Business and Its Legal Environment

Comprehensive practice flashcards covering Chapter 1: Business and Its Legal Environment, including sources of American law, stare decisis, remedies, jurisprudence, and legal system classifications.

What are the six functional fields of business?

1. Production and Operations, 2. Sales and Marketing, 3. Finance and Accounting, 4. Human Resources and Labor Relations, 5. Info and Tech, and 6. Management.

How do primary sources of law differ from secondary sources of law?

Primary sources are actual laws created by government bodies that hold legal authority, whereas secondary sources explain and interpret laws without having the force of law.

What are the four primary sources of American law?

Constitutional Law, Statutory Law, Administrative Law, and Case and Common Law Doctrines.

What is Constitutional Law and which document serves as the supreme law of the land?

Constitutional Law consists of laws expressed in the U.S. Constitution and state constitutions. The U.S. Constitution is the supreme law of the land.

What is the Uniform Commercial Code (UCC)?

It is the most widely adopted uniform law, created by private organizations, that governs commercial transactions in all 50 states.

Where did the common law tradition originate?

It originated in England during Medieval times from the King's courts (curiae regis or 'courts of the King').

What does the term stare decisis mean?

'To stand by what is decided.' It is the legal principle that judges should follow the rules of precedent when deciding similar cases.

What are the two main rules of stare decisis?

1. Follow the decisions in earlier cases. 2. Do not overturn or change the rule of law established in earlier cases.

What is a departure from precedent and why might a court execute one?

A departure from precedent occurs when a court chooses not to follow an established precedent. Reasons include new societal values, changes in law, an earlier decision being clearly wrong or no longer practical, or new facts and circumstances.

How did Brown v. Board of Education demonstrate a departure from precedent?

The U.S. Supreme Court overruled the 'separate but equal' doctrine established in Plessy v. Ferguson (1896), recognizing changing societal values and ruling that 'separate educational facilities are inherently unequal.'

What is a case of first impression?

A case that presents a legal issue that has never been decided before by a court.

What is the difference between binding authority and persuasive authority?

Binding authority must be followed by lower courts within the same jurisdiction. Persuasive authority consists of decisions from lower courts or other jurisdictions that judges may consider for guidance but are not required to follow.

What rule changed the policy regarding unpublished opinions in federal court, and what does it allow?

Rule 32.1 of the Federal Rules of Appellate Procedure allows parties to cite federal courts' unpublished opinions issued on or after January 1, 2007 (though they remain non-binding precedent).

What is the key difference between remedies at law and remedies in equity?

Remedies at law usually involve monetary damages to compensate for a loss. Remedies in equity are non-monetary solutions based on fairness designed to prevent or stop harm or restore parties to their original positions.

What is specific performance?

An equitable remedy consisting of a court order requiring a party to carry out exactly what was promised in a contract.

What is an injunction?

An equitable remedy consisting of a court order requiring a party to do something or stop doing something.

What is rescission?

An equitable remedy that cancels a contract and returns the parties to the positions they were in before the contract was made.

What is jurisprudence?

The study of the nature, origin, and development of law.

What are the four main schools of legal thought?

Natural Law, Legal Positivism, Historical School, and Legal Realism.

How do substantive law and procedural law differ?

Substantive law contains the actual rules that define legal rights and duties (what the law is), while procedural law defines the steps and methods used to enforce those rights or remedies (how the law is enforced).

How do civil law and criminal law differ in their purpose, party bringing the charge, standard of proof, and remedies?

Civil law deals with private disputes where a private party seeks compensation using the standard of 'preponderance of the evidence' (money damages/injunctions). Criminal law deals with wrongs against society where the government brings charges using the standard of 'beyond a reasonable doubt' (fines, probation, imprisonment).

How do Common-Law and Civil-Law legal systems differ?

Common-Law systems rely on judge-made law and precedent (stare decisis), developing case-by-case (e.g., U.S. and England). Civil-Law systems rely on detailed written codes and statutes, where judge decisions carry less weight as precedent (e.g., most European countries).

How is international law enforced among sovereign nations?

International law lacks a central enforcing authority and relies on voluntary compliance; consequences for violations are usually limited to political pressure, trade restrictions, or responses from other nations.