Shared Flashcard Set

Details

Exam #1- BusFin 510
Business Finance 510 (Law) Winter Quarter 2010, Weinstock
65
Finance
Undergraduate 4
02/09/2011

Additional Finance Flashcards

 


 

Cards

Term
Contract
Definition
defines a relationship between parties; an agreement that the courts will enforce; source of contracts is common law; law does NOT enforce every promise; most contracts are an exchange of two or more promises
must have offer, acceptance, adequate consideration, and legal subject matter.
Term
Consideration
Definition
Payment
either giving up something, or agreeing not to do something you have a right to do.
Term
Unilateral
Definition
offeror bound, limited acceptors, but no else bound yet
Term
Bilateral
Definition
both parties are obligated at the start of the contract
Term
Past-Consideration
Definition
not effective consideration; contracts require new consideration
Term
Promissory Estoppel
Definition
stops a party from asserting a legal right that a party has a right to enforce; with this doctrine, courts have enforced promises that lacked the consideration and oral promises that would otherwise be unenforceable under the Statue of Frauds. Under the doctrine, a party is “estopped” to deny the existence of a promise
Term
Quasi Contract
Definition
Implied in Law
Term
Quasi Contract
Definition
fictional contract created by courts for equitable, not contractual purposes]. A quasi-contract is not an actual contract, but is a legal substitute for a contract formed to impose equity between two parties. The concept of a quasi-contract is that of a contract that should have been formed, even though in actuality it was not. It is used when a court finds it appropriate to create an obligation upon a non-contracting party to avoid injustice and to ensure fairness
Term
Misrepresentation
Definition
an innocent misstatement or nondisclosure of facts
Term
Duress
Definition
usually physical; one party forces other party into contract; victim of duress may rescind contract; one party’s wrongful act overcomes the free will of another party; can be from economic pressure.
Term
Undue Influence
Definition
mental coercion; one party is in the dominant position, the other is subservient; in most cases it is a young person vs an older person
Term
Incapacity
Definition
People that cannot mentally understand the nature and consequences of their actions lack the capacity to contract
Term
Mutual Mistake
Definition
when only 1 person makes mistake, there usually isn’t a rescission; but when both make a mistake, that is reason to void
Term
Condition Precedent
Definition
some event has to occur before we have a contract;
Term
Condition Subsequent
Definition
there is a contract, but a certain future event may void it
Term
Parol Evidence
Definition
protects integrity of contract up until it is signed; does not apply to later modifications; only deals with written agreements; prevents a party to a written contract from presenting oral evidence that contradicts or adds to the written terms of the contract that appears to be whole. The supporting rationale is that since the contracting parties have reduced their agreement to a single and final writing, the extrinsic evidence of past agreements or terms should not be considered when interpreting that writing, as the parties had decided to ultimately leave them out of the contract.
Term
3rd party beneficiary contract
Definition
when someone sues ona contract, despite having not originally been an active party to the contract
Term
assignment
Definition
Act of transferring an interest in property or right (such as contract benefits) to another
Term
substantial performance
Definition
fullfilment of the obligations agreed to in a contract, with only slight variance from exact terms, or unimportant omissions. These msitakes can be made up with money.
Term
Specific performance
Definition
the right of a party to a contract to demand that the defendent be ordered in judgment to perform contract (usually when subject matter of contract is unique-- house, art,etc)
Term
Implied-in-fact contract
Definition
agreed by nonverbal conduct; when a party accepts a benefits at a time when it is possible to reject it (going to the doctors-- even if you haven't signed anything yet, you have agreed to have the appointment, so you agree to pay for the services)
Term
Express contract
Definition
All elements are specifically stated'
Term
Implied contracts
Definition
existence of contract is assumed by circumstances
Term
Rulemaking
Definition
process of issuing regulations that have a force and effect of law; enactment of regulations that will be generally applicable in the future results in regulations of greater certainty and consistency and allows for broader public input
Term
Interpretive Rules
Definition
statements that express an agency’s understanding of the statutes it administers; intending to advise the public of the agency’s positions of particular issues; not legally binding on the agency, the courts, or the public
Term
Legislative Rules
Definition
must be enacted in accordance with the APA –when such rules are consistent with the APA, the enabling legislation, and the constitution, they have the force and effect of the law—they are binding on the agency, the courts, and the public
Term
Informal Rulemaking
Definition
“notice and comment”; begins when an agency publishes a notice or proposed rulemaking to the Federal Register. Notice contains time, place, and nature of proceedings, legal authority for proposed rules, and terms of proposed legislation  principal justification of informal rulemaking is efficiency; lack of required hearings minimizes delay
Term
Formal Rulemaking
Definition
on-the-record”; begins when the agency publishes a notice of proposed rulemaking to the Federal Register; agency must hold formal trial hearings where it presents all its evidence justifying the proposed regulation; hearings can drag out for years with cross examinations and other witnesses.
Term
Right o Judicial Review
Definition
party must take initiative and meet the threshold requirements for reviewability, standing, and exhaustion of administrative remedies
Term
Reviewable Case
Definition
Relates to a nondiscretionary function
Term
Reasons to overturn agency decision
Definition
1.) Agency failed to comply with the procedures detailed in its enabling legislation or the APA
2.) Agency’s actions exceeds the scopes of its authority provided by its enabling legislation
3.) Agency’s decision is premised on an erroneous interpretation of the law
4.) The agency’s action conflicts with the constitution (example: regulation prohibiting a certain type of advertising may violate first amendment)
5.) Agency erred in the substance of its action
Term
De Novo
Definition
Court decides issue anew (entirely new hearings)
Rarely applied
Term
Substantial evidence
Definition
Court reviews the agency record and sets the agency decision aside only if substantial evidence supporting the agency decision does not exist.
Applied with formal rulemaking and abjudication
Term
Arbitrary and Capricious
Definition
Court sets aside agency decision only if the agency failed to consider all the relevant facts or did not provide a rational explanation for its decision.
Applied with informal rulemaking
Term
Cost/Benefit Approach
Definition
. Any action that increases overall good is considered right. Moral correctness weighted by consequences. Maximizes benefits, minimizes harms
Term
Rights Approach
Definition
An action that maximizes respect for human rights and minimizes their violation is considered correct.
FREEDOM AND WELLBEING
Term
Ethics
Definition
Study of standards and conduct of moral judgement
Term
Morals
Definition
Views of what is right and wrong, good and bad.
Term
Ideal Conception
Definition
Law is a body of higher principles existing independently of human experience, and is exists as an ideal condition that is either inherent in human nature or derived from a divine source
Term
Positivist Conceptions
Definition
regards law as any body of rules imposed by a sovereign body, a positive law is a law laid down by an authority.
Term
Historical Conceptions
Definition
law as the embodiment of a society’s customs; custom is the chief manifestation of the law; as customs and cultural values change, so does the direction of positive law
Term
Sociological Conceptions
Definition
define law as present human conduct; the sum of what the lawbooks permit and what human behavior provides; human conduct in the immediate experience as source of law
Term
realist conceptions
Definition
view life experience as affecting law; product of various social influences on official discretion (if speed limit is 55, but cop won’t pull someone over unless they are doing 65, a legal realist would say the speed limit was 65mph)
o what actually occurs in the legal process is the law, and not what is written
Term
Stare Decisis
Definition
latin for “Let the decision stand”): the method of decision making wherein one uses prior cases to decide a present controversy; a rule of law decided by the highest court of the jurisdiction subsequently binds all lower courts within that jurisdiction.
Term
Order of lawsuit
Definition
Pleading, Discovery, Trial, Appellate
Term
Burden of proof (criminal)
Definition
Beyond a reasonable doubt (court would rather release a guilty person than wrongfully convict an innocent one)
Term
Burden of Proof (Civil)
Definition
Preponderance of the evidence (“more likely than not.”)
Term
Discovery
Definition
the process where each party attempts to learn what the other party knows; each party may direct written questions, known as interrogatories, to the other party, whom must provide written answers under oath; contributes a lot to the cost of the investigation. (Like a table top board game, everyone can see what everyone else has)
Term
Jurisdiction
Definition
power of court to hear and decide a case
Term
Dissent
Definition
opinion wherein a judge disagrees with the result reached by majority of court; does not have any legal effect, but is often cited in future cases when court want to change the law
Term
5th amendment
Definition
has a self-incrimination clause which prohibits compelling any person “in any criminal case to be a witness against himself.”- it is a personal right to have the privilege against self-incrimination; corporations and other collective entities do not have this right.
Term
Commerce Clause
Definition
the constitutional basis for regulation in business by Congress
o contains an express grant of federal power over interstate commerce, which limits the authority of states to regulate in a manner that unduly restricts the free flow of interstate commerce; tells to what extent a state can regulate an area of interstate commerce when Congress is silent
Term
Commerce Clause
Definition
When a state passes a law, the state's interest has to be weighed against interstate commerce
Term
Supremacy Clause
Definition
everyone must follow federal law in the face of conflicting with states as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress; all laws made by the federal government are the supreme law of the land and superior to any conflicting state law.
Term
Eminent domain (Condemnation)
Definition
the power of the gvmt to take, or to authorize the taking of, private property for public use; The Takings Clause of the 5th amendment recognizes the basic gvmtal power but requires that just compensation be given to the owner.
Term
Inverse Condemnation
Definition
When you tell the government to take your property
Term
5th Amendment (Takings Clause)
Definition
Private property shall not be taken for a public use, without just compensation
Term
Equal Protection Clause
Definition
commands that no state shall “deny to any person within its jurisdictions the equal protection of the laws”; all persons similarly situated should be treated alike
Term
Strict Scrutiny Test of Equal Protection
Definition
when statute classifies by race, alienage, or national origin; because such discrimination is unlikely to soon be corrected by legislative mean, these laws are subject to this scrutiny
Term
Rational basis test of equal protection
Definition
the general rule is that social and economic legislation is presumed to be valid and will be sustained if the classification drawn by the statue is rationally related to a legitimate state interest
Term
Rational basis test of equal protection
Definition
Used when strict scrutiny test doesn't apply.
Term
• First Amendment/Commercial Speech
Definition
commercial speech is not entitled to First Amendment protection
Term
Commercial Speech Doctrine
Definition
advertisements, billboards, and other forms of commercial speech were not considered speech as that term is used in the 1st Amendment—rather such forms of expressions were treated as commercial activity that could be regulated (1st amendment is meant to protect political expression)
Term
Statue of Frauds
Definition
does not require the contract to be in writing, it requires only that there be a written evidence of the contract signed by the party to be charged with the enforcement of the contract (a laundry ticket would suffice to have a lawsuit against the laundry)
Term
UCC 2-201
Definition
Formal requirements
-$500+, must be written proof of sale in order for it to be enforceable.
-Between merchants, written confirmation within reasonable amount of time when the receiving party is aware of it's contents is sufficient for contract enforcement
-Goods are made specific for a buyer and not suitable to be sold to another, if party who is being sought enforcement against admits to having made the contract (in pleading or testimoney), when payment has already been received and accepted.
Supporting users have an ad free experience!