Complete notes MBA Legal & Ethical Environment of Business
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Module
EMBA 8200
Institution
Georgia State University
Unlock the full potential of your business acumen with the EMBA 8200: Legal & Ethical Environment of Business - Complete Lecture Notes. Designed specifically for aspiring executives and seasoned professionals, this comprehensive set of notes dives deep into the interplay between legal frameworks an...
EMBA 8200: Legal & Ethical Environment of Business - Lecture Notes Page 1
,LECTURE 1
Two halves to course:
Legal system & processes of the law
litigation
ADR
Administrative law
Business ethics
Constitutional law - the commerce clause and issues of federal regulatory
authority
Law/government regulation of business
Bankruptcy / Corporations governed by state law
Contracts
Intellectual property
Employment law
Product liability
Lecture - Characteristics of the American Legal System
Characteristics:
Complex - there may be conflicting precedents to the topic you’re researching
Reasonable (?) - we’ve seen many laws repealed
Predictable (?) - well ... not always - especially not in damages and jury trials
however, use of precedence and stare decisis establishes
a lot of predictability
Flexible - a great deal of discretion and flexibility available - changes evident
over time as social conscious changes (civil rights, tobacco)
Case analysis - briefing a case
Parties
Facts
Prior decisions / for appellate court
Issue(s)
Decision / Holding (affirm, vacate/reverse, or remand)
Reasoning / Rationale
Dissent
[ Q&A: you have one appeal as a right ... every judge screws up one way or another, so
you can almost be assured of being able to appeal on a point of error in law. The
single appeal is afforded to the lawsuit, not to each side of the suit. Second appeals
to either the state or federal supreme courts are at the discretion of the courts ... of
6,000 US Supreme Court appeals, roughly 75 will be heard this year ]
[ discussion / analysis of Embs vs. Pepsi-Cola Bottling Co. ]
an interesting cross between contract law and tort law
EMBA 8200: Legal & Ethical Environment of Business - Lecture Notes Page 2
, usually there must be some privity, or connecting relationship, to enforce
tort or contract law.
“reasonably foreseeable” question - the stickiest wicket in tort law
a good example of where appellate court has the power to “make the law”
Summary: Common-law vs. statutory law
[ break 3:05 - 3:25 ]
Civil law vs. criminal law
Misdiagnosis case from California (pap smear/cervical cancer not caught) -
the difference between civil and criminal liability
civil case - money damages
criminal case - separate cause of action
double-jeopardy is only relevant on two criminal cases
Differences - see chart in notes
criminal case - subject to incarceration, must have unanimous verdict,
plaintiff’s burden of proof - beyond a reasonable doubt, government
brings forth charges/case, mens rea - intent or state of mind to make
the crime
civil case - monetary damages only, may have to have unanimous verdict
(varies by state), plaintiff’s burden of proof - a preponderance of the
evidence, party brings forth case
Substantive vs. Procedural law
substantive - contract law, tort law, law regarding the “substance” of the law
procedural law - the mechanics of how the trial works
law vs. equity
courts of law - damages awarded in monetary terms
courts of equity - equitable relief, something other than monetary damages,
such as an injunction, TRO, decree of specific performance of contractual
agreements
courts are merged in 90% of states - plaintiffs can ask for legal remedies and
equitable remedies
state vs. federal
see handout
The Court System
State system:
A trial court of general jurisdiction - jurisdiction of both civil and criminal cases
- where the case initiates
All cases have the right of first appeal to the (intermediate) state appellate courts
- remember that >50% of all verdicts are upheld on appeal
A second appeal to the state supreme court requires a writ of certerare, or a
petition to the court for an appeal - the case is heard at the discretion of
the supreme court
EMBA 8200: Legal & Ethical Environment of Business - Lecture Notes Page 3
, An appeal to the US Supreme Court can occur only when there is an issue of
Constitutional law. Generally, when a state supreme court has struck
down a Federal statute, or has upheld a state statute that is believed to
be un-Constitutional
Small claims courts are important to business - usually only contractual
matters of $2500 or less
Federal system:
All states have Federal district courts (GA has 3) with jurisdiction over civil and
criminal law
The same mechanisms of appeal operate here.
We’ll discuss administrative law later on ... Departments & Agencies (such as
EPA) that have ajudicatory power to enforce regulations with a direct line
of appeal to the Circuit Court of Appeals
When appeals are made to the Circuit Court of Appeals, the states are divided
up into 11 circuits. Different circuits are known for different focuses of
law. For instance, the 11th District is known for Civil Rights law.
District 9, CA, OR, WA, covers landmark decisions on high-
tech/intellectual property decisions. 2nd District, NYC, finance, DC
Circuit, administrative law.
A circuit court’s decisions only directly apply to the states within that district,
however any decision persuades other circuits. When there is a
significant split between the circuits, it is likely that the Supreme Court
will hear the case.
Jurisdiction and venue
[ Venn Diagram - most important overhead for the day ]
Jurisdiction - the power of a court to hear a case
You will spend a lot of time with your lawyer sorting through issues of jurisdiction and
venue. WHY? You want a judge that favors business; you want a jury
composition that favors your position.
HINT: Ask your lawyer why they want to file where they want to?
Federal courts have exclusive power over 10 topics such as bankruptcy, admiralty,
patent, copyrights, trademark infringements.
Most cases can be heard in both courts
Subject matter jurisdiction:
In order to get into a Federal court, you must show one of two things:
1. a Federal question - an issue of Federal law, statute, or Constitutional issue
2. a diversity for greater than $75,000 - the $75k is no problem, but proving
diversity of citizenship where differing state laws are in effect can be
more difficult
EMBA 8200: Legal & Ethical Environment of Business - Lecture Notes Page 4
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