MGMT 311 Ch. 1: Law and Legal Reasoning

Define law

Enforceable rules governing relationships among individuals and between individuals and their society

What is a (legal) liability?

The state of being legally responsible (liable) for something, such as a debt or obligation.

What are the 4 sources of American law?

1. Constitutional law

2. Statutory law

3. Administrative law

4. Case law and common law doctrines

What is constitutional law?

• 1 of 4 sources of American law

• Establishes the organization, power, and limits of governments

• Includes the U.S. Constitution and state constitutions

What is the “supreme law of the land”?

Think: Constitutional Law

• The U.S. Constitution—is the basis and highest of all laws in the U.S.

• Gives the free people their rights

Briefly explain the U.S. Constitution and its role

Think: Constitutional Law

• Supreme law of the land

• Creates national government

• 10th Amendment reserves all powers not granted to the federal government to the states—Each state has power to pass their own state constitution

Explain state constitutions

Think: Constitutional Law

• Create state governments

• The highest form of law within borders of that state

• Are subject to U.S. Constitution (Supreme Law of Land)

What is statutory law?

• 1 of 4 sources of American Law

• The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).

• Is created by Congress (writes federal statutes) and state legislatures (write state statutes)

• Also, involves ordinances passed by municipal/county governments

Explain the role of municipal/county governments in Statutory Law

Think: Statutory Law

• Enact ordinances, which govern matters that are not covered by state or federal law

• Cannot violate U.S. or state constitutions

What is the NCCUSL and its purpose?

Think: Statutory Law

• NCCUSL: National Conference of Commissioners on Uniform State Laws

• Purpose: Draft uniform laws (model statutes) for the states to consider adopting

What are uniform laws?

Think: Statutory Law

• A model law proposed by the NCCUSL for states to consider.

• Is an attempt to create uniformity in a certain area

• If adopted, it becomes state statutory law.

• States can adopt all, part, or none of it.

Explain the Uniform Commercial Code (UCC). What is its importance?

Think: Statutory Law

• Is one of the most important and the most accepted uniform laws

• First issued in 1952

• Adopted by all states

• Facilitates commerce among the states by setting shared, flexible rules for governing commercial transactions.

What is administrative law?

• 1 of 4 sources of American Law

• Relates to the rules, orders, and decisions of administrative agencies

• Can have local, state, or federal agencies

What is an administrative agency?

Think: Administrative Law

• A federal, state, or local government agency established by the legislature to perform a specific function

• Ex. Make and enforce rules pertaining to the environment

What are the 3 main functions of an agency?

Think: Administrative Law

1. Rule making

2. Enforcement and investigation

   • Agencies can investigate whether rules were followed, and can enforce them

3. Power to judge (violations of their rules)

What is the connection between agencies’ 3 main functions and the idea of separation of powers?

Think: Administrative Law

• Every agency has the 3 powers that are divided among the 3 federal government branches. This can be concerning for businesses.

• This does not mean agencies have unchecked power, though

What are the 2 types of federal agencies?

Think: Administrative Law

1. Executive agencies

2. Independent regulatory agencies

What are executive agencies?

Think: Administrative Law

• 1 of 2 types of administrative agencies

• Is part of the executive branch and includes all Cabinet departments

• Secretaries create rules and regulations that we must follow

  • Secretaries are appointed by president and confirmed by Congress

Give an example of an executive agency and an independent regulatory agency

Think: Administrative Law

• Executive agency

  • Ex. U.S. FDA is an agency within the U.S. Dept. of Health and Human Services

• Independent regulatory agency

  • Ex. Federal Trade Commission, SEC, Federal Communications Commission

What are independent regulatory agencies?

Think: Administrative Law

• 1 of 2 types of administrative agencies

• Operates outside of the executive branch; Not subject to presidential authority

• Officials cannot be removed without cause

• Come about because a statute was passed that says an agency should be created to oversee the details of a specific area

• Ex. Federal Trade Commission, Securities and Exchange Commission, Federal Communications Commission

How do state agencies relate to federal agencies? Which regulations take precedence?

Think: Administrative Law

• State agencies are often parallels to federal agencies

  • Ex.: State pollution-control agency is parallel to Environmental Protection Agency (EPA)

• Federal takes precedence over state

What is common law/case law?

• 1 of 4 sources of American law

• The rules of law announced in judges’ court decisions; i.e., judge-made law

• Common law interprets statutes, regulations, constitutional provisions, and other case law

What are the 2 meanings of “common law”?

1. The body of common law

2. Common law tradition

Explain the English ancestry of the Common Law tradition

• 1066: Norman invaded England

• William the Conqueror:

  1. Set up a system of the king’s courts (curiae regis)

  2. Created the idea of stare decisis and precedent

Define “remedies”

The relief given to an innocent party to enforce a right or to compensate for the violation of a right.

Explain Courts at Law and Remedies at Law

• Courts of law: In early English courts, courts of law reviewed issues that could be solved with remedies of value

• Could award the remedies at law:

  1. Land

  2. Items of value

  3. Money

Define “damages”

A monetary award sought as a remedy for a breach of contract or a tortious act

What are the 3 types of legal remedies (remedies at law) today?

1. Compensatory damages

   1. Special damages

   2. General damages

2. Punitive/exemplary damages

3. Nominal damages

Explain compensatory damages

• 1 of 3 types of legal remedies/remedies at law today

• The most common remedy in civil courts today

• Used to try to restore an individual to where they were before the lawsuit

• 2 types:

  1. Special damages

  2. General damages

What are special damages?

• 1 of 2 types of compensatory damages

• Are quantifiable losses

• Can show the jury an exact amount of money the plaintiff is owed

• 3 types:

  1. Loss of time

  2. Loss of money

  3. Property damages

Explain the 3 types of special damages

1. Loss of time: Earnings the plaintiff would have if they could’ve worked during this time

2. Loss of money: All the money the plaintiff pays out (Ex. Ambulance, physical therapy, etc.)

3. Property damages: Amount for damages to physical property

Explain general damages

• 1 of 2 types of compensatory damages

• Are not quantifiable

• Focus: What can we convince the jury of?

• 5 types:

  1. Pain and suffering

  2. Injury to reputation

  3. Mental anguish

  4. Disfigurement

  5. Loss of earning capacity

What are the 5 types of general damages?

1. Pain and suffering: Physical pain

2. Injury to reputation: Slander, defamation, tort. You want money to repair your reputation

3. Mental anguish: Emotional pain

4. Disfigurement: Burns, debilitating scars, loss of limbs, etc.

5. Loss of earning capacity: Ability to earn money into the future

   • Considers age, life expectancy, earning potential, industry of the job

Explain punitive/exemplary damages

• Purpose is to punish the wrongdoer

  • Make them give up so much money it hurts

• Is given in addition to compensatory damages

• Not available in every case, only unusual cases

Explain nominal damages

• 1 of 3 types of legal remedies/remedies at law

• Small amounts of money received

• Ex. $5

• Either means the case was not worth much or the plaintiff only asked for a nominal amount—then, the judge cannot provide more

• Some plaintiffs find satisfaction in a judge’s ruling more than any amount of money

What is a chancellor?

• The king’s advisor

• Had power to grant new and unique remedies

Explain Courts at Equity and Remedies at Equity

• Courts at Equity: In early English courts, used for cases that could not be solved with money

• AKA Chancellor’s Court

• Remedies at Equity/Equitable remedies: Only available when legal remedies/remedies at law (money) are legally inadequate—i.e., Remedies at law don’t solve the legal problem

What is equity in law?

• A branch of law founded on justice and fair dealing

• Seeks to supply a remedy when no adequate remedy at law is available

What are the 3 types of equitable remedies?

1. Specific performance

2. Injunction

   1. Temporary

   2. Permanent

3. Recission

What is the legal remedy of injunction?

• 1 of 3 types of equitable remedies

• Court order that orders a party to perform an act or to refrain from an act

• 2 types:

  1. Temporary

  2. Permanent

Explain temporary injunctions

• 1 of 2 types of injunctions (a type of equitable remedy)

• Occur prior to the actual litigation

• Injunctions typically start with idea that they’re temporary in nature

• Injunction lasts until both sides present evidence. Then, injunction is removed or turned permanent.

Explain permanent injunctions

• 1 of 2 types of injunctions (a type of equitable remedy)

• Occur after litigation

• Means the court order to do something or stop doing something becomes permanent

• Not all injunctions become permanent

What is the equitable remedy of specific performance?

• 1 of 3 types of equitable remedies

• Court order requiring a breaching party to a contract to perform as promised in the contract

  • i.e., Court tells breaching party they must do what they promised in the contract

• Is relevant to contract law

What is the equitable remedy of rescission?

• 1 of 3 types of equitable remedies

• An action to undo an agreement

• Used in contract law

  • Can be a court order, but is not necessarily, unlike the other 2 equitable remedies

What are equitable maxims?

• General propositions or principles of law that have to do with fairness (equity)

• i.e., Guiding ethical principles

What is this an example of?:

Statute of limitations: Imposes time limits on different cases of action (legal claims) except capital murder. Tells the party who wants to file (plaintiff) a case how much time they have to do so

Statute of limitations is an example of equitable maxims (guiding ethical principles)

Explain the stare decisis doctrine

• Stare decisis: “To stand on decided cases”

• A common law doctrine

• Requires judges to follow the precedents established in past cases when deciding current ones (within their jurisdiction)

What does precedent mean?

• Precedent: “A prior similar case”

• The court stands on past cases when deciding current ones

What are the 4 functions of the stare decisis doctrine?

1. Court efficiency

2. Create a more just and uniform system

3. Make the law stable and predictable (not the same as static and unchanging)

4. Allows us to use lessons learned in the past

Explain binding precedent vs. persuasive precedent

Binding precedent:

• Judges MUST follow precedents established by the higher courts in their jurisdiction because of the doctrine of stare decisis

Persuasive precedent:

• Legal authorities or source of law that a court may reference for guidance

• Are NOT binding

What are 2 reasons for departing from precedent?

1. The prior court ruling is incorrect

2. Argument that the precedent is outdated or unuseful

Why is the case Brown v. Board of Education significant?

• Supreme Court overruled Plessy v. Ferguson and the idea of “separate but equal”

• An example of departing from precedent

Why is the case of Dobbs v. Jackson Women’s Health significant?

• Supreme Court overruled precedent from Roe v. Wade, which established women’s right to abortion

• Note: Dobbs v. Jackson turned abortion rights to the states

• Main point in court opinion: There are times when precedent should be overturned

Explain cases of first impression

Occurs when there is no binding legal precedent on which to base a decision

What 6 factors are used in a case of first impression?

1. Persuasive precedent: Referencing past similar cases for guidance

2. Legal principles and policies underlying previous court decisions and current statutes

3. Fairness

4. Social values and customs

5. Public policy

6. Social science data: Ex. statistics, demographics

Explain legal reasoning

• Thinking through the legal facts to get to the best answer. There’s not always a right answer.

• Ex. IRAC framework:

  1. What are the key facts and issues?

  2. What rules of law apply to the case?

  3. How do the rules of law apply to the particular facts of this case?

  4. What conclusion should be drawn?

Explain common law today

• Law derived from court decisions

• Courts interpret statutes and regulations

• Only governs area that are not covered by statutory or administrative law

What are the most common ways to classify law?

1. Substantive vs. procedural

2. Public vs. private

3. Civil vs. criminal

Explain substantive vs. procedural classification of law

Substantive:

• Defines and describes our rights and duties

• Note: Not all rights are substantive rights!

Procedural:

• Tells us the methods for enforcing our substantive rights

• Defines the legal process, how a case moves through court

• Crucial to ensure that the case is executed properly

• Ex. Criminal procedure—Miranda Rights

Explain public vs. private classification of law

Think: Classifying the case based on the parties involved

Public:

• Involves any level of government (on either side of the case)

Private:

• All other cases that are not public (do not involve government)

• Ex. Individuals vs. individuals, business vs. individuals, etc.

Explain civil vs. criminal classification of law

Civil:

• Involves rights and duties that exist between people (private case) or between people and their government (public case) in non-criminal matters

• Can be private or public

Criminal:

• Involves wrongs committed against the public as a whole

• Are always public, never private

Compare and contrast civil and criminal law in terms of:

1. Names of parties

2. Main purpose

3. Burden of proof

Civil:

1. Names of parties:

   • Plaintiff vs. defendant

2. Main purpose:

   • Compensation (money)

3. Burden of proof:

   • “By a preponderance of the evidence”

   • i.e., How much proof must the party with the burden of proof (usually the plaintiff) must provide

   • Think of a “scale of justice”: The party with burden of proof must tip scale in their favor

Criminal:

1. Names of parties:

   • Government (state or federal) vs. defendant

2. Purpose:

   • Punishment

   • Focuses on punishing the crime more than the individual

3. Burden of proof:

   • Must be proven guilty “Beyond a reasonable doubt”

Explain how to read case titles for trial court cases

• Plaintiff: Person who filed suit; listed first

• Defendant: Person being sued: listed second

• In cases where suing party does not ask for damages: Petitioner vs. Respondent

• Note: Trial courts are fact-finding courts

Explain how to read case titles for court of appeals cases

• Court of appeals may reverse the order of names in the title. You cannot always tell who is appealing from the title.

• Appellant: Party appealing

  • Always the party who lost at the trial court level

• Appellee: Party who won at trial and defends against the appeal

• Court of appeals see every case that comes to them

Explain how to read case titles for high courts

• High courts may switch order of names from court of appeals. Cannot tell who is bringing the case from title.

• Petitioner: Party appealing to the high court

  • Lost at court of appeals level

• Respondent: Party who won at court of appeals level and defends against the petition to the Supreme Court

What are the 4 opinions issues by reviewing (appellate and high) courts?

1. Unanimous

   • All members of the appellate or high court agree

   • Is a very strong precedent

2. Majority

   • A majority of the justices hearing the case agree and join in the reasoning of the decision

3. Concurring opinion

   • Justice(s) on the court file(s) a separate opinion because they agree with the result of the decision but not the reasoning behind it

4. Dissenting opinion

   • Justice(s) on the court file(s) a separate opinion because they disagree with the decision of the majority

If there is not a unanimous opinion, which of the other 3 types of court opinions indicates the winner of the case?

The majority opinion would indicate the winner of the case

Why allow concurring and dissenting opinions if the majority opinion indicates the winner of a case if there is not a unanimous opinion?

This allows flexibility to change precedent