Business Law Exam 1 Terms

Constitutional law

The body of law derived from the U.S. Constitution and the constitutions of the various states.

citation

A reference to a publication in which a legal authority—such as a statute or a court decision —or other source can be found.

statutory law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).

Secondary sources of law

A publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review.

liability

The state of being legally responsible (liable) for something, such as a debt or obligation.

ordinances

A regulation enacted by a city or county legislative body that becomes part of that state’s statutory law.

law

individuals

Primary sources of law

A document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision.

case law

The rules of law announced in court decisions. Case law interprets statutes, regulations, and constitutional provisions, and governs all areas not covered by statutory or administrative law.

precedent

similar

uniform laws

A model law developed by the National Conference of Commissioners on Uniform State Laws for the states to consider enacting into statute.

stare decisis

A common law doctrine under which judges are obligated to follow the precedents established in prior decisions.

common law

The body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature.

binding authority

Any source of law that a court must follow when deciding a case.

plaintiff

One who initiates a lawsuit.

legal reasoning

The process of reasoning by which a judge harmonizes his or her opinion with the judicial decisions in previous cases.

persuasive authorities

Any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.

defendant

One against whom a lawsuit is brought or the accused person in a criminal proceeding.

remedy

The relief given to an innocent party to enforce a right or compensate for the violation of a right.

cases on point

A previous case involving factual circumstances and issues that are similar to those in the case before the court.

alleges

To state, recite, assert, or charge.

equitable maxims

General propositions or principles of law that have to do with fairness (equity).

natural law

The oldest school of legal thought, based on

the belief that the legal system should reflect universal (“higher”) moral and ethical principles that are inherent in human nature.

historical school

A school of legal thought that looks to the past to determine what the principles of contemporary law should be.

legal positivism

A school of legal thought centered on the assumption that there is no law higher than the laws created by a national government. Laws must be obeyed, even if they are unjust, to prevent anarchy.

jurisprudence

The science or philosophy of law.

Legal realism

A school of legal thought that holds that the law is only one factor to be considered when deciding cases, and that social and economic circumstances should also be taken into account.

substantive law

Law that defines, describes, regulates, and creates legal rights and obligations.

procedural law

Law that establishes the methods of enforcing the rights established by substantive law.

cyberlaw

An informal term used to refer to all laws governing electronic communications and transactions, particularly those conducted via the Internet.

Civil law

The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters.

civil law system

A system of law derived from Roman law that is based on codified laws (rather than on case precedents).

national law

Law that pertains to a particular nation (as opposed to international law).

International law

Law that governs relations among nations.

Criminal law

The branch of law that defines and punishes wrongful actions committed against the public.

case on point

A previous case involving factual circumstances and issues that are similar to those in the case before the court.

allege

To state, recite, assert, or charge.

majority opinion

A court opinion that represents the views of the majority (more than half) of the judges or justices deciding the case.

per curiam opinion

A court opinion that does not indicate which judge or justice authored the opinion.

dissenting opinion

A court opinion that presents the views of one or more judges or justices who disagree with the majority’s decision.

ordinance

A regulation enacted by a city or county legislative body that becomes part of that state’s statutory law.

concurring opinion

A court opinion by one or more judges or justices who agree with the majority but want to make or emphasize a point that was not made or emphasized in the majority’s opinion.

persuasive authority

Any legal authority or source of law that a court may look to for guidance but need not follow when making its decision.

uniform law

A model law developed by the National Conference of Commissioners on Uniform State Laws for the states to consider enacting into statute.

plurality opinion

A court opinion that is joined by the largest number of the judges or justices hearing the case, but less than half of the total number.

primary source of law

A document that establishes the law on a particular issue, such as a constitution, a statute, an administrative rule, or a court decision.

secondary source of law

A publication that summarizes or interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review.

federal form of government

A system of government in which the states form a union and the sovereign power is divided between the central government and the member states.

sovereignty

The power of a state to do what is necessary to govern itself. Individual state sovereignty is determined by the U.S. Constitution.

privileges and immunities clause

Article IV, Section 2, of the U.S. Constitution requires states not to discriminate against one another’s citizens. A resident of one state, when in another state, cannot be denied the privileges and immunities of that state.

police powers

Powers possessed by the states as part of their inherent sovereignty. These powers may be exercised to protect or promote the public order, health, safety, morals, and general welfare.

Preemption

A doctrine under which certain federal laws preempt, or take precedence over, conflicting state or local laws.

full faith and credit clause

A provision in Article IV, Section 1, of the U.S. Constitution that ensures that rights established under deeds, wills, contracts, and similar instruments in one state will be honored by other states and that judicial decisions will be honored and enforced in all states.

commerce clause

The provision in Article I, Section 8, of the U.S. Constitution that gives Congress the power to regulate interstate commerce.

checks and balances

The system under which the powers of the national government are divided among three separate branches—the executive, legislative, and judicial branches—each of which exercises a check on the actions of the others.

supremacy clause

The provision in Article VI of the U.S. Constitution that the Constitution, laws, and treaties of the United States are “the supreme Law of the Land.”

Bill of Rights

The first ten amendments to the U.S. Constitution.

meta tags

A key word in a document that can serve as an index reference to the document. On the Web, search engines return results based, in part, on the tags in Web documents.

filtering software

A computer program that is designed to block access to certain websites, based on their content. The software blocks the retrieval of a site whose URL or key words are on a list within the program.

compelling government interest

A test of constitutionality that requires the government to have convincing reasons for passing any law that restricts fundamental rights, such as free speech, or distinguishes between people based on a suspect trait.

establishment clause

The provision in the First Amendment that prohibits the government from establishing any state-sponsored religion or enacting any law that promotes religion or favors one religion over another.

Symbolic speech

Nonverbal expressions of beliefs. Symbolic speech, which includes gestures, movements, and articles of clothing, is given substantial protection by the courts.

free exercise clause

Nonverbal expressions of beliefs. Symbolic speech, which includes gestures, movements, and articles of clothing, is given substantial protection by the courts.

due process clause

The provisions in the Fifth and Fourteenth Amendments that guarantee that no person shall be deprived of life, liberty, or property without due process of law. State constitutions often include similar clauses.

equal protection clause

The provision in the Fourteenth Amendment that requires state governments to treat similarly situated individuals in a similar manner.

ethics

Moral principles and values applied to social behavior.

business ethics

The application of moral principles and values in a business context.

Duty-based ethics

An ethical philosophy rooted in the idea that every person (and every business) has certain duties to others, including both humans and the planet.

moral minimum

The minimum level of ethical behavior expected by society, which is usually defined as compliance with the law.

triple bottom line

A measure that includes a corporation’s profits, its impact on people, and its impact on the planet.

principle of rights

The belief that human beings have certain fundamental rights.

Outcome-based ethics

An ethical philosophy that focuses on the consequences of any given action in order to maximize benefits and minimize harms.

categorical imperative

An ethical guideline developed by Immanuel Kant under which an action is evaluated in terms of what would happen if everybody else in the same situation, or category, acted the same way.

ethical reasoning

A reasoning process in which an individual links his or her moral convictions or ethical standards to the situation at hand.

utilitarianism

An approach to ethical reasoning in which an action is evaluated in terms of its consequences for those whom it will affect. A “good” action is one that results in the greatest good for the greatest number of people.

Corporate social responsibility (CSR)

The idea that corporations can and should act ethically and be accountable to society for their actions.

stakeholders

Groups that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.

cost-benefit analysis

A decision-making technique that involves weighing the costs of a given action against the benefits of that action.

Outsourcing

The practice by which a company hires an outside firm or individual to perform work rather than hiring employees to do it.

judicial review

The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.

long arm statute

A state statute that permits a state to exercise jurisdiction over nonresident defendants.

jurisdiction

The authority of a court to hear and decide a specific case.

federal question

A question that pertains to the U.S. Constitution, an act of Congress, or a treaty and provides a basis for federal jurisdiction in a case.

Probate courts

A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person’s estate

Bankruptcy courts

A federal court of limited jurisdiction that handles only bankruptcy proceedings, which are governed by federal bankruptcy law.

justiciable controversy

A controversy that is not hypothetical or academic but real and substantial. It is a requirement that must be satisfied before a court will hear a case.

diversity of citizenship

A basis for federal court jurisdiction over a lawsuit between citizens of different states or a lawsuit involving a U.S. citizen and a citizen of a different country.

Venue

The geographic district in which a legal action is tried and from which the jury is selected.

concurrent jurisdiction

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

standing to sue

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

exclusive jurisdiction

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

Small claims courts

A special court in which parties can litigate small claims without an attorney.

question of fact

In a lawsuit, an issue that involves only disputed facts, and not what the law is on a given point.

pleadings

Statements by the plaintiff and the defendant that detail the facts, charges, and defenses of a case.

writ of certiorari

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

question of law

In a lawsuit, an issue involving the application or interpretation of a law.

complaint

The pleading made by a plaintiff alleging

wrongdoing on the part of the defendant. When filed with a court, the complaint initiates a lawsuit.

rule of four

A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.

litigation

The process of resolving a dispute through the court system.

service of process

The delivery of the complaint and summons to a defendant.