Laws and Ethics Laws – what you MUST do Ethics – what you SHOULD do Laws and ethics overlap consider the final episode

1. Laws and Ethics Laws – what you MUST do Ethics – what you SHOULD do Laws and ethics overlap consider the final episode of Seinfeld...

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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”

12. 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

13. 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 dr’s promise, to his/her detriment) Adequacy of consideration – usually not considered by court, unless unconscionable (unfair) Consideration may be nominal $1

14. 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

15. 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

16. 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

17. “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

18. 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?

19. +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

20. 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)

21. Breach of contract – one party fails to perform obligations required Remedies – actions to obtain satisfaction for injury caused by breach “Material” = substantial

22. Legal remedies • Damages • a. Compensatory – for actual loss • b. Nominal – small amount – little loss • Punitive – exemplary • Equitable remedies • Specific performance • Injunction

23. 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

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