Chapter 1 Legal and Constitutional Foundations of Business

Flashcards covering key vocabulary and concepts from Chapter 1 on Legal and Constitutional Foundations of Business, including sources of American law, legal doctrines, classifications of law, constitutional powers, and individual rights.

Constitutional Law

Law based on the U.S. Constitution, which is the supreme law of the land and provides the framework for statutes and regulations.

Statutory Law

Laws enacted by legislative bodies.

Administrative Law

Rules, orders, and decisions of administrative agencies.

Case Law and Common Law Doctrines

Governs all other areas of law and is part of the common law tradition.

Local Ordinances

Laws that cover municipal or county matters not covered by federal or state law.

Uniform Laws

Laws formed by the National Conference of Commissioners on Uniform State Laws (NCCUSL) to facilitate trade and commerce among states.

The Uniform Commercial Code (UCC)

A uniform law that governs commercial transactions in all 50 states.

Enabling Legislation

Legislation that creates administrative agencies and specifies the name, purpose, functions, and powers of the agency being created.

Legislative Rules

Administrative agency rules that are legally binding like laws passed by Congress.

Interpretive Rules

Administrative agency rules that declare policy and do not affect legal rights or obligations.

Adjudication (Administrative)

A trial-like hearing before an administrative law judge (ALJ) in an administrative agency.

Administrative Law Judge (ALJ)

The official who presides over an administrative adjudication and whose decisions are given significant weight by courts.

Common Law

A body of unwritten laws based on legal precedents established by the courts, originating from early English courts.

Stare Decisis

A common law doctrine meaning 'to stand by things decided' or 'let the decision stand', requiring courts to follow precedents established in past decisions. It promotes efficiency and stability in the law.

Equitable Remedies

Remedies available in courts of equity, such as specific performance or injunctions, used when monetary damages are insufficient.

Substantive Law

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

Procedural Law

Law that outlines the methods of enforcing the rights and duties established by substantive law.

Cyberlaw

An informal term used to refer to all laws governing transactions conducted via the Internet.

Civil Law

Law dealing with disputes between private parties, such as breach of contract or negligence resulting in injury.

Criminal Law

Law dealing with wrongs committed against society as a whole, such as financial fraud and kidnappings.

National Law

Law that pertains to a particular nation.

International Law

Law that governs relations among nations.

Federal Form of Government

A system where power is divided between a central government and individual state governments.

Separation of Powers

The division of government power among legislative, executive, and judicial branches to create a system of checks and balances.

Checks and Balances

A system designed to prevent any one branch of government from accumulating too much power.

Commerce Clause

A constitutional clause (Article I, Section 8) that gives Congress the power to regulate commerce among the several states.

Dormant Commerce Clause

A legal concept that prohibits states from passing legislation that discriminates against or excessively burdens interstate commerce.

Supremacy Clause

A constitutional clause (Article VI) stating that the U.S. Constitution, federal laws, and treaties are the supreme law of the land.

Preemption

The doctrine by which certain federal laws may take precedence over conflicting state laws.

Bill of Rights

The first ten amendments to the U.S. Constitution, embodying a series of protections for individuals against the federal government.

Fourteenth Amendment

A constitutional amendment that makes the protections of the Bill of Rights applicable to state governments and includes the Due Process and Equal Protection Clauses.

Freedom of Speech (First Amendment)

A constitutional protection that generally prohibits government from restricting expression, including symbolic speech.

Symbolic Speech

Nonverbal conduct that expresses an opinion or idea and is protected under the First Amendment (e.g., gestures, movements, articles of clothing).

Content-Neutral Laws

Laws that regulate the time, place, and manner of speech but not its content, and are generally permissible under the First Amendment.

Corporate Political Speech

Speech by corporations that expresses political views, protected by the First Amendment.

Commercial Speech

Speech by businesses that communicates information about products or services, which is less protected than noncommercial speech.

Unprotected Speech

Categories of speech not protected by the First Amendment, such as defamatory speech, threatening speech, and fighting words.

Freedom of Religion (First Amendment)

A constitutional protection that includes the Establishment Clause and the Free Exercise Clause.

Establishment Clause

Prohibits the government from establishing a religion or enacting laws that favor one religion over others.

Free Exercise Clause

Guarantees individuals the right to practice their religion freely, though this right is not absolute and may be subject to restrictions if necessary for public welfare.

Due Process Clause

A constitutional clause (Fifth and Fourteenth Amendments) stating that no person shall be deprived 'of life, liberty, or property, without due process of law'.

Procedural Due Process

Requires that any government decision to take life, liberty, or property must be made fairly, using fair procedures (e.g., notice and opportunity to be heard).

Substantive Due Process

Focuses on the content of legislation, requiring that laws be fair and reasonable in substance and not infringe on fundamental rights.

Equal Protection Clause

A constitutional clause (Fourteenth Amendment) stating that a state may not 'deny to any person within its jurisdiction the equal protection of the laws'.

Strict Scrutiny

A judicial test applied when a law or action discriminates based on a suspect trait (e.g., race, national origin); requires the government to show a compelling state interest.

Intermediate Scrutiny

A judicial test applied to laws involving gender or legitimacy classifications; requires the government to show that the law is substantially related to important government objectives.

Rational Basis Test

A judicial test applied to classifications not involving suspect or semi-suspect traits (e.g., economic or social welfare); requires the government to show that the classification is conceivably related to a legitimate government interest.

Privacy Rights

The right of an individual to be free from unwarranted intrusion into their personal life, recognized by courts and protected by federal legislation.

Freedom of Information Act (FOIA)

A federal law that allows for the full or partial disclosure of previously unreleased information and documents controlled by the U.S. government.

The Privacy Act

A federal law that establishes a code of fair information practices that governs the collection, maintenance, use, and dissemination of information about individuals that is maintained in systems of records by federal agencies.

USA Patriot Act

A federal law passed after September 11, 2001, which gives government officials increased authority to monitor Internet activities and conduct surveillance.