BUS 270 BUSINESS LAW MIDTERM VERIFIED STUDY GUIDE
Definition of law - Answers - "A rule of civil conduct prescribed by the supreme power in
a state, commanding what is right, and prohibiting what is wrong"
Functions of law - Answers - to maintain stability in the social, political, and economic
system through dispute resolution, protection of property, and the preservation of the
state, while simultaneously permitting ordered change
Laws and morals - Answers - are different but overlapping: law provides sanctions while
morals do not
Law and Justice - Answers - are separate and distinct concepts; justice is the fair,
equitable, and impartial treatment of competing interests with due regard for the
common good
right - Answers - legal capacity to require another person to perform or refrain from an
action
duty - Answers - legal obligation requiring a person to perform or refrain from performing
an act
Substantive Law - Answers - the basic law creating rights and duties
Procedural Law - Answers - rules for enforcing substantive law
public law - Answers - law dealing with the relationship between government and
individuals
Private Law - Answers - the law dealing with the relationship between government and
individuals
Civil law - Answers - the law dealing with the rights and duties of individuals among
themselves
Criminal law - Answers - the law that involves offenses against the entire community
sue - Answers - to begin a lawsuit in a court
Defendant - Answers - the person against whom a legal action is brought
Plaintiff - Answers - the person who initiates a civil suit
Prosecute - Answers - to bring a criminal proceeding
, constituion - Answers - fundamental law of government establishing its powers and
limitations
Judicial review - Answers - The authority of a courts to determine the constitutionality of
legislative and executive acts
Common law system - Answers - body of law originating in England and derived from
judicial decisions
Adversary system - Answers - System in which opposing parties initiate and present
their cases
Civil law system - Answers - body of law derived from Roman law and based upon
comprehensive legislative enactments
Inquisitorial system - Answers - system in which the judiciary initiates, conducts, and
decides cases
Stare decisis - Answers - principle that courts should apply rules decided in prior cases
in deciding substantially similar cases
Equity - Answers - body of law based upon principles distinct from common law and
providing remedies not available at law
Decree - Answers - decision of a court of equity
Specific performance - Answers - decree ordering a party to perform a contractual duty
Injunction - Answers - decree ordering a party to do or refrain from doing a specified act
reformation - Answers - equitable remedy rewriting a contract to conform with the
original intent of the contracting parties
Rescision - Answers - An equitable remedy invalidating a contract
Maxim - Answers - a general legal principle
Treaty - Answers - an agree between or among independent nations
Executive order - Answers - Legislation issue by the president or a governor
Administrative law - Answers - law dealing with the establishment, duties, and powers of
agencies in the executive branch of government
Appellant - Answers - party who appeals
Definition of law - Answers - "A rule of civil conduct prescribed by the supreme power in
a state, commanding what is right, and prohibiting what is wrong"
Functions of law - Answers - to maintain stability in the social, political, and economic
system through dispute resolution, protection of property, and the preservation of the
state, while simultaneously permitting ordered change
Laws and morals - Answers - are different but overlapping: law provides sanctions while
morals do not
Law and Justice - Answers - are separate and distinct concepts; justice is the fair,
equitable, and impartial treatment of competing interests with due regard for the
common good
right - Answers - legal capacity to require another person to perform or refrain from an
action
duty - Answers - legal obligation requiring a person to perform or refrain from performing
an act
Substantive Law - Answers - the basic law creating rights and duties
Procedural Law - Answers - rules for enforcing substantive law
public law - Answers - law dealing with the relationship between government and
individuals
Private Law - Answers - the law dealing with the relationship between government and
individuals
Civil law - Answers - the law dealing with the rights and duties of individuals among
themselves
Criminal law - Answers - the law that involves offenses against the entire community
sue - Answers - to begin a lawsuit in a court
Defendant - Answers - the person against whom a legal action is brought
Plaintiff - Answers - the person who initiates a civil suit
Prosecute - Answers - to bring a criminal proceeding
, constituion - Answers - fundamental law of government establishing its powers and
limitations
Judicial review - Answers - The authority of a courts to determine the constitutionality of
legislative and executive acts
Common law system - Answers - body of law originating in England and derived from
judicial decisions
Adversary system - Answers - System in which opposing parties initiate and present
their cases
Civil law system - Answers - body of law derived from Roman law and based upon
comprehensive legislative enactments
Inquisitorial system - Answers - system in which the judiciary initiates, conducts, and
decides cases
Stare decisis - Answers - principle that courts should apply rules decided in prior cases
in deciding substantially similar cases
Equity - Answers - body of law based upon principles distinct from common law and
providing remedies not available at law
Decree - Answers - decision of a court of equity
Specific performance - Answers - decree ordering a party to perform a contractual duty
Injunction - Answers - decree ordering a party to do or refrain from doing a specified act
reformation - Answers - equitable remedy rewriting a contract to conform with the
original intent of the contracting parties
Rescision - Answers - An equitable remedy invalidating a contract
Maxim - Answers - a general legal principle
Treaty - Answers - an agree between or among independent nations
Executive order - Answers - Legislation issue by the president or a governor
Administrative law - Answers - law dealing with the establishment, duties, and powers of
agencies in the executive branch of government
Appellant - Answers - party who appeals
