Legal Environment of Business Test 1
Law - ✔✔ANSWER✔✔-Rights between governments and individuals
Rules setting forth rights and responsibilities of individuals, private entities, and public entities
Consequences for infringing upon rights and failing to live up to responsibilities
Methods for enforcing rights and responsibilities
Jurisprudence - ✔✔ANSWER✔✔-The study of law
Law Provides: - ✔✔ANSWER✔✔-Stability, Predictability and Continuity
Why is the regulation of business necessary? - ✔✔ANSWER✔✔-Provides Regulation (law), Prevents
unfair advantage, Levels the playing field
Primary Sources of American Law: - ✔✔ANSWER✔✔-U. S. Constitution, Statutes, Administrative Law,
Case/Common Law
,Secondary Sources of American Law: - ✔✔ANSWER✔✔-Legal Encyclopedias, Treatise, Law Review
Articles, Restatements, Law Set Forth In Constitutions (U.S., State)
10th Amendment: - ✔✔ANSWER✔✔-Anything governed by U.S. Constitution is reserved for states, also
grants rights to citizens
U.S. Constitution: - ✔✔ANSWER✔✔-Supreme law of the land
Federal Law Fact: - ✔✔ANSWER✔✔-Federal law trumps state law (except for court system and case law)
State Constitution: - ✔✔ANSWER✔✔-Supreme law of states-cannot violate U.S. Constitution or Federal
Law
Statutory Law - ✔✔ANSWER✔✔-Laws enacted by legislative bodies- Congress (Federal), Legislatures
(State)
Acts - ✔✔ANSWER✔✔-Collections of statutes addressing a certain subject matter
United States Code: - ✔✔ANSWER✔✔-U.S.C.
State Code: - ✔✔ANSWER✔✔-O.C.G.A.
Federal Statutes: - ✔✔ANSWER✔✔-Apply to all states
State Statutes: - ✔✔ANSWER✔✔-Apply to specific states
Ordinances: - ✔✔ANSWER✔✔-Apply in County/City
Uniform Laws: - ✔✔ANSWER✔✔--States regulate what isn't constitutionally regulated nationally
,-Can make trade and other life activities difficult across state lines
-Have been drafted to make state laws more consistent
What are the the three options presented to states on adopting Uniform Laws? - ✔✔ANSWER✔✔--
Adopt uniform laws as drafted
-Adopt with amendments
-Reject uniform law
Statutory Law - ✔✔ANSWER✔✔-If adopted by states, uniform law becomes_______________.
Administrative Law - ✔✔ANSWER✔✔-Laws created by administrative agencies
Executive Agency: - ✔✔ANSWER✔✔-Executive branch's cabinet departments and sub-agencies within
those departments. Under control of the President, he can appoint and remove officers.
EX: State Department, Passport Office, FDA
Independent Regulatory Agencies: - ✔✔ANSWER✔✔-Presidents role is less pronounced, Officers serve a
fixed term
State and Local Agencies: - ✔✔ANSWER✔✔-Often created as parallels to federal agencies, Cannot
conflict with U.S. Constitution/Federal Statutes/Federal Regulations, Cannot conflict with state
Case and Common Law - ✔✔ANSWER✔✔-Law Announced in Court Decisions,Written by judges in
opinions, Recorded in reports/reporters
Judge-Made Law - ✔✔ANSWER✔✔-Common law system started in England centuries ago, contrast with
civil law system, 2 types of courts defined by types of remedies afforded
, Courts of Equity - ✔✔ANSWER✔✔-Afford equitable remedies-remedy to force someone to do or stop
doing something, different types of equitable remedies. Awarded by judge, not a jury.
Injuction: Court order to cease doing something OR undo some wrong (Specific Performance: Order to
carry out a contractual promise)
Declaratory Judgement: Court order deciding rights of parties - ✔✔ANSWER✔✔-Different Types of
Equitable Remedies
Equitable Remedies - ✔✔ANSWER✔✔-Limited to a bench trial
Stare Decisis - ✔✔ANSWER✔✔-A doctrine requiring courts to decide present cases in conformity with
decision made in past cases
Precedent - ✔✔ANSWER✔✔-Each new decision interpreting or applying the constitution, statute,
administrative regulation or past case becomes...
Depends on the hierarchy of courts - ✔✔ANSWER✔✔-Must a court always follow precedent?
Jurisdiction - ✔✔ANSWER✔✔-Area in which court has power to apply the law after citizens
Highest court in jurisdiction may decide to overrule if the case was incorrectly decided, or if there have
been technological, economic or social changes - ✔✔ANSWER✔✔-Can a court avoid following binding
precedent?
The court goes by general legal principles, social values and customs, fairness, public policy, and
legislative record - ✔✔ANSWER✔✔-What if there is no precedent (case of first impression)?
Issues of Fact - ✔✔ANSWER✔✔-What happened, Determined by jury in jury trial, Determined by Judge
in bench trial
Law - ✔✔ANSWER✔✔-Rights between governments and individuals
Rules setting forth rights and responsibilities of individuals, private entities, and public entities
Consequences for infringing upon rights and failing to live up to responsibilities
Methods for enforcing rights and responsibilities
Jurisprudence - ✔✔ANSWER✔✔-The study of law
Law Provides: - ✔✔ANSWER✔✔-Stability, Predictability and Continuity
Why is the regulation of business necessary? - ✔✔ANSWER✔✔-Provides Regulation (law), Prevents
unfair advantage, Levels the playing field
Primary Sources of American Law: - ✔✔ANSWER✔✔-U. S. Constitution, Statutes, Administrative Law,
Case/Common Law
,Secondary Sources of American Law: - ✔✔ANSWER✔✔-Legal Encyclopedias, Treatise, Law Review
Articles, Restatements, Law Set Forth In Constitutions (U.S., State)
10th Amendment: - ✔✔ANSWER✔✔-Anything governed by U.S. Constitution is reserved for states, also
grants rights to citizens
U.S. Constitution: - ✔✔ANSWER✔✔-Supreme law of the land
Federal Law Fact: - ✔✔ANSWER✔✔-Federal law trumps state law (except for court system and case law)
State Constitution: - ✔✔ANSWER✔✔-Supreme law of states-cannot violate U.S. Constitution or Federal
Law
Statutory Law - ✔✔ANSWER✔✔-Laws enacted by legislative bodies- Congress (Federal), Legislatures
(State)
Acts - ✔✔ANSWER✔✔-Collections of statutes addressing a certain subject matter
United States Code: - ✔✔ANSWER✔✔-U.S.C.
State Code: - ✔✔ANSWER✔✔-O.C.G.A.
Federal Statutes: - ✔✔ANSWER✔✔-Apply to all states
State Statutes: - ✔✔ANSWER✔✔-Apply to specific states
Ordinances: - ✔✔ANSWER✔✔-Apply in County/City
Uniform Laws: - ✔✔ANSWER✔✔--States regulate what isn't constitutionally regulated nationally
,-Can make trade and other life activities difficult across state lines
-Have been drafted to make state laws more consistent
What are the the three options presented to states on adopting Uniform Laws? - ✔✔ANSWER✔✔--
Adopt uniform laws as drafted
-Adopt with amendments
-Reject uniform law
Statutory Law - ✔✔ANSWER✔✔-If adopted by states, uniform law becomes_______________.
Administrative Law - ✔✔ANSWER✔✔-Laws created by administrative agencies
Executive Agency: - ✔✔ANSWER✔✔-Executive branch's cabinet departments and sub-agencies within
those departments. Under control of the President, he can appoint and remove officers.
EX: State Department, Passport Office, FDA
Independent Regulatory Agencies: - ✔✔ANSWER✔✔-Presidents role is less pronounced, Officers serve a
fixed term
State and Local Agencies: - ✔✔ANSWER✔✔-Often created as parallels to federal agencies, Cannot
conflict with U.S. Constitution/Federal Statutes/Federal Regulations, Cannot conflict with state
Case and Common Law - ✔✔ANSWER✔✔-Law Announced in Court Decisions,Written by judges in
opinions, Recorded in reports/reporters
Judge-Made Law - ✔✔ANSWER✔✔-Common law system started in England centuries ago, contrast with
civil law system, 2 types of courts defined by types of remedies afforded
, Courts of Equity - ✔✔ANSWER✔✔-Afford equitable remedies-remedy to force someone to do or stop
doing something, different types of equitable remedies. Awarded by judge, not a jury.
Injuction: Court order to cease doing something OR undo some wrong (Specific Performance: Order to
carry out a contractual promise)
Declaratory Judgement: Court order deciding rights of parties - ✔✔ANSWER✔✔-Different Types of
Equitable Remedies
Equitable Remedies - ✔✔ANSWER✔✔-Limited to a bench trial
Stare Decisis - ✔✔ANSWER✔✔-A doctrine requiring courts to decide present cases in conformity with
decision made in past cases
Precedent - ✔✔ANSWER✔✔-Each new decision interpreting or applying the constitution, statute,
administrative regulation or past case becomes...
Depends on the hierarchy of courts - ✔✔ANSWER✔✔-Must a court always follow precedent?
Jurisdiction - ✔✔ANSWER✔✔-Area in which court has power to apply the law after citizens
Highest court in jurisdiction may decide to overrule if the case was incorrectly decided, or if there have
been technological, economic or social changes - ✔✔ANSWER✔✔-Can a court avoid following binding
precedent?
The court goes by general legal principles, social values and customs, fairness, public policy, and
legislative record - ✔✔ANSWER✔✔-What if there is no precedent (case of first impression)?
Issues of Fact - ✔✔ANSWER✔✔-What happened, Determined by jury in jury trial, Determined by Judge
in bench trial
