MIE 305 Exam 1 Latest Version with Complete Solutions

MIE 305 Exam 1 Latest Version with Complete Solutions Law a body of enforceable rules governing relationships among individuals and between individuals and their society -establish rights, duties, and privileges that are consistent w/ the values & beliefs of a society or its ruling group role of law in small business 1. Business organization (type of entity, how much personal liability?) 2. Taxation (how it will be taxed, how to reduce taxes) 3. Intellectual property (any patents that need to be protected? what steps should the firm take) 4. Administrative law (what types of gov regulations apply to business/how to comply) 5. Employment (employee manual? explicitly inform employees of their rights?) 6. Contracts, Sales, and Leases (will the firm be entering into contracts with others?) 7. Accounting (do the financial statements need to be verified for accuracy?) 8. Finances (appropriate and legal ways to raise additional capital) Liability the state of being legally responsible (liable) for something, such as debt or obligation Breach failure to perform a legal obligation Sources that establish American Law The constitution, statues or laws passed by congress or state legislatures, regulations created by admin agencies, case law Primary Sources of American Law a document that establishes the law on a particular issue, such as a constitution, a statue, an administrative rule, or a court decision Secondary Source of American Law a publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review Constitutional Law The body of law derived from the U.S. constitution and the constitutions of various states Statutory Law The body of law enacted by legislative bodies (as opposed to constitutional law, admin law, or case law) Citation a reference to a publication in which a legal authority--such as a statue or a court decision-- or other source can be found ordinance a regulation enacted by a city or county legislative body that becomes part of that state's statutory law Uniform Law a model law developed by the National conference of Commissioners on Uniform State Laws for the states to consider enacting into statue Admin Law consists of the rules, orders, and decisions of administrative agencies Case Law the rules of law announced in court decisions. case law interprets statues, regulations, constitutional provisions, and other case law Common Law the body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature -became part of heritage of all nations that were once British colonies Precedent A court decision that furnishes an example or authority for deciding a subsequent cases involving identical or similar legal principles or facts