Legal Environment
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Transcript of Legal Environment
Chad Penny, Kimberly Schaub. Courtney Spall, Kaya Comrie
THE LEGAL ENVIRONMENT
Body of law that comes from decisions handed down by Judiciary part of our government through court system
Also known as unwritten law
Uses what is called Precedents, which are decisions decided in previous cases
Created by decisions made in trial courts, appellate courts, and special courts
Lower courts must abide by precedents made by higher courts
COMMON LAW
Actual written law that is made up of Federal and State constitutions, legislative enactments, treaties of the Federal Government and Ordinances
Although written where anyone can read, it’s usually determined by courts systems.
Law created by legislatures
STATUTORY LAW
Federal or State institutions and other government organizations created by Congress or state legislators with delegated power to create rules and regulations within their given area of authority
Legislative bodies can create administrative agencies, as well as terminate them
Agencies can pass rules and regulations within it’s area of authority, conduct investigations in rule violations, as well as hold hearings
Important agencies include the Securities and Exchange Commission (SEC), Federal Reserve Board, as well as the Equal Employment Opportunity Commission
ADMINISTRATIVE AGENCIES
Was created in 1890 by Congress.
Sherman Antitrust Act was passed to alleviate any chance of large companies becoming so big that smaller companies would be crushed
Forbids: Contracts, combinations, or conspiracies in restraint of trade, as well as the creation of Monopolies
Other laws enacted: Clayton Act of 1914. Federal Trade Commission Act of 1914, Robinson-Patman Act of 1936
ANTITRUST LEGISLATION
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Any wrong doing against another person, property, or reputation
Often non-criminal in nature I.E. Tobacco lawsuits
Examples of Torts:
Negligence
Product Liability
Strict Product Liability
TORT LAW
Government withdrawal of certain laws and regulations that seem to hinder competition
Example: Airline Industry
Banking Industry downfall of Deregulation
Government takeover of Fannie May and Freddy Mac/Bailout of AIG
DEREGULATION
Protects a creator's rights to materials such as books, articles, photos, paintings and cartoons.
Filed in Library of Congress and lasts lifetime + seventy years
Can be passed to heir
JK Rowling lawsuit
COPYRIGHTS
Legally protected name, symbol, or design that identifies the goods or services of one seller and distinguishes them from those of competitors.
Belongs to owner forever as long as it’s properly registered and renewed every ten years
Protected against infringement
Some well known trademarks include: AFLAC duck, Mickey Mouse, McDonald’s arches, Nike swoosh
TRADEMARKS
The legal process by which a person, business, or gov't entity unable to meet financial obligations is relieved of these obligations by a court that divides any assets among creditors, allowing creditors to get at least part of their money and freeing the debtor to begin anew.
The US Constitution gives congress the power to establish bankruptcy laws, and legislation has existed since the 1890's.
BANKRUPTCY
Different types of bankruptcy:
Chapter 7: Straight bankruptcy in which all assets are divided among creditors after exemptions
Chapter 11: Allows a firm to reorganize and continue operation after paying only a limited portion of it’s debts. EX: AA
Chapter 13: Allows individuals to pay their creditors over an extended period of time
BANKRUPTCY CON’T
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Contract: Legally enforceable agreement between two or more parties
Contract Law: Specifies what constitutes a legally enforceable agreement
Consideration: Something of value someone is willing to give up in order to enter into contract with someone else
CONTRACT LAW
What makes a contract binding?
1. Oral or written offer is made2. Mutual acceptance/agreement of offer and cannot
be forced upon3. Both parties give consideration/collaboration. Both
parties must hold up their end of contract4. Both parties sober and conscience of details of
contract5. Must be legal and not contain any stolen goods6. Contract is in proper form
CONTRACT LAW CON’T
Happens when one party fails to uphold their end of contract
Damages: Agreed settlement awarded by the court to person affected by breach of contract
If breech happens, the following can occur:
1. Specific Performance2. Payment of Damages3. Discharge of Obligation
BREACH OF CONTRACT
Consumerism: A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to the sellers
Fair Packaging and Labeling Act of 1966: Makes deceptive packaging or labeling of a package illegal
Child Protection Act of 1966: Removes unsafe toys and allows the FDA to pull dangerous products from the market
LAWS TO PROTECT
CONSUMERS
Taxes: How all forms of government raises money
Governments have used taxes primarily as a source of funding for their operations and programs
Sin Tax: Used to raise prices on certain items
Tax Credits: An amount firms can deduct from their tax bills
TAX LAWS
Income Tax: Income received by businesses and individuals
Property Taxes: Paid on real and personal property
Sales Taxes: Paid on merchandise sold at retail level
Excise Tax: Paid on Select handful of items
TAX LAWS CON’T
A document that gives inventors exclusive rights to their inventions for twenty years
Approval two to four years
USPTO
Selling and license use of patents
International companies
PATENTS
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Uniform Commercial Code
Laws that cover any and all sales transactions
Adopted by all fifty states
Has eleven articles which contain laws covering sales
UCC
Article two of the UCC
Four Types:
Warranty- guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
Express warranties- are specific representations by the seller that buyers rely on regarding the goods they purchase
WARRANTIES
Implied warranties- are legally imposed on the seller, who implies that a product will conform to the customary standards of the trade or industry in which it competes.
Full/limited warranty-full warranty requires a seller to replace or repair a whereas a limited warranty typically limits the defects or mechanical problems the seller cover.
WARRANTIES CON’T
Negotiable instruments- forms of commercial paper (such as checks) that are transferable among business and individuals; they represent a promise to pay a specified amount.
Article 3 of the UCC requires negotiable instruments to follow four conditions-they must be written and signed by the maker or drawer-they must be made payable on demand or at a certain time-they must be payable to the bearer or to specific order-they must contain an unconditional promise to pay a specified amount of money.
NEGOTIABLE INSTRUMENTS
END