Final Review Key Terms from; Dynamic
Business Law: The Essentials by Nancy
Kubasek 3
Business Law Final Fall 2017
Chapter 1 Business law - ANS The enforceable rules of conduct that govern the actions of
buyers and sellers in market exchanges
Law - ANS Rules of conduct in any organized society that are enforced by the governing
authority of the community
Private Law - ANS Law that involves suits between private parties and groups
Public Law - ANS Law that involves suits between private individuals or groups and their
government
Civil Law - ANS The body of laws that governs the right and responsibilities either between
persons or between persons and their government Criminal Law: The body of laws that involve
the rights and responsibilities an individual has with respect to the public as a whole
Constitutional Law - ANS The general limits and powers of a government as interpreted from its
written constitution
Statutory law - ANS The assortment of rules and regulations put forth by legislature
Model/Uniform Laws - ANS Laws created to account for the variability of laws among states;
These laws serve to standardize the otherwise different interstate laws; Also called uniform laws
Case Law (common law) - ANS The collection of legal interpretations made by judges; They
are considered to be law unless otherwise revoked by a statutory law; Also know as common
law
Precedent - ANS A tool used by judges to make rulings on cases on the basis of key similarities
to previous cases
Stare Decisis - ANS "Standing by the decision"; a principle stating that rulings made in higher
courts are binding precedent for lower courts
,Restatements of the Law - ANS Summaries of common law rules in a particular area of the law;
Restatements do not carry the weight of law but can be used to guide interpretations of
particular cases
Administrative Law - ANS collection of rules+decisions made by administrative agencies to fill
in particular details mission from constitutions+ statutes
Natural Law - ANS A school of jurisprudence that recognizes the existence of higher law, or law
that is morally superior to human laws
Legal Positivism - ANS A school of jurisprudence that holds that because society requires
authority, a legal and authoritarian hierarchy should exist; When a law is made, therefore,
obedience is expected because authority created it
Identification with the vulnerable - ANS A school of jurisprudence that holds that society should
be fair; Particular attention is therefore paid to the poor, the ill, and the elderly
Historical School - ANS A school of jurisprudence that uses traditions as the model for future
laws and behavior; Also called tradition or custom
Legal realism - ANS A school of jurisprudence that holds that context must be considered as
well as law; Context includes factors such as economic and social conditions
Cost-Benefit Analysis - ANS An economic school of jurisprudence in which all costs and
benefits of a law are given monetary values; Laws with the highest ratios of benefits to costs are
preferred
Chapter2 - ANS
Ethics - ANS The study and practice of decisions about what is good or right
Business Ethics - ANS The use of ethics and ethical principles to solve business dilemmas
Ethical Dilemma - ANS A question about how one should behave that requires one to neglect
on the advantages and disadvantages of the optional choices for various stakeholders
Social Responsibility of Business - ANS The expectations that a community places on the
actions of firms inside that community's borders
WH approach - ANS A set of ethical guideline that urges us to consider whom an action affects,
the purpose of the action, and how we view its morality
Ethical guideline - ANS A simple tool that helps determine whether an action is moral
, Values - ANS Positive abstractions that capture our sense of what is good and desirable
Stakeholders - ANS The groups of people affected by firm's decisions
Universalization Test - ANS The ethical guideline that urges us to consider before we act, what
the world would be like if everyone acted in this way
Chapter 3 - ANS
Trial Court - ANS A court in which most civil or criminal cases start when they first enter the
legal system; The parties present evidence and call witnesses to testify; aka courts of common
pleas , county courts, original jurisdiction and court of first instance
Appellate Court - ANS A Higher court that reviews the decision and results of a lower court
(either trial or appellate) when a losing party files for an appeal; Appellate courts do not hold
trials but may request additional oral and written arguments from each party; they issue written
decisions, which collectively constitute case law or the common law; Also called Court of
Appellate Jurisdiction
Question of law - ANS An issue concerning the interpretation or application of a law
Question of Fact - ANS A question about an event or characteristic in a case
In Person Jurisdiction - ANS The power of a court to require a party or a witness to come
before the court; The court must have a personal jurisdiction to enforce its judgments or orders
against a party In Personam jurisdiction extends only to the states borders in the state the court
system and across the court's geographic district in the federal system
Plaintiff - ANS The person or party who initiates a lawsuit or action before a court by filing a
complaint with the clerk of the court against the defendant; Aka claimant or complainant
Defendant - ANS The person/party whom a civil or criminal lawsuit is filed in a court of law
Long-arm statute - ANS A statute that enables a court to obtain jurisdiction against on
out-of-state defendant as long as the defendant has sufficient minimum contacts within the
state, such as committing a tort or doing business in the state
In Rem Jurisdiction - ANS The power of a court over the property or status of an out-of-state
defendant when that property or status is within the courts jurisdiction area
Quasi in rem jurisdiction - ANS A type of jurisdiction exercised by a court over an out-of-state
defendant's property that is within the jurisdictional boundaries of the court; applies to personal
suits against defendant in which property is not the source of the conflict but is sought as
compensation by the plaintiff AKA attachment jurisdiction
Business Law: The Essentials by Nancy
Kubasek 3
Business Law Final Fall 2017
Chapter 1 Business law - ANS The enforceable rules of conduct that govern the actions of
buyers and sellers in market exchanges
Law - ANS Rules of conduct in any organized society that are enforced by the governing
authority of the community
Private Law - ANS Law that involves suits between private parties and groups
Public Law - ANS Law that involves suits between private individuals or groups and their
government
Civil Law - ANS The body of laws that governs the right and responsibilities either between
persons or between persons and their government Criminal Law: The body of laws that involve
the rights and responsibilities an individual has with respect to the public as a whole
Constitutional Law - ANS The general limits and powers of a government as interpreted from its
written constitution
Statutory law - ANS The assortment of rules and regulations put forth by legislature
Model/Uniform Laws - ANS Laws created to account for the variability of laws among states;
These laws serve to standardize the otherwise different interstate laws; Also called uniform laws
Case Law (common law) - ANS The collection of legal interpretations made by judges; They
are considered to be law unless otherwise revoked by a statutory law; Also know as common
law
Precedent - ANS A tool used by judges to make rulings on cases on the basis of key similarities
to previous cases
Stare Decisis - ANS "Standing by the decision"; a principle stating that rulings made in higher
courts are binding precedent for lower courts
,Restatements of the Law - ANS Summaries of common law rules in a particular area of the law;
Restatements do not carry the weight of law but can be used to guide interpretations of
particular cases
Administrative Law - ANS collection of rules+decisions made by administrative agencies to fill
in particular details mission from constitutions+ statutes
Natural Law - ANS A school of jurisprudence that recognizes the existence of higher law, or law
that is morally superior to human laws
Legal Positivism - ANS A school of jurisprudence that holds that because society requires
authority, a legal and authoritarian hierarchy should exist; When a law is made, therefore,
obedience is expected because authority created it
Identification with the vulnerable - ANS A school of jurisprudence that holds that society should
be fair; Particular attention is therefore paid to the poor, the ill, and the elderly
Historical School - ANS A school of jurisprudence that uses traditions as the model for future
laws and behavior; Also called tradition or custom
Legal realism - ANS A school of jurisprudence that holds that context must be considered as
well as law; Context includes factors such as economic and social conditions
Cost-Benefit Analysis - ANS An economic school of jurisprudence in which all costs and
benefits of a law are given monetary values; Laws with the highest ratios of benefits to costs are
preferred
Chapter2 - ANS
Ethics - ANS The study and practice of decisions about what is good or right
Business Ethics - ANS The use of ethics and ethical principles to solve business dilemmas
Ethical Dilemma - ANS A question about how one should behave that requires one to neglect
on the advantages and disadvantages of the optional choices for various stakeholders
Social Responsibility of Business - ANS The expectations that a community places on the
actions of firms inside that community's borders
WH approach - ANS A set of ethical guideline that urges us to consider whom an action affects,
the purpose of the action, and how we view its morality
Ethical guideline - ANS A simple tool that helps determine whether an action is moral
, Values - ANS Positive abstractions that capture our sense of what is good and desirable
Stakeholders - ANS The groups of people affected by firm's decisions
Universalization Test - ANS The ethical guideline that urges us to consider before we act, what
the world would be like if everyone acted in this way
Chapter 3 - ANS
Trial Court - ANS A court in which most civil or criminal cases start when they first enter the
legal system; The parties present evidence and call witnesses to testify; aka courts of common
pleas , county courts, original jurisdiction and court of first instance
Appellate Court - ANS A Higher court that reviews the decision and results of a lower court
(either trial or appellate) when a losing party files for an appeal; Appellate courts do not hold
trials but may request additional oral and written arguments from each party; they issue written
decisions, which collectively constitute case law or the common law; Also called Court of
Appellate Jurisdiction
Question of law - ANS An issue concerning the interpretation or application of a law
Question of Fact - ANS A question about an event or characteristic in a case
In Person Jurisdiction - ANS The power of a court to require a party or a witness to come
before the court; The court must have a personal jurisdiction to enforce its judgments or orders
against a party In Personam jurisdiction extends only to the states borders in the state the court
system and across the court's geographic district in the federal system
Plaintiff - ANS The person or party who initiates a lawsuit or action before a court by filing a
complaint with the clerk of the court against the defendant; Aka claimant or complainant
Defendant - ANS The person/party whom a civil or criminal lawsuit is filed in a court of law
Long-arm statute - ANS A statute that enables a court to obtain jurisdiction against on
out-of-state defendant as long as the defendant has sufficient minimum contacts within the
state, such as committing a tort or doing business in the state
In Rem Jurisdiction - ANS The power of a court over the property or status of an out-of-state
defendant when that property or status is within the courts jurisdiction area
Quasi in rem jurisdiction - ANS A type of jurisdiction exercised by a court over an out-of-state
defendant's property that is within the jurisdictional boundaries of the court; applies to personal
suits against defendant in which property is not the source of the conflict but is sought as
compensation by the plaintiff AKA attachment jurisdiction
