MANGMT 3540: BUSINESS LAW INMAN Final Study Guide May 9, 2012 Ch. 1: Introduction to Law {Basic Terms} Rule of law: concept that no one is above the law & no one can be convicted of breaking the law except as the law provides. Protects the basic rights in America Law: a set of rules enforced by a government Plaintiff: party which files a lawsuit against another party Defendant: the person being sued Cause of Action: a set of facts giving rise to a valid lawsuit Contract: a legally enforceable promise/set of promises. Breach of Contract: failure to fulfill contractual obligations Tort: a civil (noncriminal) wrongdoing, other than a breach of contract, for which the law provides a remedy [ex: assault, battery, negligence] Negligence: the most common tort, an unintentional violation of a legal duty to use a standard of care Common Law: a system of court-made law where the rules are derived from previously decided cases called precedents Stare decisis: the primary legal doctrine upon which the common law is based on, requires courts to follow precedent, means “it has been decided” Judicial review: the legal doctrine which says that the courts determine the constitutionality of statutes (acts of congress or state legislature) Philosophical Schools of Law Natural Law School · Law comes from principles inspired by God and/or evident in nature · Absolute truth: humankind should be based on a discoverable set of standards which do not vary · Foundation of US legal thought · Governments are responsible to a higher universal authority · Ex: Nazis tried as war criminals even though their actions were ordered by government: some actions should be resisted no matter what government approves · Problem: what natural law do we use? Different beliefs of what higher power is & different values Positivist School · Established government’s laws are supreme · W/out governments, humans are uncivilized and without rights (Hobbes) · Problems: actions of the Nazis would not have been considered crime- German law supreme · Law is “a set of rules enforced by the government” Traditional School · Laws which have worked in the past are best suited to shape present law · Concept of stare decisis · Legislators hesitant to change laws which work well · Following tradition promotes stability and gives due consideration to wisdom of those before us · However, law must be changed when new circumstances arise Legal Realist School · No uniform way to interpret/apply the law · All law is manmade, but every judge has own personality & prejudices · Result oriented: consider impact on society of decisions they make · Consider statistics · Semantic realists: language can be twisted to mean what you want it to mean · “the constitution is what the judges say it is”Federal > State (1) US Constitution: supremacy clause (2) Statutes: acts of congress Treaties: agreements w/ foreign countries (3) Administrative Rules (agencies) [All of state legal system is lower priority to federal law] (4) State Consitution (5) State Statutes (6) State Administrative Rules (7) Municipal Ordinances (city made laws) Case Law (Court-made law): the law created by courts when they declare the law, particularly with contracts and torts, and when it interprets the laws already found in consistitutions and statutes. *Case law normally overruled by a contrary statute/ordinance/administrative rule. In the case of a statute/rule being declared unconstitutional under the doctrine of judicial review, case law is actually higher in priority that the statute, rule, or sometimes even Constitution. Persuasive Authority: Law that is not binding but may be influential to a lawmaker · Uniform Codes: statutory frameworks covering a certain area of law that, if adopted, will help ensure consistency of the law in all states · Restatements: common-law schemes compiled to influence courts and encourage nationwide consistency (just suggestions, not statutory) Supremacy Clause: the Constitution and the laws enacted thereunder are the supreme law of the land. Administrative Law Administrative agencies: units of the executive branch created by a legislature to regulate in a certain area. Two types: · Independent agencies: designed to be free from direct authority of the president/governor. Serve for fixed terms and cannot be removed b/c of disagreement with president. o Often have the powers of all three branches · Executive agencies: heads are directly subject to the authority of the president o Federal executive agency: Cabinet level agencies (Dept. of Justice) o Can be removed at the will of the president (for political or personal reasons) Classifications of Law Criminal Law: wrongs against society punished by the state through prosecution Civil Law: involves wrongs against persons/entities enforced by lawsuits to obtain money or a remedy Substantive Law: defines rights and duties Procedural Law: defines the method/process by which violations of rights or duties will be enforced (rights of the defendant, what is considered a valid search) Statutory Law: law adopted by a legislative body (acts of congress-statutes, municipal ordinances) Case Law: law created by court decision (Adoption of comparative fault) (two types described below) Common Law: sue for money damages or return of property, right to a jury trial to determine facts in question Equity Law: sue for a court order compelling an act or a change in status, a judge determines the facts in question (no right to a jury trial)MANGMT 3540: BUSINESS LAW INMAN Ch. 2: Courts and ADR {Important Concepts} Res Judicata: “It’s been decided”, an issue decided in one case between parties is binding upon those parties in another case involving the same situation (civil version of the criminal concept double jeopardy) Class Action: One or more members of a group of injured partied sue on behalf of the group (if one joins, they can’t sue again; but if not part of the group, then they can sue again) Standing: a person needs a tangible interest in a lawsuit to sue/become a party (Grandparents visitation) Jurisdiction: “To speak the law”, the