Chp 1: The Legal Environment

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Law

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

They establish rights, duties, and privileges that are consistent with the values and beliefs of a society or its ruling group. (PG 3)

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Breach

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The failure to perform a legal obligation. (PG 4)

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Areas of Law that may affect business decision making

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1. Contracts

2. Sales

3. Negotiable instruments

4. Creditors' rights

5. Intellectual property

6. E-Commerce

7. Product Liability

8. Torts

9. Agency

10. Business Organizations

11. Professional Liability

12. Courts and Court procedures

(PG 5)

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Primary Sources of Law

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A document or source that establishes the law on a particular issue, which includes:

1. The U.S. constitution and the constitution of various states.

2. Statues or laws, passed by Congress and by state legislatures.

3. Regulations created by administrative agencies, such as the FDA.

4. Case law(court decisions)

(PG 6)

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Secondary Sources of Law

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Are books and articles(publications) that summarize and clarify the primary sources of law and are used by courts as guidance in interpreting and applying primary sources of law. Examples Include:
1. Legal Encyclopedias
2. Compilations such as Restatements of the law, which summarizes court decisions on a particular topic.
3. Official comments to statues
4. Treatises
5. Articles in law reviews published by law schools and articles in other legal journals

(PG 6)

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Constitutional Law

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The body of law derived from the U.S. constitution and the constitutions of the various states and sets forth the general organization, powers, and limits of respective governments. (PG 6)

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Statutory Law

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The body of law enacted by legislative bodies at any level of government such as statues passed by congress or state legislatures. (PG 7)

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Citation

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A reference to a publication in which a legal authority- such as a statute or a court decision or other source can be found. (PG 8)

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Ordinances

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Statues(laws, rules, orders) passed by municipal or county governing units to administer matters not covered by federal or state law. Commonly related to county or city land use,(zoning ordinances), building and safety codes and other matters only affecting the local governing unit.PG 8)

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Uniform Law

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A model law developed by the National Conference of Commissioners on Uniform State Laws(NCCUSL) for the states to consider(Each state legislature has to option to accept or reject it) enacting into statute. (PG 8)

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Administrative Law

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The body of law created by administrative agencies in order to carry out their duties and responsibilities; consists of rules, orders, and decisions of administrative agencies. (PG 8)

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Case Law

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The rules of law announced in court decisions, which includes the interpretations of constitutional provisions, statues enacted by legislatures, and regulations created by administrative agencies. (PG 9)

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Common Law

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The body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature; a body of general rules that applied throughout the English realm. (PG 11)

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Legal Precedent

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A court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts. (PG 11)

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Stare Decisis

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

Has two aspects:

1. Decisions made by 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.

(PG 12)

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Binding Authority

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Any source of law that a court must follow when deciding a case, which includes constitutions, statutes, regulations, and court decisions that are controlling precedents within the jurisdiction. (PG 12)

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Jurisdiction

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An area in which a court or courts have the power to apply the law.(PG 12)

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Persuasive Authority

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Any legal authority or source of law(such as precedents from other jurisdictions that are not binding)that a court may look to for guidance but need not follow when making its decision. (PG 12)

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Remedy

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The relief given to an innocent party to enforce a right or compensate for the violation of a right. (PG 13)

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Remedies at law

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Remedies granted by the King's courts of laws, which included economic compensations. (PG 14)

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Remedies in equity

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Remedies granted by chancery courts, which included unique remedies outside of remedies of law. (PG 14)

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Chancellor

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An adviser to the king who has the power to grant new and unique remedies. (PG 14)

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Plaintiffs

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One who initiates a lawsuit; used to specify whether they were bringing an action at law or an action in equity. (PG 14)

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Defendant

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One against whom a lawsuit is being brought, or the accused person in a criminal proceeding. (PG 14)

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Equitable Principles and Maxims

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General propositions or principles of law that have to do with fairness(equity) and provide guidance on whether plaintiffs should be granted equitable relief. (PG 15)

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Jurisprudence

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The science or philosophy of law that includes learning about different legal schools of thought. (PG 15 )

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Natural Law

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Oldest school of legal thought, based on the belief that the legal system should reflect universal (higher) moral and ethical principles that are inherent in human nature. (PG 15)

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Legal Positivism

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A school of legal thought centered on the assumption that there is no law higher than the laws created by a national government. Laws must be obeyed, even if they're unjust, to prevent anarchy. (PG 16)

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Historical School

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A school of legal thought that looks to the past to determine what the principles of contemporary law should be. (PG 16)

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Legal Realism

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A legal school of thought that holds that the law is only one factor to be considered when deciding cases and that social and economic circumstances should also be taken in consideration. (PG 16)

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Classifications of Law

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1. Substantive Law

2. Procedural Law

(PG 16)

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Substantive Law

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Law that defines, describes, regulates, and creates legal rights and obligations. (PG 16)

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Procedural Law

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Law that establishes the methods of enforcing the rights established by substantive law. (PG 16)

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Cyberlaw

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An informal term used to refer to all laws governing electronic communications and transactions, particularly those conducted on the internet. (PG 17)

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Civil Law

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Spells out the rights and duties that exist between persons and between persons and their governments, and the relief available when a person's rights are violated. (PG 17)

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Civil Law System

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A system of law derived from Roman law that is based on codified laws(written code of laws) rather than on case precedents. (PG 17)

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Criminal Law

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The branch of law that defines and punishes wrongdoings committed against the public or society. (PG 17)

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National Law

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The law of a particular nation such as the US or Sweden. (PG 18)

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International Law

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The law that governs relations among nations; can be defined as a body of written and unwritten laws observed by independent nations and governs the acts of individuals as well as governments. (PG 18)

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Differences between remedies at law and remedies in equity

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Law--

Initiation of lawsuit: by filing a complaint

Decision: By jury or judge

Result: Judgement

Remedy: Monetary damages

Equity--

Initiation of lawsuit: by filling a petition

Decision: by judge(no jury)

Result: Decree

Remedy: Injunction, specific performance, recission