BUL3330 Law for Accountancy Exam 1 Review Chapters 1 9 10 11 12 13 14 Chapter 1 Introduction to Law Law concerns the relations of individuals with one another as such relations affect the social and economic order it s in part prohibitory mandatory and permissive Law is defined by Blackstone an English jurist as a rule of civil conduct prescribed by the supreme power in a state commanding what is right and prohibiting what is wrong Functions of law o At the general level its primary function is to maintain stability in the social political and economic system while simultaneously permitting change o Protect the owner s use of property and to facilitate voluntary agreements contracts regarding exchanges of property and services o Preservation of the state Sanctions are the means by which the law enforces the decisions of the courts The Law and Morals Law You must drive on the right side of the road Morals You should not silently stand by and watch a blind man walk off a cliff o o Where the law and morals intersect Thou shall not kill Although law and justice are different without law there can be no justice o Justice can be defined as fair equitable and impartial treatment of the competing interests and desires of individuals and groups with due regard for the common good o Law is no guarantee of justice though Classifications of Law 1 Substantive and procedural 2 public and private and 3 civil and criminal in order to understand these you must know the following o A right is the capacity of a person with the aid of the law to require another person or persons to perform or to refrain from performing a certain act o A duty is the obligation the law imposes upon a person to perform or to refrain from performing a certain act Substantive and Procedural Law o Substantive law o Procedural law substantive law defines the method by which one may obtain a remedy in court creates defines and regulates legal rights and duties establishes the rules for enforcing those rights that exist by reason of Public and Private Law o Public law is the branch pf substantive law that deals with the government s rights and powers in its political or sovereign capacity and in its relation to individuals or groups relations with one another business law is private law primarily is that part of substantive law governing individuals and legal entities in their o Private law 1 Civil and Criminal Law o Civil law defines duties the violation of which constitutes a wrong against the party injured by the violation part of private purpose compensate the injured party should be distinguished from the civil law system The injured party sues to recover compensation for the damage and injury he has sustained as a result of the defendant s wrongful conduct Party bringing the civil action which is the plaintiff has the burden of proof which means that they must sustain by a preponderance greater weight of the evidence Principle forms of relief judgment for money damages and a decree ordering the defendant to perform a specified act or to desist from specified conduct o Criminal law establishes duties the violation of which is a wrong against the whole community part of public purpose punish the wrongdoer A crime is any act or omission that public law prohibits in the interest of protecting the public and that the government makes punishable in a judicial proceeding brought prosecuted by it Government must prove criminal guilt beyond a reasonable doubt they prohibit punish crimes on the grounds of public policy Sources of Law o The supreme law of the land is the US Constitution which provides that federal statues and treaties shall be the supreme law of the land o Other federal actions having the force of the law are executive orders from the president and rules regulations of federal administrative officials agencies and commissions federal courts also contribute to US law o Paramount law of each state is contained within its written constitution tend to be more specific than the US constitution and usually amended more often Under this are the statutes that the state s legislatures enact and the case law its judiciary develops state administrative agencies also contribute Constitutional Law o A constitution is the fundamental law of a particular level of government which establishes the governmental structure and allocates power among the levels of government aka defining political relationships Separation of powers one of the fundamental principles on which our government s founded is detailed in the constitution as the government consisting of 3 distinct independent branches federal congress and executive Also restricts governmental power and specifies rights liberties of people o No law is valid if it violates the federal constitution Under the principle of judicial review the Supreme Court of the US determines the constitutionality of all laws Judicial Law o US legal system is a common law system which relies on the judiciary as a source of law and on the adversary system for the adjudication of disputes The adversary system is one in which the parties not the court must initiate and conduct litigation o Civil law systems inquisitorial method of adjudication Common Law depend on comprehensive legislative enactments codes and an In the inquisitorial system the judiciary initiates litigation investigates pertinent facts and conducts the presentation of evidence 2 Equity o Courts in the common law system have developed a body of law known as case judge made or common law that serve as precedents for later cases o Common law has developed by application of stare decisis which is a principle meaning to stand by your decision under it courts who are deciding cases adhere to and rely on rules of law that they or superior courts announced and applied in prior decisions involving similar cases Allows flexibility for common law to change o Judicial decisions have 2 uses 1 to determine with finality the case currently being decided and 2 indicate how courts will decide similar cases in the future o The system called equity was a gradually evolved supplementary system of judicial relief for those who had no adequate remedy at common law by a court of chancery presided over by a chancellor o Difference between equity and law was that the chancellor could issue a decree or order compelling the defendant to do refrain from doing a specific act a defendant who didn t comply could be held in contempt of court and punished by fine