Lawsthat govern the area of contracts (sales)
TheCommon Law is a set of traditionally based set of laws but that areconstantly changing and judge-made from the courts over the years.The Uniform Commercial Code is a standardized collection ofguidelines that govern the law of commercial transactions.
Differentiatebetween sales individuals and merchants
Salesindividuals are people who buy and sell financial instruments andwork in financial institutions as day traders. Merchant is abusinessperson who trades in commodities that they did not producethemselves, to earn a profit.
Itis a huge change from the Common Law. The Exception states that whentwo merchants agree on an oral contract, and one sends a confirmationmemo to the other within a satisfactory time, and the memo isadequately definite that it could be enforced against the sender,then the memo becomes valid to the receiving merchant. The memo willapply unless objected within ten days.
Threeoptions of the court relating to price dispute between merchants
Settleon chargebacks, issue a “no refunds” policy for the two merchantsin conflict, and settle on insurance for the damages incurred.
Commonlaw v UCC in the following situations
Contract Formation- The common law entails that the contractual principles may not always apply as the statutory provisions replaces the contractual principles. The UCC details that the contract shall be construed as inviting acceptance in any manner and by any medium reasonable under the circumstances (Miller, 2012).
b.WritingRequirement-the Common Law requires a description of the price, quantity,performance time, identity of the offer, and nature of work to be atthe valid contract while the UCC only specifies that contract musthave the quantity (Miller,2012).
c.AddedTerms of Acceptance-the Common Law rules that any change to an offer is a rejection, andthe new terms create a new offer and changes the person who was atfirst the offeree to now the offeror. In the UCC, added terms come asa binding contract depending on the circumstances that surround thetransaction and the substance of the added terms (Miller,2012).
d.Modification-in contract formation, the Common Law requires for considerationsunlike in UCC where the consideration process in not a prerequisite(Miller,2012).
Twoexamples where a BFP receives or buys a stolen vehicle or one thatwas obtained fraudulently.
Thefirst rule states that a thief cannot convey the title of thevehicle. So the vehicle remains unique to the new owner is they paidmore than the original price, and it remains to the new owner if thevehicle is common and they paid for a reasonable price for it (bonafide purchaser for value)
Riskof losses between businesses when none is specifically stated in thecontract
Thereis the transfer of risks to the businesses, and no business owns therisk since the contracts lack the specification.
Examplesof “bailment” using proper terminology regard giver and receiverof the personal property
Bailmentis the transfer of custody of a piece of property rather than atransfer of ownership of a piece of property. An example of how itworks let us say John Doe owns a big piece of farmland on theeastern shore of Maryland. His adult son wants to move to the areaand farm the land.
Ratherthan transferring ownership of the property to his son, John Doe(bailor) transfers possession or custody of the farmland to his son(bailee). The son might pay rent or a lease fee in return. The sononly receives custody and control of the property, but John stillowns it. John is thus responsible for paying the property taxes andis liable for what happens on the land (unless the bailee failed tocare for the land properly).
Threetypes of bankruptcies as discussed in class and the text.
Business Bankruptcy- Chapter 7. It is the best choice if a business lacks any future of growth. It is the liquidation process. Its application is when the debts of the business overwhelm any form of feasible restructuring.
Business Reorganization- Chapter 11. The business is reorganized under a court-appointed trustee. The business explains to the court how it will deal with the creditors, and the creditors vote for the plan. The court then approves of a sound plan.
Personal Bankruptcy- Chapter 13. Mainly used by sole proprietors filing a plan to the court on how they will repay the creditors.
Defineramification and “automatic stay” in bankruptcy.
Theautomatic stay is an injunction that is automatic and stops thecreditors from collecting debts from a debtor who declaredbankruptcy. Ramification acts as the consequences of declaringbankruptcy by the debtor ending up with the complications of theoriginal contract.
Differentiatebetween rehabilitation and liquidation in bankruptcy.
Rehabilitationoccurs where the assets of the debtor remain intact, and a trusteestands in place to develop a plan for the outstanding loans. There isno debt forgiveness in rehabilitation.
Liquidationhas the exemption of certain assets, and a trustee oversees thesecuring of the debtor’s assets, the sale of the assets and therepayment of to the creditors in a prioritized order. Debt forgivesmay occur in case the sale of assets fails to cover all the loans.
Legalramifications of being an `employee at `will` as it relates to`wrongful termination.`
Theemployer can terminate the employee at any time for no reason withoutincurring any legal liabilities. The employer may also change theterms of the employment without any notice and with no consequences.
Defineand give an example of `whistle-blowing`.
Whistleblowingis providing information to law enforcement or to regulatory bodiesabout business in suspicion of operating illegally or conductingillegal operations. An example of whistle blowing is raising a noteto the IRS of tax exemptions by a firm.
"TheOSHA" Example and purpose it was formed.
OSHAis the Occupational Safety and Health Act and ensures a safe andhealthy workplace for every working person in the nation.
Giveexamples of the following
I.Sole Proprietorship- is a business with a single owner Financialplanners
II.Corporation-ABC, Adidas, Aflac, Allstate
III.Limited Liability company- Anheuser-Busch, Blockbuster, andWestinghouse
IV.General Partnership- is a legal entity binding two or morebusiness partners in responsibility and liability for the businessArchitectural firms, law firms.
Miller,R. L. R., & Jentz, G. A. (2012). Fundamentalsof business law.Mason, Ohio: South-Western.