🟦 LO 1-7: Categories of Law

Q: Can a single legal situation fall into more than one category of law?

A: Yes. Legal categories overlap.

One action can simultaneously involve:

• Criminal law

• Civil law

• Substantive law

• Procedural law

• Public law

• Private law

Q: What is the main purpose of criminal law?

A: To protect society by punishing conduct that violates criminal laws.

Possible consequences include:

• Fines

• Imprisonment

• Other criminal penalties

Key word: PUNISH

Q: What is the main purpose of civil law?

A: To compensate a person or business for losses caused by another party's conduct.

The injured party can generally seek damages, usually money.

Key word: COMPENSATE

Q: Who generally brings a criminal case?

A: The government prosecutes the person accused of committing the crime.

The purpose is to protect society, not primarily to compensate the individual victim.

Q: Who generally brings a civil lawsuit?

A: The injured party can sue the person or business responsible for the harm.

The goal is generally to obtain damages or another remedy.

Q: What happens if someone drives drunk and injures another person?

A: The same conduct can create both criminal and civil liability.

• Criminal: Government prosecutes the driver for DWI.

• Civil: Injured person can sue the driver for losses such as medical expenses.

Important: One action can involve both types of law.

Q: What is the easiest way to distinguish criminal and civil law?

A:

Criminal = punishment/protect society
Civil = compensation for losses

Q: What is substantive law?

A: Law that establishes rights and duties.

It answers:

"WHAT are my legal rights?"

Example: A negligence rule may give an injured person a right to recover damages.

Q: What is procedural law?

A: Law that establishes the process and rules for enforcing legal rights. It answers:

"HOW do I enforce my rights?"

It can cover things such as:

• How to file a lawsuit

• Deadlines

• Court procedures

• Collecting a judgment

Q: What is the easiest way to remember substantive vs. procedural law?

A:

Substantive = WHAT
Procedural = HOW

Substantive: What rights do I have?

Procedural: How do I pursue those rights?

Q: How could negligence involve both substantive and procedural law?

A:

Substantive: The law establishes that an injured person may have a right to recover damages.

Procedural: The law establishes how and when that person must file the lawsuit and pursue the claim.

Q: How does the Fourth Amendment illustrate substantive and procedural law?

A: It illustrates both.

• Substantive: Protects the individual's right against unreasonable searches and seizures.

• Procedural: Establishes requirements concerning search warrants, including probable cause.

Exam trick: Don't think "substantive = important law" and "procedural = less important law."

It's about rights vs. process.

Q: What does "remedy" mean?

A: A judicial action intended to compensate or otherwise provide relief to an injured party.

A court can provide different types of remedies.

Q: What is a remedy at law?

A: Generally, money damages.

The court orders the wrongdoer to pay money to compensate the injured party.

Think:

Law → 💰 MONEY

Q: What is equitable relief?

A: Relief provided when money damages are inadequate to fix the harm.

Instead of simply ordering someone to pay money, the court may order someone to do something or stop doing something.

Q: What is the KEY rule for deciding between legal and equitable remedies?

A:

If money is enough, a legal remedy is generally sufficient.

If money is NOT enough, an equitable remedy may be available.

This is one of the most important rules in this section.

Q: What is an injunction?

A: A court order requiring someone to stop or start doing something.

For studying:

Injunction = STOP

Example:

A company is doing something that is causing legally actionable harm. A court could order it to stop.

Flashcard 18

Q: What is specific performance?

A: A court order requiring someone to perform their contractual obligation.

For studying:

Specific performance = DO WHAT YOU PROMISED

It is generally associated with property or goods that are rare or unique.

Q: Why might specific performance be appropriate for a one-of-a-kind item?

A: Because money may not be an adequate substitute.

Example:

You contract to buy a rare, signed first-edition book.

If the seller refuses to give it to you, $500 in damages might not replace the exact book.

A court could potentially order the seller to perform the agreement.

Q: What is the difference between an injunction and specific performance?

A:

Remedy	What it does
Injunction	Stop/start an action
Specific performance	Perform the promised contract

Memory:

Injunction = STOP
Specific performance = DO IT

Q: What are equitable maxims?

A: Broad principles based on fairness and justice that courts can use when deciding equitable matters. They're basically guidelines for determining whether equitable relief would be fair.

Q: What does "Equity aids the vigilant" mean?

A: A person seeking legal protection should act promptly to protect their rights.

Courts may disfavor someone who waits too long.

Memory:

Vigilant = don't wait.

Q: What is a statute of limitations?

A: A legal deadline for bringing certain claims.

This connects directly to:

Equity aids the vigilant

If you wait beyond the applicable deadline, you may lose the ability to bring the claim.

Q: Cardozo believes he was illegally fired but waits 8 months to file. Which maxim applies?

A: Equity aids the vigilant.

The principle is that people should act within the required/reasonable time to protect their rights.

Q: What does "substance over form" mean?

A: Courts can look at what something actually is, rather than simply relying on the label people give it.

Reality > label

Example:

Someone calls themselves a "limited partner" but behaves like a general partner. The court may consider their actual conduct rather than just the title.

Q: What is the clean hands doctrine?

A: Someone seeking equitable relief should not have acted dishonestly, fraudulently, or in bad faith in connection with the matter.

Memory:

Dirty hands → don't expect equity.

Q: What happened in Day v. Case Credit that demonstrates clean hands?

A: An employee of Case:

1. Forged Day's signature.

2. Increased the price.

3. Case knew about the forgery.

4. Case did nothing to stop it or inform Day.

5. Case later tried to recover from Day.

The issue is whether Case should receive equitable help despite its connection to the dishonest conduct.

Answer: Under the clean hands doctrine, Case's hands would not be clean.

Q: What are the three equitable maxims you need to know?

A:

1. Equity aids the vigilant
→ Don't wait.

2. Substance over form
→ Reality matters more than labels.

3. Clean hands
→ Don't act dishonestly and then seek equitable help.

Q: What is public law?

A: Law that comes from a government entity.

Examples:

• Statutes

• Administrative regulations

• Other government-created rules

Memory:

Public = government

Q: What is private law?

A: Law governing relationships between private parties.

It can apply even when there isn't a specific statute or regulation addressing the particular relationship.

Example:

Two people enter a contract. Their relationship can be governed by the common law of contracts.

Q: What is the easiest way to distinguish public and private law?

A:

Public = government → people/businesses
Private = private party → private party

Q: What are the four legal strategies businesses can use?

A:

1. Noncompliance

2. Avoidance

3. Prevention

4. Value creation/legal competitive advantage

Q: What is noncompliance?

A: Openly disregarding the law.

The business knows what the law requires but chooses not to follow it.

Example:

A company knowingly violates parking regulations and simply treats the resulting fines as a business expense.

Memory:

Noncompliance = "I know it's illegal, but I'm doing it anyway."

Q: What is avoidance?

A: Attempting to minimize legal burdens or compliance costs, often by taking advantage of loopholes or gray areas.

The business isn't necessarily openly violating the law. Instead, it structures its activities to avoid certain legal requirements or costs.

Memory:

Avoidance = find a way around the burden.

Q: What is prevention?

: Identifying potential legal risks before they happen and taking action to reduce those risks.

Examples:

• Warning labels

• Disclaimers

• Liability waivers

Memory:

Prevention = see the problem coming → prevent it.

Q: Why are warning labels an example of prevention?

A: Because the business recognizes a potential risk and takes action before harm occurs.

Example:

A snack contains an allergen.

Galaxy puts a warning on the package.

→ The company is proactively addressing a potential legal risk.

Prevention = proactive.

Q: What is value creation/legal competitive advantage?

A: Using the law strategically to create business value or gain an advantage over competitors.

Examples include:

• Patents

• Trade secrets

• Intellectual property

Memory:

Don't just avoid legal problems → use the law to help your business.

Q: How can a patent create a competitive advantage?

A: A patent can give a business legal protection over an invention, helping the company benefit from its innovation.

So the law isn't merely something the company has to obey.

It can become a business asset.

Q: Are the four business legal strategies mutually exclusive?

A: No.

A business can use multiple strategies at the same time.

For example, a company could:

• Comply with laws

• Take preventive measures

• Look for legally available ways to reduce costs

• Use intellectual property to gain an advantage

Q: What happened in Sokoloff v. Harriman?

A: Sokoloff paid Harriman for architectural and landscaping plans.

Harriman later estimated construction would cost over $1.8 million.

Sokoloff wanted to use other builders.

Harriman said Sokoloff couldn't use the plans unless Harriman himself built the house.

Q: What is the main legal issue in Sokoloff v. Harriman?

A: Whether Harriman could withhold/control the plans under the parties' agreement and circumstances.

The court could consider:

• Contractual rights

• Equity

• Fairness

• Substance over form

• Clean hands

Q: What should you remember from Sokoloff v. Harriman?

A:

Equity can be used to examine fairness when deciding what relief should be available.

Don't get too caught up in the factual details.

Q: What happened in Jones v. R.R. Donnelley?

A: Jones wanted to bring a federal discrimination claim.

• Illinois deadline = 2 years

• Applicable federal deadline = 4 years

• Time passed = 3 years

Q: Which statute of limitations applied in Jones?

A: The federal 4-year statute for the type of claim described.

Q: Could Jones sue after 3 years?

A: Yes, because 3 years was:

• Too long for Illinois's 2-year period

• Still within the applicable federal 4-year period

Main concept:

Statute of limitations = deadline for bringing a claim.

Q: What happened in Day v. Case Credit?

A: Case's employee:

• Forged Day's signature

• Increased the price

• Case knew about it

• Case didn't stop the misconduct

• Case later sued Day

Q: Which equitable maxim is tested by Day v. Case Credit?

A: Clean hands doctrine.

Case was connected to dishonest conduct and knew about the forgery.

Memory:

Forgery + knowingly allowing it = dirty hands.

Q: What happened in Cargill v. Monfort?

A: Monfort was concerned that a proposed merger involving Cargill could violate federal antitrust laws.

Monfort wanted to stop the merger.

Q: What remedy would Monfort seek to stop the merger?

A: An injunction.

Why?

Because an injunction can tell someone to stop/prevent an action.

Injunction = STOP

This is equitable relief.

Q: What was Arizona v. United States about?

A: Arizona passed a state immigration law.

The federal government argued that federal immigration law preempted conflicting state provisions.

Q: What does "preemption" mean in Arizona v US case?

A: The basic idea is that federal law can override conflicting state law when federal authority controls the area.

Q: Who prevailed in Arizona v. United States according to your notes?

A: The United States, because federal immigration law preempted the conflicting state provisions described in the case.

Q: Why is the second question in Arizona v. United States different?

A: The question of whether a state should be able to legislate when federal enforcement is inadequate is a policy/critical-thinking question.

It isn't simply asking you to identify a legal rule.

Q: What is precedent?

A: A legal principle established by an earlier court decision that can guide decisions in future cases involving similar facts or issues. Past case → guides future case

Q: What is stare decisis?

A: The doctrine/principle that courts should generally follow precedent and treat similar cases consistently.

Purpose:

• Consistency

• Reliability

• Predictability

Memory:

Stare decisis = "follow what was decided before."

Q: What is the difference between precedent and stare decisis?

A:

Precedent = the previous decision/rule.

Stare decisis = the principle of following precedent.

Example:

Previous court decision = precedent
"We should follow that previous decision" = stare decisis

Q: Does stare decisis mean courts can NEVER change precedent?

A: No.

Courts can sometimes depart from precedent when circumstances change and the old precedent becomes unworkable.

Your textbook gives South Dakota v. Wayfair as an example involving major changes in online commerce.

Q: Why is stare decisis important to businesses?

A: Businesses need reliability and predictability.

If legal rules were constantly changing unpredictably, businesses would have difficulty:

• Planning transactions

• Making investments

• Writing contracts

• Estimating legal risks

So precedent helps businesses plan around the law.

Q: What is the basic idea behind stare decisis?

A:

Similar cases + similar facts → generally similar outcomes.

This promotes consistency and reliability in the legal system.

Q: Criminal vs. Civil?

A: Criminal = punishment/protect society.
Civil = compensation.

Q: Law vs. Equity?

: Law = usually money damages.
Equity = non-money relief when money isn't enough.

Q: Injunction?

A: STOP/START an action.

Q: Specific performance?

A: DO WHAT YOU PROMISED under a contract.

Q: Equity aids the vigilant?

A: Don't wait too long.

Q: Substance over form?

A: Reality > label.

Q: Clean hands?

A: Don't act dishonestly and then seek equitable help.

Q: Public vs. Private law?

A: Public = government.
Private = private parties.

Q: Four business legal strategies?

Noncompliance → Avoidance → Prevention → Value creation

Precedent

A: Previous court decision that guides future similar cases.

Q: Stare decisis?

A: Principle of following precedent for consistency.

Q: Can courts ever depart from precedent?

A: Yes, when changes in society/technology can make the precedent unworkable.

Q: Which case = clean hands?

A: Day v. Case Credit