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  1. What is law?
    Rule of conduct, chosen to be enforced by society (i.e. must be obeyed by citizens subject to sanctions or penalties)
  2. What is Common Law?
    Judicial decisions based on historical body of case law
  3. What is Precedent?
    • Historical case law that binds a court (in the
    • same jurisdiction) to make the same ruling / decision on the current case (assuming the same facts)
  4. What is Stare decisis?
    Let the decision stand. (Based on Precendent)
  5. What are two reasons we use Common Law and Stare Decisis?
    • 1. Predictability
    • 2. Reliability
  6. What are the Six sources of Law?
    • 1. US. Constitution
    • 2. State Constitution
    • 3. Treaties
    • 4. Equity
    • 5. Statutes
    • 6. Administrative Law
  7. ___________is the entire set rules that create, interpret, and enforce our nation’s laws.

    A. The Constitution
    B. 12th Amendment
    C. Common Law
    D. Legal System
    D. Legal System
    (this multiple choice question has been scrambled)
  8. Who is the prosecuter in Criminal Law?
    The prosecuter is the government against an individual.
  9. Describe criminal law.
    • -Concerns behaviors society has outlawed due to its threatening nature.
    • -Guilt is determined
    • -Punishments include fines or imprisonment
  10. Describe Civil law.
    Guilt is not determined.

    This is between two individuals about making wrongs right.
  11. What is Substantive Law?
    Defines the rights of people (landlord-leasee) which restricts conduct (you should not murder).
  12. What is Procedural Law?
    Establishes the process of settling disputes (civil or criminal? Jury or no jury?)
  13. What is Public Law?
    Rights and obligations of governments as they deal with the nation's citizens. (between you and the government)
  14. What is Private law?
    Regulates duties between individuals, private sector (landlord-tenant laws)
  15. What are the five components of a “judicial decision” (i.e. case)
    • 1. Title and legal citation
    • 2. Facts
    • 3. Issue
    • 4. Holding
    • 5. Reasoning/Rational
  16. T/F The Constitution is the supreme law of the land
  17. T/F The Constitution establishes government and provides the framework therefore
  18. What are the three main compromises in the constitution?
    • 1. Separation of Power (Checks and Balances)
    • 2. Federalism
    • 3. Individual Rights
  19. What is Federalism?
    • -ALL powers not specifically enumerated to the
    • federal government are the province of the states.

    -sovereignty is constitutionally divided among the federal government and the individual states.
  20. What is the first Amendment?
    Freedom of Speech, Press, Assembly, Religion
  21. Which of the following are unprotected Speech?

    A. Fighting words (words likely to induce a fight)
    B. Imminent law less action speech (speech inducing immediate lawlessness)
    C. Obscenities
    D. Defamation (libel and slander)
    E. All of the Above
    E. All of the Above
  22. T/F If the government makes a time/place/manner
    restriction, the restriction MUST meet all of the following criteria:

    -Be content neutral
    -Be narrowly tailored...
    -...to serve a significant governmental interest
    -Leave open ample alternative channels for
  23. What are the restrictions on speech?
  24. What is the fourth Amendment?
    Right to privacy and unreasonable search and seizure.
  25. Define Probable Cause
    That which is based on factual evidence and not reasonable suspicion.
  26. T/F The following are examples of reasonable searches and seizures:

    -Terry stop / frisk / pat down
    -“where are you kids going?”
    -Reasonable Suspicion vs Probable Cause
  27. How does one obtain a search warrent?
    To obtain a search warrant, an officer must first prove that probable cause exists before a judge, based upon direct information or hearsay information.
  28. T/F The contents of a warrant are as follows:

    -specify the date and time of issuance
    -identify specifically the property to be seized
    -name or describe the person or place to be searched
    direct that the search be executed either within a specific period of time or for a certain event.
    -direct that the warrant be served in the daytime unless otherwise authorized on the warrant
    -designate by title the judicial officer to whom the warrant shall be returned
    -certify that the issuing authority has found probable cause based upon the facts sworn to or affirmed before the issuing authority
    -when applicable, certify on the face of the warrant that for good cause shown the affidavit(s) is sealed
  29. What level of constitutional protection is needed for Entering Someone's Home?
    Search Warrent
  30. What level of constitutional protection is needed for Arrests?
    Probable Cause
  31. What level of constitutional protection is needed for pat downs?
    Reasonable Suspicion
  32. T/F The Fifth Amendment applies when
    the government takes your life, liberty or property.
    it includes
    -Substantive Due Process
    -Procedural Due Process
    -Takings Clause
  33. What is Substantive Due Process?
    Government cannot make laws that infringe upon your fundamental rights.
  34. What is Procedural Due Process?
    • -If the government is going to take from you –
    • you must be given a fair chance to oppose the action and the government must
    • treat everyone fairly throughout the procedural process.

    • -The amount of process due has a POSITIVE
    • relationship with the liberty or property interest involved.
  35. What is the Takings Clause?
    • -If the government takes your property (and
    • remember “taking” doesn’t just mean swiping it from you) it must be for PUBLIC USE (benefit the public or general welfare) and you must be JUSTLY COMPENSATED
  36. What is the Fourteenth Amendment (Equal Protection)?
    • Government must treat everyone equally unless the government action passes certain tests:
    • -Minimal / rational scrutiny
    • -Intermediate scrutiny
    • -Strict scrutiny
  37. T/F Minimal/Rational Scrutiny includes Gender
  38. T/F Intermediate Scrutiny includes Social and Economic regulations
  39. T/F Strict Scrutiny includes race and fundamental rights.
  40. How is a law made?
    State/local bill is sent to Congress (HoR and Senate) then to the President where it is vetoed or passed as a law.
  41. What is the 3 step process to interpret the law?
    • 1. Plain Meaning
    • 2. Legislative Intent (What the court believes the legislature indends)
    • 3. Public Policy
  42. What are the requirements to get into Federal Court?
    • 1. Federal Criminal- Violation of federal law
    • 2. Federal Civil/Jurisdiction (federal court has the ability to hear a case and make a ruling)/Federal Question
  43. Tax court, military court, probate court, and juvenile court are all examples of _________ jurisdiction.

    A. Limited
    B. General
    C. Apellate
    A. Limited- it can ONLY hear the type of case that is legally permissible
    (this multiple choice question has been scrambled)
  44. Trial Court is described as....
    • 1. All courts start here
    • 2. Fact find
    • 3. Judge, usually a jury – decision is
    • rendered based on PRECEDENT AND STARE DECISIS
  45. Appellate Courts are defined as...

    T/F Includes Fact Finding
    T/F Includes 3+ judges, no Jury
    T/F If error in law is found the decision is reversed
    T/F If no error law found, then the decision is
    AFFIRMED and the trial court’s ruling is upheld.
    • F
    • T
    • T
    • T
  46. _________ is the process of resolving a dispute in court.
  47. What is the 3-step process to Civil Litigation?
    • 1. Pre-trial. Pleadings
    • 2. Discovery (fact find)
    • 3. Trial
  48. What is Pre Trial in the Civil Litigation Process?
    • -Try to settle / negotiate settlement
    • -Compliant – Plaintiff describes facts and legal
    • claims, files with the court to start lawsuit
    • -SERVED – Plaintiff serves Defendant with Summons and copy of Complaint
    • -Answer – Defendant’s reply to the Complaint.
  49. What happens when a case goes to trial?
    • Adversarial process
    • Exposes Burden of Proof
    • Voir Dire
    • Process
  50. What is included in the process part of when a case goes to trial?
    • 1. Plaintiff presents case first. Defendant goes second.
    • 2. Opening Statement
    • 3. Presentation of evidence and witnesses
    • 4. Closing Statement
    • 5. Jury Instructions
    • 6. Verdict
  51. What are the different Business Entities?
    • 1. Sole Proprietorship
    • 2. General/Limited Partnership/LLP
    • 3. LLC
    • 4. S-Corp
    • 5. C-Corp
  52. Describe a Sole Proprietorship pertaining to: Liability, Raising Capital, Management, Taxes and Formation/Operating Regulations.
    • 1. Liability: Unlimited Personal
    • 2. RC: Limited what can be obtained
    • 3. Mgt: 100% management
    • 4. Tax: Taxed as an individual
    • 5. Formation/Operating Regulations: N/A
  53. Describe a General Partnership pertaining to: Liability, Raising Capital, Management, Taxes and Formation/Operating Regulations.
    • 1. Liability: Unlimited liability for both partners
    • 2. RC: Limited to Partner Resources
    • 3. MGT: 50-50
    • 4. Taxes: Individual
    • 5. F/OR: N/A
  54. Describe a LLC pertaining to: Liability, Management Taxes, Raising Capital and Formation/Operating Regulations.
    • Liability: Limited
    • Taxes: no double taxation
    • F/O REG: Operating Agreement, Articles of Organization
    • Management:
    • RC:
  55. Describe a Corporation pertaining to: Liability, Management Taxes, Raising Capital and Formation/Operating Regulations.
    • Liability: Limited Shareholder Liability
    • Management: Structure is set
    • Taxes: Double Taxed
    • RC: Easy to raise capital
    • F/O Reg: Heavily Regulated
  56. Explain how a Corporation is "separate but distinct from owners".
    Owner's assets are protect from the company if it is being sued and/or incurrs debt because the corporation is considered a "corporate entity". This is a Corporate Veil.
  57. What is Piercing the Corporate veil?
    Court of law, using “equitable” powers, holds that a corporation’s owners are liable for the debts/liabilities of the corporation.
  58. Under the following circumstance(s) the corporate veil can be pierced:

    A. Failure to observe corporate formalities (doesn’t act like a corporation – then not
    treated like one)
    B. Commingling
    C. Inadequate capitalization (to give business a fighting chance)
    D. fraud
    E. All of the Above
    E. All of the Above
  59. Describe a publicly traded company
    • Company that has sold part of itself to the GENERAL PUBLIC. (IPO)
    • Can sell stocks on the NYSE.
  60. Articles / Charter Content includes:
    • Name
    • Address and RA
    • Incorporator
    • Purpose
    • Stock Amount
  61. Describe the Corporate Structure pertaining to Shareholders, Managers/Directors and Officers.
    Shareholders elect Managers/Directors who elect Officers to run the company.
  62. What is the market cap of a company that has
    A. 3500 shares at $10/ share
    B. 60,520 shares at $1/ share
    C. 10,000 shares at $5/ share
    • A. $35,000
    • B. $60,520
    • C. $50,000
  63. The right to ______, _______ and to _______ are all shareholder rights.
    • Vote (by proxy)
    • Information
    • Make Shareholder Proposals
  64. Good faith; ordinary care; reasonable belief in the best interests of the corporation; no conflicts. This is the _______.
    Business Judgement Rule
  65. Obligation to act without a conflict of interest is the Duty of ______.
  66. Some examples of Self-Dealing and Corporate Opportunity pertaining to the Duty of Loyalty includes:
    • taking corporation property for own use
    • interested party transactions
    • insider trading
  67. Obligation to act in the best interests of the corporation is the Duty of ______.
    • Care
    • using the same care that an ordinarily prudent person in the same circumstances would use
Card Set
Business Law Midterm
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