Bus Fin 3500 Review for Midterm Chapters 1 3 4 7 This chapter was basically introductory You should know the difference between ethics and morals Ethics The rules of conduct recognized in respect to a particular class of human actions or a particular group culture etc It defines how thing are according to the rules Morals Principles or habits with respect to right or wrong conduct It defines how things should work according to an individuals ideals and principles Chapter 1 Class notes Meinhard v Salmon Salmon and Meinhard joint venture to obtain funds to fininace improvements for a hotel Salmon is renting Salmon to pay Meinhard 40 percent profits Meinhard entered new lease without telling Salmon by the end of the 20 years they didn t even speak This case cited many times Fiduciary obligation greater than normal obligation not cheat on your partner fiduciary owes a duty to that other person to act solely in the interest of that person s property and interests Mein hard had a right to continue in this relationship fiduciary He won the case but lost the war Soldano v O Daniels Non fezence not doing something generally does not get you in trouble like Mal fezencse doing something wrong for example drive car into someone s car Cost benefit analysis phone was right there couldn t do any danger to use it case would not have occurred if there wasn t time between attempt phone call and shooting Bartender did owe duty Codes of Ethics To be fair all that is necessary In current days everyone is entitled to be treated fairly Chapter 3 You should be able to identify the different jurisprudential models You should also understand the concept of stare decisis when a court can overrule the decision of another court and when it cannot Nature of Law 1 The Nature of Law What is Law Jurisprudence the study of legal philosophy a b Natural Law a body of principles of right and justice existing for all people irrespective of time and culture c Positive Law a law laid down by the duly constituted authority 2 Sources of Law a b The Legislature c An organized body of persons having the authority to make laws for a political unit In reality each branch makes law ex Congress Often exercises other functions like control of government administration d The Legislative Process i Laws created are statutes enactments acts legislation or written law ii Legislation the process by which a statute is enacted or the statute itself iii How statutes are enacted 1 Begins as a bill introduced in the House or Senate 2 Referred to appropriate committee a Most die in committee from inaction 3 Committee sends the bill to the floor of the house of Congress in which it was introduced If passed the bill is sent to the opposing house of Congress 4 a When both houses pass similar but different bills a committee of both houses is created b They create a new version and submit to both houses 5 Bill then sent to the President for signature a President may i Sign bill into law ii Return to house in which it originated veto If president takes no action in 10 days the Bill becomes a law unless it is pocket vetoed b e The Executive i Makes laws but its lawmaking authority is limited by applicable constitutional provisions ii Presidential Authority over Foreign Affairs 1 President has ability to make law regarding foreign affairs is due to the power to make treaties subject to 2 3 consent of Senate 2 Treaties confirmed by Senate become supreme Law of Land 3 Treaties are important for international business a Determine type quantity of goods that may be sold in foreign market iii Presidential Authority over Domestic Affairs 1 Article II provides that the President shall take Care that the Laws be faithfully executed a Done by executive orders issued 2 Presidential power to make law has been limited by Supreme Court s interpretation of the Constitution a Ex during Korean Conflict Truman directed seizure of nation s steel mills to prevent a threatened strike b Unconstitutional because i No constitutional basis for seizure ii Congress refused to confer such authority on the President 3 President s power to issue such executive order must stem from an act of Congress or the Constitution f The Judiciary i When a court decides a dispute it makes law 1 Common Law judge made law those areas of law that have been developed principally by the courts g Administrative Agencies i Have the power to affect rights of the private parties ii Housed in the Executive but created by legislature iii Tasks such as 1 Investigating prosecuting rule making adjudication etc iv Make law in much the same ways as the three branches do h Interaction among the Various Sources of Law i They all have frequent interaction creating checks and balances a The Doctrine of Stare Decisis Rule of Precedent i Latin for let the decision stand ii A policy that courts have developed as a general rule that past judicial decisions are applied to decide present controversies 1 A rule of law decided by the highest court of a jurisdiction subsequently binds all lower courts within that jurisdiction 2 Unless a court overrules itself decision is followed in all future cases presenting the same material facts and legal issues iii Decision isn t binding in other jurisdictions 1 However may find its reasoning persuasive and follow it when 3 Legal Reasoning considering similar cases iv Several bases underline the doctrine 1 Fairness inconsistent decisions of the same kind of factual disputes seems unfair 2 Predictability when a court decides a present case the way it decided a similar one before parties are better able to anticipate the future 3 A court s decision today will be tomorrow s precedent a Often consider the future effect of a decision 4 Obiter Dictum the court makes statements by way of explanation that are not really necessary to the decision v Some Common Rationales Used to Support Legal Reasoning 1 Rule Based Rationales found in court decisions where a court is called on to interpret language in its prior cases as well as in court decisions involving the interpretation of statutes of regulations a Reasoning falls into 2 categories i Formalist takes the words in a case statute out of context and defines without taking into account their purpose ii Purposive attempts to define the meaning of words in a case or a statute by ascertaining the purpose underlying them 2 Precedent Based Rationales rationales or arguments based on precedent deal with the basic questions of whether an