Business Law and the Regulation of Business BU 385: Senior Outcomes SeminarClassification of LawClassification of Law (cont.)Slide 4Comparison of Civil & Criminal LawFive Sources of LawSlide 7Political System ReviewDual System of GovernmentConstitutional LawStatutory LawExec. Orders, Admin. RulesJudicial Law: “Common Law” and PrecedentsLaw of EquityLawsuits: TerminologyJurisdictionCivil ProcedureStages in Civil ProcedureAlternative Dispute ResolutionCriminal LawLiability for CrimesWhite-Collar CrimeCrimes Against BusinessDefenses to CrimesTort LawNegligenceDefenses to NegligenceStrict LiabilityDefenses to Strict LiabilityContractsRequirements of a ContractClassification of ContractsClassification of Contracts (cont.)Essentials of an OfferTerminating an OfferConduct Invalidating AssentConsiderationConsideration: special casesIllegal (unenforceable) bargainsContractual CapacityContracts in Writing: “my legs”Third Parties to Contracts3.Third Party Beneficiary ContractsConditions: an event that affects duty or performanceDischarge of ContractsRemediesStatutes to knowWhen in doubt …Business Law and the Regulation of Business BU 385: Senior Outcomes SeminarDefinition of Law— “a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong” (Blackstone)Functions of Law — to allow a civilized societyClassification of LawSubstantive Law or Procedural LawSubstantive— law creating rights and dutiesProcedural— rules for enforcing substantive lawPublic Law or Private LawPublic— law dealing with the relationship between government and individualsPrivate— law governing the relationships among individuals and legal entitiesClassification of Law (cont.)Civil and Criminal LawCivil— law dealing with rights and duties the violation of which constitutes a wrong against an individual or other legal entityCriminal— law establishing duties which, if violated, constitute a wrong against the entire communityClassification of LawSubstantive LawPublic LawConstitutional LawCriminal LawAdministrative LawPrivate LawTortsContracts -- SalesCommercial PaperAgencyPartnershipsCorporationsPropertyMethods of enforcement (courts)ProceduralLawORComparison of Civil & Criminal LawCivil Law Criminal LawCommencement ofactionAggrieved individual(plaintiff) suesState or federal governmentprosecutesPurposeCompensation PunishmentDeterrence DeterrenceRehabilitationPreservation of peaceBurden of proofPreponderance of theevidenceBeyond a reasonable doubtOutcomeLiable/Not liable Guilty/Not guiltyMonetary damages Capital punishmentEquitable remedies ImprisonmentFinesPrincipal sanctionsFive Sources of Law1. Constitutional Law -- fundamental law of a government establishing its powers and limitationsJudicial Law -- 2. Common Law body of law developed by the courts 3. Equity based upon principles distinct from common law and providing remedies not available at lawFive Sources of Law4. Legislative Law -- statutes adopted by legislative bodies includes Treaties and Executive Orders 5. Administrative Law -- rules, regulations, orders, and decisions made by administrative agencies¤Political System ReviewThree branches of government create laws:Legislative: elected representatives write specific laws (“statutes”) to deal with future problemsExecutive: issues Executive Orders and recommends new laws to legislatureJudicial: judges decide existing cases based on laws, constitutions, administrative regulations“Fourth Branch of Government” - Administrative AgenciesDual System of GovernmentState:LegislativeTrentonState SenatorsState AssemblyExecutiveGovernorJudicialSuperior CourtsState Courts of AppealState Supreme CourtFederal:LegislativeCongress (D.C.)SenateHouse of Reps.ExecutivePresidentJudicialFederal Dist. CourtsCircuit Cts. of AppealU.S. Supreme CourtConstitutional LawUnited States was the first to createPreamble:“…of the people, by the people, for the people.”Purposes:Establish system of governmentLimit the role of governmentGuarantee certain rightsCan be altered by Amendment process (rare)1 Federal and 50 State constitutionsStatutory Law“Legislative” laws created by elected reps.Designed to deal with frequently-arising problems or issuesProcess:Drafted by committees Discussed and voted uponCodified in orderly manner in statute booksMust be consistent with constitutionCf: federal vs. state constitutionExec. Orders, Admin. RulesExecutive OrdersPresident, Governor, Mayors, County Execs.Limited on only by applicable constitutionAppoint administrative agenciesAdministrative Agency Rules and Regs.“The Fourth Branch of Government”“In-your-face” governmentBinding on all citizens, if properly adoptedAPA: Administrative Procedures Act13Judicial Law: “Common Law” and PrecedentsConcept of stare decisis: similar cases should be decided similarlyPurpose: promote fair outcomesCreates ordered societyWhen confronted with a precedent, courts:Accept precedent as binding authority“Distinguish” precedent from present caseModify in view of changing social normsOver-rule in view of new law or social normsLaw of EquityEvolved from the Chancellor’s CourtKing’s court applied the common lawCommon law: Specified remediesWhen money damages will not workInjunctionsRestitutionSpecific performanceHabeas corpusLawsuits: TerminologyPartiesPlaintiff vs. Defendant (State vs. Defendant)Complaint, summons, pleadingsMotions to the courtJudgmentAppellant vs. Appellee or RespondentCollecting on Judgment or SentenceJurisdiction Subject Matter Jurisdiction – authority of a court to decide a particular kind of case.Jurisdiction over the Parties – the power of a court to bind the parties to a suit .Civil Procedure The Pleadings – a series of statements that give notice and establish the issues of fact and law presented and disputed.Complaint – initial pleading by the plaintiff stating his case.Summons – notice given to inform a person of a lawsuit against her.Answer – defendant's pleading in response to the plaintiff's complaint.Reply – plaintiff's pleading in response to the defendant's answer.Stages in Civil