law midterm

Constitution

Supreme law of the land.

Statutes

Laws passed by Congress or elected officials.

Regulations

Detailed rules under a statute.

Executive Orders

Binding directives for public institutions, but not private.

Common Law

Law built from court decisions (Precedent); judges interpret and shape law through rulings.

Federalism

Power divided by federal and state government.

Dual Sovereignty

State and federal levels having their own legislatures, courts, and law enforcement.

10th Amendment

Reserves to the states all powers not expressly granted to the federal government.

Civil Law

Comprehensive written codes; judges apply codes, decisions are persuasive but not binding.

Comparative Law

Study of how different legal systems approach the same legal problems.

International Law

Body of rules governing relationships between sovereign nations.

Objective 2: Constitutional Law

Congress (2A)

Regulates commerce, coins money, declares war, makes rules, exercises executive legislation, makes all laws.

Executive (2B)

President is Commander in Chief, able to grant reprieves & grants for federal laws, makes treaties (with 2/3 senate agreement), appoints ambassadors and judges.

Judiciary (2C)

Appointed by President and confirmed by Senate; judges hold office while in "good behavior."

Full Faith and Credit Clause (2D)

Given to each state so that if a person moves after a judgment is made against them, they don't have to be retried.

State Action Doctrine (2E)

The Bill of Rights protects you from the government, not from private companies.

First Amendment (2F)

Political speech is fully protected; commercial speech has limited protection (false advertising). Includes free exercise, establishment, and speech.

Objective 4: Courts, ADR, & Litigation

Rule 2: Ethics Rule

Lawyers must act competently, avoid conflicts of interest, keep client info confidential, and represent clients zealously within the law.

Hourly Fee

Attorney compensation paid by the hour.

Flat Fee

Set amount for a specific service.

Contingency Fee

Paid a percentage of winnings; only paid if client wins.

Retainer

Advance payment in an account.

Judge

Oversees courtroom, applies law, decides admissibility of evidence, gives jury instructions (may decide case in bench trial).

Jury

Determines facts, evaluates credibility of witnesses, applies law from judge instructions, reaches verdict.

Criminal Case

Government prosecutes; crime against society; jail or fine as punishment; "beyond a reasonable doubt"; defendant may lose liberty.

Civil Case

Private party sues; dispute between individuals/businesses; money damages/injunctions; "preponderance of evidence"; financial consequence.

Trial Court

Determines facts, hears witnesses/evidence, original jurisdiction, jury may be present.

Appellate Court

Reviews trial decisions; no jury; no new evidence; determines if legal errors occurred.

Stare Decisis

"Let the decision stand"; courts follow earlier similar decisions.

Binding Precedent

Lower courts must follow higher court decisions in the same jurisdiction.

Subject Matter Jurisdiction

Court's authority over a type of case (Federal: federal question or diversity jurisdiction).

Diversity Jurisdiction

Parties from different states and amount exceeds $75k.

Personal Jurisdiction

Court power over a defendant; requires "sufficient contacts" with the state.

Venue

Proper geographic location for trial.

Class Action

One or several plaintiffs sue on behalf of a larger group with same injury (efficient, lower cost, consistent outcomes).

Complaint

Document filed by plaintiff stating allegations, legal claims, and requested remedy.

Service of Process

Defendant officially receives notice of lawsuit (Due Process).

Answer

Defendant's response: admit, deny, or raise defense.

Discovery

Exchange of evidence before trial (depositions, interrogatories, document requests). Prevents surprise.

Spoliation of Evidence

Destruction, alteration, or failure to preserve evidence.

Voir Dire

Process of questioning potential jurors to identify bias; jurors dismissed for bias but not race/gender.

Objective 5: Business Ethics, Torts, & Crimes

Stakeholder Theory

A business should consider the interests of all stakeholders (customers, employees, environment).

Corporate Social Responsibility (CSR)

A company's obligation to act ethically and contribute positively.

Conformity Bias

Pressure to agree with group expectations even when it is wrong.

Incrementalism

Unethical behavior develops gradually through small steps over time.

Actus Reus

"Guilty Act"; the physical criminal act.

Mens Rea

"Guilty Mind"; criminal intent or mental state.

Felony

Punishable by more than 1 year in prison (murder, fraud).

Misdemeanor

Usually less than 1 year in jail (minor theft, disorderly conduct).

White-Collar Crime

Non-violent crime committed for financial gain.

Embezzlement

Stealing money or property entrusted to someone.

Double Jeopardy

5th Amendment protection from being tried twice for the same crime.

Defamation

False statement harming someone's reputation.

NYT v. Sullivan (Actual Malice)

Known statement was false or reckless disregard for truth.

Negligence Elements

Duty, Breach, Causation, Damages.

Negligence Per Se

Violation of statute automatically establishes breach of duty.

Proximate Cause

Limits liability to foreseeable points (Palsgraf v. Long Island Railroad).

Strict Product Liability

Manufacturer/seller liable for defective products even without negligence.

Business Entities

Sole Proprietorship

Owned by one person; easy to form; unlimited personal liability.

Partnership

Association of 2+ people; general partners personally liable; flow-through taxation.

Corporation

Separate legal entity; must file articles of incorporation; double taxation (C-corp); limited liability for shareholders.

Derivative Lawsuit

Shareholders sue on behalf of corporation when corporation is harmed.

Directors

Set major corporate policies and oversee corporation (Duty of Care & Loyalty).

Officers

Manage daily operations (CEO, CFO).

Close Corporation

Few shareholders; shares not publicly traded; owners often manage business directly.

Publicly Held Corporation

Shares sold publicly; large number of shareholders (e.g., companies on stock exchange).

Sarbanes–Oxley Act (SOX)

Passed after accounting scandals (Enron/WorldCom) to improve governance, prevent fraud, and increase financial transparency.

SOX Key Provisions

CEO/CFO must certify financial reports; stronger internal controls; auditor independence; criminal penalties for fraud.

LLC (Limited Liability Company)

Hybrid business entity combining limited liability with pass-through taxation.

LLC Creation

Must file "Articles of Organization" with the state.

LLC Liability

Members are generally not personally liable for the company's debts or legal obligations.

LLC Management

Can be member-managed (owners run it) or manager-managed (appointed leaders run it).

Benefit Corporation

For-profit corporation pursuing both profit and public/social benefit (e.g., sustainability, ethical sourcing).

Benefit Corporation Mission

Directors consider social/environmental impact rather than just maximizing shareholder profit.