Business Law Unit 1

Purpose of Law

Allows individuals to settle disputes civilly and ensure of a peaceful, functioning society.

Examples of Law in History

Hammurabi Law Code, Roman Civil Law, English Common Law

Criminal Law

Involve offenses against society. An individual is prosecuted by a government representative to determine guilt.

Civil Law

Involves a disagreement between two private parties (plaintiff vs. defendant). Does not result in imprisonment.

Constitutional Law

Law that involves the interpretation and application of the U.S. Constitution and state constitutions

Statutory Law

Laws passed by a government legislature.

Ordinance

A statutory law passed by a local government.

United States Code

Collection of laws passed by the United States Congress

Case Law

When courts decide a case and ultimately set a precedent that may eventually be used for future similar cases

Common Law

Judges refer back to centuries of tradition, dating back to English law.

Stare Decisis

Latin phrase for the policy of using past judges' decisions to interpret laws and apply them to a present case.

Judicial Precedent

When a court makes a decision, future courts in that jurisdiction stand by that decision.

Enabling Act

A law that establishes an executive branch agency and defines their authority to create and enforce laws. (Ex: The Clean Air Act creating the Environmental Protection Agency)

Code of Federal Regulations

Collection of regulations and rules passed by federal government executive agencies.

Ethics

The principles of right and wrong that guide an individual in making decisions.

Greatest-Good Principle

The idea that you should always act in accordance with what will provide the greatest good for everyone. "The ends justify the means."

Universalizing

A way to determine the ethical nature of an act by asking what would happen if it happened all the time (Ex: What if everyone lied all the time?)

Conflicts of Interest

Avoid having personal relationships with employees, competitors, and outside stakeholders that can influence business decisions

Collusion

Businesses should not scheme with their competitors to the detriment of the public.

Corporate Social Responsibility

The idea that businesses should consider the impacts of their decisions on society as a whole. They don't exist just to make a profit. Businesses should consider the wellbeing of their stakeholders (customers, employees, investors, the community, and the environment).

Obstructionist Stance

Businesses actively try to avoid or stop social responsibility programs.

Defensive Stance

Taking the stance that the responsibility lies outside the scope of the business.

Accommodative Stance

A business will follow the rules, but they won't go out of their way to enact social responsibility programs.

Proactive Stance

Companies go out of their way to promote a social responsibility cause.

Citizens

Born in the U.S. or a U.S. Territory, born to a parent of a U.S. Citizen, went through naturalization process, one or both of your parents naturalized

American National

Residents of American territories (Puerto Rico, Guam, American Samoa, U.S. Virgin Islands, etc.)

Resident Aliens

Immigrants legally residing in USA with a green card for adoption, employment, marriage, or relative

Undocumented Immigrants

Individuals who have entered the USA without permission or stayed beyond termination date of green card

Naturalization Process

File applications --> Take naturalization exam --> Appear for court hearing

Citizens' Rights

Enjoy the rights to all political offices and elections for which they are eligible. May hold jobs with a security clearance.

U.S. National rights

Entitled to all legal protections of U.S. citizens. Can vote in primary elections, but not in general elections for the President. Do not pay federal income tax, but do have to pay payroll taxes (Social Security & Medicare)

Rights for Everyone in the US

Freedom of expression, speech, assembly, petition, religion, right to bear arms, freedom of privacy, right to due process, right to trial by jury, etc.

Emancipated Minor

One who is no longer under the legal control of his or her parents due to marriage or independence.

Jurisdiction

A court's power to hear a case and make a judgement

Supreme Court

Highest court in the federal system. Nine Justices, meet in Washington, D.C.. Appeals jurisdiction through certiorari process.

US Court of Appeals (Circuit courts)

Intermediate level in the federal system. 13 regional "circuit" courts. No original jurisdiction; strictly appellate

District Courts

Lowest level courts in the federal system. 94 judicial districts in 50 states & territories. Original jurisdiction over most federal cases

State Supreme Court

Highest State Court. Handles Appeals from lower state courts.

Lower Courts

Circuit Courts (felonies & cases that do not fall into the other lower court jurisdictions). County Courts (misdemeanors & disagreements less than $1,000). Municipal Courts (landlord/tenant disputes, traffic). Family Courts, Juvenile Courts, & Probate Courts

Fiduciary Responsibility

Duty of a company's management to support its shareholders by seeking to maximize profit.

Appeal

Apply to a higher court for a reversal of the decision of a lower court.

Juvenile Courts

Courts that hear cases involving minors. Generally less structured. Matters are kept private. Not entitled to a trial by jury.