Chapter 2 - Intro To Law & The Legal Environment Of Business Flashcards
What is Law?
Consists of rules that regulate the conduct of individuals, businesses, and other organizations within society.
Is intended to protect persons and their property from unwanted interference from others. The law forbids person from engaging in certain undesirable activities.
Definition of Law:
A body of rules of action or conduct prescribed by the controlling authority, and having binding legal force.
That by which must be obeyed and followed by citizens subject to sanctions or legal consequences.
Functions of Law:
- Keeping the peace
- Shaping moral standards
- Promoting social justice
- Maintaining the status quo
- Facilitating orderly change
- Facilitating planning
- Providing a basis for compromise
- Maximizing individual freedom
Facilitating Planning
Well-designed commercial laws allow businesses to plan their activities, allocate their resources, and assess their risks
Maximizing Individual Freedom
The rights of freedom of speech, religion, and association granted the the First Amendment to the U.S. Constitution
Fairness of the Law:
The American legal system is one of the most comprehensive, fair and democratic systems of law ever developed and enforced.
Flexibility of the Law:
The American legal system is generally responsive to cultural, technological, economic, and social changes
Jurisprudence
The philosophy or science of law
Schools of Jurisprudential Thoughtq
- Natural Law School
- Historical School
- Analytical School
- Sociological School
- Command School
- Critical Legal School
- Law and Economics School
Natural School
Postulates that law is based on what is “correct”
Law should be based on morality and ethics
Contend source of law is absolute due to nature, God, or reason
Believe some higher law or set of universal rules bind all people
No form of human law can supersede natural law because of the idea that there are rational objective limits to the power of legislative rulers.
Legal Positivism
Believes that law is separate from moral values
Every enacted law should be a good and enforceable law
Believes that law is a set of rules developed, communicated, and enforced by the ruling party
American Legal Realism:
Maintains that law should focus on the actors in the judicial system, like judges, instead of social conditions and values
Critics argue this is dangerous because brings unpredictability to law
Sociological School:
Asserts that law is a means of achieving and advancing certain sociological goals and promote social welfare
One of the most important schools
Law must change to meet changing social conditions and values to promote social welfare
Critics say this makes laws unpredictable and harm the community because standards change over time = negative effects
Feminist School:
Believes that law today promotes gender inequality and should be changed to accommodate women’s views
Believes that language, logic, and structure of the law are male-created and reinforce male values and significant rights are denied to women
Critical Legal Studies School:
Maintains that legal rules are unnecessary and that legal disputes should be solved by applying arbitrary rules based on fairness
The basic view of this school is that the law is politics and it is not neutral or value free - created by elitists
Law and Economics School:
Believes that promoting market efficiency should be the central concern of legal decision making
History of American Law
The English system of law was generally adopted
It became the foundation from which American judges developed our common law
English Common Law
Developed by judges who issued their opinions when deciding a case
The principles announced in these cases became precedent for later judges deciding similar cases
A uniform system of courts emphasizing form over substance
Court of Chancery
Equity Court
Sought when law courts could not grant appropriate remedy
Remedies were shaped to fit each situation