory Estoppel
    • a doctrine that applies when a promissor makes a clear and definite promise on which the promisee justifiablity relies; such a promise is binding if justice will be better served by the enforcement of the promise.
    • -
  15. Requirements of a Contract

    • (Offer+Acceptance)
    • Agreement+consideration+Capacity+Legal=Contract
  16. Requirements of a Contract

    requirements for an offer
    • 1) offeror must have a serious intention to become bound by the offer.
    • 2) terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.
    • 3) offer must be communicated by the offeror to the offeree, resulting in the offeree's knowledge of the offer.
  17. Requirements of a Contract

    Acceptance of an offer
    • 1) must b voluntary
    • 2) axcess to the terms of the offer
    • 3) can only be accepted to whom the offer was made
    • 4) must be made before offer expires or is terminated
    • 5) look to offer to know how to accept it.
  18. Mailbox Rule
    accpetance of offer by mail is effective the moment of posting, properly addressed, and stamped
  19. Option
    an option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree
  20. Merchant's Firm offer
    an offer by a merchant that can't be revoked or canceled without consideration for a stated period of time up to 3 months or if no definite period is stated, for a reasonable time. A firm offer by a merchant must be in writing and must be signed by the offeror.
  21. Requirements of a Contract

    the legal ability to enter into a contractual relatinship.
  22. Requirements of a Contract

    contract must be formed for legal purposes in order to be valid and enforceable.


    contracts contrary to statue ex: an contract to commit a crime, insider stock information,
  23. Statue of Frauds
    • contracts that must be in writing to be enforeable
    • 1)common law
    • 2) UCC
    • Ex:
    • -land
    • -contracts that can't be performed within a yr.
    • -marriage(prenups)
    • -sale of goods $500 or more
  24. Shrink Wrap Agreement
    an agreement between a manufacturer and user where the terms are expressed inside the box in which the computer hardware or software is packaged.
  25. Puffery
    is an expression of opinion by a seller or lessor that is not made as a representation of fact. Exaggerated claims concerning the quality of property offered for sale. claims involve opinions rather than facts & are not considered to be legally binding promises or warranties.
  26. 5 Elements of Fraud
    1) Scienter 2) Misrepresentation 3) Material Fact 4) justifiable reliance 5)Damages

    • -a misrepresentation of material fact must occur
    • -there must be an intent to decieve (scienter)
    • -innocent party must justiabl rely on the misrepresentation.
  27. Undue Influence
    • in which one party can greatly influence another party, overcoming that party's free will
    • -one party may dominate another party, unfairly influencing him or her.
    • -clear evidence that the person did not act out of its own free will
  28. Parol Evidence Rule
    get verbal promises put into written contract
  29. Specific Performance
    Calls for the performance of the act promised in the contract.
  30. Magnuson Act
    • standardizes full and limited warranties in the sale of consumer goods. Manufactures don't have to give full or limted warranties but if they do MMAct states what must be included in full/limited warranties.
    • -doesn't require but standardizes them
    • -only applies to consumer products (not industrial)
  31. Statue of Repose
    the statue of limitations in which within which the plantiff must file their product liability suit
  32. Tort liability
    • 1) Duty of reasonable care
    • -exercise due care in designing product, selecting materials,production process, assembling the product, & placing adequate warnings
    • 2) Injury forseeable
    • -the person injured does not mean it has to be the person who purchased it
  33. Strict Liability
    • Damgage-product in defective condition when sold
    • May-Merchant sold product
    • Develop-unreasonable dangerous
    • If-injury to plantiff
    • Person -defective good proximately caused damage
    • Consumes- no change in good from when it left manufacturer to the consumer
  34. Family Medical Leave Act
    • requirements-
    • -Have at least 50 employees
    • -provide familys with up to 12wks of unpaid leave
    • -covers newborn, adopted, and foster children
    • -take off for ill parent, child or spouse
    • -work at least 25hrs per wk
    • -enforeced by labor dept.
  35. National Labors Relation Board (NLRB)
    • -created by the NLRA/Wagner Act
    • 3 Main Elements:
    • 1) Conduct union election
    • 2) investigates unfair labor practices
    • 3)Determines collective bargaining units
  36. National Labor Relations Act
    • -alson Wagner Act
    • -established the rights of the employees to engage in collective bargaiing and to strike
    • -determined which practices were unfair labor
    • -works in favor of the employee
    • -established NLRB
  37. Closed Shop
    • requires union membership as a condition of employment.
    • -was made illigel by the Labor-Management Relations Act(LMRA)
  38. Union Shop
    • a firm that requires all workers, once employed, to become union members within a specified period of time as a condition of their continued employment.
    • -doesn't require union ship as a pre-requistie, but requires after a certain amount of time on the job.
  39. Right to work law
    • a state law providing that employees may not be required to joina union as a condition of retaining employment
    • -what NC uses
  40. Collective Bargaining
    the process by which labor and mangagment negotiate the terms and conditions of employment, including working hours and workplace conditions
  41. Age Discrimination Employment Act (ADEA)
    • protects people 40 yrs or older
    • -employer must have at least 20 employees
  42. Americans With Disabilities Act (ADA)
    Title I
    • deal with employees
    • protects employees and job applicants
    • have to be qualified and disablied
    • complain to the EEOC
    • if violated, Civil Rights Act 1991 kicks in if job applicant was intently discriminated for cap punitive damages
  43. Americans With Disabilities Act (ADA)
    Title II
    deals with the public transportation accomondations for the disabled.
  44. Americans With Disabilities Act (ADA)
    Title III
    accomondation in public places such as wheelchair ramps, brail signs, handycap bathrooms and parking..etc..
  45. Americans With Disabilities Act (ADA)
    Title IV
    telecommunication accommondations
  46. Civil Rights Act of 1964
    prohibits job discrimination against applicants, employees, and union members on the basis of race, color, national origin, religion, or gender at any stage of employment.
  47. Civil Rights Act of 1964
    Title VII
    • -15 employees or more for protection
    • -protected classes: race,gender, national orgin, color, religion
    • -procedure in violation
    • *1.complain to EEOC(make sure within statue of limitations
    • *2. right-to-sue letter
  48. Violations of title VI
    Disparate Treatment
    Disparate impact
    • Disparate Treatment
    • -intentional
    • -civil rights act of 1991 punish those for punitive damages/ there's a cap
    • Disparate Impact
    • -Unintentional
    • -ex: non essential job requirement, not essential for sucessful for job performance
  49. Equal Employement Opportunity Commission (EEOC)
    • -is where a person will file a complaint for the violation of Title VII.
    • Procedure
    • -file complaint
    • -EEOC investigate
    • -Try to negotigate out-of-court settlement
    • -it agreement can't be found, EEOC file suit in court against employer
  50. Civil Rights Act 1991
    rewards damages in intentional discrimination cases
  51. Gender Discrimination
    • protection provided by the Equal Pay Act of 1963 and Title VII.
    • -includes protection for preganant women under the Pregaancy Discrimination Act of 1978
  52. Religous Discrimination
    -protects sincerly held reliogous practices
  53. Sexual harassment
    • Types:
    • Quid pro quo-sexual favors for job increasement
    • Hostile Environment
  54. Employee vs. Independent contractor
    -independent contractor is not an employee because the people who hire them don't have any control over the details of their physical performance
  55. Resondant Superior
    principal or employer are held liable for the wrongful acts committed by agents or employees while in the scope of the job
  56. Types of agent authority
    • 1)Express
    • 2) Implied
    • 3)Apparent
  57. Contract Liability
    disclosed principal
    partially disclosed principal
    undisclosed principal
    • disclosed principal-principal identitiy is known by the 3rd partyat the time the contract is made by agent
    • partially disclosed prinicpal
    • -principal identitiy is not known by the 3rd party, but the 3rd party knows that the agent may or may not be acting on the behave of the principal.
    • undisclosed principal
    • identity not know by a 3rd person, no knowledge that agent is acting on behalf.
  58. detour or frolic
    if employeee merely took a detour or was on a frolic of its own
  59. Agency duties to Principal
    • 1 Performance
    • 2Notification
    • 3 Loyalty
    • 4Obediance
    • 5 accounting
  60. Principal duties to agent
    • 1.compensation
    • conditons
    • 3.reinburstment
    • 4.cooperation
  61. workers comp
    • -covers employee on the job and in the scope of the job
    • -if taken gives up right to sue
Card Set
Business Law Exam 2 Chapt 9,10,11,12,16
busines law exam 2