Tag Archives: legal terms

Civil Unrest

Though this particular topic is not directly related to business operations, it can impact on ones ability to conduct business while it is in progress. Civil unrest, or civil disorder, is a disturbance that is caused by a group of people who are normally protesting against major socio-political problems. In this sense, you could even call it public outrage, examples of which are illegal parades, sit-ins, road blocks, riots, sabotage, and other forms of crime. It is intended to be a demonstration to the public and the government, but can at times escalate into general chaos and anarchy. During these times, many business places have to close so as to protect life and property.

As shown earlier, civil unrest takes various forms. There are times too when lives are lost or people become severely injured or harmed in other ways. Let us take a gas riot for example. The price of gas gets so high that people are unable to purchase gas. They get angry and thus mount road blocks and effectively force a shut down of business activities within a certain area, sometimes the entire country. This results in loss of millions of dollars in revenue and hundreds of hours of manpower time. This can cost a country a lot of money and may even bring it to its knees, almost at a breaking point. So, civil unrest does indirectly affect businesses, but depending on what the reason for it is, it can also directly affect them at times.

Class-Action Suit

A Class-Action Suit is a lawsuit that is brought by one party on behalf of a group of individuals all having the same grievance. This type of lawsuit works out in the best interest of the suing parties as they all work together as one force and pool their resources to pay for legal representation. Class-action suits are becoming more and more common as the rights of individuals are being trampled on more and more by different people, companies, conglomerates, or other entities that place the offended parties in a difficult position. While some things that companies do in terms of initiating actions against a group of individuals places them at the end of a law suit and is sometimes justified and legal, not all of these actions are lawful.

For example, in November 2002, PayPal found itself facing a class-action suit. The “suit charges PayPal with illegitimately restricting customers’ access to their money. The suit asks for an unspecified amount of damages. PayPal frequently locks customers’ accounts if it suspects that fraud played a part in a transaction, even if the amount in doubt is a fraction of the total amount in an account, said Gail Koff, an attorney and founding partner of Jacoby & Meyers, which filed the lawsuit.” – CNet News.com (http://news.com.com/2100-1017-842240.html). PayPal’s justification for locking customers’ accounts is that it trying to protect itself from fraudulent transactions. However, the affected customers’ believe that PayPal was treating any “suspicious” activity as fraud, even if it was not, as they have been losing millions of dollars due to fraud. In any case, this is just one example of a class-action suit because it involved a group of people who had a grievance with PayPal.

Another example of a class-action suit that was filed is that against AT&T for “Collaboration with Illegal Domestic Spying Program”. In this case, the “Electronic Frontier Foundation (EFF) filed a class-action lawsuit against AT&T on January 31, 2006, accusing the telecom giant of violating the law and the privacy of its customers by collaborating with the National Security Agency (NSA) in its massive, illegal program to wiretap and data-mine Americans’ communications…. The EFF lawsuit arose from news reports in December 2005, which first revealed that the NSA has been intercepting Americans’ phone calls and Internet communications without any court oversight and in violation of the privacy safeguards established by Congress and the U.S. Constitution. This surveillance program, purportedly authorized by the President at least as early as 2001, apparently intercepts and analyzes the phone and Internet communications of millions of ordinary Americans.” - EFF (http://www.eff.org/legal/cases/att/). In this case, customers accused AT&T of violating their privacy by listening to their calls without their consent, in effect an invasion of privacy. The disgruntled customers subsequently filed a class-action suit against AT&T.

These are two completely different cases where a class-action suit was filed. There are many other examples of such suits that are of similar interest and depth. All in all, class-action suits are here to stay because there will always be a set of disgruntled individuals who are unhappy with something that someone or a company does to them, resulting in lawsuits being filed.




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Money Laundering

Money Laundering has become big business over the past several years. This type of business has been around for centuries, but in more recent times it has taken on an unprecedented dimension due to the global marketplace where businesses now operate in and the available technologies. It has become easier, to an extent, to launder money using various means. The internet has played a pivotal role in this business, giving launderers easy access and means to move their money around. But what is money laundering? Money Laundering is the “washing” of dirty money (money that is obtained by illegal means) by investing it in legitimate business operations or by placing it in financial institutions or other securities where it is “cleaned”. As the term “laundering” suggests, the money is washed, so to speak, i.e. it is made clean by investing it in legal and legitimate business operations.

Money can be laundered through banks; investments; acquisitions; purchase of assets like cars and houses; giving it to charity; over the internet; among other means. A prime example of money laundering is a criminal network obtaining cash through the sale of drugs and then using the money to fund a legitimate business, like a supermarket, or to purchase vehicles. This is with the hope that the money cannot be traced to their drug operations. So it would appear as if the money used to acquire these assets is “clean” as it is being used in operations that are not illegal. Money laundering through financial institutions is also a favourite of wrong doers. That is why such institutions the world over have had to institute policy changes to tackle the problem. In most cases, if cash movements in an account over a certain value and within a short period of time is observed, the fraud squad is called in to investigate. In any case, more and more ingenious ways of laundering money are being found everyday as it is big business.

Money laundering is illegal and those who are caught will be brought before the court of law and fined. Many launderers end up facing many years of jail time. It may seem to be profitable at first but the end result is not as nice.

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Citizen’s Arrest

A Citizen’s Arrest is similar to when a police officer performs an arrest except for the fact that the person performing the arrest is a regular citizen. As with an arrest by a police officer too, the person who is being arrested must not have his human rights violated in any way. This means that the individual should not be made subject to being kicked, boxed, stabbed, stoned, or in any other way harmed physically. Of course, in extreme cases like self defense or defending someone else, there are times when injury may have to be inflicted on the individual being arrested by a citizen. In such cases, if the matter is brought before a court of law, the judge (and jury if it goes to trial) will have to weigh the circumstances around the injuries and rule accordingly.

What are some situations when a citizen’s arrest can be made? Here are a few:

1. Robber being apprehended when there is no police around.
2. Praedial larcenist caught in the act.
3. Anyone who engages in arson and is caught by citizens.
4. In self defense after being able to bring the attacker under control.
5. In the case of an accident where the offending party tries to escape from the scene of the accident.

There are a lot more situations that exist where a citizen or citizens have to act in the stead of a police officer to carry out an arrest. In any case, after the individual has been arrested, he/she must be taken to the nearest police station where officers will take the person into custody and also take statements from the person(s) who accosted the perpetrator and turned him/her in. The legal system will then pick up from there.

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Misleading Advertising

How many times have you heard an advertisement on the radio or seen one on the television or in the newspaper for an item valued at $xx.xx, but when you visit the store they tell you a completely different, most times higher, price? Or you may see an ad for an item that looks a particular way, but when you visit the store it is no where near what it looked like in the ads? These scenarios are classic examples of Misleading Advertising. Misleading Advertising is the deliberate misrepresentation of an items price, look, value, quality, usability, functionality, ability, or any other characteristic in order to solicit the patronage of unsuspecting consumers and buyers in an attempt to gain sales of said items. Simply put, it is false advertising, a lie, untruth. Many businesses have been known to promote this practice so as to lure customers to their business. Unfortunately, many customers get caught in the trap and when they realize that the item they bought is nothing near what was advertised and try to return it for an exchange or refund, they are told that a clause in the sale of their items is that “all sales are final, no refund, no exchange.”

The bad thing about that clause is that it is usually in the fine print of receipts or contracts that customers get after making a purchase (it is never brought to the attention of the consumer). Some stores have signs put up that state outrightly that they do not give exchanges or refunds. The rule of thumb then would be: DO NOT buy from stores that promote such a policy. You have choices, so shop around for a store or business that will give you an exchange or refund if it should come to that. Some of the businesses that promote Misleading Advertising are often times “fly-by-night” operations that spring up from no where, literally overnight, take unsuspecting customers money then suddenly disappear from existence. Then when a customer has a complaint, the business is no where to be found. The best thing to do when buying items that are advertised is to check the items to ensure that they are what the ad says. If you are being rushed into purchasing an item, something fishy is going on. NEVER allow yourself to be rushed into buying an item. Always look at it carefully, ask questions, and inquire about their refund and exchange policies. If it does not suit you, shop elsewhere.

An example of Misleading Advertising is a store selling hair dryers that can dry your hair in minutes (when normally it should take longer). Since this would be appealing to a lot of females, they would rush such a sale and buy the hair dryer. When they go home and try it, they find out that it takes just about the same time, or even longer, to dry their hair as any other hair dryer. Or it could be a case where the air blown from the dryer is so hot that it cannot be put on one’s hair, lest it catch afire or burn the face and scalp. So the dryer never lived up to their expectations; the ad was misleading. Using he same example, the hair dryer may have been advertised for $100, but when you go to buy it you are told it actually costs $150. That is Misleading Advertising.

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Habeas Corpus

Habeas Corpus (derived from the Latin word meaning “you have the body”) is the name of a legal action or writ which detainees can use to seek relief from unlawful imprisonment. The writ of habeas corpus has through time been an important means for the safeguarding of individual freedom against arbitrary state action. Also known as the “Great Writ,” a writ of habeas corpus ad subjiciendum is a court order that is addressed to a prison official ordering that a prisoner be brought before the court so that the court can determine whether or not that person is serving a lawful sentence or should be released from custody. The prisoner, or some other person on his behalf, may petition the court or an individual judge for a writ of habeas corpus.

For example, if someone was arrested for allegedly littering the streets and knows he is innocent, then a writ of habeas corpus can be filed in court to seek the release of the prisoner. He (the prisoner) can petition on his own behalf or he can have someone do it for him. In court, or before a judge only, the defendant will have a chance to defend himself against being wrongly imprisoned so as to seek his release.

What Does Pro Bono Publico Mean?

Pro bono publico (normally shortened to pro bono) is a phrase that is derived from Latin meaning “for the public good”. It is used to designate legal or other professional work that is undertaken voluntarily and without payment, as a public service, thus for the public good. In some cases, pro bono counsel may help an individual or group of persons on a legal case in filing an appeal, government applications or petitions. Every now and then, if the case is won, the Judge may determine that the loser should compensate the pro bono counsel.

So if someone has a case to hear in court but cannot afford the services of an attorney, a pro bono counsel is appointed to assist in defending that individual. This is done free of charge to the defendant, but the pro bono counsel may get compensated if the case is won and the presiding magistrate or Judge orders that the loser pay the pro bono counsel.

What Is Power Of Attorney?

A Power of Attorney is a legal instrument that is used to delegate legal authority to another. The Principal is the person who signs, or executes, a Power of Attorney. The Power of Attorney gives legal authority to an Agent or Attorney-in-Fact to make property, financial and other legal decisions on behalf of the Principal.

An Agent can be given broad legal authority or very limited authority by a Pricnipal. The Power of Attorney is generally used to help in the event of the illness or disability of a Principal, or in legal transactions where the Principal cannot be present to sign necessary legal documents.

You may read up more on Power of Attorney by clicking here.

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