Business Legal Ch. 1

Law

Enforceable rules governing relationships among individuals and between individuals and their government that guides social conduct (Parties to Litigation) Plaintiffs and Defendants 

Law consists of enforceable rules of conduct found in

A. Unwritten principles (Common Law)
B. Written rules (Statutes)
C. Court decisions (Case Law)

Jurisprudence

The study of law including the different schools of legal jurisprudential thought 

Legal Philosophy 

Is significant in how judges apply law to disputes

What is the application of legal philosophy for a judge?

1. Judges philosophical application or approach to apply the law to a dispute is a subject of jurisprudence

2. A judge is influenced by his/her legal philosophy

Function of a Judge

Not to make law but to interpret and apply the law to a given set of facts

JUDGES HAVE THE FLEXEBILITY IN INTERPRETING AND APPLYING THE LAW

Factors influencing a Judge’s Decision Making

1) Personality

2) Values

3) Intellect

4) Politics

5) Legal Philosophy 

Schools of Jurisprudential thought 

1) Naturalist school 

2) Positivist School 

3) Historical school 

4) Legal Realism (Sociological School) 

Naturalist school

a. There is a higher universal law that applies to all mankind (Natural Rights)

b. There is absolute right and wrong and any law that conflicts with natural law is not law at all

c. There are moral principles inherent in human nature (Natural Laws)

d. There is an absolute right and wrong (Unwritten Law)

e. An ideal state of being exists

f. AN UNJUST LAW IS NO LAW AT ALL and need not to be obeyed

g. Gov and legal system should reflect universal and moral and ethical principles, inherent in the nature of human life

h. Applies to all mankind

i. Endowed at birth vs. Endowed by society

1) live in safety

2) provided healthy food and water

3) Health care??

Positivist School 

a. The written law of a society at a given time is the law/ applies only to that nation 

b. No higher law than the nation’s positive law 

c. No natural rights but human rights provided by law-no connection between law and morality (Sovereign Dictates what the law shall be) 

d. Whether a law is bad or good is irrelevant it must be obeyed until changed by an appropriate legislative body 

e. Not rooted in morality but by a legislative body  

Historical School

a. Law has evolved over time so look to past to determine what law should be today-

b. Legal doctrines that have withstood the passage of time

c. Legal doctrines that have worked best in the past should shape present law- “don’t change what isn’t broken”

Legal Realism (Sociological School) 

a. Law is a means to a social end-law is shaped by social forces and needs and not historical concepts 

b. Law is shaped by economic needs and realities

c. Law is shaped by social forces and social needs and therefore cannot be applied uniformly

Tensions that exists in the Law

1. The need for stability vs. Providing an opportunity for Change

2. Function of law is to maintain stability and allow for change in the law

3. complex system of moral/ethical conduct giving order to society

Primary sources of American Law

1. Constitutions

a. Federal- US constitutions

1. Supreme Law of the land- conflicts

2. Critical check on other branches of government

b. State constitutions

1. Supreme law of the state but cannot conflict with US consitution

Statutes- Statutory Law 

a. Laws enacted by legislative body 

b. Federal statutes- US code that applies to all states 

c. State statutes- applies to that state laws 

d. Ordinances- Local government rules/ regulations 

Administrative Law

a. Rules, order, and decisions of administrative agencies affecting every aspect of business. (Financing/ hiring - firing employees/ environment issues)

b. A federal, state or local government agency established to perform a specific function (regulation)

1. Executive agencies- authorized by the president/ governor

a. US food and drug/ US Dept/ Health and Human services

2. Independent agencies-more independent

a. Federal trade commission/ SEC/ FCC

Case law and Common Law

a. American law based on old English Common Law

b. American law is a process of evolution-interpreatations statutes and constitutional provisions

c. case law/ Judge made law/ Common law

Conflict of Law 

1. No law can conflict with the US constitution (Supreme law of the land) 

2. No state statute can conflict with the State constitution (Supreme law of the state) 

3. State statute cannot conflict with a federal statute 

4. No executive can enforce a law or regulation in violation of US constitution 

Common Law- Judge Made Case Law

1. Body of general rules that prescribe social conduct

2. No particular form- an evolution process (Developed by Judges) (Based on Social Customs)

3. An attempt to establish a uniform set of customs

4. Over time a form of Jurisprudence developed

5. Common law aided in the evolution of law

Negligence- Marriage- Free Speech- criminal- Real Property

King’s Courts/ Courts of Law/ Remedies at Law

1. Providing a forum in which uniform justice could be
obtained according to local customs and general rules of
conduct
2. Where remedies can be sought out by those suffering harm
3. Remedies at law-money damages, goods, land, tangibles
4. Courts of Law/Remedies at Law/Money
5. What evolved was the beginning of common law

Chancery courts/ Courts of equity/ Remedies At Equity 

1. Founded on notions of justice and fair dealing
2. Decided by a counselor to the king-Chancellor
3. Unique remedies unlike money damages-extraordinary relief
4. Equitable Remedies: Court ordering a party to:
a. Injunction-stop engaging in certain activities
b. Specific Performance-perform under the terms of an agreement 

c. Rescission-cancellation of a contract obligation
d. Reformation-change the terms of a writing
Contract/Deed)
e. Accounting-provide an account of financial activities

Equitable Maxims (possible defenses to claims in Equity)

1. General statements of equitable rules:
a. Those who seek equity must do equity-be fair yourself
b. Come to court with clean hands-you have done no harm
c. Equity regards substance over form
d. Equity aids the vigilant
1. Laches
2. Statute of Limitations-time period for filing a lawsuit if
violated plaintiff is barred from pursuing a claim

Procedural Differences between law and equity

1. Plaintiff/Petitioner vs. Defendant/Respondent
2. Court trial vs. Jury trial
3. Two different courts vs. one court
4. Today one court hears both Law and Equity claims and
can provide both remedies in the same action

Doctrine of Stare Decisis 

1. Common Law-Judges decided controversies
2. Judges attempted to be consistent—Find a similar case and
Rule accordingly unless an overwhelming reason not to

3. Therefore relied on precedent-basing rulings on earlier
decisions, serving as a basis for present decision
4. No formal documentation on rulings then Year Books and
today reporting decisions in reporter systems
5. This practice of deciding new cases on precedent became the
doctrine of STARE DECISES
6. Judges are obligated to follow precedent in their jurisdiction
to avoid arbitrary ruling
7. SD is fundamental to the development of our legal tradition
providing legal authority for deciding subsequent cases
8. Binding authority-court must follow-statutes/Constitutions/
Previous court decisions

Function of Stare Decisis

1. Efficiency in the court system
2. Uniformity in applying the law
3. Consistency in applying the law
4. Stability in the social and business practices
5. Predictability of the law

Can or should a court ever depart from Precedent?

1. CASES OF FIRST IMPRESSAION
2. PRECEDENT IS INCORRECT
3. SOCIAL CHANGES
4. CHANGES IN TECHNOLOGY
5. MUST HAVE A COMPELLING REASON

Legal reasoning as applied by judges and briefing cases 

1. Issue-Legal issue not factual issue
2. Rule-rule of law that applies (Statute/regulation...)
3. Analysis-How does the rule apply to the facts
4. Conclusion

Classification of Law

1. Substantive vs. Procedural
a. define, describe, create rights vs. methods of enforcement
2. Civil vs. Criminal
a. Civil-duties existing between individuals with individuals,
governments, business entities and remedies sought in law and/or
equity
b. Criminal-wrongs committed against public policy as a whole
acts that shock the conscious of society
money damages vs. incarceration/fines/probation

Finding Law

1. US Code
2. State Code
3. Administrative rules
4. Federal and State court decisions in reporter systems
Judge Written Opinions-Court’s reasoning in deciding cases
Majority, concurring (Same conclusion different reasoning),
dissenting opinions