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Business Law Exam 1
Exam 1
15
Business
Undergraduate 2
02/25/2010

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Term
What is law?
Definition
It is the rules governing society, to keep order in society. Not all rules are law. Law is different because it consists of rules the government can enforce.
Term
What are the 2 basic sources of law in the U.S legal system?
Definition
Legislature: They make statutory law.

Judiciary Branch: every court decision makes a law (common/case law)
Term
What characteristics must law have to function effectively?
Definition
1) Stability: Keeps order in society by telling people what is allowed and what is not. (ex. not changing speed limits often).

2) Flexibility: because a society's ideas can change over time. (Ex. prohibition. First Pelesy vs.Fergson ruled that separate but equal are alright, and then in the case of Brown vs. the Board of Education showed that special but equal was still discriminatory and it overturned previous decision).

3)Reasonable: A law is only going to keep order if a significant number of people are willing to follow it. And if a lot of people decide not to follow it, it causes social breakdown.

4)Certainty: You/your lawyer can figure out what is meant by a law, thus a law can't be overly vague/general it will cause people to be frustrated. (ex. illegal for people to act like douche bags).
Term
Four characteristics between civil and criminal law
Definition
Criminal:
a) purpose is to protect society
b) state/govt. initiates the case
c) the consequence is incarceration
d) burden of proof is beyond a reasonable doubt

Civil:
a) purpose is to redress individual wrongs
b)any individual can initiate the case
c)consequence is money
d) preponderance of evidence (50% or more of the evidence supports the plaintiff).
Term
What are the characteristics of criminal law?
Definition
Criminal Law:
1. The plaintiff is always the state or federal government.

2. Punishment may be fine and/or imprisonment.

3. State or federal statutes always establish criminal law.

4. The jury decision in a criminal trial must be unanimous.

5. The burden of proof in a criminal trial is “beyond a reasonable doubt.”

6. Only the defendant may appeal in a criminal case.

7. In a criminal case, the defendant is either guilty or not guilty.
Term
What are the characteristics of a civil law?
Definition
Civil Law

1. Both parties may be anybody, including governments, corporations and individuals.

2. The loser in a civil case cannot be imprisoned, even if he or she cannot pay the damages.

3. Civil law is established both through state and federal statutes and through court decisions.

4. In Missouri, the jury decision must be 9-3 for the plaintiff to win. States vary. Federal courts do require an unanimous verdict.

5. The burden of proof in a civil trial is “preponderance of the evidence,” which sometimes is defined as “more likely than not.”

6. Either party may appeal in a civil case.

7. In a civil case, the plaintiff and the defendant may both be found partially right and partially at fault.
Term
What is common law?
Definition
Common law or court law is made every time a court makes a decision.
Term
What is statutory law?
Definition
It is the law made by the legislative branch.
Term
What is equity?
Definition
Term
What is stare decisis?
Definition
It is the practice of deciding new cases with reference to former decisions. It is a precedent. Judges are obligated to follow the precedents established within their jurisdiction.
Term
How do courts avoid precedents?
Definition
A lower court can choose not to follow to set precedent if the facts are different from the previous case, and if previous ruling was incorrect, or if there was technological or social change.
Term
Jursdiction over person
Definition
The courts can exercise jursdiction over any perosn or business who resides within their state/boundary. A state's supreme court has jurisdictional authority over all residents within its state.
Term
Jurisdiction over property
Definition
This type is called "in rem jurisdiction". And a court can exercise jurisdiction over property that is located within its boundaries.
Term
Long Arm Jurisdiction
Definition
A court can exercise personal jurisdiction over certain out-of-state defedents based on activities that took place within the state.

But to exercise this - it must be demonstrated that the defendent has had minimum contacts with the state.
Term
Corporate Contacts
Definition
Corporations are considered legal persons and thus the same principle is applied to a "person" is applied to corporation. Long arm can also be practiced if the corporation has had minimum contacts, such as selling or advertising within the state.
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