Business Law

U.S. District Courts

-At the federal level, these are equivalent to a state trial court of general jurisdiction. -There are currently 94 federal judicial districts.

Exclusive versus Concurrent Jurisdiction

-Concurrent jurisdiction: Exists when two different courts have the power to hear a case. -Exclusive jurisdiction: Exists when a case can be heard only in a federal court or a state court.

The United States Supreme Court

-Consists of 9 justices -Can review any case decided by any of the federal courts of appeals, and has appellate authority over some cases decided in state courts

Trial Courts

-Courts in which trials are held and testimony taken -Small claims courts: A special court in which parties can litigate small claims without an attorney. These courts only hear civil cases involving claims of less than a certain amount (usually $5,000). -Appellate, or Reviewing, Courts --Typically limit their reviews to questions of law rather than questions of fact. --Usually defer to the trial court's findings on questions of fact unless the findings are erroneous. --The decisions of each state's highest court are final on all questions of state law.

Jurisdiction of the Federal Courts

-Federal Questions -Diversity of Citizenship --"Diversity" cases occur when: ---The parties are not from the same state, and ---The amount in controversy is greater than $75,000. --Case Example 2.4 Mala v. Crown Bay Marina, Inc. (2013)

Bill of Rights: The first ten amendments to the U.S. Constitution

-First Amendment - freedom of religion -Second Amendment - right to keep and bear arms -Third Amendment - prohibits lodging of soldiers in any house without owner's consent during peacetime -Fourth Amendment - unreasonable search and seizure -Fifth Amendment - rights to indictment by grand jury -Sixth Amendment - right to speedy and public trial -Seventh Amendment - right to trial by jury in civil cases -Eighth Amendment - prohibits excessive bail/fines and cruel/unusual punishment -Ninth Amendment - establishes people have rights in addition to those specified in Constitution -Tenth Amendment - establishes powers reserved for states

The First Amendment—Freedom of Religion

-First Amendment may not "establish" a religion or prohibit the "free exercise" of religion. -The Establishment Clause Establishment clause: --Prohibits government from establishing a state-sponsored religion, or passing laws that favor one over the other. -The Free Exercise Clause --Free exercise clause: The provision in the First Amendment that prohibits the government from interfering with people's religious practices or forms of worship. ---Case Example 1.16 Holt v. Hobbs (2015): United States Supreme Court decision on the free exercise clause and how restrictions must be necessary

Equal Protection

-Government must treat similarly situated individuals (or businesses) in the same manner. -Courts apply different tests: -Strict Scrutiny - fundamental rights -Intermediate Scrutiny --Applied in cases involving discrimination based on gender or legitimacy -The "Rational Basis" Test - economic rights --Case Example 1.22 Maxwell's Pic-Pac, Inc. v. Dehner (2014)

Early English Courts

-King's courts started after Norman conquest of 1066. -Established the common law—body of general legal principles applied throughout the English empire -King's courts used precedent to build the common law. --Precedent: Court decision that furnishes an example involving identical or similar facts

Following a State Court Case: The Pleadings

-Litigation: The process of resolving a dispute through the court system. -Pleadings: Written documents that inform each of the parties of one another's claims and defenses and specify the issues involved in the lawsuit.

Original and Appellate Jurisdiction

-Original jurisdiction: The authority of a court to hear and decide a dispute in the first instance. -Appellate jurisdiction: The authority of a court to review a prior decision in the same case made by another court.

Limits on Federal and State Governmental Actions

-Originally, Bill of Rights only applied to the federal government. -Later, the Bill of Rights was "incorporated" and applied to the States as well. -Some protections also apply to businesses.

Jurisdiction over Persons or Property

-Personal jurisdiction gives a court the authority to hear and decide a dispute involving any person or business that resides in the court's geographic area. -Long Arm Statutes: used for non-resident parties based on "minimum contacts" with state --Case Example 2.2 Ji-Haw Industrial Co. v. Broquet (2008) -A corporations is normally subject to personal jurisdiction in the state in which it is incorporated, has its principle office, and is doing business. --Case Example 2.3 State ex rel. Norfolk Southern Railway Co. v. Dolan (2017)

Due Process, Equal Protection, and Privacy

-Procedural Due Process: --Any government decision to take life, liberty, or property must be fair. --Requires: Notice and Fair Hearing -Substantive Due Process --Focuses on the content or the legislation (the right itself)

Commerce Clause

-Provision in Article 1, Section 8, that gives Congress the power to regulate interstate commerce -The Expansion of National Powers under the Commerce Clause -The "Dormant" Commerce Clause Case Example 1.8 Comptroller of the Treasury of Maryland v. Wynne (2015): Found the failure to provide a full credit for income taxes paid to other states was unconstitutional.

The First Amendment—Freedom of Speech

-Right to Free Speech is the basis for our democratic government. -Free speech also includes symbolic speech, including gestures, movements, articles of clothing. -Reasonable Restrictions --Content-Neutral Laws Case Example 1.11 Commonwealth v. Ora (2008) --Laws That Restrict the Content of Speech Case Example 1.12 Morse v. Frederick (2007) -Corporate Political Speech -Commercial Speech -Unprotected Speech

Regulatory Powers of the States

-Sovereignty: Power of a state to do what is necessary to govern itself. -Police powers: State regulatory powers

Jurisdiction over Subject Matter

-Subject matter jurisdiction is the authority of a court to hear and decide certain types of disputes; examples include probate court and, bankruptcy court. -In both federal and state court systems, a trial court's subject matter jurisdiction may be limited by: --The subject of the lawsuit. --The sum in controversy. --Whether the case involves felony or misdemeanor. --Whether proceeding is trial or appeal.

Jurisdiction in Cyberspace: International Jurisdictional Issues

-The Internet is global in scope, it raises international jurisdictional issues. -The world's courts seem to be developing a standard that echoes the minimum-contacts requirement applied by U.S. courts.

The Origins of Judicial Review in the United States

-The U.S. Constitution makes no mention of the power of judicial review. -See Chapter 4 Landmark in the Law feature: Marbury v. Madison (1803)

The Plaintiff's Complaint: Contains statements alleging:

-The facts necessary for court to take jurisdiction. -A brief summary of facts necessary to show that the plaintiff is entitled to relief -A statement of the remedy that the plaintiff seeks.

checks and balances

-The legislative branch (Congress) can enact a law, but the executive branch (the president) has the constitutional authority to veto that law. -The executive branch is responsible for foreign affairs, but treaties with foreign governments require the advice and consent of the Senate. -Congress determines the jurisdiction of the federal courts, and the president appoints federal judges, with the advice and consent of the Senate. The judicial branch has the power to hold actions of the other two branches unconstitutional.

U.S. Courts of Appeals

-There are 13 U.S. courts of appeals (also called circuit courts). -The Court of Appeals for the Thirteenth Circuit is called the Federal Circuit.

stare decisis

-latin for "to stand on decided cases" -A common law doctrine under which judges are obligated to follow the precedents established in prior decisions. --Court should not overturn its own precedents --Decisions made by higher court are binding on lower courts

Legislative Rules: Under the Administrative Procedure Act involves the following:

1. Notice of the proposed rulemaking. Published in Federal Register. 2. A comment period. Time for interested parties to comment in writing. 3. The final rule. Published in Federal Register.

Merging of Law and Equity

A court will normally only grant an equitable remedy only when the remedy at law (monetary damages) is inadequate.

Preemption

A doctrine under which certain federal laws preempt, or take precedence over, conflicting state or local laws.

interpretive rules

A nonbinding rule or policy statement issued by an administrative agency that explains how it interprets and intends to apply the statutes it enforces.

citation

A reference to a publication in which a legal authority—such as a statute or a court decision—or other source can be found.

ordinances

A regulation enacted by a city or county legislative body that becomes part of that state's statutory law.

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.

legislative rules

An administrative agency rule that carries the same weight as a congressionally enacted statute.

persuasive authorities

Any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.

Supremacy clause:

Article VI of the Constitution provides that Constitution, laws and treaties of the United States are the "supreme law of the land."

Remedies in Equity

Based on justice and fair dealing a chancery court does what is right: specific performance, injunction, rescission. -Plaintiffs (injured party initiating the lawsuit) -Defendants (allegedly caused injury)

Departures from Precedent

Case Example 1.4 Brown v. Board of Education of Topeka (1954): The U.S. Supreme Court overturned precedent when it held that 'separate but equal' facilities was unconstitutional.

Privacy Rights

Constitutional Protection of Privacy Rights -Olmstead v. United States (1928) -Griswold v. Connecticut (1965) found a right to personal privacy implied in constitution, expanded in Roe v. Wade (1973).

Jurisdiction in Cyberspace

Courts use a "sliding scale" standard for determining when the exercise of jurisdiction over an out-of-state defendant is proper: 1. When the defendant conducts substantial business over the Internet, jurisdiction is proper. 2. When there is some interactivity through a Web site website, jurisdiction may be proper (depending on the circumstances). Case Example 2.5 Delahoussaye v. Boelter (2016) 3. If the defendant merely engages in passive advertising on the web, jurisdiction is never proper.

separation of powers and checks and balances

Each branch of government exercises a check on the actions of the others.

The State and Federal Court Systems

Federal courts are not superior to state courts. They are simply an independent system of courts.

Remedies at law

In king's courts, remedies were restricted to damages in either money or property.

Jurisdiction

Juris (law) diction (to speak) is the authority of a court to hear and decide a specific action.

Substantive law:

Law that defines, describes, regulates, and creates legal rights and obligations.

Procedural law:

Law that establishes the methods of enforcing the rights established by substantive law.

National law:

Law that pertains to a particular nation (as opposed to international law).

remedy

Means to enforce a right or compensate for injury to that right.

Appeals to the Supreme Court

Most cases reach the U.S. Supreme Court on writ of certiorari, which requires that at least four justices (the Rule of Four) agree the case merits the Court's review.

administrative law judge (ALJ)

One who presides over an administrative agency hearing and has the power to administer oaths, take testimony, rule on questions of evidence, and make determinations of fact.

The USA Patriot Act

Passed by Congress in the wake of the terrorist attacks of September 11, 2001, and then reauthorized twice (2006) and (2011)

Marbury v. Madison (1803)

Power of judicial review remains unchallenged and is exercised by federal and state courts

the U.S. Constitution and the constitutions of the various states

Primary source of law example 1

administrative law

The body of law created by administrative agencies (in the form of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.

Constitutional law

The body of law derived from the U.S. Constitution and the constitutions of the various states.

statutory law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).

Civil law:

The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters.

Criminal law:

The branch of law that defines and punishes the wrongful actions committed against the public.

Venue:

The geographic district in which a legal action is tried and from which the jury is selected. -Venue in a civil case typically is where the defendant resides. -Venue in a criminal case normally is where the crime occurred.

International law:

The law that governs relations among nations.

administrative process

The procedure used by administrative agencies in fulfilling their three basic functions: rulemaking, enforcement, and adjudication.

Judicial Review

The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch

rulemaking

The process by which an administrative agency formally adopts a new regulation or amends an old one.

Standing to Sue

To bring a lawsuit, a party must have "standing" to sue. -Standing to sue: The legal requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. --A person can have standing to sue on behalf of another person, --Standing to sue requires that the controversy at issue be a justiciable controversy (one that is real and substantial, as opposed to hypothetical or academic). --Case Example 2.6 Wagner v. CitiMortgage, Inc. (2014)

Petitions Granted by the Court

Typically occurs when the case raises important constitutional questions or lower courts issue conflicting decisions on a significant issue.

diversity of citizenship

a basis for federal court jurisdiction over a lawsuit between citizens of different states or a lawsuit involving a U.S. citizen and a citizen of a different country

law

a body of enforceable rules governing relationships among individuals and between individuals and their society

counterclaim

a claim made by a defendant in a civil lawsuit against the plaintiff. In effect, the defendant is suing the plaintiff

arbitration clause

a clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court

precedent

a court decision that furnished an example or authority for deciding subsequent cases involving identical or similar facts

Primary sources of law

a document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision

bankruptcy court

a federal court of limited jurisdiction that handles only bankruptcy proceedings, which are governed by federal bankruptcy law

administrative agency

a 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.

default judgment

a judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim

discovery

a method by which the opposing parties obtain information from each other to prepare for trial

uniform laws

a model law developed by the National Conference of Commissioners on Uniform State Laws for the states to consider enacting into statute

secondary sources of law

a publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treaties, or an article in a law review

federal question

a question that pertains to the U.S. Constitution, an act of Congress, or a treaty and provides a basis for federal jurisdiction in a case

interrogatories

a series of written questions for which written answers are prepared by a party to a lawsuit, usually with the assistance of the party's attorney, and then signed under oath

e-evidence

a type of evidence that consists of computer-generated or electronically recorded information

brief

a written summary or statement prepared by one side in a lawsuit to explain its case to the judge

Controlling Precedents

binding authority:any source of law that a court must follow when deciding a case

exclusive jurisdiction

jurisdiction that exists when a case can be heard only in a particular court or type of court

concurrent jurisdiction

jurisdiction that exists when two different courts have the power to hear a case

Statutory law-including laws passed by Congress, state legislatures, and local governing bodies

primary source of law example 2

Regulations created by administrative agencies, such as the federal Food and Drug Administration

primary source of law example 3

Case Law (Court Decisions)

primary source of law example 4

answer

procedurally, a defendant's response to the plaintiff's complaint

common law

the body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature

docket

the list of cases entered o a court's calendar and thus scheduled to be heard by the court

award

the monetary compensation given to a party at the end of a trial or other proceeding

complaint

the pleading made by a plaintiff alleging wrongdoing on the part of the defendant. When filed with a court, the complaint initiates a lawsuit

judicial review

the process by which a court decides on the constitutionality of legislative enactments and action of the executive branch

alternative dispute resolution (ADR)

the resolution of disputes in ways other than those involved in the traditional judicial process, such as negotiation, mediation, and arbitration

case law

the rules of law announced in court decisions. Case law interprets statues, regulations, and constitutional provisions, and governs all areas not covered by statutory or administrative law.

arbitration

the settling of a dispute by submitting it to a disinterest third party (other than a court), who renders a decision

deposition

the testimony of a party to a lawsuit or a witness taken under oath before a trail

adjudicate

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

The Uniform Commercial Code (UCC)

was created through the joint efforts of the NCCUSL (National Conference of Commissioners on Uniform State Laws) and the American Law Institute