The Civil Rights Act forbids businesses to discriminate ____ women and minorities in their hiring practices. Businesses also cannot discriminate ____ employees who are eligible ____ a promotion or ____ a pay increase. The Equal Employment Opportunity Commission was created ____ the federal government to take action ____ businesses that are accused ____ discrimination.
What is the purpose of the Equal Employment Opportunity Commission?
Reading for understanding.
& Learning Objectives
After studying this text, you will be able to
name six areas of Law related to business,
state three options of a breach of contract,
distinguish among real, personal, and intellectual property.
Business-Related Laws
Law can be classified as either public or private. Private law concerns itself with relationship between individuals, between an individual and a business or between two businesses. Public law concerns itself with the relationship between the government and individual citizens.
Torts
A tort is a non-criminal act (other than breach of contract) that results in injury to person or property. The victim of a tort is legally entitled to some form of compensation. Tort law covers intentional torts, negligence, and strict liability.
An intentional tort is a wilful act that results in injury. Intent does not mean the intent to cause harm; it is the intent to commit a specific physical act. The most common intentional torts include assault, battery, and defamation (if in writing or on television, it is libel; if spoken, it is slander). Negligence is a failure to observe a reasonable standard of care in order to protect others from unreasonable risk or injury. The tort of strict liability focuses on liability in cases even when the defendant has used reasonable care and has committed no wrong-doing. If a defendant engages in an inherently dangerous activity, such as blasting for construction purposes, etc., there is a high risk of harm no matter how much care is used, and the defendant is strictly liable. In strict liability, then, there is liability without fault.
Product-Liability Law
A product-liability case is one in which a manufacturer is held liable for injuries caused by a defective product. Product-liability law developed from the tort law and holds companies responsible for their wares on the grounds of negligence, strict liability, and warranty. A guarantee made from a product is a warranty. It may be a written (or spoken) promise made by the company about the product, or not written but created by operation of law when a seller enters into a contract.
Under strict product liability, a company may be held responsible for a defective product even if reasonable care was used in the product's manufacture and sale.
Contracts
Broadly defined, a contract is an exchange of promises enforceable by law. Most valid contracts are adhered by both parties. But when there is a breach of contract, three options are available to the damaged party. The first option, discharge, frees one party from fulfilling a contractual obligation when the other party violates the contract. The second option, damages, allows the injured party to sue for damages resulting from the other party's failure to live up to the contract's terms. The last option, specific performance, permits the injured party to demand performance, that is, fulfilment of the contract's terms.
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Agency
Agency exists when one party (the principal) authorises another party (the agent) to act on his or her behalf. For example, a person who requests his or her stockbroker to buy stock is creating an agency relationship (empowering the stockbroker to act as an agent). When such authorisation is in written form, the document is known as a power of attorney. Agency is important in business because it permits the delegation of the authority to enter into a contract. The principal, however, is liable for any contracts made by an agent, so long as the agent is within the scope of his or her authority.
Property Transactions
Property transaction is the relationship between a person having rights with respect to any tangible or intangible object and all other persons. Real property is land and anything more or less permanently attached to it, whereas personal property is anything that is not real property. Personal property may be tangible (e.g., cars and jewellery) or intangible (e.g., bank accounts, insurance policies). Some intangible property is known as intellectual property. This includes trademarks, patents, trade secrets, and copyrights.
Deeds are legal documents that transfer ownership of real property. Temporary transfer of interest in property is accomplished with a lease. The owner of the property, the landlord, grants a tenant the right to occupy the property for a specific time period and for a rental fee.
The transfer of personal property is technically a transfer of title (ownership of the property). Normally, title passes from seller to buyer when the buyer's money is accepted and the vendor hands over the goods. But when property is bought cash on delivery (COD), title is not transferred until the buyer accepts the merchandise and pays for it. With instalment purchases, title typically passes when the purchaser takes possession of the property.
Bankruptcy
The legal procedure by which a person or business that is unable to meet financial obligations is relieved of debt by having the court divide the assets among the creditors is called bankruptcy. Some firms emerge from bankruptcy as leaner, healthier companies.
@ Key Terms
| agency | intentional tort | private law | strict liability |
| bankruptcy | lease | product-liability law | title |
| breach of contract | negligence | property | tort |
| deed | personal property | public law | warranty |
| intellectual property | power of attorney | real property |
Review Questions
1. What is the difference between private law and public law?
2. What is the difference between negligence and intentional torts?
3. Define the concept of strict product liability.
4. Why is agency important in business?
5. What is bankruptcy?
CDTrue-False Questions
| TRUE FALSE | Title is transferred as soon as the buyer accepts the goods. | |
| TRUE FALSE | As a principal, your responsibility for the actions of your agent is limited if the agent does something illegal. | |
| TRUE FALSE | A contract is an exchange of promises enforceable by law. |
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4 Key Terms Exercise
Match the words with their definitions
| 1. | agency | a) | written authorisation for one party to act as an agent on behalf of another party |
| 2. | breach of contract | b) | wilful injury for which an injured person is entitled to compensation |
| 3. | contract | c) | rights held regarding any tangible or intangible object |
| 4. | intentional tort | d) | non-criminal act that results in injury to person or property |
| 5. | lease | e) | legal ownership of property |
| 6. | negligence | f) | legal agreement between the owner of equipment or an asset and the individual or business for using the equipment or asset |
| 7. | power of attorney | g) | law that holds a manufacturer liable for injuries caused by a defective product |
| 8. | private law | h) | law that concerns itself with the relationship between the government and individual citizens |
| 9. | product-liability law | i) | law that concerns itself with relationship between individuals, between an individual and a business or between two businesses |
| 10. | property | j) | guarantee or promise of manufacturer |
| 11. | public law | k) | failure to observe a reasonable standard of care in a specific situation |
| 12. | strict liability | l) | failure to live up to the terms of a contract, with no legal excuse |
| 13. | title | m) | exchange of promises enforceable by law |
| 14. | tort | n) | concept of liability even in cases where the defendant has used reasonable care |
| 15. | warranty | o) | business relationship that exists when one party authorises another party to act on his/her behalf |
Multiple Choice Question
If your roommate pours a soft drink on your stereo because "you were playing it too loud" and then tells your best friend the spill was done on purpose, a _____ has been committed.
a. public law violation b. intentional tort c. tort d. white-collar crime
J It's Interesting to Know
This Is a Law
Did you know that it is illegal to fish for whales on Sunday in Ohio or to put pennies in your ear in Hawaii? Over the course of the nations history, thousands of odd laws like these have been passed. Some have been repealed. Many are still in effect. The following are some unusual laws from around the US.
J Farmers in North Carolina may not use elephants to plough their fields.
J It is illegal to lasso fish in Knoxville, Tennessee.
J In Florida a person may not sleep under a hair dryer.
J Residents of Amarillo, Texas, cannot take a bath on the main street during business hours.
J A person may not tie an alligator to a fire hydrant in Detroit, Michigan.
| LESSON 13 | The Law | ||
| 1. | take out | () | |
| 2. | injunction | ||
| 3. | legal | , | |
| 4. | within the framework of | - | |
| 5. | comply with | ||
| 6. | wording | , | |
| 7. | regulations | , , | |
| 8. | discriminate against | ||
| 9. | liable for | ||
| 10. | incurring of debt | ||
| 11. | breach of contract | , | |
| 12. | sue for | - | |
| 13. | libel | ( ) | |
| 14. | subject | ||
| 15. | court | ||
| 16. | slander | ( ) | |
| 17. | legal claim | ||
| 18. | legal action | ||
| 19. | legal status | ||
| 20. | interpret | ||
| 21. | negligence | ||
| 22. | faulty components | , | |
| 23. | compensation | ||
| 24. | registered trademark | ||
| 25. | registered patent | ||
| 26. | consult | , | |
| 27. | unfair dismissal | ||
| 28. | safeguard against | - | |
| 29. | litigation | , , | |
| 30. | be on the rise | , | |
| 31. | court ruling | , | |
| 32. | be obliged | ||
| 33. | trade agreement | ||
| 34. | tackle | ||
| 35. | headband | , | |
| 36. | sneakers | , | |
| 37. | pay increase | ||
| 38. | Equal Employment Opportunity Commission | ||
| 39. | real property | Syn. real estate | |
| 40. | personal property | , | Syn. individual property |
| 41. | intellectual property | ||
| 42. | public law | ||
| 43. | private law | ||
| 44. | concern oneself with | ||
| 45. | tort | , | |
| 46. | result in | , | |
| 47. | injury to person | ||
| 48. | victim | ||
| 49. | law of torts | ||
| 50. | strict liability | ||
| 51. | willful act | ||
| 52. | assault | ||
| 53. | battery | , | |
| 54. | defamation | , | Syn. slander, calumny |
| 55. | focus on | , - | |
| 56. | defendant | , | Syn. accused, prisoner at the bar |
| 57. | reasonable care | ||
| 58. | calumny | , | |
| 59. | wrong-doing | , , , | |
| 60. | inherently dangerous activity | ||
| 61. | product liability law | ||
| 62. | be held liable | ||
| 63. | wares | , | Syn. goods, commodity, article, merchandise, produce |
| 64. | on the ground of | , | |
| 65. | warranty | , | |
| 66. | by operation of law | ||
| 67. | enter into a contract | ||
| 68. | broadly defined | ||
| 69. | valid contract | Syn. legal contract | |
| 70. | adhere | , | |
| 71. | discharge | , | |
| 72. | contractual obligation | ||
| 73. | damages | ||
| 74. | injured party | ||
| 75. | sue foe damage | ||
| 76. | live up to | () | Syn. act up to |
| 77. | contract terms | , | |
| 78. | contract term | ||
| 79. | agency | ||
| 80. | principal | ||
| 81. | stockbroker | ||
| 82. | agency relationship | ||
| 83. | empower | ||
| 84. | power of attorney | ||
| 85. | delegation of authority | ||
| 86. | enter into a contract | ||
| 87. | so long as | , , | |
| 88. | within the scope of | - | |
| 89. | with respect to | ||
| 90. | tangible property | ||
| 91. | intangible property | ||
| 92. | deed | ||
| 93. | legal document | ||
| 94. | landlord | ||
| 95. | tenant | , | |
| 96. | grant rights | ||
| 97. | rental fee | ||
| 98. | title | , | |
| 99. | vendor | , | |
| 100. | hand over | , () | |
| 101. | COD cash on delivery | , | |
| 102. | installment buying | ||
| 103. | take possession of | ||
| 104. | lean | Syn. poor | |
| 105. | legal excuse | , | |
| 106. | in effect | ||
| 107. | soft drink | ||
| 108. | spill | ||
| 109. | white-collar crime | ||
| 110. | repeal a law |
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13. Indefinite (Simple).
14. to be Present Indefinite, Past Indefinite, Future Indefinite.
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19. there is/are.
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22. Past Indefinite Active
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