BUSN85 Exam 1 Highlighted Terms 2026

Business Law

Private Law

Regulates disputes between private individuals or entities (e.g., contracts, torts, property)and does not involve the government directly. It seeks to resolve issues such as breach of contract or personal injury.

Public Law

Controls disputes between private individuals/entities and the government (e.g., criminal law, constitutional law, administrative law). It governs the relationships and activities involving governmental entities and the public, ensuring compliance with laws and regulations.

Civil Law

Governs disputes where one party seeks a remedy from another; primary purpose is NOT punishment

Criminal Law

Controls disputes between private individuals/entities and the government (e.g., criminal law, constitutional law, administrative law)

3. Civil Law

Governs disputes where one party seeks a remedy from another; primary purpose is NOT punishment

4. Criminal Law

Regulates acts committed against society as a whole; purpose is punishment and deterrence

5. Cyberlaw

Laws that regulate activities conducted online; often modifications to pre-existing laws

6. Constitutional Law

The highest source of law; found in the U.S. Constitution and state constitutions; invalidates all conflicting law

7. Statutory Law

Law created by legislative branches (Congress at federal level; state legislature at state level)

8. Administrative Law

Rules and regulations created by administrative agencies; power delegated from the legislative branch

9. Case Law

Decisions made by courts that set precedent for future cases; originated in English common law

10. Original vs. Appellate Jurisdiction

Original = trial courts where cases begin for the first time; Appellate = courts that review trial court decisions for legal error

11. Personal Jurisdiction

A court's legal authority over the parties in a case; most commonly over the defendant (in personam)

12. Subject Matter Jurisdiction

A court's authority over the TYPE of case; determines whether a case belongs in federal or state court

13. Federal Question Jurisdiction

Federal court jurisdiction when a claim arises under federal law (U.S. Constitution, federal statutes, administrative rules)

14. Diversity Jurisdiction

Federal court jurisdiction when parties are citizens of different states AND amount in controversy exceeds $75,000

15. Attorney-Client Privilege

Confidentiality protection that prevents disclosure of private communications between attorney and client

16. Work-Product Doctrine

Protects an attorney's notes, strategies, and mental impressions prepared in anticipation of litigation from being disclosed

17. Answer

The defendant's formal written response to a complaint; may admit, deny, or claim insufficient knowledge; may raise affirmative defenses

18. Motion to Dismiss

A defendant's argument that even if all facts in the complaint are true, there is no valid legal claim; judge looks only at the face of the complaint

19. Default Judgment

Automatic victory for the plaintiff when the defendant fails to respond to the complaint within the required time

20. Motion for Summary Judgment

A pretrial motion arguing there is no genuine dispute of material fact; if granted, judge enters judgment without a trial; relies on evidence (affidavits, documents, depositions)

21. Negotiation

An informal ADR method where parties communicate directly to reach a mutually acceptable resolution; no neutral third party; not binding unless parties settle

22. Mediation

An ADR method where a neutral third party (mediator) facilitates discussion but does NOT decide the outcome; not binding unless parties settle; preserves relationships

23. Arbitration

An ADR method where a neutral arbitrator hears the dispute and DECIDES the outcome; binding and legally enforceable; limited appeal

24. Police Power

States' reserved power under the 10th Amendment to regulate public health, safety, morals, and general welfare

25. Preemption

When valid federal law conflicts with state law, federal law overrides (preempts) state law under the Supremacy Clause; state law becomes invalid and unenforceable

26. Express Preemption

When Congress or an agency explicitly states in the text of a law that federal law preempts state law; look for the word "preempt"

27. Conflict Preemption

A type of implied preemption; occurs when it is impossible to comply with both federal and state law simultaneously

28. Field Preemption

A type of implied preemption; occurs when federal regulation is so comprehensive it occupies an entire field, leaving no room for state law (e.g., immigration)

29. The Commerce Clause

Article I, Section 8 of the Constitution; grants Congress the power to regulate commerce among the states; primary foundation for federal regulation of business

30. Channels

One of three categories Congress can regulate under the Commerce Clause; the pathways through which commerce travels (highways, waterways, railroads, airspace, internet)

31. Instrumentalities

One of three categories Congress can regulate under the Commerce Clause; the vehicles and methods of conducting commerce (trucks, planes, trains, communication systems)

32. Substantial Effect on Interstate Commerce

The broadest Commerce Clause category; Congress may regulate local activities that, in the aggregate, substantially affect interstate commerce; applies to economic activities

33. Procedural Due Process

Guarantees fair PROCEDURES before the government deprives someone of life, liberty, or property; requires notice and an opportunity to be heard

34. Substantive Due Process