Chapter 1: Introduction to Law

power

Ability to make someone behave in a predictable manner

Primary Law

Actual laws Constitutions, statutes, and judicial opinions

Substantive Law

Actual substance of the law or the merits of the claim, case, or action

Public Law

Applies to everyone

Jurisdiction

Area where power may be exercised Followed in Europe

Natural Law

Belief that humans possess certain inalienable rights that are not the products of human-made law

Legal Positivism

Belief that law is whatever the sovereign says it is Laws are written, human-made rules Created by legitimate law-creating authority

Legal Realism

Belief that law itself is less important than who is in the position to enforce it

International Customary Law

Composed of long-standing international customs or practices that have the force of law

Constitutional law, statutory law, rules and regulations promulgated by administrative agencies, federal common law, and treaties

Composed of many different sources of law...

Draft

Compulsory military service

English Bill of Rights of 1689

Contains the basis for many concepts contained in the U.S. Constitution Rights of the people to limit the sovereign

Magna Carta of 1215

Contains the basis for many legal principles recognized in the U.S. Constitution Includes due process and habeas corpus

Rules or regulations

Created by administrative agencies and have the force of law

Statutory law

Created by legislative bodies

Authority

Draws its strength from legitimacy

Federalism

Dual system of government present in the United States Governance structure whereby the federal government and the state governments coexist through a shared power scheme

State Constitution

Each state has its own constitution Serves the same function for state government as the U.S. Constitution serves for the federal government State laws differ from each other and does not conflict with federal laws

Legal Pragmatism

Emphasizes the context of disputes or facts, questions the foundations of law, and recognizes that alternative perspectives are unavoidable Rejects the idea of legal formalism or any undue attachment to any theory of jurisprudence at all Law should be viewed as an instrument and as a practice, and the facts of a case should be understood in their context

Due Process

Ensures fundamental fairness and decency in government actions

Precedent

Existing interpretation of law, based on prior decisions

Treatise

Exposition or summary of an area or body of law

Federal Trade Commission (FTC)

Federal agency that protects consumers

Bill of Rights

First ten amendments to the U.S. Constitution Powers not expressly granted to the federal government are reserved to the states Preserves individual civil rights and liberties

Police Law

General power of states to regulate for the health, safety, and general welfare of the public

Power

Law is ____

Procedural Law

Legal rules that must be followed by government officials in the execution of law

Private Law

Legally binding on parties who agree to it, such as contract

Bicameral

Legislature of two bodies

Uniform Commercial Code (UCC)

Model statute that seeks to provide uniformity to contracts law among the different states

Prisoners of conscience

People who have been jailed because of their political, religious or other conscientiously-held beliefs, ethnic origin, sex, color, language, national or social origin, economic status, birth, sexual orientation, or other status

Jurisprudence

Philosophy of law

Stare decisis

Principle that courts should follow precedents

Title VII of the Civil Rights Act

Prohibits discrimination related to protected characteristics in hiring and employment practices

Color of authority

Refers to actions taken under the law

Truth in Lending Act (TILA)

Requires lenders to provide accurate information concerning costs involved in offers of credit

Law

Right from wrong is based on legitimate authority which creates and enforces law Violation results in legal consequences and penalties

Social Customs

Right from wrong is based on societal norms and cultural expectations No legal consequences for violation

Law

Set of rules enforced by government authority

Enabling Legislation

Statutes created by Congress to create individual administrative agencies

US Constitution

Supreme law of the land Created the structure of the U.S. federal government consisting of three branches Legislative, executive, and judicial

Rule of Law

System of laws under which the people and the government are bound Legitimizes the law Establishes authority, creates expectations for behavior, and establishes redress for grievances and penalties for deviance

Vice Laws

Targeted at regulating or prohibiting vice activities or businesses engaged in vice activities Gambling, prostitution, alcohol consumption, and pornography

Ponzi Scheme

Type of investment fraud similar to pyramid scheme

hierarchical authority structure

Under the rule of law Attainment of peace relies on the establishment of a ____

Employers know the rules of the game regarding their relationship to employees Employees know the rules with respect to their obligations to employers Businesses can rely on it to govern their debtor and creditor relationships

Under the rule of law employers ... employees ... and businesses ...

Insider trading

Use of non-public information to buy or sell a stock to make money

Marketers

___ must be particularly attuned to tort law, consumer protection law, and intellectual property law

Common law

Judge-made law Feature of most countries previously colonized by Great Britain

Civil law

Jurisdiction in which only the legislature creates law

Public law Private Law Procedural law Substantive law

How is law classified?

Regulation Z

Implements the Truth in Lending Act

Sarbanes-Oxley Act

Imposes stringent oversight requirements on accounting and auditing firms

Enforced disappearance

International crime and human rights violation where a person is detained by a state government, and that person's whereabouts are not revealed to the detainee's family, or the government denies that they were involved

Secondary Law

Interpretations of law Restatements of law, law review and journal articles, uniform codes, and treatises

Code of Hammurabi

Oldest record of seemingly complete rule of law system

insider trading Due process international customary law

What are examples of legal positivism?

Legal Positivism Legal Realism Natural Law Legal Pragmatism

What are the theories of Jurisprudence?

TILA Regulation Z

What are two financial transactions?

Competence Compliance with security laws Conduct consistent with generally accepted accounting principles

What does the Sarbanes-Oxley Act seek to ensure?

Title VII of the Civil Rights Act

What is an example of management?

Prohibits individuals from remaining true to their own consciences when their consciences conflict with the laws of the sovereign Too limited in its conception of law

What is the criticism of legal positivism?

Individuals in position to exercise the power of law over others should not circumscribe the checks and balances of the government

What is the criticism of legal realism?

Criminal Law •Law related to conduct that is prohibited by the government •Criminal charge is prosecuted by the government •Attorney is provided if the defendant cannot afford one •Penalties for violation include incarceration or loss of life Civil Law •All law that is not criminal law •Civil claim is pursued by a plaintiff •Plaintiff is responsible for providing his or her own attorney •Penalties for violation include monetary forfeits

What is the difference between criminal and civil law

Protect investors and to maintain a fair market Enforce accounting and auditing policies Pursue charges of accounting fraud Oversee private regulation of the accounting profession Enforce prohibitions against insider trading and other types of securities fraud, such as Ponzi schemes

What is the mission of the U.S. Securities and Exchange Commission's (SEC)?

Establishes rules that people and businesses must follow to avoid being penalized Provides a peaceful and predictable means by which disputes can be resolved Provides guidance and direction in every area of business Provides a sophisticated system of federalism in the United States Governs contracts between people and between merchants Provides protection for property Protects people from illegitimate practices of businesses Protects businesses from governmental abuse

Why is the rule of law important?