BLaw 210 1nd EditionExam # 1 Study Guide Lectures: 1 - 12Lecture 1 I. Law consists of rules that regulate the conduct of individuals, businesses, and other organization within society. It is intended to protect persons and their property from unwanted interference from othersa. Laws protect people who want to cause harm because there are consequencesII. Doctrine of Stare Decisisa. Based on the common law tradition, past court decisions become precedent for deciding future cases b. Precedent is a rule of law established in a court decision. Lower courts must follow the precedent established by higher courtsLecture 2I. Law vs. Ethicsa. Legality vs moralityb. Conscience is the inner reasoning deciding right from wrongLecture 3II. Different types of theoriesa. Divine Command Theoryb. Ethical Egoism Theoryc. Utilitarianismd. Rights TheoryIII. We avoid ethical dilemmas by rationalizingLecture 4I. The Social Responsibility of business is a duty owed by businesses to act socially responsible in producing and selling goods and services II. Stakeholders are employers, sponsors, investors, local communityIII. Shareholder’s rightsa. Shareholders actually have very little control over operations of corporationsb. Do not even have the right, by default, to nominate directorsc. Some empirical evidence suggests that more politically active corporations generate lower returnsd. Underlying argument is that these corporations suffer from poor corporate governanceLecture 5I. Law comes from multiple sourcesa. Confided Lawb. Constitutionsc. Executive Ordersd. Judicial Decisionse. Regulations and administrative ordersf. TreatiesII. Administrative Lawa. Concerns the powers and procedures of administrative agencies, which include all government authorities other than legislative bodies and courtsb. Administrative law consists of three elementsi. Enabling legislationii. Administrative Procedures Actiii. EnforcementLecture 6I. Major Functions of the Constitutiona. Creates the 3 branches of governmenti. Legislative1. Power to make lawii. Executive1. Power to enforce lawiii. Judicial1. Power to interpret lawb. Protects individual rights by limiting the government's ability to restrict those rightsII. The Process Clausea. Substantive due processi. Requires governmental laws to be clear and not overly broad; the test is whether a reasonable person can understand the lawb. Procedural due processi. Requires government to give people proper notice and proper hearing before depriving them of life, liberty, or property III. Equal Protection Clausea. Strict Scrutiny Testi. Applied to classifications based on raceb. Intermediate Scrutiny Testi. Applied to classifications based on protected classes other than racec. Rational Basis Testi. Applied to classifications not involving a suspect or protected classLecture 7I. First Amendmenta. Congress shall make no law respecting an establishment of religion or prohibitingthe free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people to peaceably to assemble, and to petition the governmentfor a redress of grievancesII. Freedom of speech a. Fully protected speechi. Speech the government cannot prohibit or regulateb. Limited protected speechi. Commercial speechc. Offensive speechi. Unprotected speechii. Dangerous speechiii. Fighting wordsiv. Obscene speechIII. Jurisdiction; a courts rights, power, or authority, to hear and decide a particular caseIV. Substantive law; law that creates, defines, and regulated duties and partiesV. Procedural law; prescribes methods for enforcing rights of obtaining redress for their violation VI. Venue- The location where a court with jurisdiction should hear a suitVII. Procedure- The process of a lawsuit begins with the decision to bring a lawsuita. The lawsuit begins with an injured party, the plaintiff files the lawsuitb. Pleadings refers to the paperwork by which the parties intake, respond to, and define the scope of a lawsuitVIII. Federal Ant-Trust Lawa. The basis of Federal (ATL) is the desire to foster competition b. The law prohibits anti-competitive practiced because of our belief that competition leads to lower prices, generates more product inflation, and results in a more equitable distribution of wealth between consumers and producers IX. Sherman Act (1890)a. Jurisdictional Application: to restraints that have a significant impact on Interstate Commerceb. Section 1: Every contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade is hereby declared to be illegal (Restrictive Agreements/ Wrongful Purpose)c. Section 2: Every person who shall monopolize shall be deemed guilty of a felony (Misuse of monopoly power in marketplace) Lecture 8I. Tort Law- Tort law is based upon the principle of Restitutio In Integrum (Restorative- to seek to make whole)a. A tort is a legal wrongb. Purpose of tort lawi. To compensateii. To render justiceiii. To regulate behaviorII. There are three kinds of Tortsa. Intentional Tortb. Unintentional Tort (Negligence)c. Strict LiabilityIII. Strict Liability is liability without faulta. Strict liability doctrinei. There are certain activities that place the public at risk of injury even if reasonable care is takenii. The public should have some mans of compensation if such injury occursIV. Elements of Unintentional Torts (Negligence)a. To be successful in a negligence lawsuit, the plaintiff must prove:b. The defendant owed a duty of care to the plaintiffc. The defendant breaded his duty of cared. The plaintiff suffered injurye. The defendant’s negligent act caused the plaintiff’s injuryV. Products Liability- Strict Liability a. Defect in manufactureb. Defect in designc. Defect in packagingd. Failure to warne. Failure to provide adequate instructions Lecture 9I. Defense Against Negligence cases include a. Assumption of the riskb. Contributory negligencec. Comparative negligenced. Superseding of intervening eventII. Johnson & Johnsona. A man wore a costume made from Johnson & Johnson cotton ballsb. Accidentally caught fire when smoking a cigarettec. Did Johnson & Johnson fail to warm consumers of risk?III. Matthiasa. Man was bit by bed bugs during his stay at a motelb. Motel knew they had a bug infestation, but still rented out roomsc. Was the motel