Bcor 320 1st EditionExam # 1 Study Guide Lectures: 1 - 9Law: Is a body of rules of action or conduct prescribed by controlling authority and having binding legal force. It must be obeyed and followed by citizens. Subject to sanctions or legal consequences. - Established by authority - Body or system of rules- Control or authority imposed Functions of laws:- Keeping the peace - Promoting social justice- Maintain the status quo- Facilitating orderly change- Facilitating planning- Providing a basis for compromise- Maximizing individual freedom3 major legal systems 1. Romano-Germanic Civil Law2. Islamic Law3. Anglo-American Common LawCivil Law system: A legal system derived from Romano and Germanic practice and set out in national law codesFrench Civil Code: 1804 Code Napoleon. Based on Jus commune, but incorporated ideas of French Revolution. Straightforward and each to read general principles. German Civil Code: 1896 Burgerliches Gestzburch. Based on Jus commune. Incredibly technical and precise rules intended as handbook for experts. SHARI’A: - Principle source of law in Saudi Arabia but followed to some extent in all Islamic countires.- Primarily a moral code- Sources - Sunna or traditional teachings and practices of prophet Muhammad Common Law System: law based on customary practice of courts and is the basis of legal systemsComparison of legal systemsCivil Law- Ideological basis: Positive Law and Laissez-faire economics- Rules based on general principles- Codes- Case law is respected as precedent- Uses deductive reasoningCommon law- Ideological basis: Natural Law- Rules based upon specific circumstance- Case law- Case law required as a precedent- Private and public- Uses inductive ReasoningOrigins of laws• Inherited much from British law.• Founding Fathers created a multi-level government which guaranteed citizens’ rights.• Accumulation of precedent in legal cases makes up the common law.• Statutes are passed by legislative body.• Substantive rules state parties’ rights.• Procedural rules determine how courts should settle disputes.U.S primary Sources1. Constitution (U.S and State)2. Statutes (Passed by congress and state legislatures)3. Regulations (promulgated by federal and state agencies)4. Case Law5. Executive Orders (issued by federal and state executive branch)Four Roles of U.S constitution1. Establish structure of national government (checks and balances)2. Control relationship between national and state government3. Define and preserve personal liberty4. Allow government to perpetuate itselfU.S constitution ↓Legislative branch Executive branch judicial branch Administrative agency Legislative branch = Article 1 StatutesExecutive branch = Article 2 Executive orders Judicial Branch = Article 3 Case decisionsSecondary Sources of U.S Law- Books, articles, and comments- Legal encyclopedias- RestatementsClassifications of lawCriminal Law:- Dangerous behavior outlawed by society- Government prosecutes accused - Guilt is determined - Punishment or fine is imposedCivil Law- Regulates rights and duties of parties- Victim, not government brings suit- Guilt not determined - Compensation is ordered Substantive law- Defines the rights of people Procedural law- Establishes processes for settling disputesPublic law- Sets the duties of government to its citizens Private law- Regulates duties between individuals Ethics: Is the study of how people ought to act. Law and ethics may not always agreeUtilitarianism: A correct decision was one that tended to maximize overall happiness and minimize overall pain.1. Focus on the consequences of an action---not the nature of the action itself or any set of moral values or religious beliefs2. Do COST-BENEFIT ANALYSIS to assess the negative and positive effects of alternative actions-Risk management and cost-benefit analyses are examples of utilitarian business practices.Deontological Ethics: The results are not as important as the reason for which the decision is made. To a deontological thinker, the ends do not justify the means.Corporate social responsibility: The idea that corporation can and should act ethically and accountable to society for their actions. - Employees- Customers- Creditors- Suppliers- CommunityForeign corrupt practices: Prohibits any American company to make or promise to make payments or gifts to foreign officials, political candidates, or parties in order to influence a governmental decision, even if the payment is legal under local law. Lecture 4: State Court system:Trial CourtsAlmost all cases begin in trial courts, with a judge and usually a jury.Trial courts determine the facts of a particular dispute and apply the law to those facts.Courts can only hear cases under their jurisdiction.Appellate CourtsAppeal courts generally accept the facts given to them by trial courts and just review the trial record to see if the court made any errors of law.The highest appeals court in a state is the state Supreme Court.Jurisdiction: The power of a court to hear a caseSUBJECT MATTER JURISDICTION- Limited jurisdiction v. General jurisdiction- Original jurisdiction v. Appellate jurisdiction- Exclusive jurisdiction v. Concurrent jurisdictionFederal Courts:1. Federal Question Cases: A claim based on the United States Constitution, a federal statute, or a federal treaty2. Diversity Cases: When the plaintiff and defendant are citizens of two different states, AND the amount in dispute is greater than $75,0003. Trial Courts: United States District Courts are the primary trial courts in the federal system. The nation is divided into about 94 districts, each with its own district court. There are also specialized trial courts, such as Bankruptcy Court and Tax Court.4. Appellate CourtsUnited States Courts of Appeals are the intermediate courts of appeals. The nation is divided into circuits.The highest appeals court is the United States Supreme Court.Beginning of Litigation:1. Complaint- short, plain statement of the allegations and the legal claims2. Answer-A brief reply to the allegations3. Counter-Claim—Sometimes the accused party will initiate a second suit in response to the first4. Reply- A brief reply to the counter-claimClass Actions: If the plaintiff has evidence that the wrong in question has affected a large number of unrelated persons, the suit may become a class-action suit, with