Business Law Midterm (Chapters 1-9)
Law - ANS -The order or pattern of rules that society uses to govern the conduct of individuals
and their relationships
> consists of the body of principles that govern conduct and that can be enforced in courts or by
administrative agencies
> Can also be described as a collection or bundle of rights
Right - ANS -A legal capacity to require another person to perform or refrain from performing an
act
Where do our rights come from? - ANS -The US Constitution, state constitutions, federal and
state statutes, and ordinances at the local levels, including cities, counties, and boroughs
Duty - ANS -An obligation of law imposed on a person to perform or refrain from performing a
certain act
(No right exists in one person without some other corresponding duty existing in another person
or persons)
Right of Privacy - ANS -Two components:
1) The right to be secure against unreasonable searches and seizures by the government; the
Fourth Amendment of the US Constitution guarantees this portion of the right of privacy
2) Protects individuals against intrusion by others. Your private life is not subject to public
scrutiny when you are a private citizen. This right is provided in many state constitutions and
exists through interpretation at the federal level through the landmark case of Roe v. Wade, in
which the US Supreme Court established a right of privacy that gives women the right to choose
whether to have an abortion
Family Educational Right to Privacy Act of 1974 (FERPA or the Buckley Amendment) - ANS
-prevents colleges and universities from disclosing students' grades to third parties without the
students' permission
Fawcett v. Altieri - ANS -> must decide whether the content in the account is "material and
necessary" and then perform a balancing test as to whether the production of this content would
result in a violation of the account holders' privacy rights
,> information posted in open on social media accounts are freely discoverable and do not
require a court order to disclose them
> Not allowed in this case because the kid's social media postings were irrelevant to matter at
hand, and would only be used to impeach his character
Constitutional Law - ANS -the branch of law that is based on the constitution for a particular
level of government
Constitution - ANS -a body of principles that establishes the structure of a government and the
relationship of that government to the people who are governed
> It is generally a combination of the written document and the practices and customs that
develop with the passage of time and the emergence of new problems
> In each state, two constitutions are enforced: the state constitution and the federal
Constitution
Statutory Law - ANS -includes legislative acts. Both Congress and the state legislatures enact
statutory law
> At the state level, statutes govern the creation of corporations, probate of wills, and the
transfer of title to property
> In addition, all cities, counties, and other governmental subdivisions have some power to
adopt ordinances within their sphere of operation (traffic laws, zoning laws, and pet and bicycle
licensing laws)
Administrative Regulations - ANS -rules promulgated by state and federal administrative
agencies, such as the Securities Exchange Commission (SEC) and the Environmental
Protection Agency (EPA). These regulations generally have the force of statutes.
Private Law - ANS -Consists of the rules and regulations parties agree to as part of their
contractual relationships (landlord rules for tenants)
Case Law - ANS -Law also includes principles that are expressed for the first time in court
decisions, called case law. Plays three very important roles:
1) clarifies the meaning of statutes, or provides statutory interpretation
2) creates precedent. When a court decides a new questioner problem, its decision becomes
precedent, which stands as the law in future cases that involve that particular problem. Using
precedent and following decisions is also known as stare decisis. However, judges have some
flexibility, so when a court finds an earlier decision to be incorrect, it overrules that decision
,3) develops a body of law that is not statutory but dresses long-standing issues. Court decisions
do not always deal with new ruble's or make new rules. In many cases, courts apply rules as
they have been for many years, even centuries (common law)
Common Law - ANS -The time-honored rules of the community (property rights in England
1066); most states depend on the common law for definitions of the terms in the statutes
treaties and Executive Orders - ANS -Law also includes treaties made by the US and
proclamations and executive orders of the president of the US or of other public officials
Uniform State Laws - ANS -To facilitate the national nature of business and transactions, the
National Conference of Commissioners on Uniform State Laws, composed of representatives
from every state, has drafted statutes on various subjects for adoption by the states
> Uniform Commercial Code (UCC): regulates the sale and lease of goods; commercial paper,
such as checks; fund transfers; secured transactions in personal property; banking; and letters
of credit. Having the same principles of law on contracts for the sale of goods and other
commercial transactions in most of the 50 states makes doing business easier and less
expensive.
Substantive Law - ANS -creates, defines, and regulates rights and liabilities. The law that
determines when a contract is formed is substantive law
Procedural Law - ANS -specifies the steps that must be followed in enforcing those rights and
liabilities. One the contract is formed, you have rights to enforce that contract, and the steps you
take through the court system to recover your damages for a breach of contract are procedural
laws
Criminal Laws - ANS -define wrongs against society and carry fines and imprisonment as
penalties
Civil Laws - ANS -define the rights of one person against another and carry damage remedies
for the wronged individual. Civil laws provide that in addition to taking care of your wrong to
society, you must take care of your wrong to the pedestrian and pay the damages for the cost of
his/her injuries
Equity - ANS -a body of law that provides justice when the law does not offer an adequate
remedy or the application of the law would be terribly unfair
> At one time the US had separate law and equity courts, but today these courts have been
combined so that one court applies the principles of both law and equity
, > The rules of equity go further and could require the owner to convey title to the house, an
equitable remedy known as specific performance. Equitable remedies may also be available in
certain contract breaches
Ways business disputes can be resolved: - ANS -in court, or alternative dispute resolutions
Court - ANS -a tribunal established by government to hear evidence, decide cases brought
before it, and provide remedies when a wrong has been committed. Sometimes courts prevent
wrongs by issuing the equitable remedy of an injunction
Jurisdiction - ANS -the authority of courts to hear cases
Subject matter jurisdiction - ANS -covers the type of cases the court has authority to hear; other
types of subject matter jurisdiction give the courts the authority over particular legal topic areas
Original jurisdiction - ANS -courts that have the authority to hear the original proceeding in a
case (the trial court) are called courts of original jurisdiction
General Jurisdiction - ANS -has broad authority to hear general civil and criminal cases. When
a general jurisdiction trial court hears criminal cases, it serves as the trial court for those
charged with crimes. General trial courts also have the authority to hear civil disputes, such as
breach of contract cases and personal injury lawsuits
Limited or special jurisdiction - ANS -this court has the authority to hear only particular kinds of
cases. For example, many states have courts that can hear only disputes in which the damages
are $10,000 or less. Also, juvenile courts, probate courts, and domestic relations courts. These
courts have very narrow authority for the types of cases they hear (federal court system:
bankruptcy courts and US Tax court)
Appellate Jurisdiction - ANS -this court reviews the work of a lower court
Appeal - ANS -a review of the trial and decision of the lower court. An appellate court does not
hear witnesses or take testimony. Usually a panel of three judges, it simply reviews the
transcript and evidence from the lower court and determines whether there has been a
reversible error
Reversible Error - ANS -A mistake in applying the law or a mistake in admitting evidence that
affected the outcome of the case
Appellate Court decisions - ANS -can affirm or reverse a lower court decision or remand that
decision for another trial or additional hearings
Stanford vs. Jeanswear - ANS -> Stanford is a truck driver who gets injured by tripping as she
goes into the sleeper compartment. She then goes to the doctor but has lots of other things
Law - ANS -The order or pattern of rules that society uses to govern the conduct of individuals
and their relationships
> consists of the body of principles that govern conduct and that can be enforced in courts or by
administrative agencies
> Can also be described as a collection or bundle of rights
Right - ANS -A legal capacity to require another person to perform or refrain from performing an
act
Where do our rights come from? - ANS -The US Constitution, state constitutions, federal and
state statutes, and ordinances at the local levels, including cities, counties, and boroughs
Duty - ANS -An obligation of law imposed on a person to perform or refrain from performing a
certain act
(No right exists in one person without some other corresponding duty existing in another person
or persons)
Right of Privacy - ANS -Two components:
1) The right to be secure against unreasonable searches and seizures by the government; the
Fourth Amendment of the US Constitution guarantees this portion of the right of privacy
2) Protects individuals against intrusion by others. Your private life is not subject to public
scrutiny when you are a private citizen. This right is provided in many state constitutions and
exists through interpretation at the federal level through the landmark case of Roe v. Wade, in
which the US Supreme Court established a right of privacy that gives women the right to choose
whether to have an abortion
Family Educational Right to Privacy Act of 1974 (FERPA or the Buckley Amendment) - ANS
-prevents colleges and universities from disclosing students' grades to third parties without the
students' permission
Fawcett v. Altieri - ANS -> must decide whether the content in the account is "material and
necessary" and then perform a balancing test as to whether the production of this content would
result in a violation of the account holders' privacy rights
,> information posted in open on social media accounts are freely discoverable and do not
require a court order to disclose them
> Not allowed in this case because the kid's social media postings were irrelevant to matter at
hand, and would only be used to impeach his character
Constitutional Law - ANS -the branch of law that is based on the constitution for a particular
level of government
Constitution - ANS -a body of principles that establishes the structure of a government and the
relationship of that government to the people who are governed
> It is generally a combination of the written document and the practices and customs that
develop with the passage of time and the emergence of new problems
> In each state, two constitutions are enforced: the state constitution and the federal
Constitution
Statutory Law - ANS -includes legislative acts. Both Congress and the state legislatures enact
statutory law
> At the state level, statutes govern the creation of corporations, probate of wills, and the
transfer of title to property
> In addition, all cities, counties, and other governmental subdivisions have some power to
adopt ordinances within their sphere of operation (traffic laws, zoning laws, and pet and bicycle
licensing laws)
Administrative Regulations - ANS -rules promulgated by state and federal administrative
agencies, such as the Securities Exchange Commission (SEC) and the Environmental
Protection Agency (EPA). These regulations generally have the force of statutes.
Private Law - ANS -Consists of the rules and regulations parties agree to as part of their
contractual relationships (landlord rules for tenants)
Case Law - ANS -Law also includes principles that are expressed for the first time in court
decisions, called case law. Plays three very important roles:
1) clarifies the meaning of statutes, or provides statutory interpretation
2) creates precedent. When a court decides a new questioner problem, its decision becomes
precedent, which stands as the law in future cases that involve that particular problem. Using
precedent and following decisions is also known as stare decisis. However, judges have some
flexibility, so when a court finds an earlier decision to be incorrect, it overrules that decision
,3) develops a body of law that is not statutory but dresses long-standing issues. Court decisions
do not always deal with new ruble's or make new rules. In many cases, courts apply rules as
they have been for many years, even centuries (common law)
Common Law - ANS -The time-honored rules of the community (property rights in England
1066); most states depend on the common law for definitions of the terms in the statutes
treaties and Executive Orders - ANS -Law also includes treaties made by the US and
proclamations and executive orders of the president of the US or of other public officials
Uniform State Laws - ANS -To facilitate the national nature of business and transactions, the
National Conference of Commissioners on Uniform State Laws, composed of representatives
from every state, has drafted statutes on various subjects for adoption by the states
> Uniform Commercial Code (UCC): regulates the sale and lease of goods; commercial paper,
such as checks; fund transfers; secured transactions in personal property; banking; and letters
of credit. Having the same principles of law on contracts for the sale of goods and other
commercial transactions in most of the 50 states makes doing business easier and less
expensive.
Substantive Law - ANS -creates, defines, and regulates rights and liabilities. The law that
determines when a contract is formed is substantive law
Procedural Law - ANS -specifies the steps that must be followed in enforcing those rights and
liabilities. One the contract is formed, you have rights to enforce that contract, and the steps you
take through the court system to recover your damages for a breach of contract are procedural
laws
Criminal Laws - ANS -define wrongs against society and carry fines and imprisonment as
penalties
Civil Laws - ANS -define the rights of one person against another and carry damage remedies
for the wronged individual. Civil laws provide that in addition to taking care of your wrong to
society, you must take care of your wrong to the pedestrian and pay the damages for the cost of
his/her injuries
Equity - ANS -a body of law that provides justice when the law does not offer an adequate
remedy or the application of the law would be terribly unfair
> At one time the US had separate law and equity courts, but today these courts have been
combined so that one court applies the principles of both law and equity
, > The rules of equity go further and could require the owner to convey title to the house, an
equitable remedy known as specific performance. Equitable remedies may also be available in
certain contract breaches
Ways business disputes can be resolved: - ANS -in court, or alternative dispute resolutions
Court - ANS -a tribunal established by government to hear evidence, decide cases brought
before it, and provide remedies when a wrong has been committed. Sometimes courts prevent
wrongs by issuing the equitable remedy of an injunction
Jurisdiction - ANS -the authority of courts to hear cases
Subject matter jurisdiction - ANS -covers the type of cases the court has authority to hear; other
types of subject matter jurisdiction give the courts the authority over particular legal topic areas
Original jurisdiction - ANS -courts that have the authority to hear the original proceeding in a
case (the trial court) are called courts of original jurisdiction
General Jurisdiction - ANS -has broad authority to hear general civil and criminal cases. When
a general jurisdiction trial court hears criminal cases, it serves as the trial court for those
charged with crimes. General trial courts also have the authority to hear civil disputes, such as
breach of contract cases and personal injury lawsuits
Limited or special jurisdiction - ANS -this court has the authority to hear only particular kinds of
cases. For example, many states have courts that can hear only disputes in which the damages
are $10,000 or less. Also, juvenile courts, probate courts, and domestic relations courts. These
courts have very narrow authority for the types of cases they hear (federal court system:
bankruptcy courts and US Tax court)
Appellate Jurisdiction - ANS -this court reviews the work of a lower court
Appeal - ANS -a review of the trial and decision of the lower court. An appellate court does not
hear witnesses or take testimony. Usually a panel of three judges, it simply reviews the
transcript and evidence from the lower court and determines whether there has been a
reversible error
Reversible Error - ANS -A mistake in applying the law or a mistake in admitting evidence that
affected the outcome of the case
Appellate Court decisions - ANS -can affirm or reverse a lower court decision or remand that
decision for another trial or additional hearings
Stanford vs. Jeanswear - ANS -> Stanford is a truck driver who gets injured by tripping as she
goes into the sleeper compartment. She then goes to the doctor but has lots of other things
