Business Law Chapter 1

Doctrine of Stare Decisis

- "Stand on decided cases" - courts more efficient and law more predictable - makes changing the law SLOW - courts will overrule when necessary

sources of American law

- constitutional law - statutory law (ordinances from elected representatives) - administrative law (federal, state, local agencies) - case law and common law doctrines

common law today

-governs transacting not covered by statutory law - common law doctrines and principles govern only areas NOT covered by statutory pr administrative law - statutes > common law

equitable maxims

General propositions or principles of law that have to do with fairness (equity). 6 total

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as a. A statutory law b. The supreme law of the land. c. The basis of all law in the US d. Uniform law

a. A statutory law

Secondary sources of law

books and articles that summarize and clarify the primary sources of law; restatements of the law

Courts of equity: RESCISSION

cancelation of a contractural obligation

Business Law does not have an ethical decision

false

A constitution is a primary source of law

true

Functions of the law

1. Keep the peace 2. Shape moral standards 3. Promote social justice 4. Maintain the status quo 5. Facilitate orderly change 6. Facilitate planning 7. Provide a basis for compromise 8. Maximize individual freedom

Primary sources of law

1. The U.S. Constitution and the constitutions of the various states. 2. Statutory law—including laws passed by Congress, state legislatures, or local governing bodies. 3. Regulations created by administrative agencies, such as the Federal Trade Commission. 4. Case law and common law doctrines.

courts of law

A court in which the only remedies that could be granted were things of value, such as money damages. In the early English king's courts, courts of law were distinct from courts of equity.

An award of damages is A. An order to do or to refrain from doing a certain act B. The rights to harm another C. A payment of money or property D. The cancellation of a contract

C. A payment of money or property

courts of equity

Historically, courts whose decisions were more discretionary and based on moral principles, and which served as an antidote to the inflexibility of the common law; remedies were specific performance, injunctions, and rescission

Courts of equity: INJUNCTION

an order to a party to cease engaging in a specific activity or to undo some wrong or injury

substantive law

consists of all laws that define, describe, regulate, and create legal rights and obligations.

procedural law

consists of all laws that outline the methods of enforcing the rights established by substantive law.

Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders.

false

A local ordinance commonly has to do with a matter concerning only a local governing unit

true

Congress or a state legislature establishes an administrative agency to perform a specific function

true

Rules issued by administrative agencies affect almost every aspect of a business's operations.

true

The U.S. Constitution is the basis of all law in the United States.

true

The basis of a civil law system is a written code of laws.

true

The common law is a body of law developed from judicial decisions.

true

The doctrines and principles announced in court decisions govern all areas not covered by statutory or administrative law.

true

first impression

when there is no precedent - courts rely on persuasive authorities and public policy

administrative law

which consists of the rules, orders, and decisions of administrative agencies

Stare decisis is best defined as A. A judicial proceeding to redress wrong B. A situation giving a person a right to initiate a judicial proceeding C. A doctrine under which judges follow established precedents D. The authority to decide a specific dispute

C. A doctrine under which judges follow established precedents

Criminal Law

A law that defines crimes against the public order.

Civil Law

A law that governs relationships between individuals and their government and defines their legal rights.

Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's a. All of the choices b. Marketing manager c. HR manager d. Accounting and finance manager

A. All of the Choices

Common law rules develop from A. Principles underlying judges' decisions in actual controversies B. Statutes enacted by congress and the state legislatures C. Regulations issued by administrative agencies D. Uniform laws drafted by legal scholars

A. Principles underlying judges' decisions in actual controversies

A precedent is A A lawsuit in which a number of persons join together B. A court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles C. The fundamental procedure by which the government exercises its authority D. The chief executive officer of the US

B. A court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles

A court decision from England in 1709: A. Cannot be the law in Alabama today B. May be the law in some states but not in others C. Does not affect the U.S. Common law D. All of the above E. None of the above

B. May be the law in some states but not in others

Court decisions under the common law: A. Stand on their own and only affect the parties in the case B. Are totally independent of other cases C. Affect future cases in many circumstances D. A and B E. None of the above

C. Affect future cases in many circumstances

Administrative law includes A. model laws developed by the National Conference of Commissioners on Uniform State Laws B. Laws enacted by a legislative body C. The rules, orders, and decisions of a government agency D. All laws that affect business operations

C. The rules, orders, and decisions of a government agency

In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to A. Order the minor to cancel the contract B. Disregard the Peyton case C. Require the minor to fulfill the contract D. Allow the minor to cancel the contract

D. Allow the minor to cancel the contract

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution A. The state provision will be enforced only within that state's borders B. Neither provision will be enforced C. Both provisions will be enforced D. The state provision will not be enforced

D. The state provision will not be enforced

The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by A. The US supreme court only B. The state of Florida only C. The federal government only D. No one

D. no one