P3 Law Semester Flashcards
General Definition of Law
Requirements for human conduct applying to all persons within their jurisdiction.
Provides framework for people to resolve their disputes.
Must remain flexible/vague to allow for individual differences, varying contexts of situations, and because they are based on human relationships.
What are the 4 market failures?
Public Goods Externalities Natural monopolies Information asymmetry A market failure justifies government regulation
Definition of public good
necessary and beneficial commodities that private entities will not supply because there is no incentive
(orphan drugs, vaccines, etc.)
Definition of an Orphan Drug
a drug that is sufficiently safe and effective to be marketed, but the number of patients who need it is so small that it is not commercially feasible for a manufacturer to market it.
Not enough demand, thus no profit
Government steps in to ensure availability
Definition of externality
When the production or consumption of a good affects people who do not fully consent to the effect, and when the costs of the good are not fully incorporated in the price of the good
Government regulates this to ensure that an individual’s behaviors do not create an indirect cost for someone else
Ex: air pollution from pharmaceutical manufacturers
Definition of natural monopoly
when the fixed cost of providing a good are high relative to the variable costs of producing the good
Government regulates this market failure to encourage companies to build new infrastructures, created jobs, and create new innovations
What makes up the legislature?
It is an elected body of people with the primary responsibility to enact laws
Legislative power of the federal government is vested in Congress (Senate and House of Reps)
Legislature makes what kind of law?
Statutes
Administrative agencies create laws through…
Hearings
Who creates administrative agencies?
Congress has a say in administrative agency appointments and appropriations
Significant influence
What are the 3 federal administrative agencies that influence pharmacy law?
Department of Health and Human Services (DHHS)
Federal Trade Commission (FTC)
Drug and Enforcement Administration (DEA)
Definition of information asymmetry
when a consumer is uninformed about the true value of a good
What are the two state level administrative agencies that regulate pharmacy practice?
State Boards of Pharmacy
State Department of Health Services
What is the Federal Register?
Basically the “Daily news paper of the Federal Government”
What is in the Federal Register?
Proposed and Final regulations and notices
How often is the Federal Register Published?
Daily
What does CFR stand for?
Code of Federal Regulations
What is in the CFR?
Final regulations divided and indexed by subject matter
How often is the CFR published?
Yearly
Type of law made by the courts
Judicial Opinion
4 Origins of a Bill
Lobbying Groups
Citizens
Government officials
President
Definition of Criminal Law
Government vs. a private party
Uses probable cause and a grand jury
Burden of proof must be “Beyond a Reasonable Doubt” in order to convict.
Definition of Civil Law
Private party vs. Private party
Alleging injury, based upon statute or common law legal rights with the objective to compensate the injured party
Definition of Administrative Action
Violation of a statute or regulation
OR
an act that warrants an investigation