Working within the Legal Environment

Introduction to Business 110-4207Presentation provided by:

Susan KingKelly HiltbrunerShelby Simon

Bonus Chapter A

Introduction to the Legal systemThe Judicial System of The USA

Under the Judicial System, two types of courts try various cases

1. Criminal Law 2. Civil LawMurder Breach of Contract

Robbery Malpractice

Arson Divorce

Vehicular manslaughter Wrongful Death

Cookin’ the books- embezzlement Disputes over property

Drug Smuggling Child Custody

Sexual Assault Eviction

CRIMINAL COURT

“Quick Gun Murugan”- Bank robbery and murder!

Tried in a criminal court of law- sentenced to 101 years in penitentiary

Civil Court

Carrying a concealed weaponCharges dropped

Tried in a civil court--1961

Tried in a civil court-- 1938Accused of adulterySpent 16 hours in jail, charges later dismissed

No Name – I’m a wasted Convicted of DUI Will go to county jail or prison

Tried in a civil court- yesterday

What should we be concerned with?

In our class, we are concerned with Business Law

The Judicial System oversees and governs the activities

and operations of business.

1. Business LawStatutory and Common Law,

and Administration Agencies

In the business world, Business Law refers to rules, statutes, codes and regulations for the conduct of business. These laws are enforceable by the court system.

Statutory Law is written law. Most people hire a lawyer to interpret these laws as they are very difficult for the average person to understand

Common Law are decisions that have already been set by previous court cases. The judge uses these precedents to make new rulings

.

Contd.

Business Law

Administrative Agencies- oversee business Agencies such as;

Equal Employment Opportunity Commission.

In December 2001, a Federal Express courier named Patricia Kennedy filed an EEOC intake questionnaire claiming that FedEx was in the habit of improperly firing older employees who did not meet the company's hourly delivery quotas.

2. Tort Law and Product Liability

This is a wrongful act that causes harm to a persons body, their property, or reputation.

A Tort may be intentional, e.g. Did the manufacturers of VIOXX and BEXTRA medications

intentionally withhold information that caused harm to people?

A Tort may also be unintentional, and also negligent

Contd.Tort Law and Product Liability

Classic E. coli food poisoning

McDonald's coffee case and the hot coffee lawsuit, is a 1994 product liability lawsuit - TORT – They

McDonalds was found to be NEGLIGENT

A jury awarded $160,000 to cover medical expenses and compensatory damages

The final settlement was actully $640,000

Contd.Tort Law and Product Liability

When a product is inadequate or defective, as in the McDonalds coffee cup case, or Jack in the box food products

the company selling the product and the manufacturer

may get sued.

Today, Strict product liability is put on manufacturers even if they did not know their product was defective, they can still be sued and are still liable to pay damages.

3. Patents, Trademarks, and Copyright

A patent is the legal document that states you are the inventor of a product and have exclusive rights,for 20 years from the date you filed a patent application

You have the right to sue if someone steals your invention, as long as you got the patent!

Contd.Patents, Trademarks and Copyright

A trademark is a legally protected name, symbol, or design. These companies have a legally protected name, legally protected symbol and legally protected design. Trademarks must be renewed every 10 years, and belong to the owner forever.

Contd.Patents, Trademarks and Copyright

A Copyright is the legal protection of a creator’s rights to materials like books, music and cartoons. Filed with the Library of Congress, they last for the lifetime of the creator plus 70 years, and can be passed on to heirs. It is illegal to copy, record, or download copyrighted material without paying for it, as the creator’s do not get paid.

4. The Uniform Commercial CodeArticle 2 and Article 3

SALES LAW is UCCUCC has 11 laws, we will cover two

lawsArticle 2- regulation of Warranties

And Article 3- Negotiable Instruments

.1. Warranties: A & B1a. Express warranty

told to the consumer in writing;

iPhone and iPod: Liquid damage is not covered by warranty

Contd.The Uniform Commercial Code- Article 2

Warranties Contd.1b. Implied warranty

Items that are of“Fitness for a particular purpose”

E.G. a toaster should toast your bread

Contd.The Uniform Commercial Code- Article 3

Negotiable Instruments- Article 3 of UCC

Checks, transferrable among individuals and businesses

A promise to pay a specific amount

5. Legally binding contract.

Contract law IS legally enforceable Between two or more parties Consideration =

Must be something of value

Contd. Legally binding contract

If you Breach (or break) that contract for the car; You may be sued for specific performance

AND you may be in for a surprise visit from “Operation Repo”

Contd. Legally binding contract

You may also be sued for Damages

6. Regulation of competition laws.

What is Antitrust Legislation?

What are consumer protection laws?

7. Tax Laws.

The government raises money from it’s citizens by charging tax on property, vehicles, sales tax on good we buy, and

income tax on our paychecks.

With the money raised, the government builds roads, bridges, schools, parks, and provides a military to protect

it’s people.

The government also encourages businesses to hire/ purchase new equipment and relocate to specific areas by offering tax incentives. Which they hope in turn will create

employment

8. Bankruptcy Code. Types of bankruptcy

Voluntary bankruptcy- You voluntarily apply because you know there is

no way you can pay back the amount of money you have borrowed

Involuntary bankruptcy- As the debtor, your creditors start to take legal

action because you have not paid your bills

Contd.Bankruptcy Code.

Types of bankruptcy Chapter 7, usually filed by private individuals Chapter 11, usually by businesses who try to

reorganize and work off their debt

Chapter 13, individuals and small business owners who pay their debt back over three to five years

9. Deregulation V Regulation

What are Government Regulations?

What is deregulation, why does the Government deregulate, and how does this encourage competition?

Final analysis of learning about the legal system

At all phases in your professional career, you will be faced with issues regarding what you can and

cannot do legally

It is vital to understand legal issues within the business environment.

Once you understand legal issues within the business environment, you will know how to avoid causing harm to your company, your co-workers,

your managers and ultimately yourself.