Miller & Cross (2010)1The Legal Environment of BusinessBUSA 2106Carol D. Terry, J.D.PTI, Legal Studies—GSUSr. Counsel and Chief Compliance Officer, General Electric Company--PGSMiller & Cross (2013)2Now on to the real show!Objectives Define and classify law Identify sources of law Explain Stare Decisis Understand basic legal terminology Demonstrate critical legal thinking by using IRAC and case briefsMiller & Cross (2013)3Do Legal Principles impact your life?How does law play a role in the business environment?Let’s be practical….Miller & Cross (2013)4Business Applications of LawMiller & Cross (2013)5What Functions Does the Law Serve? Keeping the peace Shaping moral standards Promoting social justice Maintaining the status quo Facilitating orderly change Facilitating planning Providing a basis for compromise Maximizing individual freedomMiller & Cross (2013)6Classifications of Law Substantive vs. Procedural Federal vs. State  Criminal vs. Civil Law vs. Equity Common Law vs. Statutory Law National vs. International LawMiller & Cross (2013)7Comparing Civil and Criminal LawWho is the plaintiff? What is the purpose of a lawsuit? What remedies/sanctions are available? What is the burden of proof? How might this affect the outcome of the case? What is the outcome called?Miller & Cross (2013)8Comparing Law and Equity Historically, “Law” courts granted compensatory damages (money), land, or items of value “Equity” courts granted equitable remedies: specific performance, injunctive relief and rescission Today,  Law and equity have merged, but Distinction between legal and equitable remedies remain No jury trial in “action at equity” unless granted by statuteMiller & Cross (2013)9Some Equitable Maxims“Equity will not suffer a wrong to be without a remedy.”“Equity aids the vigilant, not those who rest on their rights.”“One seeking the aid of an equity court must come into court with clean hands.”Fairness and JusticeMiller & Cross (2013)10Comparing National and International Law National Law Law of a particular nation, e.g., US law May be based on common law, civil law (codified law) or sharia (religious law of Islam) International Law Law that governs relations among nations Includes national laws and customs, treaties, and laws of international organizationsMiller & Cross (2013)11Primary Sources of US Law Constitution: Supreme Law of the Land Legislative Law: Treaties, Statutes and Ordinances Executive Law: Executive Orders Administrative Agencies: Regulations and Orders Judicial Law: The Common LawMiller & Cross (2013)12Sources of US LawU.S. Constitution(Supreme Law of the Land)Legislature Executive JudiciaryAdministrative AgenciesCONGRESS PRESIDENT SUPREME COURTStatutes; Ratify TreatiesExecutive Orders; Negotiate TreatiesCommon LawEx: FDA, SEC, EEOCRules & Regs;Agency OrdersMiller & Cross (2013)13How do Courts Make Law? The Common Law and the Doctrine of Stare Decisis What is a case precedent? Why are they important to managers? Do you think judges should make law? Why or why not?Miller & Cross (2013)14Using PrecedentWhen Brad proposed to Amy, he hid a Tiffany’s box with an engagement ring for her in her carBefore they were married, Brad was killed in a tragic car accidentBrad’s parents, as executors of his estate, sued Amy in NY to recover the engagement ring Why might they do so?Miller & Cross (2013)15What Does Each Party Claim?Estate’s argument Brad gave Amy the ring in consideration of marriage, which is a _______ theory Because the marriage never happened, she must return the “consideration”Amy’s argument Brad gave me the ring as a ______and ______ are complete when madeMiller & Cross (2013)16A Case of First Impression The case ultimately went to the highest court in NY (the Court of Appeals) The court researched NY law looking for a “binding” precedent to govern the case It didn’t find any (a case of “first impression”) But it found a similar case in PA, where the PA court concluded that the ring should be treated as a gift Persuaded by the PA court’s reasoning, the NY court borrowed the PA precedentMiller & Cross (2013)17Distinguishing Precedents Does our precedent apply to these situations? Carla broke off her engagement with Dan after she learned that he was “cheating” on her After a 3 year engagement, Earl and Frances decided not to get marriedMiller & Cross (2013)18Reversing Precedent Can a lower court reverse the decision of a higher court? When might a court reverse a prior decision? Can you think of any famous examples?Miller & Cross (2013)19Stare Decisis: Let the Decision StandAdvantages Predictability Certainty StabilityDisadvantages Volume of Cases Time Intensive Expensive Precedent may be Rejected Multitude of SystemsMiller & Cross (2013)20Critical Legal Thinking: TerminologyCase at trial: Porter v. Dawson Who is the PLAINTIFF? Who is the DEFENDANT? Who has the burden of proof? Why?Miller & Cross (2013)21More Legal Terminology On appeal: Assume that Porter won at trial. Dawson appealed, alleging that the trial court erred in defining or applying the law, not simply that the trial court's decision was incorrect. On appeal, the case may remain Porter v. Dawson or be renamed Dawson v. Porter. Who is the APPELLANT? Who is the RESPONDENT?Miller & Cross (2013)22What are the Appellate Court’s Options?In reviewing the trial court’s judgment, the appellate court may AFFIRM the judgment REVERSE the judgment AFFIRM in part and REVERSE in part REVERSE and REMAND the case back to the lower court for further proceedings consistent with the appellate court's ruling on the legal issues.Miller & Cross (2013)23Types of Judicial OpinionsUnanimous Majority Plurality (no value as precedent)Concurring DissentPer curiam (“of the court”)Miller & Cross (2013)24 Facts Who are the key parties and what happened? Issue What legal question needs to be answered? Decision/Holding What does the court decide? Rationale/Reasons How does the court explain its ruling?Analyzing a Case: TheCase Brief MethodMiller & Cross (2013)25Analyzing a Case or Problem: The IRAC MethodThe IRAC Method Issue(s)