Acct 3201 Chapters 1-4,6,7 Midterm REVIEW

Midterm date: October 20 9:30AM

Primary sources of American law

1. The U.S Constitution

2. Statutory law (Statues)

3. Administrative rules and regulations

4. Common law (Case law)

Constitutions

Fundamental rights of people living within the US or given state

• empowering the various branches of government

• prescribing limitations on that power

U.S Constitution

The supreme law of the land, the basis of all law in the United States

• A law in violation of the Constitution will be declared unconstitutional

• Reserves to the states all powers not granted to the federal government

Constitutional law

Law that is based on the U.S Constitution and the constitutions of the various states

Statutory law (Statues)

Laws enacted by Congress, legislative bodies at any level of government, or by state legislatures

• includes local ordinances

Ordinance

A law passed by a local governing unit, such as a city or a county.

Administrative Law

Promulgated by federal, state, and local agencies

• example: Federal Trade Commission, FDA (Food Drug Association)

Common Law (Case law)

The body of judicial decisions that interpret and enforce any of the foregoing; relationships among individuals/individuals and society

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

Courts of law

A court in which the only remedies that could be granted were things of value, such as money damages

Courts of Equity

A court that decides controversies and administers justice according to the rules, principles, and precedents of equity; any manner of non-momentary relief

• orders— “specific performance” or “injunction”

Specific performance

Ordering a person to do something

Injunction

Ordering a person to cease doing something

Recission

Remedy

The means given to a party to enforce a right or to compensate for another’s violation of a right

Judicial review

The courts can decide whether the laws or actions of the executive and legislative branches are constitutional

• Checks and balances

Jurisdiction

The authority of a court to hear and decide a specific action

In Personam jurisdiction (personal jurisdiction)

Court jurisdiction over the “person” involved in a legal action

• person or business that resides in a certain geographic area

Long Arm Statue

A state statute that permits a state to obtain personal jurisdiction over nonresident defendants

• must have minimum contacts with the state for the statute to apply

Minimum Contacts Rule

A defendant must have sufficient connection to the state for the judge to conclude that the state may exercise power over the defendant

In Rem Jurisdiction (property)

Court jurisdiction over a defendant’s property

Subject Matter

The limitations on the types of cases a court can hear

Court of general jurisdiction— broad array of issues (state trial, federal district)

Court of limited jurisdiction— specific types of cases (probate, bankruptcy)

Federal jurisdiction

Federal court can exercise jurisdiction when,

1. The plaintiff’s cause of action involves a federal question

2. In cases between citizens of different states when amount exceeds $75,000

Concurrent Jurisdiction

Jurisdiction that exists when two different courts have the same power to hear a case.

• some cases can be heard in either a federal or a state court

Exclusive jurisdiction

Jurisdiction that exists when a case can be heard only in a particular court or type of court

• such as a federal court or a state court

Venue

The geographical district in which an action is tried and from which the jury is selected

Standing to sue

The requirement that an individual must have a sufficient stake in a controversy before he/she can bring a lawsuit

1. Harm

2. Causation

3. Remedy

State Court Systems

1. trial courts of limited jurisdiction

2. trial courts of general jurisdiction

3. appellate’s courts

4. the state’s highest court

Federal Court System

1. U.S. district courts (trial courts of general jurisdiction)

2. U.S Courts of appeals

3. the United States Supreme Court

Trial courts

Courts in which trials are held and testimony is taken

• State courts

• Federal courts

Appellate courts

Judges review the record of the case on appeal, determining whether the trial court committed an error

• transcript, arguments

• questions of law

Question of law

An issue involving the application or interpretation of a law, only a judge can decide

U.S District Courts

Courts that have original jurisdiction in matters involving a federal question; federal cases

U.S Court of Appeals

Courts that hear appeals from the federal district courts

U.S Supreme Court

The highest level of the three-tiered federal court systems in the U.S

Court that has the final authority on the Constitution and federal law

Writ of Certiorari

A writ from a higher court asking the lower court for the record of a case

• to bring a case before the Supreme Court

Alternative dispute resolution

The resolution of disputes in ways other than those involved in the traditional judicial process

• Negotiation, mediation, arbitration

Negotiation

A process in which the parties attempt to settle their dispute informally, with/without attorneys

• parties reach a resolution

Mediation

A neutral third party meets with the parties and emphasizes points of agreement to bring them toward resolution of their dispute

• parties reach resolution but mediator may suggest/propose

Arbitration

Parties present their arguments and evidence before an arbitrator

• arbitrator imposes a resolution on the parties

Award

Arbitrator’s decision

Arbitration clauses

A clause that provides that in event of a dispute, the parties will submit the dispute to an arbitration rather than litigate the dispute in court