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R411 - Exam 2
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67
Accounting
Undergraduate 4
03/18/2008

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Cards

Term
Contract (def)
Definition
Agreement btwn parties enforceable under law--legally binding promise
Term
Offer (essential terms, 4)
Definition
Parties involved, subject matter, time/place of performance, price to be paid
Term
Acceptance
Definition
must mirror the offer's essential terms, counter offer does not equal acceptance
Term
Bilateral Contract
Definition
consists of 2 promises and both parties are bound to perform
Term
Unilateral Contract
Definition
involves an exchange of a promise in return for an act by the second party
Term
Two Types of Contracts
Definition
Bilateral, Unilateral
Term
Consideration
Definition
cause, motive, price, or impelling influence which induces a contracting party to enter into a contract. Must contain mutual exchange
Term
Legality
Definition
Parties are not allowed to engage in an agreement where the terms violate existing laws (subject matter must be legal). Cannot violate public policy (against the grain of society).
Term
Four parts of a Contract
Definition
Offer, acceptance, consideration, legality
Term
Parol Evidence Rule
Definition
Once parties have agreed to a final complete written understanding, no prior oral/written evidence may be introduced
Term
Capacity to Contract (examples)
Definition
Minors, mental capacity, intoxication
Term
Minors in a contract
Definition
If they enter into a contract they cannot be held liable, but the other party can.
Term
Render a contract unenforceable (there are 4)
Definition
Capacity to contract (minors, etc)

Misrepresentation - false assertion of fact which induces a party to enter contract

One party dominates - if there is duress

Mutual Mistakes - both parties involved in mistaken assumption of basic facts
Term
Unilateral Mistakes (def)
Definition
only one party involved; contract is voidable unless other party knew of mistaken belief
Term
Statute of Frauds (def)
Definition
Contracts concerning land, or an action that cannot be performed by either party within a year; MUST BE IN WRITING
Term
Uniform Commercial Code
Definition
any contract for sale of goods over $500 MUST BE IN WRITING
Term
Monetary Damages (Liquidated)
Definition
allows parties to establish a reasonable approx of damages. Used in employment contracts, cannot be punitive.
Term
Monetary Damages (Compensatory)
Definition
Arise directly from the loss of the bargain. Remedy is reimbursement restoring the promise to their original position prior to contract.
Term
Recission
Definition
If one party is in breach, the other party may rescind the contract without being in breach
Term
Restitution
Definition
Restores parties to pre-contract position, restitution involves returning goods transferred under contract
Term
Promissory Estoppel
Definition
Doctrine used to enforce otherwise unenforceable promises
Term
Four Requirements for enforcement of promise with estoppels
Definition
Reliance, foreseeable, detrimental, injustice
Term
Employee Contract Parts (6 of them)
Definition
Duties, Terms, Compensation (benefits), Termination clause, Buy-out provisions, arbitration
Term
Employee Contract Parts (6 of them)
[[the cheater: D T C T B A]]
Definition
Duties, Terms, Compensation (benefits), Termination clause, Buy-out provisions, arbitration
Term
Event Contracts Parts (There are 6)
Definition
Parties, Location, Date/Time of Event

Provision for and payment of personnel

Radio/TV Rights

Financial Guarantees

Termination Provisions

Renewal Provisions
Term
Event Contract Parts (There are 6)
[[Cheater: P P R F T R]]
Definition
Parties, Location, Date/Time of Event

Provision for and payment of personnel

Radio/TV Rights

Financial Guarantees

Termination Provisions

Renewal Provisions
Term
Tort Law
Definition
Party should be responsible for negligent actions causing injury to another
Term
Requirements for Valid Waiver (There are 4)
Definition
Clear & Unambiguous Language

Public Policy

Consideration

Capacity to contract
Term
Indiana's View on Waivers
Definition
Moderate
Term
Agreement to Participate
Definition
NOT A CONTACT

Simply an agreement where participant is informed of inherent risks
Term
Major Purposes of Agreement to Participate
Definition
1. Helps establish primary assum. of risk defense
2. Help establish secondary assum. of risk by showing participant knew expected behaviors and agreed to adhere to them
Term
Elements of Agreement to Participate (there are 5)
Definition
Nature of Activity
Possible Consequences of Injury
Behavioral Expectations of Participant
Condition of Participant
Concluding Statement
Term
Elements of Agreement to Participate (there are 5)
[[Cheater: N P B C C]]
Definition
Nature of Activity
Possible Consequences of Injury
Behavioral Expectations of Participant
Condition of Participant
Concluding Statement
Term
Property Rights (Fee Simple and Absolute)
Definition
Owner with complete control (homeowner)
Term
Property Rights (Less than Fee Simple)
Definition
Property based upon contract (you just use a facility)
Term
Categories of Users of Property (there are 3)
Definition
1. Invitee - Individual who paid for use of premises, highest standard of care
2. Licensee - person who uses premises with consent of owner; no economic benefit. Must warn of hazards.
3. Trespasser - Person who enters premises without permission. Refrain from intentional conduct causing injury
Term
Constructive Notice
Definition
facility owner or employee should have been aware of dangerous conditions if the reasonable inspection had been made
Term
Actual Notice
Definition
facility owner or employee has actually seen the dangerous condition or has been informed of it
Term
Corrective Maintenance
Definition
Fixing broken things
Term
Regular Maintenance
Definition
Cleaning, everyday things
Term
Open and Obvious Dangers
Definition
Land owner is not liable to invitees for physical harm caused to them by any activity on the land whose danger is known and obvious
Term
Distraction
Definition
If someone is distracted and is injured by something open and obvious they can successfully file suit against property owner
Term
Rec. User Statute (2-prong analysis)
Definition
Was it a rec. activity?
Was the land suitable for activity?
Term
Nuisance (Factors of a Claim)
Definition
Degree of harm to plaintiff
Value of D's activity to comm.
Burden placed on D if particular remedy is granted and whether D's activity was in progress when P arrived
Term
Strict Liability (Products Liability)
Definition
Liability without fault. It usually applies to manufacturers when they present goods to the public for sale. This means they are suitable for their intended use.
Term
Standards in determining defectiveness (there are 3)
Definition
Consumer expectation – dangerous to an ordinary consumer?

Presumed seller knowledge – did the seller knowingly place a dangerous product on the market?

Risk-benefit balancing – is the cost of making a safer product greater or less than the risk or danger from the product?
Term
Breach of Warranty
Definition
Assertions or promises by the seller of quality of product.

Applies to advertising, labels, and statements by sales people.
Term
Defenses to product liability claims (there are 6)
[[Cheater: C M S P P C]]
Definition
1. Change from time product left manuf.'s control
2. misuse of prod.
3. State of the art
4. Provided adeq. warning
5. Placed warning in obv. locations
6. Carefully worded literature
Term
Assault
Definition
Threat of contact, contact has NOT occurred.
Term
Battery
Definition
Intentional, unpermitted, unprivileged, and offensive TOUCHING of the person of one individ. by another
Term
Defenses to Intentional Torts
Definition
Attack Defn - prove that an element is missing
Privilege - self defense, defense of 3rd person, reasonable force
Immunity - sovereign/govt immunity, charitable
Term
Elements of Battery (There are 3)
Definition
Defendant INTENDS to touch plaintiff
ACTUAL touching has occurred
Lack of CONSENT by plaintiff
Term
Elements of Self Defense/3rd party def (There are 4)
Definition
Did attacked person RETREAT when there was an opp.?
Was there IMMEDIATE/imminent danger?
Was the force used PROPORTIONAL to harm threatened?
Was the force NECESSARY for adequate protection?
Term
Defamation (def)
Definition
That which tends to injure reputation; excite adverse or derogatory feeling or opinions against him
Term
Types of Defamation (there are 2)
Definition
Slander, Libel
Term
Slander
Definition
ORAL comments
Term
Libel
Definition
WRITTEN/PHOTOGRAPHIC/CARTOON comments
Term
Needed to Prove Defamation (There are 4)
Definition
1. False Statement
2. Publication to third persons
3. Fault or neg. of publisher
4. Damages
Term
3 Groups of Individuals
Definition
Public Officials
Public Figures
Private Figures
Term
Public Official
Definition
Works for govt agency and draws salary from public payroll

ACTUAL malice (intent to cause harm) must be proven

Made with knowledge that it was false or with reckless disregard of whether it was false or not
Term
Public Figure
Definition
Individual who has, because of his (Taber) or her activities commanded sufficient continuing public interest

Must prove ACTUAL malice
Term
Private Figure
Definition
Indivd. Citizen who is not involved in public issue or employed as public official

Only need to prove that alleged defamatory statement was negligently made (can be unintentional)
Term
Defenses to Defamation (There are 4)
Definition
Truth
Privilege
Fair Comment
Statute of Limitations
Term
Fair Comment Defense to Defamation
Definition
Form of qualified priv. applied to news media publications. Only when no MALICE, based on true facts.
Term
Participant's Civil Claim against another... (there are 3 theories)
Definition
Intentional Torts
Reckless Disregard
Negligence
Term
Hazing
Definition
Any activity expected of someone joining a group that humiliates, degrades, abuses, or endangers, regardless of the person's willingness to participate
Term
___% Knew of, heard of or suspected hazing
Definition
45%
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