Business Law Exam 1 chapters 1,2,3,4 Questions with Complete Solutions, Rated A+

Laws and regulations affect virtually ____ - all business activities Business Decisions are affected by: - Torts, Agency Law, Product Liability, Intellectual Property Rights, Negotiable Instruments, Creditors' Rights, Sales Law, Contracts, Procedural Law, Courts, Environmental Law, Business Organizations, Local Laws, State Laws, National Laws and many other potential legal factors. Sources of American law: - -Constitutional law -Statutory law ~Ordinances ~Uniform Laws (NCCUSL) ~Uniform Commercial Code -Administrative Law ~federal agencies ~State and Local agencies ~case law and common law Doctrines The Common law Tradition - American law is based largely on English Common Law which was based largely on traditions, social customs, rules, and cases dating back to 1066 A.D.Early English Courts: at common law, there were two separate court systems: COURTS OF LAW (monetary relief), and COURTS OF EQUITY (non-monetary relief) based on "notions of justice and fair dealing." Courts of Law: - an early english court- monetary relief Courts of Equity - Early english court - non-monetary relief based on "notions of justice and fair dealing" -Equity is a branch of law founded on whats fair and just. -courts of equity were administered by chancellors appointed by the king -Equitable remedies include: specific performance, injunctions, rescissions. Courts of Law - also called "King's courts" - judges were appointed by the king. -judges resolved disputes by application of rules of law to the facts of the case before the court Law Merchant - For several centuries merchants were left to their own devices. "Beneath the dignity of the King." Merchants all around Europe handled their own affairs. They developed a system of laws to govern business activities (the Law Merchant). The Law Merchant laws were very efficient because of the profit motive. By about 1600 the Merchant had slowly become part of the Common Law and it was administered by both Legal and Equitable Courts. -the king didn't want to deal with the merchants problems. -merchants connected buyers and sellers. ppl thought merchants were taking advantage of them. -merchants made their own system of laws -merchant law developed into business law. -merchant law is efficient and fair and well developed -single motive- profit. Common Law Tradition - -american law is based largely on English common law thats based on tradition, social customs, rules and cases dating back to 1066 AD -1066 Norman the Conquer came to England. Courts today - By 1896 in the U.S. and 1954 in the U.K. virtually all Law, Equitable, and Law Merchant Courts were merged into a single system. In other words, General courts today handle all of the functions formally handled in the different courts. The are some minor exceptions; for instance both Delaware and Tennessee have Chancery Courts, but only for very limited matters. -all court systems use common law The Doctrine of Stare Decisis - Stare Decisis ("stand on decided cases") is judge-made law. Case Precedents & Reporters. -Each decision and interpretation becomes a legal precedent. Precedent: look at old cases/rules to decide what to do Stare Decisis and the Common Law Tradition: Courts are obliged to follow precedents within their jurisdictions. Courts should not overturn their own precedents without compelling reasons. Stare Decisis and Legal Stability. Stare decisis helps courts be more efficient and makes the law more predictable, but Stare decisis historically makes changing the law SLOW. When there is no precedent the Courts will decide the case using their best judgment. (A case of first impression is a case without precedent.Courts will change/overrule a precedent usually under one of the following conditions: The precedent is clearly wrong. Times have changed and a new precedent is needed.