Business Law Chapter 1

Several years ago, the Town of Superior, Colorado, enacted an ordinance ("Superior Town Ordinance") which reads as follows: "It is unlawful for any animal owner to fail to remove from any public or private property feces deposited by such animal." What if the U.S. Constitution stated that animal owners do not have to pick up the feces deposited by their animals on private property, and I challenged the validity of the Superior Town Ordinance?

I would win because a local ordinance cannot conflict with the U.S. Constitution.

Law

A body of enforceable rules governing relationships among individuals and between individuals and their society. They establish rights, duties, and privileges that are consistent with the values and beliefs of the society which enacted them

Which of the following is most likely not an example of procedural law within the context of securities laws?

A company must submit an annual report (called Form 10-K) to the SEC.

Stare Decisis

A doctrine under which judges are obligated to follow the precedents established in prior decisions (in their jurisdiction) when deciding new cases The efficiency of the court system is improved and there is legal stability/ predictability Hard to decide which case matches up the most to follow the "correct" precedent Ex: Brown v. Board of Education Topeka, the supreme court did not follow the precedent of Plessy vs. Ferguson

Marijuana example

Illegal under federal law Legal in Colorado because people voted to ammend Colorado constitution Attorney General said we won't enforce that law; is actually illegal but states can choose EXCEPTION

The IRAC method of legal reasoning

Issue, Rule, Application, Conclusion

Criminal Case

Parties: Government verse Individual Focus: "wrong" committed against society Question: Is the defendant guilty or not guilty? A standard of Proof: Beyond a reasonable doubt Ex: OJ verse the people

Enabling legislation

A statute enacted by Congress that authorizes the creation of an administrative agency and specifies the name, composition, purpose, and powers of the agency being created Ex: Federal Trade Commission (FTC) was created by the FTC act

Civil Case

Parties: individuals vs. individuals Focus: Harm caused by an action/inaction Question: Is defendant liable or not liable? Standard of proof: By a preponderance of the evidence (>50%)

3. Adjudication

Ability to conduct mini-trials involving its rules based on investigatory and prosecutorial powers before an administrative law judge Can appeal the decision to the commission or board that governs the agency If the party fails to get relief there, it can be appealed to the federal courts

Local ordinance

Regulation enacted by a city or county legislative that becomes part of that state's statutory law Deals with matters not covered by federal or state law Ex: Zoning, building and safety codes

Remedy

Relief granted to an innocent and injured party to enforce a right or as compensation for the violation of a right by a guilty party

Uniform Law Commission

Addressed need for standardization, especially in business Drafts uniform laws ("Model Statues") for the states to consider adopting Model Statute is a RECOMMENDATION, not a law (if legislation approves it will become law) Don't become state law until passed by that state's legislature, states can adopt parts of it or amend it

Assume that Congress passes a law establishing a new administrative agency to oversee cyberterrorism issues. The agency writes rules to enable itself to carry out its duties. The rules written by the agency will be known as:

Administrative law

Which of the following is a power that can be granted to an agency via enabling legislation passed by a legislative body?

Administrative law: Rule-making Enforcement and Investigation Adjudication

2. Enforcement and Investigation

Agencies often enforce their own rules In conducting investigations regarding rule violations, agencies can have subpoena power And may take action against the accused

The 10th Amendment

Reserves to the states all powers not granted to the federal gov Each state has its own constitution The state constitution is supreme (if it doesn't conflict with federal law)

Interstate verse Intrastate

Commerce power limited to INTERSTATE (go van regulate states) commerce and not applicable to intrastate commerce Federal gov can regulate commerce affecting interstate and intrastate commerce

Commerce Clause

Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Not specific Resulted in a lot of court cases Lots of room for interpretation Included because: Economic crisis after the Revolutionary War, inconsistent state laws interfered with commerce

Sources of American Law

Constitutional Law Statutory Law Administrative Law Case Law and Common Law Doctrines

6 functional fields of business

Corporate management Production and transportation Marketing R&D Accounting and Finance HR *"Law" is NOT a functional field because law weaves through all the fields

Sarah prevails in her lawsuit against Carl for injuries she sustained in a car accident. As a result, Sarah is entitled to a remedy. In the U.S. legal system, Sarah's remedy will most likely be in the form of:

Damages.

When the Colorado legislature enacts a statute, the citizens of Arizona are obligated to follow that statute unless Congress has enacted a similar statute.

False.

Administrative agency

Federal, state, or local government agency created by the legislature to perform a specific function, such as to make and enforce rules pertaining to the environment specific functions via enabling legislation

Procedural Law

Gives direction of process, "How" Establish the methods of enforcing the rights established by substantive law

Case Law

Rules, doctrines, and principles established by judges in court decisions which govern all areas not covered by statutory law or administrative law Made based on court decisions

Executive Agencies

Subject to the authority of the president, who has the power to appoint and remove their officers Ex: FDA is an agency within the US department of health and human services

Substantive Law

The "What" Define, describe, regulate, and create legal rights and obligations

American law is based mostly on what system of laws?

The English legal system

Common law

The body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature. Developed from principles underlying judges' decision in actual legal controversies

Statutory Law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law) Applies to all states State statute only applies within the state's borders Included in federal code of laws Lots of room for interpretation (dog poop example)

All of the cases that have been decided by U.S. judges, as well as by English judges prior to the American Revolution, constitute a body of law known as:

The common law.

Tyler believes that some laws passed by his state's legislature are bad, and he refuses to comply with them. He believes that there is a universal law above all others that grants rights to all people and that it is above all other laws. Tyler subscribes to what school of jurisprudential thought?

The natural law school

Monroe is reviewing an appellate case for class and must correctly identify the parties to the case. In the case, the original defendant (Franklin) is appealing his conviction by the State of Idaho. In the appeals case, Franklin is known as the:

appellant.

Administrative Law (3 types)

rules, orders, and decisions of administrative agencies of ALL levels (fed, local, etc.) Created by statute = enabling legislation Rulemaking, enforcement, and adjudication

Civil Law

spells out the rights and duties that exist between persons and between persons and their governments, as well as the relief available when a person's rights are violated Compensate the injured/damaged party (obtain a remedy) Plaintiff is a private party

Secondary sources of law

A publication that summarizes or interprets a primary law -Legal encyclopedia -Legal Treatise -An article in a law review Used for guidance in interpreting and applying the primary sources

Which of the following is not a federal agency?

Congress.

Which of the following is not a source of American law?

Model Statute

Primary sources of law

a document that establishes the law on a particular issue -Constitutions -Statutory law -Administrative rule (FDA) -Case Law (court decisions)

1. Rule-making

ability to formulate new, binding regulations or amend old regulations Agency is a specialized force that creates rules Must comply with APA (keeps power in check) Carry the same weight as if they were passed by legislature Interpretive Rules: Nonbinding rule or policy statement indicating how the agency plans to interpret and enforce the statute it is required; APA compliance not required

Joseph is appointed to serve as an officer for a federal agency. He is appointed by the president of the United States and confirmed by the U.S. Senate. He is to serve for a six-year fixed term and cannot be removed without cause (even if there is a change in the president). Joseph is most likely serving in:

an independent agency.

The city of Flagstaff passes legislation to make it illegal to carry an open container of alcohol on any city street at any time. This legislation is called:

an ordinance.

Richard is a state appeals court judge. In making judicial decisions, Richard issues rulings that are consistent with precedents established in similar cases within his jurisdiction. Richard is following the principle of:

stare decisis.

The Indiana state legislature passes a law increasing the minimum jail time for repeat violent offenders. This law becomes part of a body of law known as:

statutory law.

Several years ago, the Town of Superior, Colorado, enacted an ordinance ("Superior Town Ordinance") which reads as follows: "It is unlawful for any animal owner to fail to remove from any public or private property feces deposited by such animal." Which of the following statements is trueregarding the Superior Town Ordinance?

It is an example of statutory law. Like many other laws created by the legislative bodies in America, it does not account for every scenario involving dog feces; for example, it does not include a timing element.

Independent Regulatory Agencies

Less presidential power, officers serve for fixed terms and cannot be removed without just cause Federal Trade Commission

Cases of first impression

No precedent to rely on Usually with technology If they find precedent in other jurisdictions, it is NOT a binding but instead persuasive authority

Criminal law

PLAINTIFF IS ALWAYS THE GOVERNMENT Involves laws established to identify wrongs committed against society for which society demands redress

Adjudicate

To render a judicial decision, the trial-like proceeding in which an admin. law judge hears and resolves disputes involving an administrative agency's regulations

The uniform commercial code (UCC)

Uniform act, 1952, adopted in all 50 states Facilitates commerce among the states by providing a uniform, yet flexible, set of rules governing commercial transactions "Goods" = all things that are moveable Only focuses on personal property (not real estate)

Only if a state legislature adopts a ____ ____ does that law become part of the statutory law of that state Can adopt part or rewrite the adopted sections

Uniform laws

Several years ago, the Town of Superior, Colorado, enacted an ordinance ("Superior Town Ordinance") which reads as follows: "It is unlawful for any animal owner to fail to remove from any public or private property feces deposited by such animal." What if the Arizona State Constitution stated that animal owners do not have to pick up the feces deposited by their animals on private property, and I challenged the validity of the Superior Town Ordinance?

We need more information, such as: whether the Colorado Constitution addresses this issue; whether the Colorado state legislature has addressed this issue; and whether the U.S. Constitution addresses this issue.

The National Conference of Commissioners on Uniform State Laws (NCCUSL) passes a new uniform act related to texting while driving. This uniform act:

becomes the law in every state that adopts the uniform act through legislative action.

A case comes before a Wisconsin state trial court on the subject of free speech on the Internet. It is a case of first impression, meaning that no case involving the same issue has been decided by the Wisconsin courts. In deciding such a case, it would not be considered proper for the judge to consider:

equitable maxims.