BUSA 2106 1st EditionExam # 1 Study Guide Lectures: 1, 3, and 6The following study guide is for studying use ONLY. You may not take any word for word notes from this guide for your cheat sheet, which is allowed in class. You may however take IDEAS from the study guide and format them into your own words for your cheat sheet.Chapter 1: Business and the Legal EnvironmentLaw: A body of enforceable rules governing relationships among individuals and between individuals and their society.Breach: The failure to perform a legal obligation.Primary Source of Law: A document that establishes the law on a particular issue, such as a constitution, statute, an administrative rule, or a court decision.Secondary Source of Law: A publication that summarizes or interprets the law, such a legal encyclopedia, a legal treatise, or an article in a law review. Constitutional Law: The body of law derived from the U.S. Constitution and the constitutions of the various states.- U.S. Constitution is the supreme law of the land- Constitutions exist at the Federal and State levels- Features: Supremacy Clause, 10th Amendment, and Judicial ReviewStatues: Laws enacted by Congress or the state legislature.- States may adopt “uniform laws” (A model law created by the National Conference of Commissioners on Uniform State Laws and/or the American Law Institute for the states to consider adopting. Each state and either adopt or reject. If adopted, the law becomes a statutory law in that state.)- Uniform Commercial Code (UCC)- Ordinance: A reference to a publication in which legal authority-such as a statute or a court decision-or other source can be found.- Citation: A regulation enacted by a city or county legislative body that becomes part of that state’s statutory law.Administrative Law: The body of law created by administrative agencies (in the forms of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.- Agency acts like a legislature- Adjudications/Orders: Agency acts like a court- Federal Agencies- State and Local AgenciesCase Law: Case law governs all areas of law not covered by administrative or statutory law.Common Law: The body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature.- Precedent: A court decision that furnished an example or authority for deciding subsequent cases involving identical or similar facts.Departures from Precedent: Court may decide to depart from precedent if the precedent is simply incorrect or that technological or social changes have rendered the precedent inapplicable.No Precedent: “Cases of first impression”, Courts look at precedents established in other jurisdictions for guidance, because they are not binding on the court (Persuasive Authorities).Example) Brown v. Board of Education - Stare Decisis: “to stand on decided cases” A common law doctrine under which judges are obligated to follow the precedents established in prior decisions. Makes the law more predictable and stable. Advantages: Predictability, Certainty, Stability /Disadvantages: Volume of Cases, Time Intensive, Expensive, Precedent may be rejected, Multitude of Systems2 Aspects1. Decisions made by higher court are binding on lower courts. 2. A court should not overturn its own precedents unless there is a strong reason to do so.Remedy: The relief given to an innocent party to enforce a right to compensate for the violation of a right.- Remedies at Law: Compensation in the form of money or property, including land.- Remedies in Equity: Equity is “beyond law” and looks at notions of fairness and justice. Plaintif: One who initiates a lawsuit.Defendant: One against who a lawsuit is brought; the accused person in a criminal proceeding.Equitable Principles and Maxims: General propositions or principles of law that have to do with fairness (equity).-Classifications of Law- Substantive: Law that defines, describes, regulates, and creates legal rights and obligations. vs. Procedural: Law that establishes the method of enforcing the rights establishes by substantive law.- Federal vs. State- Criminal: Crimes, generally has to do with wrongful actions committed against society for which society demands redress. vs. Civil: The branch of law dealingwith the definition and enforcement of all private or public rights, as opposed to criminal matters.- Law vs. Equity- Common vs. Statutory: The body of law enacted by legislative bodies (as opposed to constitutional, administrative, or case law)- National: Law of a certain nation. Could be based on common law, civil law (codified law) or sharia (religious law of Islam) vs. International: Law that governsrelations among nations. Includes national laws and customs, treaties, and laws of international organizations.4 Primary Sources of Law: Constitutional, Statutory, Administrative, and Case LawChapter 3: Courts and Alternative Dispute ResolutionPrimary Functions of the Court- Decide cases- Interpret Legislation- Legislative History and Statutory Construction- Review Lower Court Decisions-Judicial Review: The process by which a court decided on the constitutionality of legislative enactments and actions of the executive branch. (Marbury v. Madison 1803 Established Judicial Review)-Based on Law not Facts-Power to Create LawsJurisdiction: The authority of a court to hear and decide a specific case.- Personal Jurisdiction (in personam)-Court’s power over parties in a lawsuit-Court can use jurisdiction over property (in rem) to subject non-resident to authority of the court such as a boat.-Resident Defendants…Need proper “Service of Process” or “Substituted Process”-Non-Resident Defendants …Need proper “Service of Process” within the state OR Long Arm Statute: A court can exercise personal jurisdiction over certain out-of-state defendants based on activities that took place within the state. Minimum Contacts is required.Resident Defendant Non-Resident Defendant/Long Arm Conducts business in the state Transacts business in the stateIs domiciled in the state Commits a tort in the stateHas an agent in the state Enters into a contract in the stateIs served in the state- Minimum Contacts for Corporate Defendants are under a typical long arm statute.-State of incorporation-State where headquartered-State where it does business Ex) Advertises or Sells Products- Subject Matter