Chapter 1 Business Law

stare decisis

A common law doctrine under which judges are obligated to follow the precedents established in prior decisions

precedent

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

court 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.

court of equity

A court that decides controversies and administers justice according to the rules, principles, and precedents of equity.

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 National Conference of Commissioners on Uniform State Laws and/or the American Law Institute for the states to consider adopting. If the state adopts the law, it becomes statutory law in that state. Each state has the option of adopting or rejecting all or part of the law.

case on point

A previous case involving factual circumstances and issues that similar to those in the case before the court.

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.

remedy in equity

A remedy allowed by courts in situations where remedies at law are not appropriate. Remedies in equity are based on settled rules of fairness, justice, and honesty, and include injunction, specific performance, rescission and restitution, and reformation.

remedy at law

A remedy available in a court of law. Money damages are awarded as a remedy at law.

opinion

A statement by the court expressing the reasons for its decision in a case.

binding authority

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

substantive law

Law that defines the rights and duties of individuals with respect to each other, as opposed to procedural law, which defines the manner in which these rights and duties may be enforced.

constitutional law

Law that is based on the U.S. Constitution and the constitutions of the various states.

damages

Money sought as a remedy for a breach of contract or for a tortious act.

defendant

One against whom a lawsuit is brought; the accused person in a criminal proceeding

plaintiff

One who initiates a lawsuit

procedural law

Rules that define the manner in which the rights and duties of individuals may be enforced

common law

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

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.

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.

legal reasoning

The process of reasoning by which a judge harmonizes his or her decision with the judicial decisions of previous cases.

remedy

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

case law

The rules of law announced in court decisions; includes the aggregate of reported cases that interpret judicial precedents, statutes, regulations, and constitutional provisions.