Business Law Midterm

Requisites of a legal system

Certainty (stability), flexibility (technology), knowable (lawyers).

Common Law

Rules and principles existing in a state resulting from judicial decisions where legislatures have no enacted comprehensive statutes.

Statutory Law

Rules adopted by legislative bodies rather than by the courts.

Plaintiff

The person bringing an action in a civil legal dispute.

Defendant

The person or entity against whom the plaintiff is making a claim.

Civil Laws

Laws that spell out rights and duties existing among individuals, business firms, and sometimes government agencies.

Criminal Law

Legal cases that can only be brought by the government.

Felony

A crime for which the legislature has provided a maximum penalty of imprisonment for more than a year or death.

Misdemeanor

A less serious crime, typically punishable by less than one year of imprisonment.

Adversarial System

A legal system where each party presents its case to an impartial judge or jury.

Jurisdiction

The authority of a court to hear a case and make a ruling.

Discovery

The pretrial phase in a lawsuit during which each party can obtain evidence from the other party.

Depositions

Sworn out-of-court testimonies used to gather information as part of the discovery process.

Spoliation of Evidence

The destruction of evidence that can lead to sanctions.

Personal Jurisdiction

The authority of a court to make a ruling over a specific defendant.

Federal Question Jurisdiction

The power of federal courts to hear cases arising under the U.S. Constitution, federal laws, or treaties.

Diversity of Citizenship

A basis for federal court jurisdiction that requires parties from different states.

Voir Dire

The jury selection process.

Bench Trial

A trial where the judge serves as the fact-finder instead of a jury.

Long-arm statutes

Laws that allow a court to reach beyond its borders to exercise jurisdiction over an out-of-state defendant.

In Rem Jurisdiction

Court jurisdiction over a specific item of property within the forum state.

Judgment Proof

A situation where a defendant does not have enough assets to satisfy a judgment.

Peremptory Challenges

A right in jury selection for the attorneys to reject a certain number of potential jurors without stating a reason.

Hearsay

An out-of-court statement offered to prove the truth of the matter asserted.

Direct Examination

The initial questioning of a witness by the party that called that witness.

Cross Examination

The questioning of a witness by the opposing party.

Judicial Review

The power of courts to assess whether a law is in compliance with the constitution.

Supremacy Clause

The constitutional provision that federal law takes precedence over state law.

Commerce Clause

The clause in the Constitution that empowers Congress to regulate commerce with foreign nations and among the states.

Equal Protection of the Law

The principle that laws must provide equivalent protection to all individuals.

Intermediate Scrutiny

A standard of review used by courts to evaluate laws that discriminate based on gender.

Strict Scrutiny

The highest standard of review used by courts to evaluate laws that infringe upon fundamental rights.

Imminent Domain

The right of the government to take private property for public use, with just compensation.

Freedom of Religion

The right to practice any religion or none at all, protected from government interference.

Corporate Speech

Commercial speech that is subject to stricter scrutiny than other forms of speech.

Utilitarianism

An ethical theory that suggests an action is right if it promotes the greatest happiness for the greatest number.

Deontological Ethics

An ethical framework that emphasizes the importance of following rules or duties.

Virtue Ethics

An ethical theory that focuses on the character of the moral agent rather than on the consequences of actions.

Corporate Culture

The shared values, beliefs, and behaviors that shape how a company's employees interact and work.

Digital Marketing Ethics

Principles that guide the moral obligations of marketers in digital spaces.

Common Law

The rules and principles in any state that result from judicial decisions in areas where legislatures have not enacted comprehensive statutes. Also known as Case Law or judge-made law.

Statutory Law

Legal rules formally adopted by legislative bodies rather than the courts, often referred to as "written law." Examples include Criminal Law and Tax Law.

Federal Law

Laws created by the national government (U.S. government), such as the 1st Amendment.

State Law

Rules determined by individual states that apply within their borders, governing matters not covered by federal law.

Plaintiffs

The accusers in a legal case who start lawsuits and seek to enforce obligations against defendants.

Defendants

The accused parties in a legal case who seek to escape responsibility for allegations made by plaintiffs.

Civil Actions

Lawsuits where a plaintiff is seeking to enforce private obligations against the defendant.

Criminal Law

Statutes that prohibit certain conduct and impose fines or imprisonment for violations; cases brought by the government.

Burden of Proof in Civil Cases

For a plaintiff to win, they must display a preponderance of the evidence.

Burden of Proof in Criminal Cases

The government must prove its case beyond a reasonable doubt, showing significant conviction of the defendant's guilt.

Laws

Rules that must be followed, with penalties for non-compliance, such as loss of money or freedom.

Ethics

Standards that should be followed in a moral sense but do not carry specific penalties.

Courts of Limited Jurisdiction

Low-level courts with limited authority that hear specific types of cases, such as municipal or traffic courts.

General Trial Courts

Low-level state courts where important cases, like contract and criminal law, commence; typically called district or superior courts.

Appellate Courts

High-level state courts that hear appeals from lower courts and decide legal questions without hearing new evidence.

Specialized Trial Courts

Federal courts with specific subject matter jurisdiction, such as U.S. Tax Court.

U.S. District Courts

Basic trial courts in the federal system where most federal cases are handled.

Trial vs. Appellate Courts

Trial courts settle questions of both fact and law, whereas appellate courts rule on law only.

Podias v. Mairs

A case that explored legal responsibility of passengers in an accident involving a driver under influence; the appellate court found liability might extend to passengers.

Adversarial System

A legal system where parties and their attorneys have primary control over the issues and evidence, while the trial judge exercises supervisory authority.

Inquisitorial System

A legal process where the trial judge has much more control over the proceedings, authority over the issues addressed, leads the investigation, and makes rulings.

Pleadings Stage

The initial phase of a lawsuit where the plaintiff files a complaint and the defendant responds with an answer or motion to dismiss.

Default Judgment

A ruling in favor of the plaintiff when the defendant fails to respond to the complaint within the specified period.

Discovery Stage

The pretrial phase where parties gather evidence, including depositions, interrogatories, and requests for documents.

Deposition

Testimony taken outside of court under oath from a witness, requiring presence from both parties.

Interrogatories

Written questions submitted to one party by another, which must be answered under oath.

Summary Judgment

A motion arguing that there is no genuine issue of material fact and that the case should be decided in favor of one party based on the evidence presented.

Subject Matter Jurisdiction

The power of a court to hear and decide a particular type of case.

Federal Question Cases

Civil cases in federal court that arise from the U.S Constitution or federal statutes.

Diversity of Citizenship Cases

Cases in federal courts where parties are from different states or countries, and the amount in controversy exceeds $75,000.

Personal Jurisdiction

The court's power over the parties involved in a case, requiring compliance with due process.

Long-Arm Statute

Laws permitting jurisdiction over non-resident defendants who have sufficient contacts with the forum state.

General Personal Jurisdiction

Jurisdiction established if a non-resident has substantial physical presence or engagement in the forum state.

Specific Personal Jurisdiction

Jurisdiction established if a non-resident engages in specific acts within the forum state related to the dispute.

In Rem Jurisdiction

The court's power to decide cases regarding property located within its jurisdiction, regardless of personal jurisdiction over the parties.

Ford Motor Company v. Montana Eighth Judicial Court

A landmark case illustrating the differences between general and specific personal jurisdiction.

Most cases that reach trial are decided by a jury.

A jury is a fact-finding body that considers evidence and determines what happened during the events leading to the trial.

Arguments against the jury system

Jurors lack expertise, are easily influenced, and are subject to complicated rules and procedures for the trial.

Arguments in support of the jury system

Juries provide valuable community input, serve as a check on judicial power, and compel attorneys to simplify their cases.

Voir Dire

The preliminary questioning of prospective jurors to assess their ability to be impartial.

Challenge for cause

An attorney's request to remove a juror due to an indication that they would not be capable of impartiality.

Peremptory challenges

Limited removals of prospective jurors without a stated reason, not to be used for discriminatory purposes.

Burden of proof

The plaintiff's duty to prove the facts alleged in their complaint.

Direct examination

The initial questioning of a witness by the attorney who called them.

Cross-examination

The questioning of a witness by the opposing party's attorney.

Rules of evidence

Regulations ensuring that the evidence presented in court is relevant, accurate, and reliable.

Types of excluded evidence

Irrelevant evidence, hearsay, and opinion evidence are often excluded by legal rules.

Motion for directed verdict

A defendant's request to win the case without presenting evidence due to inadequate plaintiff evidence.

General charge

Instructions outlining legal principles for the jury to decide relevant facts and reach a verdict.

Special charge

Series of questions directed to the jury regarding disputed facts requiring yes or no answers.

Writ of execution

Empowers a law enforcement official to seize and sell a defendant's nonexempt property to satisfy a judgment.

Writ of garnishment

Orders a third party to deliver the defendant's property to the custody of the court.

Negotiated settlement

An out-of-court resolution between parties often reached through their lawyers.

Arbitration

A binding dispute resolution process where an arbitrator makes a decision enforceable like a court judgment.

Mediators

Neutral third parties who facilitate out-of-court settlements without the power to render binding decisions.

Advantages of mediation

Maintains relationships post-dispute and allows for options like arbitration or court if mediation fails.

Organization of the Federal Government

The Constitution divides federal power into three branches: executive (President), legislative (Congress), and judicial (Supreme Court), each with specific powers.

Legislative Power

The authority to make laws, which is granted to Congress by the Constitution.

Executive Power

The authority to enforce laws, which is held by the President.

Judicial Branch

The branch of government that interprets laws, represented by the Supreme Court.