Business Law: Nature of Law, Courts, and Contracts

Vocabulary flashcards reviewing core concepts in business law, including sources of law, judicial procedures, court jurisdiction, appellate terminology, and contract classifications.

Substantive Law

The branch of law that defines legal rights, duties, and liabilities.

Procedural Law

The law specifying the procedures and mechanisms that must be followed in enforcing legal rights and liabilities.

Preemption

The constitutional principle determining which law governs when there is a conflict between federal and state constitutions or legislation.

Administrative Regulations

Binding rules created by state and federal administrative agencies acting under authority delegated by enabling legislation from Congress or state legislatures.

Precedent

A judicial decision that stands as the legal rule for resolving a particular legal problem in future similar cases.

Stare Decisis

A legal doctrine meaning 'let the decision stand,' requiring courts to follow established precedent in cases with similar fact patterns.

Private Law

Rules and regulations created by individuals or entities that govern their specific relationships, such as contracts, employer policies, or restrictive covenants.

Uniform State Laws

Model statutes drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL), such as the Uniform Commercial Code (UCC), which become binding only if adopted by a state.

Criminal Law

The body of law that defines and governs wrongs committed against society as a whole.

Civil Law

The body of law that defines and enforces the private rights and duties of one person or entity against another.

Equity

A body of law providing non-monetary remedies (such as injunctions and specific performance) when money damages at law do not afford an adequate remedy.

Plain View Doctrine

A Fourth Amendment rule established in Horton v. California holding that a warrantless seizure of evidence does not violate constitutional rights if the officer is lawfully present and the item is in plain view, even if the discovery was not inadvertent.

Jurisdiction

The legal authority and power of a court to hear and decide a case.

Personal Jurisdiction

A court's authority over a specific defendant, typically established through domicile or long-arm statutes.

Subject Matter Jurisdiction

The authority of a court to hear specific types of legal matters or cases.

Original Jurisdiction

The authority of trial courts to hear a case first, making determinations on both issues of fact and issues of law.

Appellate Jurisdiction

The authority of a court to review the proceedings and legal decisions of lower courts solely on issues of law.

Federal Question Jurisdiction

Subject matter jurisdiction of federal courts over cases arising under the U.S. Constitution, federal statutes, treaties, or federal regulations.

Diversity Jurisdiction

Subject matter jurisdiction of federal courts over civil cases involving complete diversity of citizenship between opposing parties where the amount in controversy exceeds $75{,}000$.

Writ of Certiorari

An order issued by the U.S. Supreme Court granting a discretionary review of a lower court's decision upon application by an appellant.

Reversible Error

A significant error or legal defect in trial court proceedings serious enough to cause an appellate court to set aside or reverse the lower court's judgment.

Remand

An order by an appellate court sending a case back to the trial court for further proceedings, additional hearings, or a new trial.

Voir Dire

The preliminary examination and questioning process used by attorneys and judges to select an impartial jury.

Garnishment

A post-judgment legal procedure where a portion of a debtor's funds or wages held by a third party is legally seized to satisfy an unpaid court judgment.

Arbitration

An alternative dispute resolution process where a neutral third party hears evidence and renders a decision that is typically binding on the parties.

Mediation

An alternative dispute resolution method where a neutral third party assists disputing parties in reaching a mutually agreeable voluntary settlement, which is typically non-binding.

Contract

A legally binding agreement between two or more parties creating obligations that are enforceable or recognizable at law.

Promisor

The party in a contract who makes a legal promise or owes an obligation; also referred to as an obligor.

Promisee

The party in a contract to whom a legal promise or obligation is made; also referred to as an obligee.

Statute of Frauds

A statutory requirement mandating that certain categories of contracts (e.g., agreements conveying real property under NY GOB § 5-703) must be in writing to be legally enforceable.

Bilateral Contract

A contract created by an exchange of mutual promises, formed when a promise is given in exchange for another promise.

Unilateral Contract

A contract formed when a promise is given by one party in exchange for the actual performance of an act by another party.

Express Contract

A contract created explicitly by words, whether written or spoken.

Implied Contract

A contract created and implied through the actions and conduct of the parties rather than express oral or written terms.

Executed Contract

A contract that has been fully performed by all parties involved.

Executory Contract

A contract under which performance remains incomplete by one or more parties.

Voidable Contract

An otherwise valid contract that one party has the legal option to either disaffirm (cancel) or enforce due to legal circumstances such as lack of capacity, fraud, or duress.

Void Contract

An agreement that lacks legal validity from its inception and creates no legally binding obligations on any party.

Quasi Contract

An obligation imposed by law in the absence of an express contract to prevent one party from being unjustly enriched at the expense of another.

Quantum Meruit

An equitable measure of damages in quasi-contract cases representing the reasonable value of the services rendered or benefits conferred.