I Business Activities and the Legal Environment A Breaches breaks or fails to perform i e contract breach II Sources of American Law A Constitutional Law U S State 1 The U S Constitution is the supreme law of the land Article VI B Statutory Law 1 Laws enacted by legislative bodies at any level of government 2 Also includes local ordinances which are statutes passed by municipal or county governing units to govern matters not covered by federal or state law a Usually have to do with matters affecting local communities such as land use and building codes 3 Uniform Laws a Set of laws drafted by the National Conference of Commissioners on Uniform State Laws NCCUSL for all states to consider adopting in order to form a uniform set of laws to allow interstate trade and commerce 4 Uniform Commercial Code a Facilitates commerce among the states by providing a uniform set of rules governing commercial transactions b Created through the joint efforts of the NCCUSL and the American Law Institute C Regulations by government agencies Administrative Law 1 Administrative Law Consists of the rules orders and decisions of administrative 2 Administrative Agency Federal state or local government agency established to agencies perform a specific function 3 Federal Agencies a Executive Agencies Agencies within the U S Cabinet b Independent Regulatory Agencies Agencies that operate independently but are 1 The rules of law announced in court decisions such as constitutional interpretations still subject to government control D Case law and common law doctrines statutes and regulations III The Common Law Tradition A Early English Courts 1 Courts of Law Remedies at Law a Remedies Legal means to enforce a right or redress a wrong b Remedies at Law Land items of value or money c Courts of Law Courts that awarded Remedies at Law as compensation when one person wrongs another 2 Courts of Equity Remedies in Equity law is adequate 3 Equitable Maxims a Remedies in Equity Remedy provided by Courts of Equity when no remedy at a Propositions or general statements of equitable rules See Exhibit 1 2 page 8 of Legal Ethical Environment of Business by Frank B Cross b During equity proceedings the party bringing a lawsuit is called the petitioner and the party being sued if called the responder B Legal and Equitable Remedies Today 1 In today s courts a party may request both legal and equitable remedies in the same action C The Doctrine of Stare Decisis 1 Case Precedents and Case Reporters a When possible judges try to base their decisions on precedents set by earlier cases b Reporters Volumes of prior case results 2 Stare Decisis and the Common Law Tradition a Stare Decisis To stand on decided cases b Once a court rules on certain set of facts that court and courts of lower rank within the same jurisdiction must apply that set of rules on future cases with similar fact patterns c Binding Authority Any source of law that a court must follow when deciding a case 3 Stare Decisis and Legal Stability a Stare Decisis makes the law more stable and predictable 4 Departures from Precedent a Sometimes courts must deviate from set precedents when new social and or technological changes render the precedent inapplicable as in when the U S Supreme Court ruled separate educational facilities for whites and blacks unconstitutional after previously allowing it b Occasionally there is no precedent This is called a case of first impression 1 In deciding these cases courts may look at persuasive authorities legal principles and policies underlying prior court decisions or public policy D Stare Decisis and Legal Reasoning 1 Legal Reasoning Reasoning process used by judges in deciding what law applies to a given dispute and then applying that law to the specific facts or circumstances of the case 2 Basic steps in legal reasoning a What are the key facts and issues b What rules of law apply to the case c How do the rules of law apply to the particular facts and circumstances of this case 1 Cases on Point Previously decided cases that are as similar as possible to the one under consideration d What conclusion should be drawn 3 Forms of Legal Reasoning a Deductive Reasoning premise and a conclusion b Linear Reasoning c Reasoning by Analogy 1 Employs syllogism a logical relationship involving a major premise a minor 1 Proceeds from one point to another with the final point being the conclusion 1 Compare the facts in the case at hand to the facts in previous cases and to the extent the patterns are similar to apply the same rule of law to the present case IV Schools of Jurisprudential Though A Natural Law those who adhere to natural law believe that a higher or universal law exists that apples to all human beings and that all written laws should imitate these inherent principles B Legal Positivism Belief that there can be no higher law than a nation s positive law C Historical School emphasizes the evolutionary process of law by concentrating on the D Legal Realism based on the idea that law is just one of many institutions in society and origin and history of the legal system is shaped by social forces and needs E Sociological School views law as a tool for promoting justice in society V Classifications of Law rights and obligations A Substantive Law consists of all laws that define describe regulate and create legal B Procedural Law consists of all laws that delineate the methods of enforcing the rights established by substantive law C Civil Law spells out the rights and duties that exist between persons and persons and their government as well as the relief available when a person s rights have been violated D Criminal Law concerned with wrongs committed against the public as a whole E Cyber Law emerging body of law that governs transactions conducted via the internet VI How to Find Primary Sources of Law A Citation Identifies the publication in which a legal authority can be found B Finding Statutory and Administrative Law 1 United States Code State Code a Arranges all existing federal laws by broad subject C National Reporter System VII How to Read Understand Case Law A Case Titles and Terminology 1 Title of a case indicates the names of those involved in the lawsuit such as Jones v Smith a In such case Jones was the plaintiff filing suit against Smith 2 Some appellate courts place the name of the person appealing first a The previous example would then read Smith v Jones 3 Parties to Lawsuits a Plaintiff or petitioner b Defendant or
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