Laws and Ethics

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Laws and Ethics Laws what you MUST do Ethics
what you SHOULD do Laws and ethics overlap
consider the final episode of Seinfeld...
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Law and Ethics Level 1 laws established by
society minimum standard of acceptable
conduct Level 2 professional code of ethics
set by professional organization Level 3
personal code of ethics highest standard of
conduct
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Criminal Law vs. Civil Law Criminal law- crimes
against society, prosecuted in public
interest Burden of proof reasonable doubt(much
more than 50) Penalties fines, imprisonment,
capital punishment
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Civil Law wrongs against an individual, brought
by one individual against another, Prosecuted in
private interest Burden of proof preponderance
of evidence (51) Penalties monetary damages
equitable remedies
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Crimes Assault unlawfully causing physical
injury/substantial pain to another Fraud
obtaining money, personal property under false
pretenses (intent is important here) Embezzlement
unlawful taking of money/property by employee
to whom it has been legally entrusted by employer
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Contract Law one form of civil law Not just a
social agreement A contract is any agreement
between two or more parties that a court will
enforce because the agreement creates legally
binding obligations between/among
parties Contracts do NOT need to be in writing in
order to be legally binding
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Types of contracts Bilateral both parties make
promises Unilateral one party makes promise in
return for specific act by the other Valid
contains all essential elements, thus is legally
binding and enforceable Void not a contract, no
legal effect, not enforceable
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Types of contracts Formal written, certain
formalities Informal no formalities, may be
oral or written Express agreement specifically
stated (insurance policy, house sale) Implied
by actions of either of parties Quasi implied
in law (as if there were a contract) Good
Samaritan
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• Necessary elements of a contract ALL MUST BE
  PRESENT for the contract to be enforceable
• Agreement offer, acceptance, mutual assent
• Consideration mutual exchange of value
• Competent parties must understand the effect
• Legal purpose

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Agreement Offer must be seriously intended
definite, specific communicated (oral or
written) Offer ends after stated time period
if rejected if counter offer proposed if
revoked (withdrawn) if offerer dies, becomes
insane if becomes illegal or impossible
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Agreement Acceptance only by offeree
must be mirror image of offer must be
communicated (usually in same form as
offer) Silence as acceptance silence not
generally regarded as acceptance Mutual assent
meeting of the minds
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Agreement regards specifics of contract Other 3
elements regard situation CONSIDERATION
something of legal value given by each
party Promise can be of legal value Note
consideration from one party makes promise of
other party enforceable
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Legal detriment consideration may also be a
sacrifice giving something up or refraining
from doing something Creates legal obligation by
the other party (detrimental reliance) (patient
may rely on drs promise, to his/her
detriment) Adequacy of consideration usually
not considered by court, unless unconscionable
(unfair) Consideration may be nominal 1
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• COMPETENT PARTIES parties legally and mentally
  capable of entering into contract key is
  UNDERSTANDING of the legal obligation created by
  the contract
• Disaffirmance legal right of incompetent to set
  aside agreement
• 3 kinds
• Minors Infancy is a shield, not a sword
• Minor may disaffirm any time until reaches
  majority, and reasonable time thereafter

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Some contracts not able to disaffirm student
loans, airline tickets (if used), stock
transactions, marriage, armed forces
enlistment Misrepresentation of age constitutes
fraud, but adult may not recover for
damages Emancipated minor self-supporting
NOTE burden of proof on person claiming
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Minors liable for necessaries those things a
person actually needs in order to maintain
station in life Under what circumstances
could chiropractic care be considered a
necessary? Note parents generally have no
legal liability for contracts made by minor
children, unless co-signed
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• Under the influence
• Alcohol, drugs a temporary condition
• Must be affected so person does not understand
  seriousness or consequences of agreement
• (What happens if you adjust someone who is drunk
  and you injure him?)
• Mentally ill unable to understand
• May be judged incompetent by court (has a
  guardian)
• If not judged incompetent temporary illness,
  depression -- can disaffirm

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LEGAL PURPOSE If both parties know of illegality,
court will not consider If one party unknowingly
signs, may recover Violates licensing
statutes What is the effect if an unlicensed
chiropractor injures a patient?
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Violates civil, criminal statutes Violates
usury statutes usury charging a higher rate
of interest than allowed by law (loans, not
merchandise sale) If unreasonably restrains
competition and trade Non-compete agreement
is enforceable only if territory, time
restrictions are REASONABLE enough to protect
purchaser
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Statute of Frauds protects buyer in certain
types of contracts by specifying that they must
be in writing contract to pay debt of
another sale of real property consideration of
marriage (pre-nuptual agreement contracts which
cannot be performed within one year contracts
over a certain amount (depends on
state)
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Breach of contract one party fails to perform
obligations required Remedies actions to
obtain satisfaction for injury caused by
breach Material substantial
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• Legal remedies
• Damages
• a. Compensatory for actual loss
• b. Nominal small amount little loss
• Punitive exemplary
• Equitable remedies
• Specific performance
• Injunction

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• Defenses for Breach
• Fraud false statement about material fact
  active or passive deliberately made and
  intended to deceive damages must be proved
• Duress- compelled through physical force, other
  improper threats
• Undue influence power relationship

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• Mistake some mutual mistakes can serve as
  defenses because no meeting of minds
  unilateral not defense (I didnt know it was
  worth that much)
• Statute of limitations time limit within which
  lawsuit must be filed after contract breached