Foundations of Law in Business and Court Systems

Efficient Market Requirements

Law, Rule of Law, Property

Definition of Law

Rules established by the state and backed up by enforcement, formal social force, adequate enforcement institutions are necessary to maintain order in society

Rule of Law

Concept that laws that are made are generally and equally applicable. A well functioning market, Economic growth

Consequences of Lack of Rule of Law

Autocracy, corruption, impunity, discrimination, and a host of other societal ills go unchecked and unpunished.

Principles Defining Rule of Law

Accountability, Clear, Publicized, Stable, & Just Laws, Accessible, fair and efficient law process, Justice delivered timely

Property

A legal right that allows you to exclude others from your resources.

Exclusionary Right of Property

Provides a basis for the private market and modern business.

Common Law vs. Civil Law

Common Law emphasizes the role of judges in determining the meaning of the law; Civil Law relies more on legislation.

Common Law

The United States follows the Common Law, with the exception of Louisiana.

Stare Decisis

Let the prior decision stand; judges follow precedents whenever possible.

Pros of Common Law

Laws can be concise, ensures certainty, stability, and predictability in the law.

Cons of Common Law

Volume of cases, conflicting precedents, increases difficulty of determining the precedent.

Civil Law

Relies more on legislation than judicial decisions to determine what the law is. Other definition Individuals sue for damages.

Criminal Law

Government brings suit to prove a wrong committed against society. Sanctions: Death, Imprisonment, Fines. Removal of office, Disqualification from voting or holding office

Examples: Robbery, Conspiracy, etc

Public Law

Regulation of society, government represents society. Included Constitutional Law, administrative law and criminal law

Private Law

Regulation of private resources; Includes property law, contract law, and tort law (Remember these examples)

Substantive Law

Defines the legal relationship of people with others and the state, defines rights and duties, and prescribes or mandates conduct.

Procedural Law

Deals with the method and means by which substantive law is made and administered, providing the machinery for enforcing those rights and duties.

Examples of Procedural Law

Includes the times allowed to sue someone and the rules of law governing the process of lawsuit.

Federal Law

Includes the U.S. Constitution, legislation passed by Congress, and administrative law.

U.S. Constitution

The supreme law of the land; any law conflicting with it is void and has no legal effect.

State Law

Includes state constitutions, statutes or acts adopted by the state legislature, regulatory law, and ordinances.

Judicial Decisions or Case Law

Decisions of judges that become precedent for future cases.

Opinions

written decisions of judges (becomes precedent for future cases)

Precedent

a prior judicial decision relied upon as an example of a rule of law

Sources of Law Hierarchy

a. U.S Constitution

b. Statue of Congress

c . Federal Administration Regulation

d. State Constitutions

e. State Statutes

f. State Administrative Regulation

g. Local Ordinances

h. Case Law

Judges

Individuals who operate our courts.

Justices

Members of the U.S. Supreme Court; there are 9 total justices.

Choosing a Supreme Court Justice

The U.S. Constitution gives the president the power to appoint Federal Judges, including U.S. Supreme Court justices, subject to the advice and consent of the U.S. Senate.

Trial Court Judges Role

To determine the applicable rules of law to be used to decide the case, observe, apply constitutional limitations and guarantees, determine what evidence is admissible, and find facts when a jury trial has been waived. Deal with issues of law and fact

Appeal Court Judges/Justices Role

To decide an appeal and give reasons for their decisions, which becomes precedent. Concerned with issues of law.

Jury Duty Eligibility in Georgia

Must be a US citizen, 18 years old, proficient in English, a resident of the county that sent the jury summons, have not served on a jury in the last 12 months, not currently on a grand jury or another trial jury, not under a conservatorship, and have had civil rights restored if convicted of a felony.

Jurors

Fact Finding body

Trial by jury

Guaranteed by the bill of rights

Petit jury

Trial jury that returns a verdict in criminal and civil situations. Consists of 12 people. Requires unanimous decision

(Ramos v. Louisiana).

Recent Supreme Court Case states the decision must be unanimous in serious criminal cases

Lawyers

Serve as representative advocates in the court system.

Lawyer's duties

Present evidence, points, and arguments.

Primary duty of lawyers

To the administration promotion of justice.

Attorney-client privilege

Forbids a lawyer from revealing confidential facts and from testifying against a client.

Privilege extension

Extends to lawyer's employees.

Court system organization

Starts in trial court, appeals in Appellate court, final in supreme court.

Jurisdiction

The power of the court (at the state or federal level) to hear a case.

Subject Matter Jurisdiction

In order for any court to hear a case it must have subject matter jurisdiction.

General Jurisdiction

The power to hear ANY type of case.

Limited Jurisdiction

Power to hear only certain types of cases.

Limitations of jurisdiction

Can be limited to subject matter, amount in controversy, or the area in which the parties live. Examples: Probate court, traffic court, juvenile

Trial Courts

Initial Court for filing lawsuits seeking to protect property rights or redress a wrongdoing.

Appellate Courts

Review the results of lower courts.

Writ of certiorari

Procedure for requesting a Supreme Court review.

Federal Court Jurisdiction

Article III of the Constitution gives jurisdiction to the Federal Courts to review questions of Federal law.

Diversity of Citizenship

Plaintiffs/Defendants are Citizens of Different states.

District Courts

Trial courts of the federal judicial system.

Federal Rules of Civil Procedure

Provide the details concerning procedures to be followed in federal court litigation.

Court of Appeals for the Federal Circuit

Hears appeals from special courts and administrative decisions.

Special Subject Matter Courts

Other courts created to handle specific types of cases.

Court of Appeals for Armed Forces

A court that handles appeals related to military matters.

U.S. Supreme Court Review

Requires a petition for a writ of certiorari.

Discretion of U.S. Supreme Court

The U.S. Supreme Court has the discretion as to whether or not it will grant the petition and allow another review.

Justices Agreement

4 out of the 9 Justices have to agree to take the case.

Power of Judicial Review

The ultimate power of the courts to invalidate actions by the executive branch or the legislative branch.

Marbury v Madison (1803)

Announced the principle of judicial review.

Judicial Restraint

Judicial Review should not be used except in unusual cases. Follows Precedent. Looks at the original intent of the Constitution. Belief that changes in society should result from political process (philosphy) instgead of court action

Judicial Activism

Judicial Review should be used when the needs of society justify its use. Belief that courts should play major role in correcting society

Major Role of Courts

Judicial Activism believes that courts should play a major role in correcting societal ills.

Gibbons v. Ogden

The Supreme Court decision stated that states cannot enact legislation that interferes with Congress's right to regulate commerce.

Brown vs. Board of Education

The U.S. Supreme Court ruled to overturn the separate but equal standard and banned racial segregation in public schools.

Nature of the Judicial Process

Courts can decide cases by using existing law, refusing to apply existing case law, or creating new law.

Plaintiff/Defendant

The party that files a lawsuit is the Plaintiff, and the party who is sued is the Defendant.

Countersuit / counterclaim

A claim made by a defendant against a plaintiff in response to the original complaint.

Third party defendant

A defendant who was not named in the complaint but is later joined.

Stand to sue

You are entitled to hear the case or dispute and decide it. The plaintiff must be the one that was wronged in order to establish standing.

Case or controversy

A legal wrong that must be present for a plaintiff to establish standing.

Personal Jurisdiction

Authority over the parties to the case on the part of a court. Its obtained when the plaintiff files the suit(Summons + Services of Process).

Long arm statutes

Laws that provide for the service of process beyond the boundaries of the state.

Minimum Contacts Test

A test to determine if a defendant has sufficient connections to a state to justify jurisdiction.

Has the _defendant committed a _tort within the state?

Does the defendant _own property__ within the state that is the _subject matter_ of the lawsuit?

Has the defendant entered into a _contract___ within the state or _translated the business_ that is the subject matter of the lawsuit within that state?

**If _answer is yes to any of these questions, we have satisfied the minimum contact requirement_____

Criminal Cases

Cases where the crime must have been committed within the state for the court to have jurisdiction.

Jurisdiction over the person

Obtained by arrest in criminal cases.

Class Action Suits

Lawsuits where one or more plaintiffs file suit on their own behalf and on behalf of others with similar claims.

Class certification

The process by which a class action lawsuit is approved to move forward.

Numerosity

The class is so numerous that joinder of all members is impracticable.

Commonality

Questions of law or fact that are common to the class.

Typicality

The claims or defenses of the representative parties are typical of the claims or defenses of the class.

Pleadings

are legal documents filed with court to begin litigation processess (short/plain statement of claim and evidence)

Pretrial Procedures

Things that occur before getting to trial.

Plaintiff files _complaint

Complaints and _summons served on defendant.

Defendant files motion or _answer____________ with possible _counterclaim______ and _defenses___

Court rules on motions

Plaintiff files _reply_______ to _answer___________

Attorneys conduct _discovery___________ procedures

Parties may file motions for __summary judgement_____ or judgment on the _pleadings____________

Court conducts __pretrial conference__________

Complaint

A legal document filed by the plaintiff to initiate a lawsuit.

Summons

A document served on the defendant to notify them of the lawsuit.

Answer

A document filed by the defendant in response to the complaint.

Discovery

Procedures conducted by attorneys to gather evidence before trial.

Pretrial conference

A meeting conducted by the court to discuss the upcoming trial.

Counterclaim

A claim made by a defendant against the plaintiff in response to the original complaint.

Affirmative defenses

Defense that will defeat plaintiffs' claims.

Default judgement

A judgement in favor of the plaintiff due to the defendant's failure to respond.

Standard for Discovery

Information sought must lead to evidence admissible during trial.

Interrogatories

Series of written questions presented to the opposing party.

Request for production of documents

Either party asking the other to produce specific documents.

Depositions

Lawyer orally asks questions of the possible witness or any other person involved in the case (this is recorded and a written transcript is prepared).

Best method of discovery

Deposition because it reveals the most information.

Request of admission

Requesting the other side to admit that certain issues in original pleading are no longer in dispute.

Motion to compel discovery

When judge orders the other side to turnover any materials you are seeking.