Business Law Exam 1

law

enforceable rules that govern our relationships with one another and with society

constitutional law

sets out a government’s organization, powers, and limits

statutory law

federal laws apply to every states and state laws only apply within that state

common law

general rules derived from case law

secondary sources of american law

books and articles that summarize/ explain the law

courts of law

reward monetary relief like money, land, or property

courts of equity

order non-monetary remedies as specific performance or injunction

stare decisis

a doctrine under which judges follow established precedents

two aspects of stare decisis

courts should not overturn their own precedents without compelling reason and a higher courts decision binds the lower courts in the same jurisdiction

case of first impression

presents an issue with no precedent in that jurisdiction

when can courts depart from precedent?

its clearly wrong and when times have changed so a new one is needed

common law

body of law developed from judicial decisions and the principles established in those judicial decisions

what is a primary source of law?

common law

at one time, the only remedy a court of law could grant was

monetary damages

once a court has applied a principle to a certain set of facts, that principle must generally be applied in future cases involving

similar facts

there is only one right answer to every legal question

false

a state constitution is a primary source of law

true

the stability and predictability of the law is essential to business activity

true

characteristics of the federal form of government

power is shared between the national and state governments, limited powers, and all other powers are retained by the states

police powers

powers retained by the states

examples of powers retained by the states

zoning, building codes, family law, and property law

privileges and immunities clause

prevents a state from arbitrarily discriminating against citizens of other states

full faith and credit clause

requires states to honor the laws and court rulings of other states, especially on property, contracts, and judgements.

checks and balances

allows each branch of government to limit the actions of the other branches

legislative branch

congress creates and enacts laws

executive branch

the president or agencies enforce laws

judicial branch

courts interpret laws

the commerce clause

gives the federal government the right to regulate interstate commerce

Gibbons v. Ogden

extended federal reach to commerce that substantially affects interstate commerce

Heart of Atlanta Motel v. US

upheld a ban on racial discrimination in businesses affecting interstate commerce

Supremacy Clause

valid federal law controls over conflicting state laws

first amendment

freedom of speech

fourth amendment

protected from unreasonable searches and seizures

fifth amendment

self incrimination but only available to natural persons, not corportations

fifth amendment

due process which protects, life, liberty, and property.

fourteenth amendment

the government must treat similarly situated people alike though not identically

strict scrutiny

highest standard of review applied to laws affecting fundamental rights or specific classifications like race or religion. the law is presumed unconstitutional unless the government provides otherwise.

intermediate scrutiny applies to what?

gender and legitimacy

rational basis applies to what?

economic or social welfare classifications

A resident of Alabama when visiting New York can be denied the privileges and immunities of New York for any reason

False

When there is a direct conflict between a federal and state law, both laws are rendered invalid

False

Political speech by a corporation falls within the protection of the first amendment

True

Under the full faith and credit clause, a judicial decision in Georgia with respect to contract rights will be honored and enforced in all states

True

Equal protection means that the government must treat all individuals exactly the same

False

The commerce clause authorizes the federal government to regulate virtually any business enterprise in any industry

True

judicial review

the judiciary interprets the laws and applies them to specific situations.

under judiciary review, the judiciary has the ability to declare a law unconstitutional

True

Before a lawsuit can be brought before a court, what are the three requirements that have to be met?

Jurisdiction, venue, standing to sue

jurisdiction

the power to hear and decide a case

In personam jurisdiction

courts have jurisdiction over residents in that geographic area

In Rem Jurisdiction

courts have jurisdiction over land and things within that states borders

True or False? Sometimes a court can have jurisdiction over certain non resident persons and businesses

True

subject matter jurisdiction

limitations on the types of cases a court can hear

general jurisdiction

can hear any type of case, unless it should go to a court of limited jurisdiction

limited jurisdiction

set up to hear specific types of cases

original jurisdiction

courts power to hear and decide a case for the first time

apellate jurisdiction

the power to review a lowers court decision

federal question

rights or obligations of a party are created or defined by some federal law or the constitution

diversity of citizenship

parties are not from the same state

venue

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

proper venue

where the injury occurred or where the defendant resides/ does business

standing to sue

an individual must have a sufficient stake in controversy before bringing the suit

three requirements for standing to sue

harm, causation, remedy

harm

plaintiff must have actually suffered harm

causation

connect defendants actions to the harm

remedy

likely that a favorable court decision will remedy the harm

True or false? A court must have proper jurisdiction over a matter in order to hear that case.

True

True or false? In the American governmental system, applying the law to specific situations is the essential role of congress.

False

states long arm statute

a court can exercise jurisdiction only over certain nonresidents

True or False? a federal court will apply federal law in a case involving a federal question.

True

True or False? A federal court will apply the relevant state law in a diversity of citizenship case.

True

True or false? A question of law is generally the focus of an appellate court.

True

Ivan, a resident of Illinois, owns a warehouse in Alabama. A dispute arises over the ownership of the warehouse with ginny, a resident of Georgia. Ginny files suit against Ivan in Alabama. Regarding this suit, Alabama has ____

In Rem Jurisdiction

A courts subject matter jurisdiction may be limited by all the following except

the prior experience of the court in similar disputes