Business Law for Accountants - D216 Western Governors University WGU (read description)

Business Law for Accountants - D216 Western Governors University WGU (read description) Leave the first rating Students also studied Terms in this set (168) Social SciencesLaw Save Business Law for Accountants - D216...135 terms jschwinn0Preview D216 133 terms vanessa_harris263 Preview D216 Business Law for Accountants -...78 terms pauljkannPreview WGU D 75 terms JEE ScienterA person has knowledge of wrongdoing and intent of wrongdoing Sox act of 2002created the public company accounting oversight board, It states high level managers (CFO, CEO, Senior roles) must maintain an effective system of internal controls. Internal controls get checked by senior management annually Outside Directorsoversee the accounting process and financial reports of a public company and review it with the audit committee Common lawa body of law established by court decisions Lanham Actprotects trademarks, and false advertising claims. one must show injury to reputation, direct causation by false advertising, loss of business by those deceived Telemarketing and consuming fraud and abuse prevention act telemarketer must identify the sellers name, describe the product, disclose all material facts including total cost, must remove customers name from list if requested. (a salesmans name is not the seller, must be a brand or business or true seller) Fair and accurate credit transaction actOne free credit report per year Securities exchange act of 1933companies must register with SEC if they are public, must complete prospectus Securities exchange act of 1934public companies must give continuous disclosure (form-10Q, form-10k) to prevent fraud and insider trading (10-b)

Employer / independent contractor relationship relationship where principal cant control the actions of the agent (not an agency relationship because of lack of principal control) Doctrine of responeat superioragent liable for own negligence, principal liable for agent if harm to third party happened while agent was working on principals behalf Indemnification(principal duties to agent set) principal pays agent back if agent gets sued while in principals service Sole Proprietorship(business forms and member duties set) business form where the owner is the business, Taxes are on personal income tax, Owner has unlimited personal liability for all obligations of the business with no asset protection Safe working conditions(principal duties to agent set) a worthy environment for agents put in place by principal General partnership(Business forms and member duties set) Business form where two or more people carry on a business for profit, Joint liability is in place which means personal liability is in place and split among partners, In certain situations one partner can be fully liable for everything (several liability) C Corporation(Business forms and member duties set) Business form where its registered and reconized with state and stater law, recognized as its own "person" meaning it has freedoms and takes on liability which protects members, It gets double taxed, members all get one equal vote Fiduciary duty(business forms and member duties set) partners and owners owe this responsibility to other members and owners DissociationTo leave a partnership or LLC ultimately relieving yourself from fiduciary duty Invested capitalWhat is voting power based on in a LLC?LLC / limited liability company(Business forms and member duties set) This business form can choose to be taxed as a C Corporation or like a S corporation (a pass through tax structure), Members can only be liable and lose up to the amount that they invest and contribute to the company Piercing the veilTerm for being held responsible for fraud or other crimes regardless if a business structure is meant to protect you or your liability Chapter 11 bankruptcy(bankruptcy set) type of bankruptcy that is a business reorganizing plan to pay back creditors, this type keeps business operations going, Debtor works with creditor committee to reorganize unless its a smaller business (less than 2.7 million in debt and no owned real estate or managed real estate), 2/3 of creditors have to approve the repayment plan Cramdown provision(bankruptcy set) Regarding bankruptcy with a repayment plan typically 2/3 of creditors need to agree on the plan however, this term refers to when the plan is approved by a single creditor and a court once the plan is deemed "fair and reasonable"

Chapter 7 voluntary bankruptcy(bankruptcy set) These entities can NOT apply for what kind of Bankruptcy?banks, savings and loans, insurance companies, and railroads Family farmers & charities(bankruptcy set) These entities can NOT be forced into involuntary bankruptcy (two of them)

• unsecured lenders for 12 or more total lenders and 1

unsecured lender for less than 12 total lenders (bankruptcy set) How many unsecured lenders are required to force a person or entity into bankruptcy if they have more than 12 total lenders? and how many unsecured lenders are required if less than 12 secured lenders?Automatic stay(bankruptcy set) This goes into place after filing and completing the "means test" and submitting your schedules, This stops creditors from performing actions to collect money Surety and Guaranty(co signer rights and duty set) What are the two types of Co-signers?Surety(co signer rights and duty set) This co signer is primarily liable and they hold a promise to be responsible for the also primary liable debtors obligation, The creditor can choose who to collect payment from of either of the primary liable signers Guaranty(co signer rights and duty set) This co signer is secondarily liable and only required to pay if the principal debtor defaults Right of subrogation(co signer rights and duty set) Right that states The co signer becomes the creditor to the principal debtor because they pay off the debt from the original creditor and now should be paid back Right of reimbursement(co signer rights and duty set) Right that states the co signer can ask for repayment if they pay off debt for debtor Right of contribution(co signer rights and duty set) Right that states if there's more than one co signer they all need to pitch in on the payments and do their fair share if principal debtor defaults True(co signer rights and duty set) All Co signs need to be in writing, True or False?Material Modification(co signer rights and duty set) This right refers to when a Co signer is released and no longer responsible for principal debtors debt if there is a change in terms of contract without any co signees consent Payment of debt(co signer rights and duty set) Right of co signers to be released from debt if they offer to pay off the debt and the debtor rejects Mechanics lien(Liens set) The lien that states if you make improvements to real property (real estate) or buildings attached to property the state law allows you to put a lien on the title of the property and push the option of foreclosure

Artesian lien(liens set) The lien that states if you make improvements to personal property (moveable items, NOT land or buildings) you can keep the personal property if not paid, Property must remain in your possession to have lien and can be sold with notice Judgement lien(lien set) This lien is when a party can take another party to court if they are unpaid to get a judgement, If found that party owes you money you can push further to garnish wages or other methods of getting paid Writ of attachment(lien set) If a court judgement is happening soon to see if a party owes another party money, the creditor can request the court hold some of the debtors assets so they cant liquidate them before the judgement in court, This process is called what?Writ of execution(lien set) This term refers to a post court judgement process that allows the court to send the local sheriff to a debtors home to seize non exempt assets for the court to sell and auction off to satisfy the lender (debtors property must be in the same geographical location as courts jurisdiction) Expressed warranty(warranty set) This warranty is when a seller tells a buyer a promise about the product making a statement about the condition or quality of the product Warranty Disclaimer(warranty set) This term refers to when a seller says the product is "as is" and clearly states there is no warranties (UCC code demands transparency) Implied warranties(warranty set) This warranty term is one that is basically common sense, ex. You buy a toaster and you would expect the toaster to toast bread, if it doesn't do that simple task then likely it is defective and can be remedied, when buying a item it is assumed the product does what it says it does Statute of limitations(contracts set) This term refers to when a breach of contract accrues but there is only a certain amount of time to fight it in the courts, if to much time has passed the contract is dismissed in the courts eyes Impossibility of performance(contracts set) This term refers to when a contract is discharged because it is literally not possible to complete False, A seller has the right to cancel a delivery of a product even if in transit if they learn a buyer is insolvent (insolvent meaning not able to pay) (contracts set) A seller can NOT cancel a order or delivery once a buyer has placed the order under any circumstances, True or False?Perfect tender rule(contracts set) This term refers to the basic duty the seller has, to give the buyer whatever it is they paid for and the goods must conform (match) what the buyer bought, otherwise the buyer can then accept the wrong goods, reject the wrong goods, or keep some and reject some Consequential or special damages(contracts set) Term that refers to damage done that leaves affected party with no option but to take a loss as a result of the other parties breach