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Legal Environment of Business Chapter 1 - 7, 10 Midterm.
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Legal Environment of Business Chapter 1 - 7, 10 Midterm.
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Legal Environment of Business Chapter 1- 7, 10 Midterm
Primary Source of law - ANS-What is Law? Law is rules w/ enforcement. Where do laws
come from?
1. US Constitution
2. State Constitution
3. Statutory Law
4. Administrative Law
5. Case Law - Stare Decisis
US constitution - ANS-Supreme law of the land, series of checks and balances between
the courts, president, and congress
State constitution - ANS-each state has their own constitution. Series of checks and
balances between the governor (executive position), state courts, and state legislatures
on a state level. Mini-federal
Statutory Law - ANS-Laws passed by congress, state legislatures and local governing
bodies. When a statue is passed by congress or state legislatures (law makers), the
statue and law is incorporated in a codebook.
Administrative Law - ANS-regulations created by administrative agencies
Ex: FDA, FCC.
Case law - ANS-also known as "common law" or "judge-made law". made when
appellate (pertaining to appeals) court endorses a rule to be used in deciding court
cases, based on current standards are custom of people. Latin term: Stare Decisis
Stare Decisis - ANS-"let the decision stand". It is the body of doctoral and principles that
form the common law as they merge over time, as judges decided legal controversies.
doctrine that requires lower courts to follow existing case law in deciding similar cases;
Ex: no legal duty to aid someone.
Secondary sources of law - ANS-Books and articles that summarize and clarify primary
sources of law.
Ex: law review articles, law journals, legal publications.
,Origins of law - ANS-Came from England; English courts.
Courts of law - ANS-- provide remedy of law: equals money (remedy).
Courts of equity - ANS-- provides remedy at equity
equals = non-monetary
Ex: injunctions (court order - make to do something or not) and specific performance.
Classification of Law "5 of them" - ANS-1. Substantive Law.
2. Procedural Law
3. Civil Law
4. Criminal Law
5. Cyber Law
Substantive Law - ANS-applicable rules, elements and things must be proven to
succeed.
Procedural Law - ANS-The process, the rules, the guidelines, the litigation process, the
statue of limitations.
(How things work)
Civil Law - ANS-Right and Duty that exist between people and other people or
companies.
Ex: suing someone else, or suing company. (Private party vs. private party) No state or
federal involved.
Ex: Jones vs. Smith
Criminal Law - ANS-Deals with a wrong committed against the public as a "whole" as
defined law. [Criminal code] And the government is the party to the lawsuit.
Ex: government, state, or county vs. (Smith) person
Cyber Law - ANS-Law that deals with the online environment. Combination of old and
new laws that are applicable to online business.
For example: an e-signature is acceptable form of a signature today.
General Law - ANS-not generally Texas Law. Some is what the law says, not exactly
how it is practiced.
Negligence "four elements" - ANS-Have to prove all four elements to sue someone.
1. Duty of Care
,2. Breach of Duty of Care
3. Causation (Factual & Proximate Cause)
4. Injury/Damages
Jurisdiction "4 forms" - ANS-1. General Jurisdiction
2. Original Jurisdiction vs Appellate Jurisdiction
3. Federal Courts
4. Cyber Space
General jurisdiction - ANS-the power of the court to hear the case. If the court has
jurisdiction means the lawsuit can occur, if they don't have jurisdiction then they don't
have the power to hear the case.
Original Jurisdiction - ANS-not talking about original jurisdiction, it's the jurisdiction of
the trial court. Trial Court = equals jurisdiction, trial court review facts and hear
evidence. Only level where facts be introduced, evidence be introduced, and witnesses
testimonies.
Appellate Jurisdiction - ANS-is the courts of Appeals and Supreme courts (ALL the
courts above the trial court) Appellate are appeals. Appellate Jurisdiction = Court of
appeals - review the record (transcription) from trial court and make sure the law was
properly applied to the facts on the trial court. No new facts, no new evidence, no new
witness testimonies. Whatever outcome in the Trial court, if you don't like it you can go
to the court of appeals. Which a trial is over, you're done, if it's in a civil level.
Federal Courts Jurisdiction - ANS-the federal court only has jurisdiction to hear your
case in 2 situations. Congress determines the jurisdiction of the federal courts.
2 ways to get in Federal court: - ANS-1. Federal question: if your issue involves the U.S.
constitution, or any other federal law or regulations, you can file in federal court.
2. Diversity jurisdiction - involves 2 things
A. A plaintiff and defendant must be from two different states. Because, every state has
their own laws.
B. The amount in controversy must exceed 75,000. (Exam question) (Must be both)
Q. Sally (plaintiff) works in Texas and wants to sue her boss (defendant) from Ohio for
Title VII Civil Acts Right of 1964 in federal court for sexual harassment under 65,000.
Can she sue him in federal court? - ANS-- Yes because it is a federal question, even if
65,000 is not exceeding 75,000.
, Q. If someone hit your car and is from another state and the damages are 55,000. Can
you file in federal court? (Trick Question) - ANS-- No because it doesn't because 55,000
doesn't exceed 75,000 and is not a federal question, even if the plaintiff and defendant
are from different states it ALSO needs to exceed over 75,000. Where can you sue?
- In the state court, the plaintiff can file in his state if he can prove case law.
Cyber space - ANS-the Internet bypassing geographic boundaries and undercuts the
tradition basis for jurisdiction. Businesses are being conducted at where? It's inside the
term and conditions.
Trial Courts and Courts of Appeals 4 terms: Judges and Courts. - ANS-1. Trial Judges
2. Appellate/Reviewing Judges
3. The Court of Appeals
4. Supreme Court
Trial Judges - ANS-(the court of original jurisdiction) they conduct the trial, they review
the facts, they hear (listen) evidence, they review evidence, hear witness testimonies.
(Trial Court, County, State)
Appellate/Reviewing Judges - ANS-1st Appellate Court, Circuit Court, Court of appeals
and Supreme Court justices review the record from the trial court; trying to ensure that
the trial court applied the law to the facts properly and due process was followed. (Find
errors)
The Court of appeals - ANS-does not have the discretionary review power over appeals
coming up from the trial court. (COA has to hear the appeal from the trial court). 9/10
appeals heard from the court of appeals they would affirm the decision of the trial court.
90% will not overturn the trial court decision.
Supreme Courts - ANS-have discretionary review power over reviews. They do not
have to hear the appeal. Typically will hear brand new cases, or if there's some kind of
conflict between the court of appeals.
Ex: 1st vs. 14th
Alternative Dispute Resolution ("ADR") - ANS-very "popular" way in resolving disputes
WITHOUT going to court. Litigation - is NOT ADR
Litigation - ANS-is the process of resolving a dispute via the court system. (Going to the
court system). If it goes to trial it goes into the public record.
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