LSTD 2106 FINAL EXAM VERIFIED STUDY GUIDE
Law - Answers - a body of rules of action or conduct prescribed by controlling authority and having legal
binding force
Purpose of law - Answers - to provide a system of order, to levy punishment/consequences for violation of
rules, resolving disputes, promote equality and justice in society, give some degree of reliability in
applying the law, and to serve as an important catalyst for commerce by promoting good faith dealing
Counsel - Answers - also known as attorney; business context
In-House Counsel - Answers - can be a part of the executive or midlevel management team, ensures
complying with securities or things like patent laws; "general counsel"
Law Firms - Answers - attorneys devoting a significant amount of professional time to advise businesses
on issues such as formation, governance, labor and employment laws, regulatory agency compliance,
legal transactions, intellectual property, and other legal issues important to business operations;
"business lawyers" or "corporate lawyers"; majority of companies go this route
Constitutional law - Answers - the body of law interpreting state and federal constitutions; establishes a
structure for federal & state governments setting rules for amending the constitution, and granting specific
enumerated powers to the different branches of government; establishes the concept of federalism;
establishes individual civil rights and providing procedural protections for US citizens from wrongful
government actions
Statutory Law - Answers - the body of law created by the legislature and approved by the executive
branch of state and federal government
Common Law - Answers - law that has not been passed by the legislature but rather is made by the
courts; based on the fundamentals of previous cases with similar facts
Administrative Law - Answers - refers to both the law made by administrative agencies and the laws and
regulations that govern the creation, organization, and operation of administrative agencies
Primary Sources of Law - Answers - constitutional law, statutory law, common law,
administrative/regulatory law
Doctrine of Stare Decisis - Answers - the principle that similar cases with similar facts under similar
circumstances should have similar outcomes
Restatements of the Law - Answers - a collection of uniform legal principles focused in a particular area of
traditional state law
Secondary Sources of Law - Answers - sources of law that have no independent authority or legally
binding effect but can be used to illustrate a point or clarify a legal issue
Model State Statutes - Answers - statutes drafted by legal experts to be used as a model for state
legislatures to adopt in their individual jurisdictions in order to increase the level of uniformity and fairness
across courts in all states; secondary source of law
Civil Laws - Answers - laws designed to compensate parties for money lost as a results of another's
conduct
,Criminal Laws - Answers - laws designed to protect society that result in penalties to the violator such as
fines or imprisonment
Damages - Answers - money lost as a result of another's conduct; civil law
Remedies - Answers - judicial actions, which can be monetary or equitable, taken by courts that are
intended to compensate an injured party in a civil lawsuit; measures for law and equity
Equitable Relief - Answers - relief granted in the form of either specific performance ("do it") or an
injunction ("stop doing it") when monetary damages are insufficient due to the unique or irreversible
consequence of the breach
Equitable Maxims - Answers - common law rules that guide courts in deciding cases and controversies
and are intended to be broad statements of rues base on notions of fairness and justice
Equity Aids the Vigilant - Answers - the law favors those who exercise vigilance in pursuing their claims
and disfavors those who rest their legal rights by failing to act to protect their rights in a reasonable period
of time; equitable maxim
Substance Over Form - Answers - courts look to the intent of parties involved and adhere to a standard of
good faith & fair play instead of applying the letter of law in a way that would violate fundamental
principles of fairness and consistency; equitable maxim
Clean Hands Doctrine - Answers - courts are guided in their decisions not only by the letter of the law but
also on the basis that one seeking the aid of a court must come to the court with clean hands that are
unstained by bad faith, misrepresentations, or deceit; equitable maxim
Equity Aids the Vigilant - Answers - Which equitable maxim?: Statutes of limitations imposes a deadline
on when an aggrieved party must file a claim. After the deadline has passed, the party is barred from
recovering any losses or damages
Substance Over Form - Answers - Which equitable maxim?: Blackwell signs an agreement that she is a
limited partner. In substance, she acts like a general partner. Courts will treat her as a general partner
despite what the parties call themselves.
Clean Hands Doctrine - Answers - Which equitable maxim?" Kauffman fraudulently transfers stock to his
brother to avoid paying a legal judgement entered against him. When a dispute arises with his brother,
Kauffman sues to try and recover the stock. Kauffman is barred from recovering the stock because he
committed fraud in transferring it to his brother in the first place
Public Laws - Answers - laws derived from a government entity
Private Laws - Answers - laws recognized as binding between two parties even though no specific statute
or regulation provides for the rights of the parties
Administrative Agencies - Answers - governmental bodies, including department, nondepartment, and
independent agencies, that have the authority to implement and administer particular regulations
Rulemaking - Answers - the legislative function of administrative agencies, whereby they create legally
enforceable rules in order to fill in the details of a statue; aka policy making
Adjudication - Answers - the judicial function of administrative agencies, whereby the agencies make
policy. administrative law judges hear cases brought before the specific agency
Administrative Agency Primary Functions - Answers - formation, implementation, enforcement of
regulations, licensing & permitting
, Securities and Exchange Commission - Answers - issues licenses to certain individuals involved in the
public trading of stocks
Sources of Administrative Law - Answers - U.S. Constitution, Administrative Procedures Act, Enabling
Statutes, Common Law
Administrative Procedures Act (APA) - Answers - a federal statute that imposes specific procedural
structures and due process requirements on administrative agencies' duties of rulemaking, adjudication,
and other agency functions; also provides for the judicial review of agency actions & determinations
Enabling Statute - Answers - a law passed by Congress when it is establishing an administrative agency;
serves as the source of the agency's authority and describes the agency's scope and jurisdiction over
certain matters
Steps of Administrative Rule Making - Answers - agency study & research, notice: publication of the
proposed rule, public comment; protection of small business owners, revision/final publication
Federal Register - Answers - a daily publication distributed by the federal government (found in major
libraries) primarily used to communicate proposed agency rules, final agency regulations, and other
administrative agency or executive branch announcements, such as executive orders
Arbitrary & Capricious - Answers - failure to exercise honest judgement instead of reasoned consideration
of all relevant factors
Licensing - Answers - the task of issuing a license authorizing a business or industry to do something
Administrative Law Judge - Answers - an individual, typically an attorney, who is employed by an agency
to adjudicate disputes
Inspection - Answers - the act of monitoring a business's compliance with administrative regulations; an
administrative agency ordinarily secures a warrant and then enters and inspects the business's premises
Appointments Clause - Answers - subject to confirmation by the Senate, the president has the exclusive
right to nominate principal officers such as cabinet members or commissioners of independent agencies
that report directly to the president
Arbitrary & Capricious Standard - Answers - the broad judicial benchmark used to determine whether an
agency's actions were a result of a reasoned decision-making process
Purpose of the Constitution - Answers - establishes a structure for the federal government; that is, it
creates three coequal branches; delegates enumerated and limited powers to each coequal branch of the
federal government; provides procedural protections to citizens, persons, and business firms
Structure of the Constitution - Answers - preamble, 7 articles, and 27 amendments
Preamble - Answers - the introductory part of the Constitution that states its broad objectivees
Articles - Answers - the main provisions of the Constitution that set out the government's structure, power,
and procedures
Amendments - Answers - changes made to the Constitution since its ratification
Bill of Rights - Answers - the first 10 amendments to the Constitution that preserve the rights of the
people from unlawful acts of government officials, establish and protect freedom of speech and religion
and so on
Law - Answers - a body of rules of action or conduct prescribed by controlling authority and having legal
binding force
Purpose of law - Answers - to provide a system of order, to levy punishment/consequences for violation of
rules, resolving disputes, promote equality and justice in society, give some degree of reliability in
applying the law, and to serve as an important catalyst for commerce by promoting good faith dealing
Counsel - Answers - also known as attorney; business context
In-House Counsel - Answers - can be a part of the executive or midlevel management team, ensures
complying with securities or things like patent laws; "general counsel"
Law Firms - Answers - attorneys devoting a significant amount of professional time to advise businesses
on issues such as formation, governance, labor and employment laws, regulatory agency compliance,
legal transactions, intellectual property, and other legal issues important to business operations;
"business lawyers" or "corporate lawyers"; majority of companies go this route
Constitutional law - Answers - the body of law interpreting state and federal constitutions; establishes a
structure for federal & state governments setting rules for amending the constitution, and granting specific
enumerated powers to the different branches of government; establishes the concept of federalism;
establishes individual civil rights and providing procedural protections for US citizens from wrongful
government actions
Statutory Law - Answers - the body of law created by the legislature and approved by the executive
branch of state and federal government
Common Law - Answers - law that has not been passed by the legislature but rather is made by the
courts; based on the fundamentals of previous cases with similar facts
Administrative Law - Answers - refers to both the law made by administrative agencies and the laws and
regulations that govern the creation, organization, and operation of administrative agencies
Primary Sources of Law - Answers - constitutional law, statutory law, common law,
administrative/regulatory law
Doctrine of Stare Decisis - Answers - the principle that similar cases with similar facts under similar
circumstances should have similar outcomes
Restatements of the Law - Answers - a collection of uniform legal principles focused in a particular area of
traditional state law
Secondary Sources of Law - Answers - sources of law that have no independent authority or legally
binding effect but can be used to illustrate a point or clarify a legal issue
Model State Statutes - Answers - statutes drafted by legal experts to be used as a model for state
legislatures to adopt in their individual jurisdictions in order to increase the level of uniformity and fairness
across courts in all states; secondary source of law
Civil Laws - Answers - laws designed to compensate parties for money lost as a results of another's
conduct
,Criminal Laws - Answers - laws designed to protect society that result in penalties to the violator such as
fines or imprisonment
Damages - Answers - money lost as a result of another's conduct; civil law
Remedies - Answers - judicial actions, which can be monetary or equitable, taken by courts that are
intended to compensate an injured party in a civil lawsuit; measures for law and equity
Equitable Relief - Answers - relief granted in the form of either specific performance ("do it") or an
injunction ("stop doing it") when monetary damages are insufficient due to the unique or irreversible
consequence of the breach
Equitable Maxims - Answers - common law rules that guide courts in deciding cases and controversies
and are intended to be broad statements of rues base on notions of fairness and justice
Equity Aids the Vigilant - Answers - the law favors those who exercise vigilance in pursuing their claims
and disfavors those who rest their legal rights by failing to act to protect their rights in a reasonable period
of time; equitable maxim
Substance Over Form - Answers - courts look to the intent of parties involved and adhere to a standard of
good faith & fair play instead of applying the letter of law in a way that would violate fundamental
principles of fairness and consistency; equitable maxim
Clean Hands Doctrine - Answers - courts are guided in their decisions not only by the letter of the law but
also on the basis that one seeking the aid of a court must come to the court with clean hands that are
unstained by bad faith, misrepresentations, or deceit; equitable maxim
Equity Aids the Vigilant - Answers - Which equitable maxim?: Statutes of limitations imposes a deadline
on when an aggrieved party must file a claim. After the deadline has passed, the party is barred from
recovering any losses or damages
Substance Over Form - Answers - Which equitable maxim?: Blackwell signs an agreement that she is a
limited partner. In substance, she acts like a general partner. Courts will treat her as a general partner
despite what the parties call themselves.
Clean Hands Doctrine - Answers - Which equitable maxim?" Kauffman fraudulently transfers stock to his
brother to avoid paying a legal judgement entered against him. When a dispute arises with his brother,
Kauffman sues to try and recover the stock. Kauffman is barred from recovering the stock because he
committed fraud in transferring it to his brother in the first place
Public Laws - Answers - laws derived from a government entity
Private Laws - Answers - laws recognized as binding between two parties even though no specific statute
or regulation provides for the rights of the parties
Administrative Agencies - Answers - governmental bodies, including department, nondepartment, and
independent agencies, that have the authority to implement and administer particular regulations
Rulemaking - Answers - the legislative function of administrative agencies, whereby they create legally
enforceable rules in order to fill in the details of a statue; aka policy making
Adjudication - Answers - the judicial function of administrative agencies, whereby the agencies make
policy. administrative law judges hear cases brought before the specific agency
Administrative Agency Primary Functions - Answers - formation, implementation, enforcement of
regulations, licensing & permitting
, Securities and Exchange Commission - Answers - issues licenses to certain individuals involved in the
public trading of stocks
Sources of Administrative Law - Answers - U.S. Constitution, Administrative Procedures Act, Enabling
Statutes, Common Law
Administrative Procedures Act (APA) - Answers - a federal statute that imposes specific procedural
structures and due process requirements on administrative agencies' duties of rulemaking, adjudication,
and other agency functions; also provides for the judicial review of agency actions & determinations
Enabling Statute - Answers - a law passed by Congress when it is establishing an administrative agency;
serves as the source of the agency's authority and describes the agency's scope and jurisdiction over
certain matters
Steps of Administrative Rule Making - Answers - agency study & research, notice: publication of the
proposed rule, public comment; protection of small business owners, revision/final publication
Federal Register - Answers - a daily publication distributed by the federal government (found in major
libraries) primarily used to communicate proposed agency rules, final agency regulations, and other
administrative agency or executive branch announcements, such as executive orders
Arbitrary & Capricious - Answers - failure to exercise honest judgement instead of reasoned consideration
of all relevant factors
Licensing - Answers - the task of issuing a license authorizing a business or industry to do something
Administrative Law Judge - Answers - an individual, typically an attorney, who is employed by an agency
to adjudicate disputes
Inspection - Answers - the act of monitoring a business's compliance with administrative regulations; an
administrative agency ordinarily secures a warrant and then enters and inspects the business's premises
Appointments Clause - Answers - subject to confirmation by the Senate, the president has the exclusive
right to nominate principal officers such as cabinet members or commissioners of independent agencies
that report directly to the president
Arbitrary & Capricious Standard - Answers - the broad judicial benchmark used to determine whether an
agency's actions were a result of a reasoned decision-making process
Purpose of the Constitution - Answers - establishes a structure for the federal government; that is, it
creates three coequal branches; delegates enumerated and limited powers to each coequal branch of the
federal government; provides procedural protections to citizens, persons, and business firms
Structure of the Constitution - Answers - preamble, 7 articles, and 27 amendments
Preamble - Answers - the introductory part of the Constitution that states its broad objectivees
Articles - Answers - the main provisions of the Constitution that set out the government's structure, power,
and procedures
Amendments - Answers - changes made to the Constitution since its ratification
Bill of Rights - Answers - the first 10 amendments to the Constitution that preserve the rights of the
people from unlawful acts of government officials, establish and protect freedom of speech and religion
and so on
