MANGMT 3540 1stEdition Lecture 1 Outline of Current Lecture Chapter 1 Introduction to Law Current Lecture I Basic Definitions A Law A body of rules enforced by a government B The Rule of Law the concept that no one is above the law and that no one can be of breaking the law except as the law provides From the highest official to the lowliest member of society all are subject to the same laws C Contract a legally enforceable promise or set of promises D Breach of Contract a fail to fulfill contractual obligations i e contract lawsuits E Tort a civil wrong other than a breach of contract for which the law provides a remedy F Negligence an unintentional violation of a legal duty to use a standard of care G Common Law a legal system of court made law where the rules are derived from previously decided cases called precedents H Stare Decisis the legal doctrine that requires courts to follow previous decisions called precedents I Judicial Review doctrine that courts determine the constitutionality of statutes J Cause of Action a stated set of facts giving rise to a valid lawsuit K Plaintiff the party which files a lawsuit against another party L Defendant the person against whom a lawsuit is filed II Philosophical Sources of Law A Four Philosophical Schools of Law 1 Natural Law School i The theory that law comes from unchangeable principles evident from nature or inspired by God ii Example Declaration of Independence 2 Positivist School i Government s rules are supreme ii Example definition of law above 3 Traditional Historical School i Law which has worked in the past is best suited to shape present law ii Example Stare Decisis 4 Legal Realist School i There is no uniform way to interpret the law result oriented considering the impact on the parties and society many are semantic relativists ii Example Holmes the constitution is what the judges say it is B Problems in Application 1 Natural Law School whose versions of self evident law do you use 2 Positivist School government atrocities acceptable 3 Legal Realist Traditional should the constitution be what the judges say it is should precedent control or should the Constitution itself control III Practical Sources of Law A Three Sources of Federal Law by Priority 1 U S Constitution the supreme law of the land 2 Statutes and Treaties acts of Congress and treaties entered by the President and approved by the Senate 3 Administrative rules Laws adopted by administrative agencies B Four Sources of State Law by Priority 1 Constitution of the state 2 Statutes adopted by legislature 3 Administrative Rules 4 Municipal Ordinances C Case Law Common Law Bottom of the priority list a Court made law b The law established by courts particularly in the areas of contract and tort law c Case law is overruled by a contrary statute ordinance or rules unless the law involved is ruled unconstitutional D Two types of Persuasive Authority 1 Uniform codes statutory schemes compiled by experts to be adopted by state legislatures to help insure consistency of the law in all the states a Examples Commercial code Uniform probate code 2 Restatements common law schemes compiled by experts to influence courts and encourage nationwide consistency a Examples Restatement of contracts restatement of torts IV Administrative Law A Definitions a Agencies a unit of the executive branch regulating a certain area b Independent Agency an agency designed to be free from the direct authority of the president or governor i EXAMPLES FTC SEC c Executive Agency an agency whose head is directly subject to the president E g Cabinet level agencies IRS or EPA B Three Powers of Many Independent Agencies a Powers of all three branches of government held by in many administrative agencies b Executive prosecute violations legislative make binding rules and judicial decide controversies V Classifications of Law A Criminal vs Civil a Criminal Law involves wrongs against society punished by the state through prosecution b Civil Law involves wrongs against persons or entities enforced by lawsuits to obtain money or other remedies B Substantive vs Procedural a Substantive law defines rights and duties b Procedural law defines the method or process by which violations of rights or duties will be enforced C Statutory vs Case Law a Statutory law law adopted by a legislative body i Examples acts of Congress acts of state legislature municipal ordinances b Case Law law created by court decision i Example adoption of comparative fault D Common Law vs Equity a Origins of Common Law Courts a uniform set of laws derived from following precedents in England b Origins of Equity Courts created by the king because people whose problems could not be solved by common law courts would petition the king c Common Law today i Sue for money damages or return of property ii Right to a jury trial to determine facts in question d Equity Today i Sue for a court order compelling an act or a change in status ii A judge determines the facts in question e Equity suits are now filed in the same courts and are heard by the same judges as common law suits