business law: chapter 1, the ethical, global, and e-commerce environment, 14th ed., by mallor,...
TRANSCRIPT
The Nature of LawThe Resolution of Private Disputes
Business and The ConstitutionBusiness Ethics, Corporate Social
Responsibility, Corporate Governance, and Critical Thinking
© 2010 The McGraw-Hill Companies, Inc. All rights reserved.
The Nature of LawThe sacred rights of mankind . . . are written, as with a sun beam in the whole volume of human nature, . . . and can never be erased or obscured by mortal power.
Alexander Hamilton
1775
© 2010 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
Types and sources of law Important legal doctrines Classification of law Jurisprudence and legal reasoning Statutory interpretation Limitations on judicial power
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Types and Classifications of Law
Federal, state, and tribal level: Constitution: establishes governmental
structure, specific rights and duties Statute: enacted by legislative body to
regulate conduct Common Law: case law (judge-made) Administrative Law: agency rules to
implement enforcement of statutes
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Issued at the chief executive level: Executive Order: under limited powers
Examples: http://www.whitehouse.gov/news/orders/
Treaty: with other nations, by the U.S. president on behalf of the nation, ratified by the U.S. Senate Example: The Antarctic Treaty
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Types and Classifications of Law
Important Doctrines
Stare Decisis (let the decision stand) is the doctrine of precedent applied in common law
Equity is applied by the judiciary to achieve justice when legal rules would produce unfair results
Federal supremacy: a rule of priority for conflicts between laws that holds the U.S. Constitution is the supreme law of the land Supremacy Clause, Article VI, Section 2, of the
U.S. Constitution
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Classification of Law
Criminal law establishes duties to society Government charges and prosecutes
defendant, who is found guilty or innocent Convicted defendant will be imprisoned or
fined Civil law establishes duties between
private parties Plaintiff sues defendant for monetary
damages or equitable relief A defendant will be held liable or not liable
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Classification of Law
Substantive law establishes rights and duties of people in society
Procedural law establishes how to enforce those rights and duties
Public law refers to the relationship between governments and private parties
Private law refers to the regulation of conduct between private parties
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Jurisprudence
Jurisprudence refers to the philosophy of law as well as the collection of laws
Legal positivism: law is the command of a recognized political authority Just or unjust, law must be obeyed
Natural law: universal moral rules bind all people whether written or unwritten Unjust positive laws are invalid
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Jurisprudence
Legal realism defines law as the behavior of the judiciary as they rule on matters within the legal system Thus law in action dominates positive law
Sociological jurisprudence unites theories that examine law within its social context
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Legal Reasoning
Basically deductive, with legal rule as major premise and facts as the minor premise Result is product of the two
Court may stand on precedent or distinguish prior case from current case If precedent inapplicable, new rule
developed
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Statutory Interpretation
Plain meaning rule: court applies statute according to usual meaning of the words
Courts examine legislative history and purpose when plain meaning rule is inadequate
Courts may interpret a statute in light of a general public purpose or public policy
Courts follow prior interpretation of a statute (precedent) to promote consistency
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Limitations on Judicial Power
Courts limited to deciding existing cases or controversies In other words, the dispute must be
current and not yet resolved However, a declaratory judgment allows
parties to determine rights and duties prior to harm occurring
Parties must have standing (direct interest in the outcome) to sue
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