BLE-214 notes
Monday 6:00-8:30
Lecture #1: 9/14
Connect Chapter 35 notes Forms of Business Organizations:
● A business trust is a business organization governed by a group of trustees who
operate the organization for the beneficiaries
● A Cooperative is a specialized form of business organization formed by individuals
who pool resources to gain a market advantage
● A sole proprietorship, is where an owner is the sole owner of the company
● A joint venture is a relationship between two or more people that have created a
business, for a specific undertaking
● A franchise is a business that exists, because of an agreement between an owner that
will sell goods and services, of this company, and a trademark name
● In a limited liability partnership, all partners assume liability for one partners
professional malpractice
● In order to terminate a franchise, a franchisor has to provide: documents warning the
franchise, a notice to the franchise, and good cause
● A joint stock company, means owners have transferable shares that they are able to
easily transfer to one another
● A limited partnership, is an agreement between at least one general partner, and one
limited partner
● A cooperative company is where individuals pool their resources in order to form the
business
● An S corporation is a corporation under federal tax law, but it gets taxed like a
partnership
● A written partnership agreement is not required to form the partnership
● In a general partnership, partners divide the responsibility
● A syndicate is an investment group that comes together for the explicit purpose of
financing a large project
● In a chain style business operation, the franchise operates under the franchises
business name, and is required to follow the franchises business standards, as well as
their methods of operation
● Administrative law is the collection of rules and orders of government agencies
● Civil law delineates the rights and responsibilities involved in relationships between
people and between people and their government
● The U.S. Constitution is considered the supreme law of the land
● Purposes of law in a democratic society include: providing order, encouraging social
justice, and guaranteeing people freedom
● Civil law identifies the remedies available when someone's rights are violated
● Private law regulates law between private groups
,● Insider trading is where someone: uses secret company information in order to
increase their personal finances
● Cyberlaw is primarily based on pre-existing laws
● Cost-benefit analysis is where a judge will weigh the pros and cons of making a
choice to do something specific
● Summaries of the law are called restatements of the law
● Criminal act occurs against the public
● Global law regulates business practices between nations
Lecture #2: 9/21
● Business Law defined: The enforcement rules of conduct that govern the actions of
buyers and sellers in market exchanges
● Governing predictability in a market transaction and accountability by providing
remedy at law
● Business law impacts numerous different aspects of business, and there are a number
of different purposes as well:
○ Private: You and other people
○ Public: You vs. government
● By law, landlords have to provide access to heat and a stove
● Sources of business law:
○ Constitution
○ Statutes
○ Cases (Common Law)
○ Administrative law
○ Treaties
○ Executive orders
○ Schools of Jurisprudence
○ Natural Law
○ Legal Positivism
○ Identification with the vulnerable
○ Historical School: Tradition
○ Legal Realism
○ Cost-benefit analysis
● Sole proprietorship has unlimited liability for debts and obligations
● Limited partnership: limited liability among multiple partners
● Corporation: State gives you certain tax breaks, the owners have limited liability to
the amount of investment
● LLC: Member, not a shareholder. Taxed like a partnership
● Owners of LLC, pay personal income tax on shares they report
● No limitation of owners permitted in LLC
● Franchising gives you the power of differentiation immediately.
● In order to open a franchise you need to give:
, ○ $100,000 to the franchise
○ Receive $1.5 million - $2 million from corporate VC’s
○ Buy all products from the company
○ Rent for building
● This gives you the power of differentiation from franchising
Lecture #3: 9/28
● ADR: Alternate dispute resolution
● When we get in court, we get in a judicated process - where a judge decides the fate
of the situation
● Arbitration: Allows you to have an ability to agree on some things with a judge
beforehand
● Pre-dispute arbitration clause: An agreement that says you will go into arbitration, and
not court
● Arbitrators are consistent, and historically lower than court awards
Constitutional Law
● What is Federalism
● Authority is divided between federal and state governments
● Founded system of government established by the U.S. Constitution
● Allocates power among 3 federal branches of government (legislature, executive, and
judicial)
● Establishes a system of checks and balances
● Article 1 - Legislative branch (congress, state, governors)
● Article 2 - President, Vice President
● Article 3 - Judicial, Supreme Court of U.S.
● Legislative branch: Can declare laws passed by congress unconstitutional
● Executive branch: Can declare acts of the legislative branch unconstitutional
● Only the government can violate our constitutional rights
● The Supreme Clause (Article 16):
○ Provides that the federal law is “Supreme Law,” of the United States
○ Any state or local law that directly conflicts with federal law is void
● The Commerce clause (Article 1, Section 8):
○ The primary source of authority for federal regulation of business
○ States that the Congress has the power to: “regulate, commerce with foreign
nations and among the several states”
○ Simultaneously empowers the federal government, and restricts the power of
the state governments
● Privileges and immunities clause:
○ Prohibits states from discriminating against citizens of other states, when
non-residents in ordinary and essential activities
● Full faith and credit clause:
Monday 6:00-8:30
Lecture #1: 9/14
Connect Chapter 35 notes Forms of Business Organizations:
● A business trust is a business organization governed by a group of trustees who
operate the organization for the beneficiaries
● A Cooperative is a specialized form of business organization formed by individuals
who pool resources to gain a market advantage
● A sole proprietorship, is where an owner is the sole owner of the company
● A joint venture is a relationship between two or more people that have created a
business, for a specific undertaking
● A franchise is a business that exists, because of an agreement between an owner that
will sell goods and services, of this company, and a trademark name
● In a limited liability partnership, all partners assume liability for one partners
professional malpractice
● In order to terminate a franchise, a franchisor has to provide: documents warning the
franchise, a notice to the franchise, and good cause
● A joint stock company, means owners have transferable shares that they are able to
easily transfer to one another
● A limited partnership, is an agreement between at least one general partner, and one
limited partner
● A cooperative company is where individuals pool their resources in order to form the
business
● An S corporation is a corporation under federal tax law, but it gets taxed like a
partnership
● A written partnership agreement is not required to form the partnership
● In a general partnership, partners divide the responsibility
● A syndicate is an investment group that comes together for the explicit purpose of
financing a large project
● In a chain style business operation, the franchise operates under the franchises
business name, and is required to follow the franchises business standards, as well as
their methods of operation
● Administrative law is the collection of rules and orders of government agencies
● Civil law delineates the rights and responsibilities involved in relationships between
people and between people and their government
● The U.S. Constitution is considered the supreme law of the land
● Purposes of law in a democratic society include: providing order, encouraging social
justice, and guaranteeing people freedom
● Civil law identifies the remedies available when someone's rights are violated
● Private law regulates law between private groups
,● Insider trading is where someone: uses secret company information in order to
increase their personal finances
● Cyberlaw is primarily based on pre-existing laws
● Cost-benefit analysis is where a judge will weigh the pros and cons of making a
choice to do something specific
● Summaries of the law are called restatements of the law
● Criminal act occurs against the public
● Global law regulates business practices between nations
Lecture #2: 9/21
● Business Law defined: The enforcement rules of conduct that govern the actions of
buyers and sellers in market exchanges
● Governing predictability in a market transaction and accountability by providing
remedy at law
● Business law impacts numerous different aspects of business, and there are a number
of different purposes as well:
○ Private: You and other people
○ Public: You vs. government
● By law, landlords have to provide access to heat and a stove
● Sources of business law:
○ Constitution
○ Statutes
○ Cases (Common Law)
○ Administrative law
○ Treaties
○ Executive orders
○ Schools of Jurisprudence
○ Natural Law
○ Legal Positivism
○ Identification with the vulnerable
○ Historical School: Tradition
○ Legal Realism
○ Cost-benefit analysis
● Sole proprietorship has unlimited liability for debts and obligations
● Limited partnership: limited liability among multiple partners
● Corporation: State gives you certain tax breaks, the owners have limited liability to
the amount of investment
● LLC: Member, not a shareholder. Taxed like a partnership
● Owners of LLC, pay personal income tax on shares they report
● No limitation of owners permitted in LLC
● Franchising gives you the power of differentiation immediately.
● In order to open a franchise you need to give:
, ○ $100,000 to the franchise
○ Receive $1.5 million - $2 million from corporate VC’s
○ Buy all products from the company
○ Rent for building
● This gives you the power of differentiation from franchising
Lecture #3: 9/28
● ADR: Alternate dispute resolution
● When we get in court, we get in a judicated process - where a judge decides the fate
of the situation
● Arbitration: Allows you to have an ability to agree on some things with a judge
beforehand
● Pre-dispute arbitration clause: An agreement that says you will go into arbitration, and
not court
● Arbitrators are consistent, and historically lower than court awards
Constitutional Law
● What is Federalism
● Authority is divided between federal and state governments
● Founded system of government established by the U.S. Constitution
● Allocates power among 3 federal branches of government (legislature, executive, and
judicial)
● Establishes a system of checks and balances
● Article 1 - Legislative branch (congress, state, governors)
● Article 2 - President, Vice President
● Article 3 - Judicial, Supreme Court of U.S.
● Legislative branch: Can declare laws passed by congress unconstitutional
● Executive branch: Can declare acts of the legislative branch unconstitutional
● Only the government can violate our constitutional rights
● The Supreme Clause (Article 16):
○ Provides that the federal law is “Supreme Law,” of the United States
○ Any state or local law that directly conflicts with federal law is void
● The Commerce clause (Article 1, Section 8):
○ The primary source of authority for federal regulation of business
○ States that the Congress has the power to: “regulate, commerce with foreign
nations and among the several states”
○ Simultaneously empowers the federal government, and restricts the power of
the state governments
● Privileges and immunities clause:
○ Prohibits states from discriminating against citizens of other states, when
non-residents in ordinary and essential activities
● Full faith and credit clause:
