BUSA 2106 1st Edition Exam 1 Study Guide Lectures 1 3 and 6 The 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 Environment Law 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 Review Statues 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 Agencies Case 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 Systems 2 Aspects 1 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 dealing with 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 governs relations among nations Includes national laws and customs treaties and laws of international organizations 4 Primary Sources of Law Constitutional Statutory Administrative and Case Law Chapter 3 Courts and Alternative Dispute Resolution Primary 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 Laws Jurisdiction 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 outof 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 state Is domiciled in the state Commits a tort in the state Has an agent in the state Enters into a contract in the state Is 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 Jurisdiction Limits types of cases a court may hear by either subject matter or monetary amount General Courts have the authority to hear civil criminal and equity cases OR Limited Jurisdiction Courts authority is limited by SUBJECT MATTER bankruptcy federal probate and juvenile courts