1. 2.1 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 2: Courts and Court Procedure

2. 2.2 Chapter 2 Objectives Explain the function of the courts. Explain the relationships of the various courts in our society. Describe the procedure for filing a lawsuit. Describe the basic procedure for a jury trial.

3. 2.3 The Court System Functions of the court system To interpret the law To apply the law If a conflict arises between a state statute and a federal statute, Federal statute takes precedence

4. 2.4 Jurisdiction of Courts The power or authority of a court to hear cases is called its jurisdiction. Courts must have jurisdiction over the subject matter of the case and jurisdiction over the persons involved. Long-arm statutes are laws allowing a state to have jurisdiction over nonresidents.

5. 2.5 Venue Venue is the proper location where a case is to be tried. Proper venue requires choosing the proper court. The right to a particular venue can be surrendered. In criminal cases venue is frequently changed by the court to try to give the defendant a fairer trial.

6. 2.6 Federal Court System U. S. Supreme Court Decisions are binding to all other courts. U. S. Supreme Court Decisions are binding to all other courts. U. S. Court of Appeals Special Federal Courts Federal District Courts

7. 2.7 State Court System State Supreme Court State Courts of Appeals State Courts of Original Jurisdiction Inferior Courts Small Claims

8. 2.8 Court Officers Judge Bailiff Attorney Clerk of Court Marshal

9. 2.9 Procedures in Courts of Record Filing of suit Summons Defendant admits charges Defendant admits charges Defendant denies charges Defendant denies charges Discovery Trial

10. 2.10 Trial Procedure Jury selection Opening statements Plaintiff’s evidence Defendant’s evidence Summary of evidence Judge’s ruling Jury’s verdict

11. 2.11 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning by Ashcroft and Ashcroft Chapter 3: Business Torts and Crimes Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning

12. 2.12 Chapter 3 Objectives Discuss the basis for intentional and negligent tort liability. List and explain the generally recognized business torts. Explain what business crimes are. Describe what computer crimes are and the three types that affect business.

13. 2.13 Intentional Torts To recover for an intentional tort, the injured person must show three things: An act by the defendant An intention to cause the consequences of the act Causation—the injury was caused by the defendant’s act or something set in motion by the act

14. 2.14 Intentional Torts Some intentional torts include: Assault Battery Trespass False imprisonment

15. 2.15 Negligence Torts To recover for a negligence tort, the injured party must show all these elements: Duty of tortfeasor Breach of duty Breach was the cause of injury Actual damage or injury

16. 2.16 Torts To prove a breach of contract, the injured party must prove: Defendant knew of contract Intentional interference caused breach Actual breach

17. 2.17 Negligence Negligence on the part of an injured party is called contributory negligence. Comparative negligence is when courts reduce damage awards to plaintiffs by the percentage of the damage attributable to the plaintiffs’ negligence.

18. 2.18 Business Torts: Product Liability Manufacturers are potentially liable for injuries caused by the products. Negligence Use or condition of the product Design defect Failure to warn

19. 2.19 Business Torts: Product Liability A person injured through use or condition of a product could sue on the basis of the manufacturer’s negligence. The plaintiff must prove negligence. Unless plaintiff shows negligence, it is unlikely the plaintiff will be able to prove negligence.

20. 2.20 Business Torts: Strict Liability Entities in the chain of manufacturing, as well as the manufacturer, are liable even without proof of negligence. Includes wholesalers or retailers Applies to anyone injured because of defects

21. 2.21 Business Torts: Business Activity  Interference with a contract or economic advantage occurs when a business relationship has been formed, and a third party causes a breach of that business relationship.  Confusion about a product looks at: Injurious falsehood (also called commercial disparagement or trade libel) Confusion of source

22. 2.22 Trademarks Trademarks: words, symbols, or devices used to distinguish one’s goods from another’s. Includes only those marks used by a business that distinctively differentiates it from others. A secondary trademark has come into use through common practice. Trademarks may be registered or unregistered.

23. 2.23 Determining Confusion of Marks Similarity of the marks Similarity of products Similarity of marketing and customers Similarity and amount of advertising Area of overlapping use Intent of parties in adopting the marks Strength of the marks Actual confusion by the public

24. 2.24 Trademarks Trademarks distinguish and identify tangible goods; service marks identify and distinguish services. Trademark dilution is “lessening of the capacity of a famous mark to identify and distinguish goods or services. Blurring

25. 2.25 Types of Business Crimes Theft Shoplifting Embezzlement Larceny RICO cases (Racketeer Influenced and Corrupt Organizations Act)

26. 2.26 Computer Crimes Committed with aid of a computer or because computers are involved. They can be: Objects of the crime Method of committing a crime Representative of where the crime is committed such as infringement on the Internet

27. 2.27 Types of Computer Crimes Trespass: unauthorized use of or access to a computer Hackers Rogue programs (viruses, bacteria, worms, Trojan Horses, and time bombs) Fraud (larceny and embezzlement) Criminal copyright infringement

28. 2.28 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 5: Nature and Classes of Contracts

29. 2.29 Chapter 5 Objectives State the five requirements for a valid contract. Describe the types of contracts and how they differ from agreements. Explain the difference between a contract and a quasi contract.

30. 2.30 Contracts A contract can be defined as a legally enforceable agreement between two or more competent persons. A breach of contract is the failure of one of the parties to perform the obligations assumed under the contract.

31. 2.31 Requirements of a Valid Contracts 1. Based on a mutual agreement by the parties 2. Made by competent parties 3. Supported by consideration given by each party to the contract 4. Be for a lawful purpose 5. Sometimes meet certain formal requirements

32. 2.32 Contract or Agreement? All contracts are agreements, but not all agreements are contracts.

33. 2.33 Void and Voidable Contracts A void contract is an agreement with no legal effect It is not enforceable in court. It is not the same as an unenforceable contract. A voidable contract would be an enforceable agreement, but, because of circumstances, one or both parties may elect to void it

34. 2.34 Types of Contracts Express and implied Formal Recognizance Negotiable instruments Simple Unilateral and bilateral

35. 2.35 Types of Contracts Written and oral Executory and executed Unilateral and bilateral Quasi or implied in law contracts Unjust enrichment

36. 2.36 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Have any questions? Be sure you study the cases in the textbook for a thorough understanding of this chapter.

37. 2.37 Chapter 6 Objectives Discuss requirements for a valid contract. Explain the difference between an offer and an invitation to make an offer. Summarize the rules affecting the duration of an offer. Define a counteroffer. State how to accept offers made by mail.

38. 2.38 Requirements of a Valid Offer Offer must be definite Offer must be seriously intended Offer must be communicated to the offeree

39. 2.39 Duration of the Offer The offeror may revoke an offer any time prior to its acceptance. An option (binding promise to hold an offer open) cannot be revoked at will. A revocation of an offer must be communicated to the offeree prior to the acceptance.

40. 2.40 Duration of the Offer Offer is terminated by: Lapse of time specified Death or insanity of offeror Rejection of the offer by the offeree The performance of the contract becomes illegal

41. 2.41 The Acceptance Acceptance is the assent to an offer which results in a contract. A counteroffer rejects the original offer, thereby terminating the offer. An offeree may make inquiry without rejecting the offer.

42. 2.42 Manner of Acceptance Usually the manner of acceptance is irrelevant. An offer may stipulate that acceptance be written and received. The “mailbox rule” states when there is no requirement of delivery, a properly mailed acceptance is effective when it is posted.

43. 2.43 Manner of Acceptance Persons can avoid problems by including the manner of acceptance in the contract.

44. 2.44 Make sure you understand the concepts in this chapter before continuing on to the next.