Legal Environment of Business UF BUL4310 Exam 1 Latest Update 2024 500 Questions and Verified Correct Answers Guaranteed A+
Actual authority - CORRECT ANSWER: Exists when a principal directs an agent
through words or implication to take an action
Actus Reus - CORRECT ANSWER: guilty act
Adversarial Approach - CORRECT ANSWER: Judges are less involved in fact
development, lawyers have more at stake in the case
Agency - CORRECT ANSWER: A legal relationship in which one person acts on behalf of another
Agent - CORRECT ANSWER: A person with authority to act on behalf of another.
Agent's duty of reasonable care - CORRECT ANSWER: The agent must exercise
reasonable care and apply the skills appropriate to his or her position. Agent cannot be liable for honest mistakes, as long as she exercised with care
Agents duty of loyalty - CORRECT ANSWER: The agent must protect classified
information, not compete with the principal, and refuse or disclose gifts offered during the course of the agent's work
Apparent authority - CORRECT ANSWER: Results when a principal's actions give rise to a reasonable belief in a third party that a person has the authority to act as the principal's agent
appraisal right - CORRECT ANSWER: Shareholder's right to have his/her shares
appraised, and to receive monetary compensation for their value
Arbitration - CORRECT ANSWER: settling a dispute by agreeing to accept the decision of an impartial outsider
Artisan's Lien - CORRECT ANSWER: A possessory lien given to a person who has
made improvements and added value to another person's personal property as security for payment for services performed.
Attorney-Client privilege - CORRECT ANSWER: Privilege that protects the
communications between a client and their attorney
Automatic Stay - CORRECT ANSWER: prohibits creditors from collecting debts that
the bankrupt incurred before the petition was filed
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Bench Trial - CORRECT ANSWER: Trial held before a judge, no jury
Benefit Corporation (B Corp) - CORRECT ANSWER: a corporate form for businesses
whose stated goals are to combine making a profit with benefiting society and the environment
Bengoshi - CORRECT ANSWER: Japanese lawyer
Business judgment rule - CORRECT ANSWER: The presumption that directors are
acting in good faith and with the company's best interest in mind as long as they are making an informed decision and avoiding conflicts between their personal interests and those of the shareholders
C corporations - CORRECT ANSWER: The default form of corporation which features
limited liability and double taxation
Case Law - CORRECT ANSWER: Law based on preceding court cases and decisions
charging order - CORRECT ANSWER: In partnership law, an order granted by a court to a judgment creditor that entitles the creditor to attach profits or assets of a partner on dissolution of the partnership.
circumstantial evidence - CORRECT ANSWER: (indirect evidence) evidence used to
imply a fact but not prove it directly
civil law - CORRECT ANSWER: Involves alleged wrongs between individuals (lawsuits)
class action - CORRECT ANSWER: a lawsuit in which the plaintiff or defendant is a collective group of individuals
close corporation - CORRECT ANSWER: A corporation whose shareholders are
limited to a small group of persons, often family members.
Closely held corporation - CORRECT ANSWER: A special kind of corporation that is operated by individuals rather than public shareholders
Code - CORRECT ANSWER: in the common law, a collection of statutes enacted by
legislature bodies, including congress and state legislature
collateral - CORRECT ANSWER: subject of the security interest
Common law is based on ________ law - CORRECT ANSWER: Case
consideration - CORRECT ANSWER: something of value exchanged for something
else of value
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Contingency Fees - CORRECT ANSWER: Fees charged only if the case is won, and
they're a percentage of the money won- usually personal injury or tort cases
contract - CORRECT ANSWER: A legally enforceable agreement
Conversion (Tort) - CORRECT ANSWER: When personal property is taken from the
owner and given to someone else to use
Corporate Governance - CORRECT ANSWER: the system of governing a company so
that the interests of corporate owners and other stakeholders are protected
Corporation - CORRECT ANSWER: A separate legal entity that exists separate and
apart from its owners
court of equity - CORRECT ANSWER: A court that decides controversies and
administers justice according to the rules, principles, and precedents of equity. such as cancel a contract or a particular act
court of law - CORRECT ANSWER: A court in which the only remedies were things of value, such as money.
cram-down provision - CORRECT ANSWER: A provision of the Bankruptcy Code that
allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.
Crime Fraud Exception - CORRECT ANSWER: The attorney client privilege is not
allowed if it is made in furtherance of a crime or fraud
Criminal Law - CORRECT ANSWER: Involves wrongs done against society (murder,
rape)
Cross-Collateralization - CORRECT ANSWER: The use of an asset that is not the
subject of a loan to collateralize that loan.
de facto incorporation - CORRECT ANSWER: The formation of a corporations that
does not meet all of the necessary requirements but the steps taken are sufficient anyway because it was in good nature
de jure incorporation - CORRECT ANSWER: The lawful formation of a corporation that meets all of the necessary requirements
demurrer - CORRECT ANSWER: A motion to dismiss a case because the claim is
legally insufficient.
deposition - CORRECT ANSWER: sworn testimony by a party to the lawsuit or by any witness, recorded by an authorized court official 3 / 4
Derivative lawsuits - CORRECT ANSWER: Suits brought by one or more shareholders
on behalf of the corporation, for its benefits
direct evidence - CORRECT ANSWER: evidence that (if true) proves an alleged fact, such as an eyewitness account of a crime
discovery - CORRECT ANSWER: A method by which the opposing parties obtain
information from each other to prepare for trial.
Disparagement of Property - CORRECT ANSWER: An economically injurious
falsehood about another's product or property.
dissolution - CORRECT ANSWER: the breaking up into parts; termination of a legal bond or contract such as a partnership
Dividends - CORRECT ANSWER: earnings distributed to stockholders
docket - CORRECT ANSWER: a court's calendar, showing the schedule of cases it is to hear
duress - CORRECT ANSWER: wrongful threat of one person induces another person
to preform an act that he or she would not usually do
Eight Amendment - CORRECT ANSWER: Provides protection against cruel and usual
punishment, including excessive bail
Employer's liability for employees' intentional torts - CORRECT ANSWER: Employers are not liable for the intentional torts of their employees unless they knew or should have known that the employee might commit an intentional tort
Estate in Property - CORRECT ANSWER: All of the property owned by a person,
including real estate and personal property.
Exceptions to the attorney-client privilege - CORRECT ANSWER: 1. Fee disputes
- Assertions of professional malpractice
- Prevention of death or serious bodily injury
- Crime fraud exception
exclusionary rule - CORRECT ANSWER: improperly gathered evidence may not be
introduced in a criminal trial
Exhaustion of Remedies - CORRECT ANSWER: a doctrine requiring that a person
attempt all available options within an administrative agency before taking a claim to a court
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