Business Law - Exam 1

Law

Enforceable rule governing relationships among individuals and between individuals and their society

Liability

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

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

Constitutional Law

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

Statutory Law

The body of law enacted by legislative bodies

Citation

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

Ordinance

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

Uniform Law

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

Uniform Commercial Code

Provides a uniform set of rules governing commercial transactions

Administrative Law

The body of law created by administrative agencies in order to carry out their duties and responsibilities

Administrative Agency

A federal or state government agency created by the legislature to perform a specific function, such as to make and enforce rules pertaining to the environment

Executive Agency

An administrative agency within the executive branch of government. At the federal level, executive agencies are those within the cabinet departments

Independent Regulatory Agency

An Administrative agency that is not considered part of the executive branch and is not subject to the authority of the president. Independent agency officials cannot be removed without cause

Case Law

The rules of the law announced in court decisions. Case law interprets statutes, regulations, constitutional provisions, and other case law

Common Law

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

Precedent

A court decision that serves as a guide for deciding subsequent cases involving identical or similar legal principles or facts

Remedy

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

Court of Law

Historically, a court in which the only remedies that could be granted were things of value, such as monetary damages.

Remedy at Law

A remedy available in a court of law. Money damages are usually awarded

Damages

A sum of money claimed or awarded in compensation for a loss or injury

Court of Equity

A court that decides controversies and administers justice according to equitable rules, principles, and precedents

Remedy in Equity

A remedy allowed by courts in situations where remedies at law are not appropriate. Equitable remedies include injunction, specific performance, and rescission.

Breach

The failure to perform a legal obligation

Equitable Maxims

General propositions of law that have to do with fairness

Stare Decisis

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

Binding Authority

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

Persuasive Authority

Any legal authority or source of law that a court may look to for guidance but needs to follow when making its decisions

Legal Reasoning

The process by which a judge harmonizes their opinion with the judicial decisions in previous cases

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.

Civil Law

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

Criminal Law

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

Judicial Review

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

Jurisdiction

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

Long Arm Statute

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

Probate Court

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

Bankruptcy Court

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

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.

Diversity of Citizenship

A basis for federal court jurisdiction over a lawsuit between citizens of different states or between U.S. citizens and non-U.S. citizens

Concurrent Jurisdiction

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

Exclusive Jurisdiction

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

Venue

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

Change of Venue

Takes place when one party believes that there would be possible bias in a jury of that district

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

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

Question of Law

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

Writ of Certiorari

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

Rule of Four

A rule of the U.S. 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

Pleadings

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

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

Service of Process

The delivery of the complaint and summons to the defendant

Summons

A document informing a defendant that a legal action has been commenced against her or him and that the defendant must appear in court on a certain date to answer the plaintiff’s complaint

Default Judgment

A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff’s claim

Answer

Procedurally, a defendant’s response to the plaintiff’s complaint

Counterclaim

A claim made by a defendant in a civil lawsuit against the plaintiff. In effect, the defendant is suing the plaintiff

Reply

Procedurally, a plaintiff’s response to a defendant’s answer

Motion to Dismiss

A pleading in which a defendant admits the facts as alleged by the plaintiff but asserts that the plaintiff’s claim to state a cause of action as no basis in law.

Motion for Judgment on the Pleadings

A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute

Motion for Summary Judgment

A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute

Discovery

A method by which the opposing parties obtain information from each other to prepare for trial

Deposition

The testimony of a party to a lawsuit or a witness taken under oath before a trial

Interrogatories

A series of written questions for which written answers are prepared by a party to a lawsuit, usually with the assistance of the party’s attorney, and then signed under oath

Voir Dire

An important part of the jury selection process in which the attorneys question prospective jurors about their backgrounds, attitudes, and biases to ascertain whether they can be impartial jurors

Motion for a Directed Verdict

A motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party making the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.

Award

The monetary compensation given to a party at the end of a trial or other proceeding

Motion for Judgment NOV

A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury’s verdict against them was unreasonable and erroneous

Motion for a New Trial

A motion asserting that the trial was so fundamentally flawed that a new trial is necessary to prevent a miscarriage of justice

Brief

A written summary or statement prepared by one side in a lawsuit to explain its case to the judge

Docket

The list of cases entered on a court’s calendar and thus scheduled to be heard by the court

Alternative Dispute Resolution

The resolution of disputes in ways other than those involved in the traditional judicial process, such as negotiation, mediation, and arbitration

Negotiation

A process by which parties attempt to settle disputes informally

Mediation

A method of settling disputes outside of the courts by using the services of a neutral third party

Arbitration

The settling of a dispute by submitting it to a disinterested third party

Arbitration Clause

A clause in the contract that the parties will submit the dispute to arbitration rather than litigate the dispute in court

Online Dispute Resolution

The Resolution of display with the assistance of organizations that offer dispute-resolution services via the internet

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.

Checks and Balances

The principle 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 others.

Commerce Clause

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

Supremacy Clause

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

Preemption

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

Symbolic Speech

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

Corporate Political Speech

Corporations' freedom to spend corporate funds on indirect support of political candidates.

Commercial Speech

Speech or writing on behalf of a business with the intent of earning revenue or a profit.

Compelling Government Interest

A test of constitutionality that requires the government to have compelling reasons for passing any law that restricts fundamental rights, such as free speech, or distinguishes among 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.

Free Exercise Clause

The provision in the First Amendment that prohibits the government from interfering with people’s religious practices or forms of worship.

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

Procedural Due Process

requires that any government decision to take life, liberty, or property must be done fairly so the person has notice and the opportunity to be heard

Substantive Due Process

the content of the legislation must be fair, and the government must be legitimate in their reason to pass a law

Equal Protection Clause

The provision in the Fourteenth Amendment that requires state governments to treat __similarly situated individuals__ in a __similar manner__.

Strict Scrutiny Test

Holds the challenged law as presumptively invalid unless the government can demonstrate that the law or regulation is necessary to achieve a "compelling state interest".

Rational Basis Test

Prohibits the government from imposing restrictions on liberty that are irrational or arbitrary, or drawing distinctions between persons in a manner that serves no constitutionally legitimate end.

Promise

A declaration by a person (the promisor) to do or not to do a certain act.

Contract

A set of promises constituting an agreement between parties, giving each a legal duty to the other and the right to seek a remedy for the breach of the promises or duties.

Objective Theory of Contracts

A theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person rather than by the parties’ own subjective intentions.

Statute of Frauds

A state statute under which certain types of contracts must be in writing to be enforceable.

Bilateral Contract

Any type of contract that arises when a promise is given in exchange for a promise.