Business Law and Ethics Flashcards

What are the four essential elements required for a valid contract?

Answer: Offer, acceptance, consideration, capacity

A valid contract requires an offer, acceptance of that offer, consideration (something of value exchanged), and legal capacity of the parties.

What is 'negligence' in business law?

Answer: Failure to exercise reasonable care, resulting in harm

Negligence occurs when a party fails to act with the care a reasonable person would exercise, and that failure causes harm.

What does the term 'intellectual property' refer to?

Answer: Creations of the mind protected by law, such as patents and copyrights

Intellectual property includes legally protected creations of the intellect, such as inventions, literary works, and trademarks.

Which business structure provides owners with limited liability protection while avoiding double taxation?

Answer: Limited Liability Company (LLC)

An LLC combines the liability protection of a corporation with the pass-through taxation of a partnership.

What is 'breach of contract'?

Answer: Failing to fulfill one's obligations under a valid contract

A breach of contract occurs when one party fails to perform their agreed-upon obligations without a valid legal excuse.

What is the purpose of the Americans with Disabilities Act (ADA) in a business context?

Answer: To prohibit discrimination against individuals with disabilities

The ADA prohibits discrimination based on disability in employment and requires reasonable accommodations in the workplace.