Business Law Flashcards
Functions of law
Keeping the peace, promoting social justice, facilitating orderly change, encouraging compromise, shaping moral standards, maintaining the status quo, facilitating planning, maximizing individual freedom
What function of law is essential to business?
facilitating planning
Courts of law also known as
King Courts
Court decisions under the common law…
affect future cases in many circumstances
A court decision from England in 1709:
may be the law in some states but not others
What is “Black Letter” Law?
Black-letter law refers to the concept that rules are generally well-known and free from doubt or
dispute.
Name 4 sources of American Law
Constitutional Law – Statutory Law – Administrative Law – Case Law & common law doctrines
Statutory Law is made up of what?
Ordinances and Uniform Commercial Code
Who handles Administrative Law?
Federal Agencies and State and Local Agencies
What is Common Law based upon?
Traditions, social customs, rules, and prior cases.
Courts of Law dealt with what?
Monetary Relief
Courts of Equity Dealt with what?
Non-Monetary Relief which is corrective actions that stop the policy, practice or procedure that caused the discrimination.
Why did the Law Merchant come about?
Merchants handled their own affairs because they were “beneath the dignity of the king”
Why were Law Merchant laws so effiecient?
Because they were based on a profit motive
Are there still Law, Equitable, and Law Merchant Courts today?
No. Virtually all courts were merged into on single system
What does “Stare Decisis” mean?
“Stand on Decided Cases”
What is “Judge Made” Law?
Each decision and interpretation becomes a legal precedent
Can Courts ignore legal precedent?
They are obliged to follow precedents and not overturn without compelling reasons.
Name something positive about Stare Decisis
Helps courts be more efficient and makes law more predictable.
Name something negative about Stare Decisis.
Historically makes changing the law very slow
What happens when there is no precedent?
The judge uses best judgment to decide the case.
A case with no precedent is also called what?
A case of first impression
Name two reasons a Court would change/overrule a precedent
The precedent is clearly wrong, and times have changed and a new precedent is needed.
A case with no precedent is also called what?
A case of first impression
Why can’t outcomes to lawsuits be predicted with certainty?
Because good arguments can be made on different sides and judges have personal beliefs that can
affect decisions
Today, what does common law govern?
Actions not covered by Statutory Law.
What is Statutory Law?
The interpretation of statutes in court
How many states adopted the English Common Law upon joining the Union?
49 out of 50
What is the English Common Law code of Alabama?
ş 1-3-1
T/F The privileges and immunities clause means that states must comply and enforce the ruling of other states concerning mainly property and criminal law
False
Virtually the entire reason we have the constitution which we have today is because:
Of business
The federal government provides what?
Checks and balances
The Legislative Branch (Congress)
Creates laws
The Executive Branch (President/Agencies)
Enforces laws
The Judicial Branch (Courts)
Interprets laws
The commerce clause is
The most important clause in the constitution to business
T/F The police powers have nothing to do with law enforcement
True
The study of business law does not involve an ethical dimension.
False
A constitution is a primary source of law.
True
Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states’ borders.
False
The U.S. Constitution is the basis of all law in the United States.
True
A local ordinance commonly has to do with a matter concerning only a local governing unit.
True
Congress or a state legislature establishes an administrative agency to perform a specific function.
True
Rules issued by administrative agencies affect almost every aspect of a business’s operations.
True
The doctrines and principles announced in court decisions govern all areas not covered by statutory or administrative law.
True
The common law is a body of law developed from judicial decisions.
True
The basis of a civil law system is a written code of laws.
True
Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm’s managers, legal concepts can be useful for Power’s
marketing manager, human resources manager, accounting and finance manager
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as
statutory law
On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
the state provision will not be enforced.
The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
no one
Administrative law includes
the rules, orders, and decisions of a government agency
Common law rules develop from
principles underlying judges’ decisions in actual controversies.
Stare decisis is best defined as
a doctrine under which judges follow established precedents.
A precedent is
a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.
In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to
allow the minor to cancel the contract.
An award of damages is
a payment of money or property.
T/F The national government has the implied power to undertake actions necessary to carry out its expressly designated powers.
True
T/F Local governments, including cities, exercise police powers.
True
T/F Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.
True
T/F The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches.
True
State governments do not have any authority to regulate interstate commerce.
False
T/F The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights.
True
Corporations enjoy many of the same rights and privileges as natural persons do.
True
T/F The rights secured by the Bill of Rights are absolute.
False
Equal protection means that the government must treat all individuals the same.
False
Privacy rights receive no protection under federal law.
False
A federal form of government is one in which the national government shares sovereign power with…
the states
The term checks and balances refers to the system under which
the powers of government are divided among its branches, each of which exercises a check on the actions of the others.
The federal government has the power to regulate commercial activities among the states under
the commerce clause
Under the U.S. Constitution, Congress has the power to regulate
every commercial enterprise in the United States.
Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by
the supremacy clause
The Bill of Rights embodies
a series of protections for the individual against government action.
The members of Climate Action believe that a recently enacted federal law is unconstitutional. They write and sign a petition to the government to repeal the law, refuse to obey it, and stop others from complying with it. Under the First Amendment, these individuals have a right to
petition the government
Utah enacts a statute to ban advertising in “bad taste.” Most likely, a court would hold this statute to be
an unconstitutional restriction of speech.
To reduce traffic, Market Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of
equal protection
Jon, a law enforcement official, monitors Kelsey’s Internet activities—e-mail and website visits—to gain access to her personal financial data and student information. This may violate Kelsey’s right to
privacy
In rem jurisdiction refers to
Jurisdiction over property
The long arm statute requirement for minimum contact means
Any attempt to “come into the state”to do business is probably enough to meet the minimum contacts requirement
T/F in the United States you have the right to sue anyone over any matter in any court
True
T/F all appellate courts must hear your appeal
False (the us Supreme Court does not have to hear your case)
Standing to sue means
You must have some stake in the matter being sued upon
