Thursday, November 26, 2015

Chapter Thirteen

The ability to operate a business or household depends on the flow of money available. Businesses rely on the availability of cash flow to operate and continue daily functions. Unforeseen circumstances arise regularly in a household that may require the need for quick cash. Our financial system gives businesses and families options that can satisfy these needs.
Negotiable instruments give businesses and people the ability to pay others without using cash. Some negotiable instruments include drafts, checks, notes, and certificates of deposit. Sometimes businesses and individuals need to use credit to have funds available for these needs. Money given as credit generally requires a security. The purchase is usually enough collateral to satisfy this need. This is why lending institutions want a down payment on a purchase. If the ability to repay a debt is not there, the lending institution can go after the collateral (repossession) to receive there loan moey back. Another way to guarantee a return on the loan is a co-signer or surety. This is a third party that signs a loan to help the borrower receive a loan. If the original borrower cannot repay the loan, the surety will need to come up with the funds.
The last resort in a lending institution receiving money that the debtor is unable to repay is bankruptcy. Chapter 7, Chapter 11, and Chapter 13 all have wording that can be utilized by the debtor depending on the situation. The bankruptcy court decides the process and options that the debtor will take in the bankruptcy proceedings. While there are many bankruptcy filings each year, this is used when no other options exist. Bankruptcy may mean the refinance of or liquidation of debts. This need is important because of the unknown. Some debtors are put into bankruptcy because of irresponsibility, however, most are put there because of unforeseen circumstances. Businesses may feel a downturn in sales because of the economy, and households may experience loss of income or medical problems that arise to make it impossible for them to repay their loans. Living or operating within ones means is financial responsibility and could help prevent these proceedings.       

Wednesday, November 25, 2015

Chapter 10 # two

When a breach of contract occurs, reasonable efforts must be made to mitigate the losses. If money damages (legal remedies) are inadequate to compensate for the injury, specific performance or an injunction (equitable remedies) are available to the injured party. Equitable remedies are more flexible as they do not have to follow precedent. Specific performance is a court order requiring who created the wrong to fulfill their obligations in the contract. This may mean simply finishing a job or service. An injunction is a court order that requires a party to perform or refrain from performing certain acts. A preliminary injunction or a temporary injunction may be used while the court decides the fate of the parties involved. This may be used to aid in a no compete clause. Equitable remedies are used when monetary damages are to difficult to figure. The compensation used to fix a breach of contract is up to the discretion of the court.

Tuesday, November 17, 2015

Chapter Ten

Chapter ten discusses the legal aspects and barriers in contract law. A contract centers on a promise and consideration between an offerer and an offeree. There are many ways that a contract is accepted and carried out. All promises (contracts) must be legal when written and while being carried out. If the law changes during the lifetime of the contract, The contract may be no longer legal.
The one part that stands out to me is the unconscionable contract. When my dad bought his last farm, the sellers lawyer wrote in the contract that the seller would maintain all commodities from the farm for ten years after the sale. My dads lawyer found this before the contract was signed, so it all worked out, but had he not, this may qualify as a unconscionable contract.
Essentially everything written in a contract must be material. That is it must be important information to the details of the contract. All parts of the contract must be legal and written by two parties with a stable state of mind. Rescission, novation, and accord and satisfaction are the ways to discharge a contract. Damages may be returned by remedies or restitution.   

Wednesday, November 4, 2015

Chapter Nine

Intellectual property or intangible property is often protected by trademarks, copyrights, patents, or trade secrets. The Lanham Act protects this property from infringement, dilution, cybersquatting, and counterfeiting. Trade dress is the look and feel of a product or service establishment. The use of the law is important in deciding which protection to use. A patent only protects a company's product for twenty years. This is why Coca Cola did not use this protection. Coke was able to protect its recipe for over one hundred years. Receiving a patent is also a slow process. For this reason, patents are not appropriate for products with quick technological change. Patents are more useful for long term products like medicines. Companies are also protected by trade secrets. Trade secrets are designed to protect companies from ex employees from giving sensitive company information to a future employer and also from trying to steel customers from past employers. Companies must do all they can to protect their intellectual property. This should be put at the top of their agenda as to making a profit.    

Monday, November 2, 2015

chapter eight

Chapter eight discusses ownership and the property rights of owners. Quitclaim deed, warranty deed, and special warranty deed are the way that ownership interests are transferred to another. This is done with the transfer of a title. These ownership rights may be known as an estate. Fee simple means the right to exclusive possession of a piece of property. Tenancy, life estate, trust, and business trust are ways to transfer these pieces of property. Servitudes and covenants are limitations on the use of the land being transferred. If a piece of land being transferred is land locked, there may be an easement granted to the new landowner so the new landowner can enter the piece of property from a frontage road. The government has the right to zone land for certain use. The government also has the right to acquire land--eminent domain--for special use. The government is required to pay a fair price for this land acquisition. These rights are listed under the Fifth Amendment.         

Wednesday, October 21, 2015

Chapter seven business torts and product liability. Fraud may be intentional or negligent. To establish a misrepresentation, there must be a misstatement of a material fact--something directly related to the incident, intent, the seller must know the statement is false, the recipient must rely on the information of the seller, causation, and there must be damage.
Product liability is the responsibility of the producers and sellers to the purchaser and user of said products. Strict liability replaced privity of contract to give an injured party a better chance to receive money in a lawsuit from the defected product. Strict liability is based on a warranty either expressed or implied. A manufacturer may be liable for a defective product and a design defect. The manufacturer may also be responsible for failure to warn. The largest dollar amounts ever awarded however, were from unknown hazards. unknown hazards are issues that come up several years later.
Although we hear of large rewards to plaintiffs, our text says that the tort crisis has abated in recent years. I feel that we need the ability to fight companies to guarantee quality products to purchase. I also feel that the people that take advantage of this ability to gain in personal ways need to be stopped.        

Friday, October 2, 2015

chapater six

As we study chapter six, we learn the elements of tort. Tort law is a private law. Criminal cases generally involve tort cases, however, tort cases rarely involve criminal cases. Omission is referred to as negligence--in more severe cases it is called gross negligence. For torts to be successful, they must prove one of four thins--due care or ordinary care, omission or negligence, a casual connection and the resulting harm to the injured party, and actual harm or damage to the injured party as a result of negligence. Proximate cause protects some people in tort cases. Proximate cause limits liability to consequences that have a reasonable relationship to the negligent consequence. If a consequence is to remote, it will not result in liability.
Comparative negligence is also referred to as contributory negligence. This says that if a defendant contributed negligence to the situation, there may be no recovery. This may be placed into a percentage. After my wife was in an accident, the other ladies insurance company told us that my wife was ten percent to blame because she was there. This seems to be a abuse of contributory negligence. Just being in a place should not be a ground for contributory negligence. If the other lady had not made an illegal turn, the accident would not have happened. In a case in Iowa, four young boys were killed while riding a atv on a public road. The driver of the truck that hit them was charged with vehicular homicide. Since it is illegal to drive an atv on public roads, that is contributory negligence.
To be found liable, a plaintiffs must establish intent. To establish intent, the state of mind of the defendant, the defendant must know the possible consequences of the act, and knowing that certain outcomes will occur must be proven.
We study the difference between assault and battery. Assault is the intentional conduct that place fear in another person, and battery is the unlawful touching of another person. Self-defense and protection of others in trouble can protect a person from assault and battery charges.
In the business world, defamation is more prevalent. Defamation may be the result of a bad exit from a company. When employment does not end in a positive way, bad comments may result placing harm on ex employees or ex employers.   

Thursday, October 1, 2015

Chapter Five

Chapter five discusses the types of civil and criminal law violations and their punishments. Wire fraud, mail fraud, white collar, blue collar, tax evasion, money laundering, racketeering, and cyber fraud are all discussed in this chapter. We learn terminology as a misdemeanor or felony. We learn of our fifth amendment rights to a Miranda reading. Probable cause and a warrant which involve search and seizure are explained. It seems to me that the a prosecuting attorney has a tougher job than a defense attorney.
Insurance laws are also discussed. These  are mostly for insurance fraud. The insurance industry is also legally responsible for the consumer. Controlled business and separation of monies are two very important laws in the insurance industry. Controlled business is the selling of insurance to oneself, business or family. All money must be separated in the insurance business. Money from premiums must be separated from money paid to salespeople for commission.
a good way to remember penalties for crimes is for a class A misdemeanor 1 and 1--fine of up to $1,000 and/or up to one year in jail. For a class four felony 5 and 5--fine of up to $5,000 and/or up to five years in jail.
I do feel that cyber crime is the most dangerous to our society. With the banking and investments done mostly online, we are in danger of giving too much personal information to the wrong people. Stricter penalties should be placed on these crimes either to prevent them from happening or to keep these people in prison so that they don't do them again.      

Sunday, September 20, 2015

Chapter Four (#2)

The freedom of speech in the first amendment is often brought into question. If we start with the swastika, the swastika is considered a racially charged object through its affiliation with the Nazis. However, the swastika is also a symbol  of Hinduism and Buddhism. The Nazis stole this symbol and distorted its value to create a sign of hatred. The confederate flag is also now a sign of hatred. This was the battle flag of the south. So do we ban these items because of hatred, or accept them as freedom of speech. Once again the times have changed. As our values change, we seem to change our beliefs on which way to go. How do we protect the rights of some without harming the sensitivity of others.
I also disagree with the right of tabloids to print articles about famous people. These articles for the most part are distorted. How can these tabloids continue to print information that is partially true for a profit. The rights and privacy of famous people should be protected, not the profits of tabloids. I also wonder how politicians are targeted during elections. This information, whether true or not, should be a private matter. The freedom of speech should not violate personal information. 

Chapter Four (one)

     The discussion in chapter four is on the power given to the federal government over the states in the constitution. Some of these have been pushed to the limit by state law makers. The commerce clause is one. Some states have been trying to sell agriculture products to Cuba--Illinois being one. This is a violation of the Commerce Clause which says that the federal government has the power to regulate commerce with a foreign nation.
     Another state to impede of the power of the federal government is Colorado in the sale of marijuana. The sale of marijuana is still a violation of federal law. How can a state make it legal to sell a product in its own boundaries that is against federal law. On top of that, collecting taxes on those sales should be illegal.
     The state of Arizona is known for many battles with the federal government on constitution rights. These are mostly on immigration. I believe that if the federal government will not help states support illegal immigrants, then the federal government should allow the states to propose their own laws on immigration.
     Back to Illinois, the federal government forced Illinois to pass a law on concealed carry. If laws are changing because of technology and a change in culture, then why did the Right to Bear Arms not change. I believe in the right to own guns. I also believe that the right to bear arms means the right to an appropriate gun. I am an avid hunter who uses legal guns for hunting. There is no need for fully automatic weapons or guns that can shoot hundreds of rounds of ammo. If the constitutional rights changed for other issues because of the change in culture, then the laws should change for the change in the need for what type of gun to own. I believe that lobbyist push for these changes. Some weapons should be banned for the safety of the public.            
  

Monday, September 7, 2015

Chapter three involves the stages of trial and alternate dispute resolution. I have been on a jury, so I know about jury selection and Instructions to the jury by the judge. We listened to the testimony and the closing arguments. Deposition is not a new word, however, now I understand the true meaning as an in person testimony.
Being involved in my union, I understand alternate dispute resolution. Negotiation, arbitration, and mediation are important and common in union contracts. Arbitration is very costly and time consuming. It is a step to make sure both sides of a contract are holding up to their side of the contract.
I can see why companies would want to settle out of court to save money in a law suit. Court appearances take up a lot of time and energy that could be used to do important company business
Chapter two involves jurisdiction. Fortunately, I do not have much experience with the court system. It sounds to me that a good lawyer can manipulate the venue to get a good outcome. My niece did have a dispute in a custody battle. Her lawyer decided not to press the custody of her daughter. My niece's boyfriend did sue for custody in Dixon. My niece was unable to get the proceedings moved to Jo Daviess county and she then had to travel to Dixon for multiple court appearances on this issue. She later won the dispute and was awarded custody of her daughter.
Another question would be on work comp issues. If an employee works for a company and does work in another state for that company--then gets injured--what state has the court proceedings (The state where the company is located or the state in which the accident occurred)?
The information in this chapter is good for common knowledge--not just needed information for this class
Hello class, chapter one is about different types of laws and their classifications. It is also about ethics, integrity, and morality. I currently hold all four insurance license. When I renew my license, I will need to take a state ethics class. This is required by the State Insurance Administrator. Ethics should be part of every piece of business. Fair competition in business and political elections is part of the morality that I was raised in. I believe that as the share of wealth grows farther apart, more integrity and ethic problems will appear.   

Friday, August 21, 2015

Business Law Blog

Hello class, my name is Shawn Haas. I look forward to this class and getting to know all of you. Enjoy my blog and good luck.