Business Law Chapter 1

Law

A body of rules of action or conduct prescribed by controlling authority and having legal binding force

Jurisprudence

The science and philosophy of law; defines schools of thought describing various approaches to the function of law and how legal doctrines should be developed and applied

Contract Law

Branch of law that governs agreements made between two parties

Employment Law

Branch of law that regulates the rights of employees

Good Faith Dealing

An implied covenant in every contract requiring parties to act honestly and fairly so neither party destroys the other's right to receive the benefits of the agreement

Counsels

Attorneys who work for businesses

In-house Counsel

Attorneys who are part of a company's executive team

Associate Counsel

Attorneys supervised by general counsel

Litigator

A trial lawyer

Enumerated Powers

The 17 specific powers granted to the federal government under the U.S. Constitution

Federalism

The constitutional concept of dividing power between federal and state governments so they share authority

Preemption

The principle that constitutional law is higher than all other sources of law including federal and state statutes and common law

Statutes

Written laws passed by the federal or state legislature and approved or rejected by the executive branch

Bill

A drafted statute that congress has not yet passed into law

Ordinances

Written laws at the local level regulating matters such as zoning and health and safety for local merchants

Plain Meaning Rule

If the words in a statute have clear and widely understood meanings the court applies the statute according to those words

Statutory Scheme

The structure of a statute and the format of its mandates used to interpret complex laws

Legislative History

Records kept by the legislature including debates and committee reports that indicate the intent of the legislative body that passed a statute

Indict

To formally charge someone with a crime

Money Laundering

Turning money made from illegal activities into money that appears to come from legitimate sources

Blockchain Technology

Digital linked-ledgers associated with an asset that record the history of all transactions for that asset; publicly accessible and not controlled by one singular company

Citation

A reference that directs you to where a statutory law can be found in an official publication such as the United States Code

Common Law

Law made by appellate courts that fills in gaps when controversy arises not covered under existing law

Doctrine of Stare Decisis

The principle that similar cases with similar facts and issues should have similar judicial outcomes providing consistency in the law

Precedent

Applying the law of previous cases to current cases with substantially similar circumstances

Appellate Court

A court of appeals that reviews challenges to lower court decisions to determine whether proceedings were fair and the law was applied correctly

Holding

A court's decision on a matter of law

Case of First Impression

A legal issue faced by a court for the very first time with no existing precedent to follow

Administrative Law

The source of law that exercises authority through executive branch agencies and independent government agencies

Secondary Sources of Law

Sources such as Restatements of the Law and Model State Statutes that have no independent authority but promote uniformity and fairness across courts

Restatements of the Law

A collection of uniform legal principles focused in a particular area of traditional state law used as a secondary source

Model State Statutes

Laws drafted by legal experts as a model for state legislatures to adopt in their individual jurisdictions

Trade Secret

A type of intellectual property that gives a company competitive advantage because it is not generally known or easily discovered

Civil Law

Law designed to compensate parties for losses as a result of another's bad conduct; losses are called damages

Criminal Law

Law designed to protect society where violations result in penalties such as fines or imprisonment

Substantive Law

Laws that provide individuals with rights and create certain duties

Procedural Law

Laws that provide a structure and set out rules for pursuing substantive rights

Remedies

The appropriate measure of judicial action intended to compensate an injured party in a civil lawsuit; generally take the form of money

Equitable Relief

A non-monetary remedy such as an injunction or specific performance ordered by a court

Equitable Maxims

Broad statements of rules based on notions of fairness and justice in applying the law

Injunction

A judicial order requiring a party to either perform or cease performing a certain activity

Specific Performance

A court order requiring a party to carry out obligations as specified in a contract

Breach of Contract

Failure to live up to the terms of an agreement

Public Law

Laws derived from a government entity such as a legislature or administrative agency

Private Law

Rules recognized as binding between two parties even though there is no official statute or regulation providing rights for those parties

Noncompliance Strategy

A legal strategy of openly disregarding the law when the costs of compliance are calculated to be greater than the costs of noncompliance

Avoidance Strategy

A legal strategy where businesses exploit gray areas or loopholes in the law without technically breaking it

Prevention Strategy

A legal strategy of identifying potential legal risks and taking proactive measures to minimize them; often involves working with legal counsel and using liability waivers

Legal Competitive Advantage

Using the law strategically to minimize costs and generate value for a company and outperform rivals

Medium of Exchange

A tool accepted universally for facilitating transactions allowing the purchase of goods and services without barter

What is this governed by?

Contract Law

Statutory (UCC) law at the state level

What is this governed by?