Business Law Ch. 1

4 Primary Sources of Law

(1)Constitutional law. (2)Statutory law. (3)Common law. (4)Administrative law.

Statutory law

- Law enacted by legislatures, whether state or federal. -Once law is passed, laws become coded in federal code or state code. - includes ordinances—local laws or rules passed by municipal or county governments for issues not covered by federal or state law. -Fed statutes apply to all states where state statute only applies to that particular state. So, state laws can vary from state to state. -Written Law. -Approved or disapproved by the executive branch (i.e. governor or president). -Also known as "codes". -Found at federal state.

Secondary Sources of Law

- books and articles that clarify and summarize the law. - Includes encyclopedias, law reviews, treatise, restatement of the law and sets of model statutes. -have no independent authority, nor are they legally binding. ~Uniform Model Statutes (Ex. UCC). ~Restatements of the Law.

Substantive Laws

- law that creates, defines, and regulates rights. -the statutory, or written law, that defines rights and duties, such as crimes and punishments -provide individuals with rights and create certain duties.

Civil Law

- rights and duties that exist between persons, persons and governments and relief available when rights violated. -designed to compensate parties for losses as a result of another's conduct. -govern disputes between individuals in such areas as contracts, property, and Family Law

Advantages of Stare Decisis

-Allows individuals and business to have some degree of confidence that the law will remain reasonably consistent. -Requires all lower courts, such as a trial court, to follow the case precedent so that any similar case would be decided according to the precedent.

Role of Counsel

-Business owners and managers often work closely with a business attorney. -they also work with them in one of two formats. -often results in reduced costs and limitation of risk and liability

Rules

-Federal statutes can't violate U.S. Const. -A state statute or ordinance can't violate U.S. Const -An ordinance can't violate a state constitution

Common law

-Made by appellate courts. -Based on the fundamentals of previous cases that had similar facts. -Also known as "case" law. -The U.S. system of ______ law is deep-seated in British ______ law that developed over several centuries.

Uniform Laws

-National Conference of Commissioners on Uniform State Laws (NCCUSL) -Organization was created because the differing state laws made it difficult to conduct trade and commerce.

Case Precedent

-Once an appellate court has decided a particular case, the decision becomes a this? -_____ is usually only binding within the jurisdiction of the court setting the it. -Known as "holding of a case"

Administrative law

-Source of law that regulates the exercise of authority by government agencies. -Also known as "regulations" -Rules and regulations that operated by that level.

Remedies

-_____ at law generally take the form of money damages. -Equitable _____ or relief generally includes an injunction or restraining order (a judicial order requiring a party to cease a certain activity, or perhaps to take a specific action).

Law

-a body of rules of action or conduct prescribed by controlling authority and having legal binding force -enforceable rules governing relationships among individuals and between individuals and their society -provides: Stability, Predictability, Continuity

Criminal Law

-a protection of society, and the violation of this law results in penalties to the violator such as fines or imprisonment. -wrongs committed against the public as a whole

Categories of Law

-based on classifications related to a particular legal function or a right afforded by law -Helpful in understanding "big picture" of our legal system

Constitutional law

-comes from the constitution of each state -Establishes important legal principles -Not designed to specifically resolve every legal issue or case. -Fed and state have separate constitutions that set forth organization, powers and limits of the governments -May require "interpretation" by courts. -No law can conflict with the U.S. Const. If it does, it is invalid. ~So if a state constitution conflicts with U.S. constitution, that provision of state const. will be held unconstitutional -U.S. Constitution is the supreme law of the land (Article IV). That makes it basis of all law in the U.S.

Procedural laws

-deals with the technical aspects and prescribes the steps for enforcing civil and criminal law. -provide a structure and set out rules for pursuing substantive rights.

Purpose of Law

-defines crimes and levies punishment for violations. -resolving disputes by providing a basis for deciding the legal interests and rights of the parties -To provide consistency and fairness

Public laws

-governing relations between a state and its citizens, and dealing with the structure and operation of the government. -those derived from some government entity. -covers administrative law, constitutional law, and criminal law.

Precedent

-is a decision that furnished an example or authority for deciding subsequent cases involving identical or similar legal principles or facts. Precedents are binding authority that judges are supposed to follow.

Stare Decisis

-one of the most important concepts in American law. -the principle that similar cases with similar facts and issues should have the same judicial outcome.

Private laws

-recognized as binding between two parties even though no specific statute or regulation provides for the rights of the parties.

"Legal Environment" of Business

-serves as an important catalyst for commerce by promoting good faith dealing among merchants and consumers. -provides some degree of reliability that can be considered in business planning and commercial transactions.

Law vs Equity

-terms when describing the appropriate measure of judicial action intended to compensate an injured party in a civil lawsuit. -These measures are known as legal or equitable remedies.

Types of Equitable Relief

1) Judicial Order 2) Specific Performance 3) Injunction

Jurisprudence

The philosophy behind the law: -Natural Law (higher or universal). -Positive Law (written down). -Legal Realism (most widely used in US).