BUSINESS LAW EXAM REVIEW

1. BUSINESS LAW EXAM REVIEW Part 2- 2015

2. Part 2 of 3 contents • Civil Law • Overview of Contracts • Offer and Acceptance • Genuine Assent

3. What is Civil law? • Also known as Tort law • Against a person • NO Jail time ever! • Burden of proof much lower than in criminal act • 98% or so get settled before going to court • Damages ($$)

4. What must be shown in all civil acts? • An injury • No injury, no case • Can be $$, property or physical

5. Statute of limitations • Time limit a person has to file a lawsuit or press charges over a criminal activity • Usually limited based on state or based on act • No statute of limitations on murder or rape in NYS

6. Misrepresentation/fraud • Fraud is based on misrepresentation • Fraud is an “INTENTIONAL” misrepresentation of a fact • Meant to mislead someone into thinking a statement is true or correct when it actually is not

7. Elements to prove MISREPRESENTATION • Untrue statement made to another • Material (Important) • Relied upon to make decision (Proof the false claim led to decision) FRAUD • Intent to deceive • Injury ** In order to prove fraud, misrepresentation must be shown first

8. 6 parts of a valid contract • Offer and acceptance- both sides agree on acceptable terms • Genuine assent-not being forced or mislead into contract • Consideration- both sides gain something • Capacity-ability to understand a contracts terms • Legality- Contract deals with legal items • Writing – some not all contracts, must be in writing to be valid

9. Material facts vs. implied terms • Material facts are something that is important to the person making the contract and could greatly influence them on what to do • Implied terms are something that is understood without needing to be spoken or written into a contract • Ex) When you shop at a store, it is “implied” that you will pay for your goods before leaving

10. Mirror image rule • Rule that states the acceptance in a contract must match the offer “exactly” as it is agreed to • Any changes means it’s a counteroffer and therefore not complete

11. unconscionable • This is a grossly unfair contract to one side or the other • Grossly unfair means one side is taking advantage of the other • Courts will make the contract void so to make it fair

12. rescission • Must take place “Prior” to ratification • Rescind means to take back • Ratification is the intent to be bound by a contract (Signing or shaking hands) • Best way to ratify is to sign the contract

13. UCC Law Contracts • Based on Business or Retail agreements • Retailers sell goods • Firm offers are used (Rain checks) • Firm offers are good for 3 months unless otherwise stated (Can be longer)

14. Common Law Contracts • Based on sale of services or property • NON-Retail agreements • All contracts OTHER than a business (UCC) based agreement • To keep an offer open, an offeror would use an option (Collateral) • Option would usually be a down payment ($$)

15. Offeror and Offeree • Offeror is the person who makes the offer • Offeree is the person who accepts the offer

16. ANY QUESTIONS??