Accounting 2150 Exam 1 Study Set: Key Legal Terms & Definitions

Jurisprudence

The science or philosophy of law.

International Laws

(Think treaties) - Written and unwritten laws observed by independent nations and governments.

Administrative Law

Regulations are passed by government agencies (both federal and state)

State Decisis

("Predictability")- Law doctrine that states court must follow precedent. Judges can't just do what they want.

Precedent

The outcome prescribed by a court in a certain type of case.

"Case of first Impression"

Areas of new laws, no prior cases to model after

Kimble v. Marvel Entertainment

"Do we follow the prior cases or go a different direction?"

Statutory

Passed by a legislature

Administrative Law

Law created by the government agencies (federal and state law)

Common Law

Created by judges and or legal custom

Substantive Law

(Rights and Laws) creates rights and obligations.

Procedural Law

(Process) Establishes the methods for enforcing or restricting rights under the substantive law.

Civil Law

Branch of law that deals with non-criminal matters.

Criminal Law

(Normally State) Defines and governs actions that are crimes.

Cyberlaw

Emerging body of law which regulates ecommerce transactions.

Plaintiff

One who initiates the lawsuit.

Defendant

One who is accused of wrongdoing in a legal matter.

Justices

Supreme Court

Judge

Anything BUT supreme court

Unanimous

All judges agree

Majority

Majority of judges agree

Concurring

Agree with majority but for a different reason

Dissenting

Do not agree with the majority

Remedy

(outcome) relief given an innocent party

Remedy at Law

Money

Ethics

Wrong and right held by an individual and shaped by and individual and shaped by various sources such as customs, societal norms and religion.

Business Ethics

Deciding what is ethically wrong and right in the context of a business transaction.

Integrity

Who will you be when nobody is looking?

Fourstep Process

Needing other people to decide if it is really ethical or not.

First

Identify an ethical dilemma

Second

Individual or business entity must gather facts regarding the issue, then identify courses of action available.

Third

Choose which action it deems to be the most ethical alternative and implement such action.

Fourth

Evaluate the outcomes of its action and put policies and procedures in place to protect against future unethical behavior.

Utilitarianism

Greatest Good, Trying to weigh the choices (cost/benefit analysis)

Coase Theorem

Parties bargain for the outcome they want.

Corporate Governance

Process by which a corporate governs its operations and decision-making process.

Marbury v. Madison

Outcome: We have rights no president or congress can take away. Supreme Court has the power to enforce law.

Rule of Four

Four justices of the Supreme Court must approve grant of cert for a case to be heard at the federal level.

Jurisdiction

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

Personal Jurisdiction

Jurisdiction over a defendant (resident of the state, found in the state and served, consents to jurisdiction)

In Rem Jurisdiction

Jurisdiction over property not necessarily over the defendant.

Subject Matter Jurisdiction

Refers to whether the court has the authority ver the specific matter in controversy.

Venue

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

Litigation

Process of resolving a case through the court system.

Pleadings

Statements made by plaintiff and defendant alleging the facts, charges and defenses.

Compliant

Pleading made by plaintiff that initiates a lawsuit in court.

Answer

The defendants response to the complaint.

Summons

Document which notifies the defendant a complaint has been filed against them.

Process of Service

The formal way a summons is delivered

Default Judgement

What happens when a defendant fails to answer.

Counterclaim

A counter allegation of wrongdoing made by defendant.

Reply

A plaintiff's response to a defendant's answer.

Motion to Dismiss

A pleading in which defendant asserts that the plaintiff's claim fails to state a cause of action, or improve venue or service.

Discovery

Phase in which opposing parties try to obtain evidence from one another.

Deposition

Testimony of a party or lawsuit or a witness under oath.

Interrogations

Written questions that are delivered to the opposing side.

Request for Production

A demand for documents related to present litigation.

Request for Admission

A request that an opposing party agree or admit to a certain allegation. Ex: car involved in a car accident

Subpoena

A court order to a third party

Confession of Judgement

Defendant offers to settle, if plaintiff refuses and receives less at trial then the plaintiff must pay for attorney's fees.

Motions in Limine

Motion to suppress certain information from the jury.

Rebuttal

Plaintiff calls witnesses to rebut defendant's witnesses.

Rejoinder

Defendant then gets a chance to call rebuttal witness.

Statute of Limitations

Cases can't sit out forever

Negotiation

The parties to a lawsuit try to negotiate a settlement with or without lawyers.

Mediation

(Binding) The parties to a lawsuit bring in a neutral third party who tries to find a common ground between the two parties.

Arbitration

The parties use a neutral third party to find a common ground but os more certain to produce a final, legally binding solution.

Legislative

Passes laws

Executive

Enforces laws

Judicial

Interprets laws

Freedom of Religion

Employers must accommodate their employees to a reasonable extend under federal law.

4 Criteria

- Speech: must be protected by the first amendment

- Government restriction must seek to implement a substantial government interest

- It must directly advance that interest

- It must go no further than necessary to advance that interest

Rational Bias

For believing government action will further a legitimate interest.

Strict Scrutiny

Highest level of scrutiny

Intermediate Scrutiny

Somewhere in between rational basis scrutiny and strict scrutiny.