Business Law 200

CH. 1: INTRODUCTION TO LAW AND LEGAL REASONING
Law – provides stability, predictability, and continuity.

LAW IS AN (1. SET OF RULES) that (2. COURTS WILL ENFORCE)—and AMERICA’S FIRST LAW SYSTEM USED IS COMMON LAW/ ANGLO-AMERICAN COMMON LAW

DEAN’S LIST
1. CONSTITUTION (+ CHARTERS)
2. STATUTES (+ ORDINANCES)
3. TREATIES
4. CASE LAW / PRECEDENTS / STARE DECISES
5. EXECUTIVE ORDERS
6. ADMINISTRATIVE RULES + REGULATIONS
7. CONTRACTS
8. INITIATIVE (+ RECALL)
9. REFERENDUM
10. COMMON LAW “ANGLO AMERICAN COMMON LAW”
11. EQUITY
12. HAWAIIAN CUSTOMS
13. INTERNATIONAL LAW

SOURCES OF AMERICAN LAW
1. The US constitution and constitutions of various states
2. Statutory law—including law passed by congress, state legislatures and governing bodies.
3. Regulations created by administrative agencies.
4. Case law and common law doctrines.
Constitutional law – the federal government and the states that set forth the general organizations, powers, and limits of their respective governments; law that is based on US constitution and constitutions of various states.
Administrative law –which consist of the rules, orders and decisions of administrative agencies.
Case law – the doctrines and principles announced in cases –
Governs all areas not covered by statutory law / administrative law, and is part of common law
Interprets judicial precedents, statutes, regulations, and constitutional provisions.
Common law – the body of law that developed from custom or judicial decisions in English and US courts, not attributable to legislature.
“ANGLO AMERICAN COMMON LAW” / COMMON LAW – first law system used by United States
GOVERNMENT
Three levels of government – all law exists here and in shared powers
Federal constitution
State law
Local/city/county

Four branches of government –
1. JUDICIAL – they apply all sources of law, and enforce law by courts
2. EXECUTIVE – president (governor and mayor) can make law at executive level
3. LEGISLATIVE – congress make these laws.
4. THE PEOPLE – “we the people..” US Constitution, we create and empower the branches—we pass initiative
REMEDIES (legal means to enforces a right or redress a wrong)
Remedies at law (land, items of value, or money) were given by Courts of law
Monetary damages – an amount give to a party whose legal systems have been injured
Remedies in equity (equitable remedies: specific performance, injection, and rescission) given by courts of equity.
Equity is a branch of law, founded on what might be described as notions of justice and fair dealing that seeks to supply a remedy when no adequate remedy at law is available
Guided by Equitable Maxims – propositions or general statements of equitable rules (pg. 8).

MIDTERM!! WHICH IS NOT AN EQUITABLE MAXIM? REMEDIES OF EQUITY ARE RULED BY _____? (COURTS OF EQUITY)

COURT TERMS (YOU SHOULD KNOW)
Plaintiff – (the suing party) and Defendant (the party being sued) –
Case precedents: Precedents – a decision that furnished an example of authority for deciding subsequent cases involving identical or similar legal principles or facts.
The practice of deciding new cases with references for former decisions or precedent sis known as the doctrine of stare decisis “to stand on decided cases”.
Under this doctrine, judges are obligated to follow precedents established in their jurisdiction—and jurisdictions refers to geographic area in which a court or courts have power to apply the law.
1. Decisions made by a higher court are binding on lower courts
2. A court should not overturn its own precedents unless there ia compelling reason to do so.
CLASSIFICATIONS OF LAW
Civil law spells out the rights and duties that exist between persons and between persons and their governments.
Criminal law is concerned with wrongs committed against the public as a whole

CH 2: COURTS AND ALTERNATIVE DISPUTE RESOLUTIONS
52 court systems for each of the fifty states, one for District of Columbia and a federal system.
Before a law suit can happen, requirements must be met—
Jurisdiction “the power to speak the law” – it must have jurisdiction over person (or company) against whom the suit is brought (the defendant) or over the property/subject-matter involved in suit.
A court judge must have correct jurisdiction or it lacks power to make law—and lack of jurisdiction can lead to appellate courts.
In personam jurisdiction –(personal jurisdiction) over any person or business that resides in geographic area. (REQUIRES “SERVICE OF PROCESS” AND “SUMMONS”)
In rem jurisdiction “jurisdiction over the thing” – a court can exercise jurisdiction over property located within its boundaries.
Long arm statue – a court can exercise personal jurisdiction over certain out-of-state defendants based on activities that took place within the state.
Territorial jurisdiction—geographical region/state where contract/crime/tort took place has jurisdiction.
JURISDICTION OF FEDERAL COURTS – Federal Questions – any law involving federal question (us constitution, treaty or federal law) comes under the judicial authority of the federal courts and can originate in a federal court.
Diversity of citizenship – term applies whenever federal court has jurisdiction over cases involving diversity of citizenship—
1. Plaintiff and defendant must be residents of different states
2. The dollar amount in controversy must exceed $75,000
EXCLUSIVE VERSUS CONCURRENT JURISDICTION
When both federal and state courts have power to hear cases (like diversity of citizenship) concurrent jurisdiction exists. When cases can only be tried in federal or state courts, exclusive jurisdiction exists.
THE STATE COURT SYSTEM
Appellate courts focus on questions of law (*JUDGE*) (concerning application or interpretation of law) and not question of fact (*JURY*) (deals with what really happened in dispute being tried.)

ALTERNATIVE DISPUTE RESOLUTION
Alternative Dispute Resolution (ADR) --
Negotiation (EASIEST & CHEAPEST!) – a process in which parties attempt to settle their dispute informally with or without attorneys to represent them.
Mediation – a neutral 3rd party acts as mediator and works with both sides in the dispute to facilitate a resolution.
Arbitration – in which a arbitrator (neutral 3rd party or panel of experts) hear a dispute and impose a resolution on the parties.
Arbitration clause – in a contract includes a clause specifying any dispute arising under contract will be resolved through arbitration rather than the court system.

Alternative Dispute Resolution (ADR)—trying to solve a case w/o expensive lawyers
1. Negotiation— (easiest and cheapest) – talk with both parties
2. Mediation – 3rd in-between party
3. Arbitration—neutral 3rd party decision is final—required and binding because of arbitration clause
CH. 3: COURT PROCEDURES
In a trial, PLAINTIFF vs. DEFENDANT, plaintiffs must first prepare for the trial by delivering COMPLAINT (by SERVICE OF PROCESS and SUMMONS), and within the trial: defendants use MOTIONS, (to end trials as quickly as possible) and avoid DEFAULT JUDGEMENT.
PRETRIAL PROCEDURES
PLEADINGS
The complaint and answer (and other legal documents discussed below) taken together are known as the pleadings.
Complaint – the complaint contains a statement alleging—1. The facts showing court has subject-matter and personal jurisdiction & 2. The facts establishing the plaintiff’s need for relief & 3. The remedy the plaintiff is seeking.
Service of process— formally notifying the defendant of a lawsuit is service of process. The plaintiff must deliver or serve a copy of complaint and summons (notice requiring the defendant to appear in court and answer the complaint) to the defendant.
 (specific period of answering)  default judgement—judgment entered by court against defendant who has failed to appear in court to answer/defend against plaintiff’s claim.
Answer— the defendant either admits or denies each of the allegations in the plaintiff’s complaints and may also set forth defenses to those allegations.
DISMISSALS AND JUDGEMENTS BEFORE TRIAL
Motion – procedural request submitted to court by attorney on behalf of his/her client.
Pretrial motions—
Motion to dismiss
Defendant usually files if plaintiff complaint fails to state a claim for which relief (a remedy) can be granted. Asserts even if facts are true, doesn’t give rise to legal claim against defendant.
Motion to dismiss—not properly served, court lacked jurisdiction, or that venue was improper.
Motion for Judgment on the Pleadings—asks the court to decide the issue solely on the pleadings without proceeding to trial—only granted if no dispute over facts in case and sole issue is question of law.
Motion for summary judgment—asks the court to grant a judgment in party’s favor without a trial—no facts are in dispute and only question is how the law applies to facts.

DISCOVERY – the process of obtaining information from opposing party or from witnesses prior to trial is known as discovery.
JURY SELECTION—Voir Dire—“to see, to speak” –jury selection process in which attorneys question prospective jurors to determine whether they are biased or have any connection with a party to the action or with a prospective witness.
THE TRIAL OPENING STATEMENTS PLANTIFF HAS “BURDEN OF PROOF”!!
At the beginning of the trial, the opening statement provides an opportunity for each lawyer to give a brief version of the facts and the supporting evidence used during the trial.
EXAMINATION OF WITNESSES
Direct examination—the examination of a witness by the attorney who calls the witness to the stand to testify on behalf of the attorney’s client.
Motion for a judgment as a matter of law / Motion for a directed verdict – Plaintiff have presented no evidence to support his or her claim. / Judge looks at most favorable evidence to the plaintiff and grants motions only if there is insufficient evident to raise an issue of fact.
CLOSING ARGUMENTS, JURY INSTRUCTION, AND VERDICT
Closing argument—each attorney summarizes the facts and evidence presented during the trial and indicates why facts and evidence support his or her claim.
In civil cases; standard of proof is preponderance of evidence.
In criminal cases, higher standard of proof must be beyond a reasonable doubt.
Verdict—formal decision of jury, specifies jury’s factual findings.
POST TRIAL MOTIONS
Motion for a new trial: at the end of the trial, the losing party may make a motion based on misapplication of law or misunderstanding of evidence presented at the trial, newly discovered evident, misconduct by participants during the trial, or error by the judge.
Motion for Judgment N.O.V (non obstante veredicto) “not withstanding the verdict” or Judgment as a matter of law – motion granted if jury’s verdict was unreasonable and erroneous.
CAN GO TO APPELLATE COURT

CH. 18: BREACH OF CONTRACTS AND REMEDIES

REMEDIES ‘AT LAWS’
1. Compensatory $ Damages (actual/incidental)
a. Actual monetary damages: damage & loss of money
2. Compensatory $ Damages (special)
a. Immediate loss and Consequential loss.
3. Punitive $ Damages
a. Punishment/example/consequential
4. Nominal $ Damages
a. “named” monetary damages-- $1.00—no real damage but very technical
5. Liquidated $ Damages
a. Set number of monetary damage in clause, of breach of contract
6. Restitution
a. Give it back!
REMEDIES IN ‘EQUITY’
1. Recission (of a K)
a. Cancel the contract and money back.
2. Restitution
3. Specific Performance (of a K)
a. Breach of Contract remedy: specifically performing contract
4. Reformation (of a K)
a. Reform/change the contract
5. Quantum Meruit (of a Quasi K)
a. Court of equity remedy for a quasi-contract: remedy based on merit
6. Accounting
a. Business “partnership”: CPA accounting of owing money
7. Foreclosure
a. Owning property—foreclose on mortgage and get property back

COURT OF LAW : RULES OF LAW
1. Compensatory Damages – these damages compensate the injured party only for damages actually sustained and proved to have arisen directly from loss of bargain caused by breach of contract
a.i. Incidental damages—expenses caused directly by breach of contract – such as those incurred to obtain performance from another source
a.ii. Consequential damages – foreseeable damages that result from party’s breach of contract (compensate for loss not direct or immediate)
2. Punitive Damages – monetary damages that may be awarded to plaintiff to punish the defendant and deter future similar conduct in the future
3. Nominal damages—when no actual damage of financial loss results from breach and only a technical injury is involved. ($1.00 Awarded) – but it does acknowledge wrong doing and done as a matter of principle that a breach has occurred and some damage must be imposed regardless of actual loss.
4. Mitigation of Damages—when breach of contract occurs, the innocent injured party is held to a duty to mitigate, or reduce, the damages that they suffer
a. Benefits Rule – offset damages from mitigation, doesn’t allow for double jeopardy
5. Liquidated Damages – provision in a contract specifies a certain $$ amount to be paid in event of future default of breach of contract.
a. (Liquidated damages is a fixed, settled, determined amount of money—parties have agreed to in advance as a clause in the contract, THE JUDGE AND JURY DO NOT NAME THE $$ COMPENSATION) doesn’t award Penalty: arbitrary number for penalization
6. Restitution—equitable remedy under which…
a. A person is restored to their position prior to loss/injury
b. Placed in position they would have been in if breach hadn’t occurred
b.i. Returns something to it’s rightful owner
COURT OF EQUITY: MAXIMS OF EQUITY
1. Recission—an action to undo or terminate a contract—to return the contracting parties to positions they occupied prior to transaction.
2. Restitution—equitable remedy under which…
a. A person is restored to their position prior to loss/injury
b. Placed in position they would have been in if breach hadn’t occurred
c. Returns something to it’s rightful owner
3. Specific Performance—calls for performance of act promised in contract
4. Reformation—equitable remedy used when both parties have imperfectly expressed agreement in writing. Reformation allows courts to rewrite contracts to reflect party’s true intentions.
5. Quasi Contract – legal theory under which an obligation is imposed in absence of an agreement
a. Quantum Meruit – “as much as he or she deserves” is remedy based on merit

CH. 4: CONSTITUTIONAL AUTHORITY TO REGULATE BUSINESS
The U.S constitution is the supreme law in this country—neither congress of any state may pass a law that conflict with the constitution.
The constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to carry out its expressed designated powers (enumerated powers)
OLDEST SOURCE OF LAW FOLLOWED IN THE UNITED STATES  ANGLO-AMERICAN COMMON LAW
OLDEST SOURCE OF LAW CREATED IN THE UNITED STATES  US CONSTITUTION AND BRANCHES IN GOVERNMENT
CONSTITUTIONAL POWER OF GOVERNMENT
RELATIONS AMONG THE STATES
Privileges and Immunities clause – it prevents a state from imposing unreasonable burdens on citizens from another state, particularly with regard to means of livelihood or doing business.
Full faith and credit clause—applies only to civil matters and ensure rights established under deeds, wills, and contracts and similar instruments in one state will be honored by other states.
THE COMMERCE CLAUSE
Commerce Clause – basis for national government’s extensive regulation of state and local affairs— gives congress power to regulate interstate commerce (commerce between the states) – and ONLY intrastate commerce (not within the states) as long as it substantially affected commerce involving more than one state(s) .
THE SUPREMACY CLAUSE AND FEDERAL PREEMPTION
Supremacy Clause – provides constitution, laws, and treaties of the US are “supreme law of the land” and when there is direct conflict between federal and state law, state law is rendered invalid.
Which one is not a civil right in the bill of rights?
Which one is not a criminal right in the bill or rights?
BUSINESS AND BILL OF RIGHTS
Bill of Rights – embody series of protection for individual against various types of interference by the federal government.
FREEDOM OF RELIGION (CIVIL RIGHT)
Establishment clause—clause prohibits government from establishing state-sponsored religion as well as passing laws that promote (air or endorse) religions or that show a preference for one religion over another.
Free exercise clause—clause guarantees that a person can hold any religious belief he/she wants or no belief. This constitutional guarantee generally prevents government from compelling a person to do something that is contrary to his/her beliefs.

SEARCHES AND SEIZURES (CRIMINAL+CRIMINAL RIGHT)
Search warrant – an order from a judge or other public official authorizing the search or seizure—
To obtain a search warrant, law enforcement officers must convince a judge that they have reasonable grounds, or probable cause, to believe a search will review evident of a specific illegality.
Probable cause—officers must have trustworthy evidence that would convince a reasonable person that the proposed search or seizure is more likely justified than not.
DUE PROCESS AND EQUAL PROTECTION (... MORE CRIMINAL RIGHT)
DUE PROCESS CLAUSE—No person shall be deprived of “life, liberty, or property without due process of law”—due process clause has two aspects, procedural and substantive.
Procedural due process—government must give a person proper notice and an opportunity to be heard.
Substantial due process – protects person’s life, liberty or property against certain government actions regardless of fairness procedures used to implement them. Legislation must be fair and reasonable in content and must only further a legitimate government objective.
EQUAL PROTECTION
Equal protection clause – government cannot enact laws that treat similarly situate individuals differently.

CH. 9: CRIMINAL LAW AND CYBER CRIME
Crime can be defined as a wrong against society proclaimed in a statute and punishable by a fine and/or imprisonment – or in some cases, death.
Burden of proof—
Civil Cases
Criminal Cases
Preponderance of evidence – plaintiff must convince the court that based on evidence presented by both parties, it is more likely that not that the plaintiff allegations are true.

Only ¾ of jurors must agree.
Beyond a reasonable doubt—the government (prosecutor) must prove beyond a reasonable doubt that the defendant has committed every essential element of the office they are charged—

(If the jurors are not convinced of the defendant’s guilt beyond a reasonable doubt – NOT GUILTY.)

The jury’s verdict must be unanimous—agreed to by all members of the jury to convict the defendant

CLASSIFICATION OF CRIMES—
Felonies are serious crimes punishable by death or imprisonment of more than one year.
Misdemeanors are less serious crimes, punishable by a fine or by confinement up to a year.
Petty Offenses / Juvenile Offenses – minor violations such as jaywalking or violations of building codes.
CRIMINAL LIABILITY
Two elements must exist for a person to be convicted of a crime--
1. Performance of a prohibited act
2. Specified state of mind or intent on part of actor.
Actus Rea – prohibited act or guilty act—based on that a personal should be punished for harm done to society.
Mens Rea—wrongful mental state

JUSTIFIABLE USE OF FORCE
Self Defense—legally recognized privilege to protect oneself and property against injury by another – protects only acts that are reasonably necessary
Deadly force—serious bodily harm or death
Non-deadly force—force is reasonably necessary to prevent imminent use of criminal force
Self-defense only when defender reasonably believes that imminent death or grievous bodily harm will otherwise result and has no other means of escaping or avoiding the situation.
Generally people can use non-deadly force when protecting crime themselves, dwelling, other property to prevent crime
Example: defending life (yours/another)
Example: reasonable force to defend property

CRIMINAL PROCEDURES
1. 4TH amendment protects from unreasonable search & seizure
2. 4TH amendment requires no warrant for search or arrest without probable cause
3. 5th amendment require no one be deprived of “life, liberty, or property without due process of law”
4. 5th amendment prohibits double jeopardy (trying someone twice for the same cime)
5. 5th amendment requires no one be witness against themselves
6. 6th amendment guarantees speedy trial; a trial by jury, a public trial, right to confront witnesses, and right to lawyer at various stages of proceedings
7. 8th amendment prohibits excessive bails and fines and against cruel and unusual punishment. And THE EXCLUSIONARY RULE : any evidence obtained in violation of constitutional rights in 4th, 5th, and 6th amendments are generally not admissible in trial.
All evidence from illegally obtained evidence is “FRUIT FROM THE POISONOUS TREE”
CRIMINAL PROCESS
Arrest must have probable cause—defined as substantial likelihood that the person has committed or is about to commit a crime
Individuals must be formally charged with having committed specific crimes before they can be brought to trial— if issued by a grand jury (grand jury does not determine guilt or innocence of accused, but functions to hear state evidence and to determine whether a reasonable basis (probable cause) exists for believing a crime has been committed and trial out to be held) in called an indictment.
And at the trial, the entire burden of proof is on the state, and proved beyond a reasonable doubt.

CH. 6: INTENTIONAL TORTS AND PRIVACY
Anytime that one’s party allegedly wrongful conduct causes injury to another, an action may arise under the law of torts (french for “wrong”). Through tort law, society compensates those who have suffered injuries as a result of wrongful conduct of others.
Torts: wrong and compensation—tort law is designed to compensate those who have suffered a loss or injury due to another person’s wrongful act. (A PRIVATE CIVIL WRONG BETWEEN CITIZENS)
ACTUS REAS (ACTION)
MEN’S REA (MENTALITY)

1. INTENT
2. MALICE
3. KNOWINGLY
4. (GROSS) RECKLESSNESS
5. GROSS NEGLIGANCE

6. NEGLIGANCE
MIDTERM!! PUNITIVE DAMAGES NOT GRANTED FOR…
7. STRICT LIABILITY

8. SHIT HAPPENS

DAMAGES AVAILIBLE IN TORT ACTIONS
Compensatory damages – intended to compensate or reimburse a plaintiff for actual losses
Special damages compensate the plaintiff for quantifiable monetary loss
General damages compensate individuals for nonmonetary aspects of the harm suffered (pain and suffering).
Punitive damages – in tort cases punish the wrongdoer and deter others from similar wrongdoing.

INTENTIONAL TORTS AGAINST PERSONS
An intentional tort requires intent—tortfeasor (one committing the tort) must intend to commit an act, the consequences which interfere with the personal or business interests of another in a way not permitted by law.
& must be Actionable—capable of serving as grounds for a lawsuit
& may involve Actual Malice—statement must be made with either knowledge of its falsity or reckless disregard of the truth.
FRAUDULENT MISREPRESENTATION doesn’t include mere puffery – seller’s talk.

CH. 7 : NEGLIGENCE AND STRICT LIABILITY
Tort of negligence which involves acts departing from reasonable standard of care and therefore creates unreasonable risk of harm to others.
The tort of negligence occurs when someone suffers injury because of another’s failure to live up to a required care of duty.
1. Duty: the defendant owed a duty of care to the plaintiff. (JUDGED BY REASONABLE PERSON STANDARD)
2. Breach: That the defendant breached that duty.
3. (PROXIMATE) Causation: That he defendant’s breach caused the plaintiff’s injury. (“BUT FOR” TEST & FORESEEABILITY TEST)
4. Damages: That the plaintiff suffered legally recognizable injury.
DUTY OF CARE
Duty of care – the duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care which is normally determined by “reasonable person standard” constitutes tort of negligence.
Reasonable person standard—society’s judgment of how an ordinarily prudent person should act.

CAUSATION
Proximate Cause—legal cause, exists when connection between an act and an injury is strong enough to justify imposing liability.
CONTRIBUTORY AND COMPARATIVE NEGLIGENCE
Contributory Negligence—a plaintiff who was also negligent (failed to exercise a reasonable degree of care) could not recover anything from the defendant.
Comparative Negligence—enable both plaintiff and defendant’s negligence to be computed and liability for damages distributed accordingly.
SPECIAL NEGLIGENCE DOCTRINES AND STATUTES
Re Ipsa Loquitor – “the facts speak for themselves” presumption of defendant’s negligence—when event creating damage or injury is one that ordinarily does not occur in absence of negligence.
Negligence Per Se—“in or of itself” an act (failure to act) in violation of a statutory requirement.
Good Samaritan Statues—someone who is aided voluntarily by another cannot turn around and sue the “good Samaritan” for negligence.
Dram Shop acts—under which a tavern owner or bartender may be held liable for injuries caused be a person who became intoxicated while drink at te bar, or who was already intoxicated when served by bartender.
STRICT LIABILITY –“liability without fault”
Under doctrine of Strict Liability, a person who engages in certain activities can be held responsible for any harm that results to others even if the person used the utmost care.
Abnormally dangerous activities—involve high risk or serious harm to persons or property that cannot be completely guarded against by exercise of reasonable care and still with risk of harm and injury.
Liability of manufacturers for harmful or defective products, etc.
CH. 49 PERSONAL PROPERTY AND BAILMENTS
Property consists of legally protected rights and interests a person has in anything with ascertainable value that is subject to ownership—law defines as rights of owners to use, sell, dispose of, control, and prevent others from trespassing on property rights.
REAL TANGIBLE
PERSONAL INTANGIBLE
PERSONAL PROPERTY VS. REAL PROPERTY
Real property means the land and everything permanently attached to it, including structures and anything permanently attached to the structures—immovable.
Everything else is personal property (personalty or chattel)—both can be tangible or intangible and is also movable.
1. Intangible personal property represents some sets of rights and interests
CONVERSION OF REAL PROPERTY TO PERSONAL PROPERTY
“Doctrine of Severance” where real property can be turned into personal property by detaching it from the land (or personal property can become real property by attaching it to the land)
FIXTURES—a thing affixed to the realty, affixed is attached by the roots, embedded, or permanently attached by means of cement, pleaser, bolts, nails or screws.
ACQUIRING OWNERSHIP OF PERSONAL PROPERTY
POSSESSION – a person can become the owner of personal property merely by possessing it.
GIFT—a gift is essentially a voluntary transfer of property ownership for which no consideration is given.
1. Donative intent on part of the donor (the one giving the gift)
2. Delivery
3. Acceptance by the done
TESTAMENTARY GIFT – Gift by will.
INTESTATE GIFT – No will but given to spouse, blood: kids, close relatives, or state.
GIFT INTERVIVOS—gift made during donor’s lifetime
GIFT CAUSA MORTIS—gift made in contemplation of imminent death—does not become absolute until donor dies from contemplated, specific illness. Automatically revoked if donor recovers from illness.

MISLAID, LOST, AND ABANDONED PROPERTY
Mislaid property –Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is mislaid property.
Lost property—property involuntarily left is lost property—a finder of lost property can claim title to the property against the whole world—except for the true owner.
Abandoned property—property that has been discarded by the true owner who has no intention of reclaiming title to it. Someone who finds abandoned property acquires title to it and title is good against the whole world, including the original owner. THE ONLY ONE TO ACQUIRE OWNERSHIP!!
BAILMENTS
Bailment is formed by delivery of personal property without transfer of title by one personal (bailor) to another (bailee) !! WHAT IS THE DUTY OF THE BAILEE?
1. Personal property
2. Delivery of possession (without title)
3. Agreement that the property will be returned to the bailor, or otherwise disposed of according to owner’s directions
AND ONLY PERSONAL PROPERTY CAN BE SUBJECT TO BAILMENT.

ORDINARY BAILMENTS
1. Bailment for the sole benefit of the bailor  SLIGHT DUTY OF CARE
2. Bailment for the sole benefit of the bailee UTMOST CARE
3. Bailment for the mutual benefit of the bailee and the bailor REASONABLE STANDARD OF CARE
4. Professional Bailees  highest degree of care.

CH. 50: REAL PROPERTY AND LANDLORD-TENANT RELATIONSHIPS
Real property consists of land and everything permanently attached to it, including structures and other fixtures.
OWNERSHIP AND OTHER INTERESTS IN REAL PROPERTY !!
Fee simple – one who possesses the entire bundle of rights is said to hold the property in fee simple which is the most complete form of ownership—absolute form of property ownership entitling owner to use, possess, or dispose of property as they choose during their lifetime.
Fee Simple Absolute – owner has greatest aggregation of rights, privileges and power possible.
LIFE ESTATES – an estate that lasts for the life of some specified individual.
CONCURRENT OWNSERSHIP – persons who share ownership rights simultaneously in particular property are said to have concurrent ownership
Tenancy in common – form of co-ownership in which two or more persons own an undivided interest in the propert00 on death, it passes to their heirs. *MARRIAGE NOT REQUIRED*
Join tenancy (with right of survivorship)— each of two or more persons own an undivided interest in the property but a deceased joint tenant’s interest passes to surviving joint tenant or tenants.
Tenancy by the entirety – created by conveyance of real property to a husband or wide.
Community property—each spouse technically owns an undivided one-half interest in the property. It doesn’t apply to property acquired before marriage, or property by gift or inheritance. *MARRIAGE REQUIRED*
NONPOSSESSORY INTERESTS – some interests in land don’t include any right to possess property
Easement – right of a person to make limited use of another person’s real property without taking anything from the property.
Profit – right to go onto land owned by another and take away some part of the land itself or some produce of the land.
TRANSFER OF OWNERSHIP
REAL ESTATES SALES CONTRACT
The common law rule of caveat emptor “let the buyer beware” held seller of a home held no warranty to its soundness or fitness (unless contract or deed said otherwise) but now has implied warrant of habitability – the seller of a new house warrants it will be fit for human habitation even if the deed or contract of sale does not include the warrant.
DEEDS
Deed—Instrument use to transfer real property. A deed is writing signed by an owner of real property by which title of it is transferred to another.
Warranty deed makes the greatest number of warranties and thus provides the most extensive protection against defect of title—and has a number of covenants or promises grantor makes to grantee.
Grantor has title to, and power to convey the property; a convenient of quiet enjoyment (a warranty that the buyer will not be disturbed in their possession of the land), and a covenant that transfer of the property is made without knowledge of adverse claims of third parties.
Quitclaim deed offers the least protection against defects in the title. It conveys to the grantee whatever interest the grantor has.
ADVERSE POSESSION – wrongful possession of land—means of obtaining title to land without delivery of deed and without consent of—payment to—the true owner.
2. When one possesses real property of another for certain statutory period, then that person acquires title to the land.
LIMITATIONS ON THE RIGHTS OF PROPERTY OWNERS
No ownership if real property can ever really be absolute – they cannot always do whatever they want with the property and are subject to certain limitations and conditions.
Eminent domain also called condemnation power of government to take land for public use—property may be taken only for public use and not for private benefit.
And when government uses powers of eminent domain to acquire land owned by private party is taking.

CH. 8: INTELLECTUAL PROPERTY AND INTERNET LAW
Intellectual property is any property resulting from intellectual, creative process—products of an individual’s mind.

Trademark—distinctive mark, motto, device or implement that a manufacturer stamps, prints, or otherwise affixes to the goods it produces so that they can be identified on the market and their origins made known.
Trademark infringement—whenever trademark is copied to a substantial degree or used in its entirety by another, intentionally or unintentionally, the trademark has been infringed (used without authorization)—to succeed in court, the owner must show that the defendant’s use of the mark created a likelihood of confusion about origin of defendant’s good or services.
Service Mark – essentially a trademark that is used to distinguish services (rather than products) of one person or company from those of another.
Trade dress – refers to image and overall appearance of a product. A broad concept and can include either all or part of the total image or overall impression created by a product and its packaging.
Trade name—used to indicate part or all of a business’s name. Generally, a trade name is directly relted to a business and its goodwill.
Cyber Marks—trademark in cyberspace.
Patent—a grant from the government that gives an inventor the right to exclude others from making, using, or selling his or her invention for a period of twenty years from the date of filing the application for a patent.
Copyright—intangible property right granted by federal statue to the author or originator or literary or artistic production of a specified type.
Copyright Infringement—
“Fair Use” Exception—an exception to the liability of copyright infringement is made under “Fair use” doctrine. In certain circumstances, a person or organization can reproduce copyrighted material without paying royalties – such as nonprofit educational purposes.
COPYRIGHT INFRINGMENT OF DIGITAL INFORMATION—OF MUSIC, AND MP3-SHARING
Trade Secret—information of a commercial value that gives a business an advantage over competitors who do not known the information or process.