Legal Environment Business MSU Test 1 mallette

liability

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

law

A body of enforceable rules governing relationships among individuals and between individuals and their society.

Statutory Law

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

Constitutional law

Law that is based on the U.S. Constitution and the constitutions of the various states.

ordinances

A law passed by a local governing unit, such as a city or a county.

uniform laws

A model law created by the National Conference of Commissioners on Uniform State Laws and/or the American Law Institute for the states to consider adopting. If a state adopts the law, it becomes statutory law in that state. Each state has the option of adopting or rejecting all or part of a uniform law.

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 agencies

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

independent regulatory agencies

An administrative agency that is not considered part of the government's 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 law announced in court decisions. Case law interprets statutes, regulations, constitutional provisions, and other case law.

common law

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

remedies

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

courts of law

A court in which the only remedies that could be granted were things of value, such as money damages. In the early English king's courts, courts of law were distinct from courts of equity.

remedies at law

A remedy available in a court of law. Money damages are awarded as a remedy at law.courts of equity

courts of equity

A court that decides controversies and administers justice according to the rules, principles, and precedents of equity.

remedies in equity

A remedy allowed by courts in situations where remedies at law are not appropriate. Remedies in equity are based on settled rules of fairness, justice, and honesty, and include injunction, specific performance, rescission and restitution, and reformation.

damages

A monetary award sought as a remedy for a breach of contract or a tortious action.

equitable maxims

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

breaches

To violate a law, by an act or an omission, or to break a legal obligation that one owes to another person or to society.

laches

The equitable doctrine that bars a party's right to legal action if the party has neglected for an unreasonable length of time to act on his or her rights.

defendant

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

defense

Reasons that a defendant offers in an action or suit as to why the plaintiff should not obtain what he or she is seeking.

plaintiff

A party that initiates a lawsuit.

respondent

In equity practice, the party who answers a bill or other proceeding.

petitioner

In equity practice, a party that initiates a lawsuit.

statutes of limitations

A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced.

reporters

A publication in which court cases are published, or reported.precedent

precedent

A court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.

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.

binding authority

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

stare decisis

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

legal reasoning

(1) The process of evaluating how various laws apply to a given situation. (2) The process by which a judge harmonizes his or her opinion with the judicial decisions in previous cases

alleges

To state, recite, assert, or charge.

cases on point

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

jurisprudence

The science or philosophy of law.

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.

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.

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.

historical school

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

sociological school

A school of legal thought that views the law as a tool for promoting justice in society.

Procedural law

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

Substantive law

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

Civil law

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

cyberlaw

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

Criminal law

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

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.

appellant

The party who takes an appeal from one court to another.

appellee

The party against whom an appeal is taken—that is, the party who opposes setting aside or reversing the judgment.

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.

opinions

A statement by a court expressing the reasons for its decision in a case.

majority opinion

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

dissenting opinion

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

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.

per curiam opinion

By the whole court; a court opinion written by the court as a whole instead of being authored by a judge or justice.

federal form of government

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

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.

sovereignty

The quality of having independent authority over a geographic area. For instance, state governments have the authority to regulate affairs within their borders

privileges and immunities clause

A clause in Article IV, Section 2, of the U.S. Constitution that requires states not to discriminate against one another's citizens. A resident of one state cannot be treated as an alien when in another state; he or she may not be denied such privileges and immunities as legal protection, access to courts, travel rights, and property rights.

checks and balances

A system that allows each branch of government to limit the powers of the other branches in order to prevent abuse of power

full faith and credit clause

A clause in Article IV, Section 1, of the U.S. Constitution that provides that "Full Faith and Credit shall be given in each State to the public Acts, Records, and Judicial Proceedings of every other State." The clause ensures that rights established under deeds, wills, contracts, and the like in one state will be honored by the other states and that any judicial decision with respect to such property rights 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.

preemption

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

Bill of Rights

The first ten amendments to the Constitution

supremacy clause

The provision 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." Under this clause, state and local laws that directly conflict with federal law will be rendered invalid.

Symbolic speech

Nonverbal conduct that expresses opinions or thoughts about a subject. Symbolic speech is protected under the First Amendment's guarantee of freedom of speech.

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 between people based on a suspect trait.

filtering software

A computer program that screens incoming data according to rules built into the software and blocks access to Web sites with content not consistent with these rules.

free exercise clause

The provision in the First Amendment to the U.S. Constitution that prohibits Congress from making any law "prohibiting the free exercise" of religion.

establishment clause

The provision in the First Amendment to the U.S. Constitution that prohibits Congress from creating any law "respecting an establishment of religion."

meta tags

Words inserted into a Web site's key-words field to increase the site's appearance in search engine results.

search warrant

An order granted by a public authority, such as a judge, that authorizes law enforcement personnel to search particular premises or property.

due process clause

The provisions of the Fifth and Fourteenth Amendments to the U.S. Constitution that guarantee that no person shall be deprived of life, liberty, or property without due process of law. Similar clauses are found in most state constitutions.

probable cause

Reasonable grounds for believing that a search should be conducted or that a person should be arrested.

meta tag

Word inserted into a Web site's key-words field to increase the site's appearance in search engine results.

equal protection clause

The provision in the Fourteenth Amendment to the U.S. Constitution that guarantees that no state will "deny to any person within its jurisdiction the equal protection of the laws." This clause mandates that state governments treat similarly situated individuals in a similar manner.

ethics

Moral principles and values applied to social behavior.

moral minimum

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

business ethics

Ethics in a business context; a consensus of what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.

triple bottom line

The idea that investors and others should consider not only corporate profits, but also the corporation's impact on people and on the planet in assessing the firm. (The bottom line is people, planet, and profits.)

ethical reasoning

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

Duty-based ethics

An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet. Those duties may be derived from religious principles or from other philosophical reasoning.

principle of rights

The principle that human beings have certain fundamental rights (to life, freedom, and the pursuit of happiness, for example). A key factor in determining whether a business decision is ethical under this theory is how that decision affects the rights of others, such as employees, consumers, suppliers, and the community.

categorical imperative

A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way.

Outcome-based ethics

An ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders.

cost-benefit analysis

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

utilitarianism

An approach to ethical reasoning in which ethically correct behavior is related to an evaluation of the consequences of a given action on those who will be affected by it. In utilitarian reasoning, a "good" decision is one that results in the greatest good for the greatest number of people affected by the decision.

Corporate social responsibility (CSR)

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

Outsourcing

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

stakeholders

Groups, other than the company's shareholders, that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.

judicial review

The process by which courts decide on the constitutionality of legislative enactments and actions of the executive branch.

jurisdiction

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

long arm statute

A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have "minimum contacts" with that state for the statute to apply.

in personam jurisdiction

Court jurisdiction over the "person" involved in a legal action; personal jurisdiction.

in rem jurisdiction

Court jurisdiction over a defendant's property.

federal question

A question that pertains to the U.S. Constitution, acts of Congress, or treaties. A federal question provides a basis for federal jurisdiction.

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.

diversity of citizenship

Under Article III, Section 2, of the Constitution, a basis for federal court jurisdiction over a lawsuit between (1) citizens of different states, (2) a foreign country and citizens of a state or of different states, or (3) citizens of a state and citizens or subjects of a foreign country. The amount in controversy must be more than $75,000 before a federal court can take jurisdiction in such cases.

Venue

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