legal aspects exam 1 Flashcards
body of enforceable rules governing relationships among individuals and between individuals and their society
law
in the US, our rules consist of written laws and court decisions created by ___
modern legislative and judicial bodies
regardless of how such laws are created, they all have one thing in common which is:
they establish rights, duties, and privileges that are consistent with the value and beliefs of a society or its ruling group
Laws and government regulations affect all business activies by:
hiring/firing decisions, basic understanding of the laws and regulations governing these activities is essential
The state of being legally responsible for something, such as debt or an obligation
liability
The failure to perform a legal obligation
breaches
if any dispute cannot be resolved amicably, then the laws and the rules concerning courts procedures spell out the steps of a
lawsuit
areas of the law that may affect business decision making
contracts
courts and court procedures
sales
professional liability
negotiable instruments
business organizations
creditor’s rights
agency
intellectual prooperty
torts
e-commerce
product liability
document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision
primary sources of law
Primary sources of law include
-the US constitution and the constitutions of various states
-statutes, or laws, passed by congress and by state legislatures
-regulations created by administrative agencies, such as the federal dood and drug administration
-case law (court decisions)
Publication that summarizes or interprets the law, such as legal encyclopedia, a legal treatise, or an article in a law review
secondary sources of law
Body of law derived from the U.S constitution and the constitutions of the various states
constitutional law
the U.S constitution is the ____ of the land
supreme law
a law in violation of the U.S constitution, if challenged, will be declared_____ and will not be enforced, no matter what its source
unconstitutional
This amendment to the US constitution reserves to the states all powers not granted to the federal government. Each state in the union has its own constitution.
Tenth amendement
The body of law enacted by legislative bodies
statutory law
when a legislature passes a statute, the statute ultimately is
included in the federal code of laws or the relevant state code of laws
when specific statute is mentioned in this text, we usually provide a footnote showing its
citation
a reference to a publication in which a legal authority, such as a statue or a court decision, or other source can be found
citation
statutory law also includes ____
local ordinances
a regulation enacted by a city or county legislative body that becomes part of that state’s statutory law
ordinances
ordinances commonly have to do with
-city or country land use
-building and safety codes
-other matters affecting only the local governing unit
No federal statue may violate the _____ and no _____ or _____may violate the the US consitution or the relevant state constitution
-US constitution
-no state statute
-local ordinance
A federal statue applies to ___, a state statue applies to___
-all states
-within the state’s borders
In 1800s the differences between state laws frequently created issues for businesspersons conducting trade and commerce among states. To figure out these issues a group of legal scholars and lawyers formed the national conference of comissioners on
Uniform state laws (NCCUSL) in 1892 to draft uniform laws
model law developed by the national conference of commissioners on uniform state laws for the states to consider enacting into statue
uniform laws
each state has the option of adopting or rejecting a ____
uniform law
Only if a state legislature adopts a uniform law does that law become part of the
statutory law of that state
One of the most important uniform acts is the
Uniform commercial code (UCC)
This was created through the joint efforts of the NCCUSL and the American law institute
Uniform commercial code (UCC)
The UCC was first issued in _____ and has been adopted by all 50 states and District of Columbia, and the Virgin Island. The UCC facilitates
commerce among the states by providing a uniform, yet flexible, set of rules governing commercial transactions
This consists of the rules, orders, and decisions of administrative agencies
administrative law
_____A federal, state, or local government agency established to perform a specific function
administrative agency
procedurally, a defendant’s response to the plaintiffs complaint
answer
Rules issued by various administrative agencies now affect almost every aspect of a business’s operations:
-firm’s capital structure and financing
-hiring and firing procedures
-relations with employees and unions
-the way it manufactures and markets it products
Rules of law announced in court decisions. Interprets statutes, regulations, constitutional provisions, and other case law
case law
case law also governs all areas not covered by
Statutory law or administrative law, and is part of our common law tradition
Body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature
common law
Court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts
precedent
Common law doctrine under which judges are obligated to follow the precedents established in prior decisions
stare decisis (“ to stand on decided cases”)
The stare decisis has two aspects
- decisions made by a higher court are binding on lower courts
- court should not overturn its own precedents unless there is a strong reason to do so
an area in which a court or courts have the power to apply the law
Jurisdiction
Any source of law that a court must follow when deciding a case
binding authority
Binding authorities include:
-constitutions
-statutes
-regulations that govern the issue being decided
The doctrine of stare decisis helps the courts to be more efficient because if other courts have carefully reasoned through a similar case, their legal reasoning and opions can serve as
guides
stare decisis also makes the law more
stable and predictable
Courts are obligated to follow precedents, when will they depart from the rule of precedent?
if a court decides that a precedent is simply incorrect or that technological or social changes have rendered the precendent inapplicable
Example of supreme courts departure from precedent was in
brown v. board of education, it recieved a tremendous aount of publicity. It concluded that separate educational facilities for whites and blacks
Any legal authority or source of law that a court may look to for guidance but need not follow when making its decision
persuasive authorities
Given to a party to enforce a right or to compensate for the violation of a right
remedy
The one who initiates a lawsuit
plaintiffs
One against whom a lawsuit is brought, or the accused person in a criminal proceeding
Defendant
law that defines, describes, regulates, and creates legal rights and obligations
substantive law
Law that establishes the methods of enforcing the rights established by substantive law
procedural law
Other classification systems divide law into:
- federal law
- state law or private law (dealing with relationships between persons) and public law(addressing the relationships between persons and their governments)
All laws governing electronic communications and transactions, particularly those conducted via internet
cyberlaw
Branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters
Civil law
Typically in a civil case, a private party sues another private party to make sure that the other party complies with a
duty or pays for the damage caused by the failure to comply with a duty
System of law derived from roman law that is based on codified laws
civil law system
Branch of law that defines and punishes wrongful actions committed against the public
criminal law
Law that pertains to a particular nation, varies country to country
national law
Law that governs relations among nations
international law
They key difference between national law and international law is:
government authorities can enforce national law. if nation violates international law, enforcement is up to other countries or international organizations (which may or may not choose to act)
Provision in article I, section 8, of the US constitution that gives congress the pwoer to regulate interstate commerce
commerce clause
powers possessed by the states as part of their inherent sovereignty. These powers may be exercised to protect or promote the public order, health, safety, morals, and general welfare
police powers
dormant commerce clause comes into play when state regulations affect
interstate commerce
Negative aspect of the commerce clause is referred to as
dormant commerce clause
Requirement in article VI of the US constitution that provides that the constitution, laws, and treaties of the US are “the supreme law of the land”
supremacy clause
When there is a direct conflict between a federal law and a state law
the state law is rendered invalid
Doctrine under which certain federal laws preempt, or take precedence over, conflicting state or local laws
Preemption
First ten amendements, was adopted in 1791 and emodby a series of protections for the individuals against various types of interference by the federal government
bill of rights
Freedom of religion, speech, and the press and the rights to assemble peaceably and to petition the government
first amendment
guarantees the right to keep and bear arms
second amendment
the lodging of soldiers in any house without the owner’s consent
third amendment
prohibits unreasonable searches and seizures of persons or property
fourth amendment
guarantees the righs to indictment by grand jury, to due process of law, and to fair payment private property is taken for public use
5th amendment
the accused in a criminal case the right to a speedy and public trial by an impartial jury with a counsel
6th amendment
guarantees the right to a trial by jury in a civil case involving at least 20 dollars`
7th amendment
prohibits excessive bail and fines, as well as cruel and unusual punishment
8th punishment
establishes that the people have rights in addition to those specified in the consitution
9th amendment
That those powers neither delegated to the federal government nor denied to the states are reserved for the states
10th amendment
nonverbal expressions of beliefs, symbolic speech, which includes gestures, movements, and articles of clothing, is given substantial protection by the courts
symbolic speech
corporate political speech continues to be given significant protection under the
first amendment
Generally, a restriction on commerical speech will be considered valid as long as it
- seeks to implement a substantial government interest
- directly advances that interest
- goes no further than necessary to accomplish its objective
Provision in the first amendment that prohibits the government from establishing any state-sponsored religion or enacting any law that promotes religion or favors one religion over another
establishment clause
1st amendment does not protect
obsence speech
guarantees that a person can hold any religious belief that they want, or a person can have no religious belief
free exercise clause