BUSINESS LAW
By Michael Lustig
Copyright 2011 Real Estate License Services, Inc.
Smashwords Edition
BUSINESS LAW
Textbook and Student Workbook, Combined
Course
by Corespondence.
For Qualification For a California Real Estate
Broker
License or to Extend a California Real Estate Sales
License (D.R.E.Approval #1227-90)
New Department of Real Estate Rules Allow You to Avoid All Quizzes and to Go Straight to Your Final Exam, Which is Open Book! You May Suggest Your Own Test Administrator Also! For Details, Please Turn This Page and Read the Student Instructions/General Information Page.
REAL
ESTATE LICENSE SERVICES
5059 Newport Avenue, #209
San
Diego, CA 92107
(619) 222-2425
Includes “Student Instructions,” Quiz Questions and Answers, and Page References for the Quiz Questions for the Course “Business Law.” Please Read and follow the complete “Student Instructions” just after this page.
Copyright 2011, 2003, 2000, 1991, 1990, 1989, 1988, 1987, 1983 Real Estate License Services, Inc. Copyright registered. All rights reserved. No part of this material may be reprinted, reproduced, transmitted, stored in a retrieval system, placed in a computer or on the Internet, or otherwise utilized, in any form or by any means electronic or mechanical, including photocopying or recording, now existing or hereinafter invented, nor may any part of this course be used for teaching without permission from the copyright holder.
STUDENT INSTRUCTIONS/GENERAL INFORMATION
The California Department of Real Estate DOES NOT REQUIRE COMPLETION OF QUIZZES OR ESSAYS PRIOR TO YOUR FINAL EXAM. Study the "Written Assignment" questions based on the chapter readings as well as the answers with page references that are on the following page. YOU DO NOT NEED TO SEND IN ANY "WRITTEN ASSIGNMENT" ANSWERS. To complete this course, just study the practice questions and answers, take the final exam online or on paper and, if on paper, make sure the final exam question sheets and completed Scantron answer forms are returned to us along with the completed "Certification of Test Administrator." THE FINAL EXAM IS OPEN BOOK. If you have any questions, please call (619) 222-2421.
1) This course consists of text reading and a final examination.
2) Practice questions ("Written Assignments") covering most of the chapters in the book are based on the text reading in each chapter. Answers to those practice questions (with page references) are included for your convenience and may be found on the page after this page. The "Written Assignments" are for your practice only. NO QUIZ QUESTIONS ARE REQUIRED PRIOR TO YOUR FINAL EXAM.
3) The minimum time limit to complete one course is 20 days from the date of enrollment. The maximum time limit to complete one course is six (6) months from the date of enrollment. Two three (3) month extensions may be obtained (see section below on Extensions and Re-enrollments). Under no circumstances can your enrollment last beyond twelve (12) months.
FINAL EXAMINATION: When you are ready to take the final test, please fill out the form "Request To Take Final Exam." You may mail it to Real Estate License Services, 5059 Newport Ave., #209, San Diego, California 92107, or fax to (619) 222-8593. Real Estate License Services will arrange for your final examination online or with a test administrator. If your final exam is not online, you may suggest who your test administrator will be. The examination consists of 100 multiple choice questions and you must complete it within 150 minutes (2.5 hours). When you finish the test, If your final exam is not online, turn it in to the test administrator, who will mail it to Real Estate License Services. The questions used for the final exam must be mailed to Real Estate License Services along with the answers.
GRADING OF THE FINAL EXAM AND ISSUING OF CERTIFICATES: A passing grade is based on a minimum passing score of 60% on the final examination. Only the final examination grade is used in determining the student's overall grade. Students will be assigned a letter grade, but the grading system reflects the 60% passing requirements.
% OF POINTS = GRADE
100% - 90% = A
89% - 80% =
B
79% - 70% = C
69% - 60% = D
59% - 0%
= Fail. In this case the course would have to be repeated and passed
in order to receive credit.
An official certificate of your course grade will be mailed to you within two weeks after receipt of your completed final examination if taken with a test administrator. Additional certificates are $15.00 each.
REFUNDS: Students may apply in writing to REAL ESTATE LICENSE SERVICES, mailing address, 5059 Newport Ave., #209, San Diego, California 92107 within 15 days from the date of enrollment and cancel and receive a refund for the full tuition. All REAL ESTATE LICENSE SERVICES materials must be returned in good condition at the time of cancellation; the materials should not be soiled, torn or marked upon. Refunds are not allowed if any work has been submitted.
EXTENSIONS AND RE-ENROLLMENTS: If the course has not been completed within six (6) months of enrollment, the student may receive an extension of three (3) months by paying an extension fee of $35.00. If at the end of that three month extension the student still has not completed the course, a second three (3) month extension may be obtained by paying an additional fee of $30.00. IN NO CASE MAY THE PERIOD OF ENROLLMENT EXTEND BEYOND TWELVE (12) MONTHS. If the student has not completed the course within 12 months from the original date of enrollment, the enrollment expires and no further extensions are allowed. The student must re-enroll and begin the course over again in order to complete the course. The student may re-enroll under such circumstances for a discounted re-enrollment of $40.00 per course.
TRANSFERS: Courses may be transferred to another person by paying a transfer fee of $30.00 per course. Transfers are not allowed if any work has already been submitted.
BUSINESS LAW
To finish this course, you simply need to do the following:
1. Quizzes are NOT required. Included below are the answers to the questions at the end of each chapter. Page references for the topics in each question and answer are also listed. Read the book and study the questions and answers. You may take your final exam 18 days after having possession of the textbook
2. When you are ready to take your final exam, please fill out the form "Request To Take Final Exam," and fax it to (619) 222-8593 or mail it to: Real Estate License Services, 5059 Newport Avenue, #209, San Diego, CA 92107. Real Estate License Services will arrange for your final examination online or with a test administrator.
Answers with Page References to Practice Questions at the End of Each Chapter in This Textbook:
TABLE OF CONTENTS
Chapter 6 CORPORATIONS AND OTHER BUSINESS FORMS
Chapter 10 NEGOTIABLE INSTRUMENTS
Chapter 11 SECURED TRANSACTIONS
Chapter 15 GOVERNMENT REGULATION
Chapter 16 PROFESSIONAL LICENSURE AND LIABILITY
Chapter 1
LAW AND
BUSINESS
INTRODUCTION
In order to better understand what business law includes, we need to examine the various components of the U.S. legal system. This chapter will illustrate how its elements are combined to provide the law governing business.
DEFINITIONS
Before examining the U.S. legal system, certain terms should be defined. A “law” is a pronouncement from a legislature which provides parameters for conduct in society. It is synonymous with the term “statute.” A “regulation” is also a pronouncement which provides guidelines for societal conduct. However, it is issued by an agency rather than by a legislature.
CIVIL LAW V. COMMON LAW
The law that any legislative body may enact can broadly be separated between civil law and common law. Civil law, modeled after the Roman legal system, tries to set down all possible laws concerning all possible situations at one time. Common law, on the other hand, is most concerned with precedent. The concept of precedent deals with solving current problems utilizing past solutions. U.S. common law is derived from England’s legal system.
Both methods of formulating law are used in the United States. Common law, though, is by far the most predominant. Because of its intent, common law can more effectively deal with the contemporary problems of society. It doesn’t have to try and anticipate what problems might occur.
LAW FORMATION
As indicated above, governmental legislatures can institute a law. However, there are many other ways of establishing laws on both the federal, state and local levels.
(I) The Federal Level
(A) The Constitution of the United States- Law in the United States comes from a variety of sources. The supreme law of the land is the U.S. Constitution. It provides the basic framework for our governmental, legislative, and judicial systems as well as providing for basic rights for all citizens. It supersedes all law that may come from any other source.
While the Constitution does not have a specific set of codified laws dealing exclusively with business law, it nonetheless does have impact in the area. For example, the rights of entrepreneurs and customers are guaranteed by the Bill of Rights. These rights are included in the first ten amendments to the Constitution.
(B) The legislative branch- The bulk of national law comes from the United States Congress, which is comprised of the House of Representatives and the Senate. The Congress is by far the most powerful legislative body in America. Besides passing laws, Congress also has the power of appropriating funds for fulfilling various governmental obligations.
Much of business law is initiated at the federal level. Notable examples of applicable laws are the federal antitrust laws, the Bankruptcy Code, and the Limited Uniform Partnership Act.