Law and Buisness Notes

Alternative Dispute Resolution (ADR)

The use of a third person to hear and decide a dispute instead of going to court.

Arbitration

A procedure where a third person is chosen to hear both sides of a dispute and decide who wins.

Federal Arbitration Act (1925)

A law stating that giving up the arbitrator means giving up the right to go to court.

Advantages of Arbitrators

Quick and efficient, private, non-appealable, choice of arbitrator, informal process.

Mediation

Similar to arbitration but not binding.

Stare decisis

A legal principle that promotes orderly change within the legal system.

Basic Functions of Law

1. Keeping the peace, 2. Enforcing standard conduct and maintaining order, 3. Facilitating planning, 4. Promoting social justice.

Substantive Law

Law that sets out rights and duties governing people as they act in society.

Procedural Law

Rules under which the substantive rules of law are enforced.

Criminal Law

System that defines crimes and regulates investigations, trials, and punishments for violations.

Punitive Damages

Damages awarded for outrageous conduct that goes to the injured party.

Checks and Balances

A system allowing each government branch to limit or veto others' actions to prevent excessive power.

Supremacy Clause

Federal law takes precedence over conflicting state law.

Federal Powers under the Constitution

Laws enacted by Congress are invalid if not constitutionally authorized.

Commerce Clause

Gives Congress the power to regulate interstate and foreign commerce.

Federal Taxing Power

Helps regulate business activities by imposing taxes.

Due Process Clause

Prohibits many types of business regulations by state governments.

Primary Sources of Law

1. Constitutions, 2. Treaties, 3. Statutes, 4. Administrative rules, 5. Executive orders, 6. Judicial decisions, 7. Private law.

Statutes

Products of lawmaking by a legislature.

Statutory Law

Entire body of law regarding criminal law and regulations governing business activities.

Ordinances

Formal laws or rules enacted by local municipal governments.