LEB 320F 1st Edition Lecture 2 Outline of Last Lecture II A Firm s license to operate A Economic B Social C Regulatory III We want predictability certainty stable IV Law as a competitive tool V Legal system of the world VI Public v Private law VII Diferent Governments VIII Certainty IX Flexibility th X 13 Amendment Outline of Current Lecture XI Soldano v O Daniels XII Yahoo v LICRA XIII Common Statutory XIV Flagiello v PA Hospital Precedent XVI Statutes XVII Tennessee Valley Authority v Hill XVIII Uniform laws A UCC Current Lecture Chapter 1 4 Soldano v O Daniels o Summary o Plaintif s father Darrell Soldano was shot and killed O Daniels owns and operates the Circle Inn which is across the street from Happy Jack s Saloon where Soldano was killed A patron of Happy Jack s Saloon came into the Circle Inn to inform an employee that a man had been threatened at Happy Jack s and requested the employee call the police or allow him to call the police The employee refused and Soldano is killed o Soldano dies but he still has a claim o Plaintif P Soldano s childre n o Defendant D Bartender Circle Inn o Who did what to whom Asked to borrow a phone from a business open to the public o Narrow Exception Tarasof Tarasof therapist patient relationship therapist should report potential threat to someone specifically named o Factors weighed Low cost for someone to borrow a phone Irreplaceable harm done o Court determined summary judgment case didn t go to jury o Court of Appeals reversed the decision so result case can go to new trial o How will behavior be changed o What has technology done to this decision Cell phones o Principle Agent Relationship someone s liable but sue in order to get most profit Yahoo v LICRA o Summary In 2000 LICRA sent a cease and desist letter to Yahoo Over the sale of Nazi and Third Reich related goods through its auction services which violates French Law LICRA threatened legal action unless Yahoo Took steps to prevent sales within 8 days Yahoo Asked the French Court to reconsider the terms of the order claiming compliance with the order s requirements was technologically impossible o Yahoo Sellers sold o Law globalization Legal one place illegal in another o Trial court in CA o Main issue where s the business Can Yahoo Sell anything o Case reversed over lack of personal jurisdiction over France no attempt to collect o Technically the transaction occurs in an online marketplace but is it tractable o 1940 44 France Holocaust o Because Yahoo Is an American company get to employ free speech rights o Originally court declared Yahoo Right but reversed because didn t have jurisdiction on France Common Statutory o World legal systems map o Case law decisions become history o The role of precedent Certainty for commerce Change is slow then abrupt o Edwards v Clinton Governmental immunity Flagiello v PA Hospital o Summary Mary Flagiello sufered injuries due to a fall while she was a patient at the University of Pennsylvania Hospital in Philadelphia She and her husband sued the hospital alleging her injuries were caused by the negligence of hospital employees The hospital moved for a judgment on the pleading stating they were a charitable organization and was thus immune from liability o PA Supreme Court important o Plaintif Flagiello dropped on her ankle o Hospital did not dispute negligence o Fees of PA Hospital are 90 of the revenue o When to change a law when a rule ofends reason Precedent o One state over another o Problem with flexibility over certainty Statutes laws made by a legislative body o Thou shall and thou shall nots from the public through the representative bodies o Role of pressure groups Good for things like speed limits day to day operations to overturn common law rules o Must be certain so the public can understand and obey o Once a statute is passed must be interpreted Plain meaning Context Legislative history What s mind of a collective Tennessee Valley Authority v Hill o Summary TVA began construction of the Tellico Dam and Reservoir Project in 1967 designed to generate electricity to provide flatwater recreation and flood control and improve economic conditions in the area When nearing completion the discovery of the endangered snail darter brought into play the Endangered Species Act of 1973 o Did the Endangered Species Act apply to an almost completed project o Could Congress do anything o Snail darter is endangered and completion of the dam will kill its habitat o End result project has to stop o Congress later amended the Endangered Species Act to complete the dam Uniform laws o UCC Uniform Commercial Code o MBCA o UPA