Business Law Ch. 1

Classifications of Law

1. Substantive law: law that defines, describes, regulates, and creates legal rights and obligations (e.g., workers comp-creates legal rights for workers). 2. Procedural law: law that establishes the methods of enforcing the rights established by substantive law (e.g., establishes a method for employees to notify employer about an on the job injury).

Civil Law System

a legal system based on a written code of laws

Sources of law

Primary: a document that established the law on a particular issue, such as a constitution, a statute, and administrative rule, or a court decision. U.S. Constitution Statutes or laws passed by Congress and by state legislations Regulations created by administrative agencies (USFDA) Case law-court decisions Secondary: a publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise or an article in a law review. Courts often refer to secondary sources of law for guidance in interpreting and applying the primary sources of law. Constitutional-the body of law derived from the U.S. Constitution and the constitutions of the various states.

Commonality of all law

They establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling group. When making business decisions, be aware that more than one law may apply to a single business transaction.

Precedent

a court decision that furnishes an example of authority for deciding subsequent cases involving identical or similar facts or legal principles.

Departures from precedent

a court may rule contrary to precedent based on the decision that the precedent is incorrect or that technological or social changes have rendered the precedent inapplicable.

Statute of Limitations

a federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced.

Uniform law

a model law created by the Nation Conference of Commissioners on Uniform State Laws (NCCUSL)and/or the American law institute for the states to consider adopting. Each state has the option of a uniform law. If a state adopts the law, it becomes statutory law in that state.

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.

Ordinance

also included in statutory law; a regulation enacted by a city or county legislative body that becomes part of that state's statutory law. Typically with city or county zoning ordinances and building safety code.

Binding Authority

controlling precedents in a jurisdiction; any source of law that. A court must follow when deciding a case. Binding authorities include constitutions, statutes, and regulations that govern the issue being decided, as well as court decisions that are controlling precedents within the jurisdiction.

UCC-The Uniform Commercial Code

facilitates commerce among the states by providing a uniform, yet flexible, set of governing commercial transactions. Excerpts can be found in Appendix C.

Jurisprudence

how judges apply the law to specific cases; involves learning about different schools of legal thought and discovering how each school's approach to law can affect judicial decision making. The science or philosophy of law

Remedy

the relief give to an innocent party to enforce a right or compensate for the violation of a right.

Case Law

the rules of law announce in court decisions. Case law includes the aggregate of reported cases that interpret judicial precedents, statutes, regulations and constitutional provisions. Case law-the doctrines and principles announced in cases-governs all areas not covered by statutory law or administrative law and is part of our common law tradition

Common Law Tradition

Due to our colonial history, much of American law is based on the English legal system. A knowledge of this tradition is crucial to understanding our legal system; judges apply common law principles when deciding cases.

When there is no precedent

* w/in the jurisdiction such cases are called, "cases of first impression". Courts will often look at precedents established in other jurisdiction for guidance. Precedents from other jurisdictions, because they are not binding on the court, are referred to as persuasive authorities. *Any legal authority or source of law that a court may look to for guidance but on which it need not rely in making its decision. *Includes cases from other jurisdictions and secondary sources of law.

Stare Decisis

*A common law doctrine under which judges are obligated to follow the precedents established in prior decisions; *The practice of deciding new cases with reference to former decisions or precedents, eventually becoming the cornerstone of the English and US judicial systems. *The practice forms a doctrine called the stare decisis- "to stand on decided cases". *Helps courts to be more efficient and stable because other courts have carefully reasoned through similar case and their legal opinion and reasoning serves as guides.

Remedies in Equity

*Equity is a branch of law founded on what might be described as notions of fair dealing, that seeks to supply a remedy when no adequate remedy at law is available. *Out of this developed two court systems, each having its own set of judges and its own set of remedies: - Plaintiff: one who initiates a lawsuit; can request both legal and equitable remedies in the same action. - Defendant: one against whom a lawsuit is brought; the accused person in a criminal proceeding. *Equitable principles and maxims that provide guidance in deciding whether plaintiffs should be granted equitable relief.

Civil law

*The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters. *Different from the Civil Law System. Spells out the rights and duties that exist between persons and between person and their governments, and the relief available when a person's rights are violated. * Typically a private party sues another private party.

Two Aspects of Stare Decisis

1. Decisions made my a higher court are binding on lower courts 2. A court should not overturn its own precedents unless there is a strong reason to do so.

Law

Law consists of enforceable rules governing relationships among individuals and between individuals and their society.

Statutory law

Laws enacted by legislative bodies at any level of government, such as the statutes passed by Congress or by state legislatures.

Administrative Law

consists of the rules, orders, and decisions of administrative agencies (e.g., federal, state or local government). Reviewed in detail in ch 19

Natural law

the belief that government and the legal system should reflect universal moral and ethical principles that are inherent in human nature. The natural law school is the oldest and one of the more significant schools of legal thought.

Common Law

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