The Legal Environment of Business — Vocabulary Flashcards

Vocabulary flashcards covering key terms and concepts from the lecture notes on the legal environment of business.

Liability

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

Ethics

The principles governing what constitutes right or wrong behavior.

Primary sources of law

Documents that establish the law, such as the Constitution, statutes, regulations, case law, and common-law doctrines.

Secondary sources of law

Books and articles that summarize and clarify primary sources (e.g., legal encyclopedias and treatises).

U.S. Constitution

The supreme law of the land; basis of all U.S. law; federal law supersedes state law when in conflict.

State constitutions

State-level frameworks whose provisions are supreme within the state, unless in conflict with the U.S. Constitution or federal law.

Constitutional law

Law based on the U.S. Constitution and state constitutions; governs fundamental rights and structures of government.

Statutory law

Law enacted by legislative bodies (federal, state, or local) and includes statutes and ordinances.

Federal statute

A law passed by Congress that applies to all states.

State statute

A law passed by a state legislature that applies within that state's borders.

Ordinances

Local laws enacted by city or county governments, often relating to zoning and local codes.

Uniform law

A model law proposed by uniform law commissions for states to consider adopting; becomes statutory law if adopted.

Uniform Commercial Code (UCC)

A standardized set of rules to facilitate commerce across state lines; flexible and widely adopted.

Administrative law

Law created by administrative agencies to carry out regulatory duties.

Administrative agency

A federal or state government body created by the legislature to perform specific regulatory functions.

Executive agency

An administrative agency within the executive branch, subject to presidential appointment/removal power.

Independent regulatory agency

An administrative agency not part of the president’s executive branch; officials often cannot be removed easily.

Case law

Rules of law announced in court decisions, interpreting statutes, regulations, or constitutional provisions.

Common law

Law developed from customs and judicial decisions, not solely from statutes.

Remedy

The relief or enforcement provided by the courts when a right is violated.

Remedy at law

Monetary damages or other remedies available in courts of law.

Court of law

Historically, a court that could grant only money damages or property remedies.

Equity

A branch of law that provides fair remedies when monetary damages are inadequate.

Injunction

A court order directing a party to stop a certain activity or to undo a wrong.

Specific performance

A court order requiring a party to perform exactly as promised under a contract.

Rescission

Cancellation of a contractual obligation, returning the parties to their pre-contract positions.

Reformation

Modification of a contract to reflect the true agreement of the parties.

Laches

An equitable defense; unreasonably delaying action that prevents relief from being awarded.

Statute of limitations

A law setting the maximum time to bring a lawsuit after an event occurs.

Petitioner

A party who initiates a lawsuit in equity or in certain types of proceedings.

Respondent

The party who answers the petition or complaint in equity or on appeal.

Plaintiff

The party who initiates a lawsuit in most cases; the claimant.

Defendant

The party against whom a lawsuit is brought.

Appellant

The party who appeals a court decision to a higher court.

Appellee

The party against whom an appeal is taken.

Judge

A person who presides over a court and renders decisions.

Justice

A judge, typically in higher courts; e.g., Supreme Court justices.

Precedent

A court decision that furnishes an example or authority for deciding subsequent cases.

Stare decisis

The doctrine that requires courts to follow prior decisions (precedents) within their jurisdiction.

Controlling precedents

Precedents that must be followed within a jurisdiction; binding authority.

Binding authority

Sources of law (constitutions, statutes, regulations, and controlling precedents) that courts must follow.

Persuasive authority

Legal authorities that courts may consider but are not required to follow.

Cases of first impression

Cases with no controlling precedent; courts may rely on persuasive authorities.

IRAC method

Issue, Rule, Application, Conclusion — a framework for legal reasoning.

Restatements of the Law

ALI compilations that summarize common-law rules, used as sources of legal analysis.

Natural law

The belief that universal moral principles underlie the valid law; higher law governs written statutes.

Positivist school

The view that law is the written commands of a sovereign authority and must be obeyed.

Historical school

A school of thought emphasizing the historical evolution of law to determine current principles.

Legal realism

The idea that law is influenced by social and economic factors and not always uniform.

Sociological school

A view of law as a tool for achieving social justice, sometimes departing from past decisions.

Substantive law

Law that defines rights and duties (what the law is).

Procedural law

Law that governs the methods of enforcing rights (how the law is applied).

Private law

Laws governing relationships among private individuals and entities.

Public law

Laws governing the relationship between individuals and the government.

National law

The law of a sovereign nation.

International law

Laws that govern relations between nations.

Civil law

Private law dealing with rights and duties between persons (non-criminal).

Criminal law

Law defining crimes and punishments; prosecuted by the state.

Cyber law

Laws governing electronic communications and transactions, especially on the Internet.

Citation

A reference to a publication where a legal authority (statute or case) can be found.

Reporter

A publication in which court cases are reported and published.

United States Code (U.S.C.)

The codified federal statutes arranged by subject matter.

Code of Federal Regulations (C.F.R.)

The codified regulations established by federal agencies.

Federal Register

Daily publication of proposed and final federal rules.

United States Reports

Official reports of United States Supreme Court decisions.

Unpublished opinions

Court opinions not issued for publication but accessible in databases.

Case titles and terminology

Case names (e.g., Adams v. Jones); 'v.' means versus; order of plaintiff/defendant can vary by court type.

Jurisdiction

Geographic area where a court has authority to apply the law.

Equitable maxims

General fairness principles guiding remedies in equity.

Restatements (again)

Summary of common-law rules used as reference in judicial decision-making.