Power Point Slides to Accompany ESSENTIALS OF BUSINESS

Power. Point Slides to Accompany ESSENTIALS OF BUSINESS AND ONLINE COMMERCE LAW 1 st Edition by Henry R. Cheeseman Chapter 1 Legal Heritage and Critical Legal Thinking Slides developed by Les Wiletzky Copyright © 2006 by Pearson Prentice-Hall. All rights reserved

What Is Law? o o o Law consists of rules that regulate the conduct of individuals, businesses, and other organizations within society It is intended to protect persons and their property against unwanted interference from others Law forbids persons from engaging in certain undesirable activities Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 2

Definition of Law o That which must be obeyed and followed by citizens subject to sanctions or legal consequences o A body of rules of action or conduct prescribed by controlling authority, and having binding legal force Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 3

Functions of Law (1 of 3) o Keeping the peace n o Shaping moral standards n o Including making certain activities crimes e. g. , enacting laws that discourage drug and alcohol abuse Promoting social justice n e. g. , enacting statutes that prohibit discrimination in employment Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 4

Functions of Law (2 of 3) o Maintaining the status quo n o Facilitating orderly change n o e. g. , passing laws preventing the forceful overthrow of the government e. g. , passing statutes only after considerable study, debate, and public input Providing a basis for compromise n approximately 90 percent of all lawsuits are settled prior to trial Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 5

Functions of Law (3 of 3) o Facilitating planning n o e. g. , well-designed commercial laws allow businesses to plan their activities, allocate their resources, and assess their risks Maximizing individual freedom n e. g. , the rights of freedom of speech, religion, and association granted by the First Amendment to the U. S. Constitution Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 6

Qualities of the Law o Fairness of the Law The American legal system is one of the most comprehensive, fair, and democratic systems of law ever developed and enforced Flexibility of the Law o U. S. law evolves and changes along with the norms of society, technology, and the growth and expansion of commerce in the United States and the world Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 7

Landmark U. S. Supreme Court Case: Brown v. Board of Education (1954) o o o Supreme Court reversed prior precedent of Plessy v. Ferguson (1896) Court held that the separate but equal doctrine violated the Equal Protection Clause of the Fourteenth Amendment to the Constitution The case demonstrates that one Supreme Court can overrule prior Supreme Court cases to promote justice Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 8

Schools of Jurisprudential Thought (1 of 3) o Natural Law School n n o Historical School n o Postulates that law is based on what is “correct” Law should be based on morality and ethics Believes that law is an aggregate of social traditions and customs Analytical School n Maintains that law is shaped by logic Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 9

Schools of Jurisprudential Thought (2 of 3) o Sociological School n o Asserts that law is a means of achieving and advancing certain sociological goals Command School n Believes that law is a set of rules developed, communicated, and enforced by the ruling party Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 10

Schools of Jurisprudential Thought (3 of 3) o Critical Legal Studies School n o Maintains that legal rules are unnecessary and that legal disputes should be solved by applying arbitrary rules based on fairness Law and Economics School n Believes that promoting market efficiency should be the central concern of legal decision making Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 11

Contemporary Environment: Feminist Legal Theory o Feminist Jurisprudence n o Female perspective should be taken into account when legislators and judges develop, interpret, and apply the law The traditional “reasonable man standard” in American law is viewed as being gender biased Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 12

History of American Law o When the American colonies were first settled, the English system of law was generally adopted as the system of jurisprudence o This was the foundation from which American judges developed a common law in America Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 13

English Common Law (1 of 2) o Law developed by judges who issued their opinions when deciding a case o The principles announced in these cases became precedent for later judges deciding similar cases Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 14

English Common Law (2 of 2) o The English common law can be divided into cases decided by the: n n n Law courts Equity courts (Court of Chancery) Merchant courts Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 15

Adoption of English Common Law in America o o o All the states except Louisiana base their legal systems on the English common law In the U. S. , the law, equity, and merchant courts have been merged Most U. S. courts permit the aggrieved party to seek both law and equitable orders and remedies Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 16

Sources of Law in the United States (1 of 5) o Constitutions n n The U. S. Constitution is the supreme law of the land The U. S. Constitution establishes the federal government and enumerates its powers Powers not given to the federal government are reserved to the states State constitutions establish state governments and enumerate their powers Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 17

Sources of Law in the United States (2 of 5) o Codified law: statutes and ordinances n Statutes are enacted by Congress and state legislatures n Ordinances are enacted by municipalities and local government agencies n They establish courses of conduct that must be followed by covered parties Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 18

Sources of Law in the United States (3 of 5) o Treaties n o The president, with the advice and consent of the Senate, may enter into treaties with foreign governments Executive orders n n Issued by the president and governors of states They regulate the conduct of covered parties Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 19

Sources of Law in the United States (4 of 5) o Administrative agency regulations and orders n n Administrative agencies are created by the legislative and executive branches of government They may adopt administrative regulations and issue orders that regulate the conduct of covered parties Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 20

Sources of Law in the United States (5 of 5) o Judicial decisions n n Federal and state courts decide controversies In doing so, they issue decisions that state the holding of each case and the reasoning used by the court in reaching its decision Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 21

The Doctrine of Stare Decisis (1 of 2) o Based on the common law tradition, past court decisions become precedent for deciding future cases o Lower courts must follow the precedent established by higher courts Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 22

The Doctrine of Stare Decisis (2 of 2) o Thus, all federal and state courts in the U. S. must follow the precedents established by U. S. Supreme Court decisions o Adherence to precedent is called stare decisis Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 23

Priority of Law in the United States (1 of 2) o The U. S. Constitution and treaties take precedence over all other laws o Federal statutes take precedence over federal regulations o Valid federal law takes precedence over conflicting state or local law Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 24

Priority of Law in the United States (2 of 2) o State constitutions rank as the highest state law o State statutes take precedence over state regulations o Valid state law takes precedence over local laws Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 25

International Law: The Civil Law System (1 of 2) o o o Romano-Germanic civil law system is the model for countries adopting civil codes The Civil Code and the parliamentary statutes that expand interpret it are the sole sources of law in most civil law countries The adjudication of a case is the application of the code or the statutes to a particular set of facts Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 26

International Law: The Civil Law System (2 of 2) o o In some civil law countries, court decisions do not have the force of law A contrast to Anglo-American common law where laws are created by the judicial system as well as by congressional legislation The state of Louisiana bases its law on the civil law Elements of California and Texas law are also rooted in civil law Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 27

Critical Legal Thinking o The process of: n n n specifying the issue presented by a case, identifying the key facts in the case and applicable law, and then applying the law to the facts to come to a conclusion that answers the issue presented Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 28

Key Terms o o Plaintiff: the party who originally brought the lawsuit Defendant: the party against whom the lawsuit has been brought Petitioner or Appellant: the party who has appealed the decision of the trial court or lower court Respondent or Appellee: the party who must answer the petitioner’s appeal Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 29

Briefing a Case Briefing a case consists of making a summary of each of the following items of the case: 1. Case name, citation and court 2. Summary of the key facts in the case 3. Issue presented by the case 4. Holding 5. Summary of the court’s reasoning Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. 01 - 30