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Business Law Chapter 1
Chapter 1
30
Management
Undergraduate 4
09/24/2009

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Term
LAW
Definition
A body of rules enforced by a government
Term
CONTRACT
Definition
A legally enforceable promise or set of promises
Term
BREACH OF CONTRACT
Definition
A failure to fulfill contractual obligations
Term
TORT
Definition
A civil wrong other than a breach of contract for which the law provides a remedy
Term
NEGLIGENCE
Definition
An unintentional violation of a legal duty to use a standard of care
Term
COMMON LAW
Definition
A legal system of court-made law where the rules are derived from previously decided cases
Term
STARE DECISIS
Definition

-A legal doctrine requiring courts to follow previous decisions called precendents

 

-it has been decided

Term
JUDICIAL REVIEW
Definition
Document that courts determine the constitutionality of statutes
Term
CAUSE OF ACTION
Definition
A stated set of facts giving rise to a valid lawsuit
Term

Four Philosophical Schools of Law:

 

#1 Natural Law

Definition

a) The theory that law comes from unchangeable principles evident from nature or inspired by God

 

Example: declaration of independence

"we hold these truths to be self evident"

Term

Four Philosophical Schools of Law:

 

#2 Positivist School

Definition

a) governments rules are supreme

 

Example: Definition of law

Term

Four Philosophical Schools of Law:

 

#3 Traditional (Historical) School

Definition

a) law which has worked in the past is best suited to shape present law

 

Example: Holmes- stare decisis; following precedence, what worked in the past will work in the future

Term

Four Philosophical Schools of Law:

 

#4 Legal Realist School

Definition

a) There is no unifrom way to interpret the law; result oriented, considering the impact on the parties and society; many are semantic relativists (lawyers, people who see if they can twist meanings and get out of situations they should not be able to get out of)

 

Example: Holmes- the constitution is what the judges say it is, there is no uniform way to interpret/apply a law, various individuals interpret the law

Term
Problems in Application of Philosophical Laws
Definition

1. Natural Law School---> whose versions of self-evident law do you use?

 

2. Positivist School---> government atrocities acceptable?

 

3. Legal Realist/Traditional---> should the constitution be what the judges say it is, should precedent control, or should the constituion itself control?

Term

Three Sources of Federal Law by Priority

 

1. U.S. Constitution

Definition
the supreme law of the land
Term

Three Sources of Federal Law by Priority

 

2. Statutes and Treaties

Definition
acts of congress and treaties entered by the president (Executive) and approved by the senate (Legislative)
Term

Three Sources of Federal Law by Priority

 

3. Administrative Rules

Definition
Laws adopted by Administrative Agencies
Term

Four Sources of State Law by Priority

 

Definition

1. Constitution

2. Statutes (developed by state legislation)

3.Administative Rules

4. Municipal Ordinances

Term
Case Law (Common Law)
Definition

1. Court-made Law= court may decide a case in a certain way and it si established as precedence for ther courts to follow

 

2. The law established by courts particularly in the areas of contract and tort law

 

3. Case law is overruled by a contrary statute ordinance or rule unless the law involved is ruled unconstitutional

Term

Two Types of Persuasive Authority:

 

Uniform Codes

Definition

statutory schemes compiled by experts to be adopted by state legislatures to help insure consistency of the law in all states

 

Examples: Uniform Code; Uniform Probate Code

Term

Two Types of Persuasive Authority:

 

Restatements

Definition

common law schemes compiled by experts to influence courts and encourage nationwide consistency

 

Examples: Restatement of Contracts; Restatement of Torts

Term

Administrative Laws/ Definitions:

 

Agencies

Definition
a unit of the executive branch regulating a certain area
Term

Administrative Laws/ Definitions:

 

Independent Agency

Definition

an agency desigend to be free from the direct authority of the president (or governor)

 

Examples: FTC; SEC

Term

Administrative Laws/ Definitions:

 

Executive Agency

Definition
an agency whose head is directly subject to the president E.g., Cabinet level agencies, IRS OR EPA
Term
Three Powers of Many Independent Agencies
Definition

1. Powers of all three branches held by in many administrative agencies

 

2. Executive (prosecute violations); legislative (make binding rules); and judicial (decide controversies)

Term
Criminal Law vs. Civil Law
Definition

criminal law- involved wrongs against society punished by the state through prosecution, only brought by a government

 

civil law- involves wrongs against persons or entities enforced by lawsuits to obtain money or other remedies, taken care of in civil courts

Term
Substantive Law vs. Procedural Law
Definition

- defines rights and duties, what you can and can't do

 

-defines the method or process by which violations of rights or duties will be enforced, you have to prove elements, (what will happen if you commit the crime)

Term
Statutory Law vs Case Law
Definition

-law adopted by a legislative body.

Examples: Acts of Congress (statutes); acts of legislatives; municipal ordinances

 

-law created by court decision (all courts must abide by law)

Examples:Adoption of Comparitive fault

Term
Common Law vs. Equity
Definition

1. Origins of Common Law Courts- a uniform set of laws derived from following precedents in England, sue for monetary damages

 

2. Origins of Equity Courts- created by the king because people whose problems could not be solved by common law suits would petition the king, sue to get someone to do/or not do something

 

 

Term
Common Law vs. Equity
Definition

3. Common Law Today

a) Sue for money damages

b) Right to a jury trial to determine facts in question

 

4. Equity Today

a)Sue for a court order compelling an act or a change in status

b) a judge determines the facts in question

 

5. Equity suits are now filed in the courts and are heard by the same judges as common law suits

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