ACC 473 - Chapter 1: Law and Legal Reasoning

What is the primary purpose of a legal system?

To provide stability, predictability, and continuity in society

What does the law consist of?

Enforceable rules governing relationships among individuals and between individuals and society

Why must businesspersons understand law?

Because law and government affect nearly all business activities, and ethical decision-making is critical.

What is "black letter" law?

The formal, written rules and statutes of law.

Name at least 5 types of laws that may affect business decisions:

Contracts, Sales, Negotiable Instruments, Creditor's Rights, E-Commerce, Product Liability, Torts, Agency, Business Organizations, Bankruptcy, Professional Liability, Courts and Court Procedure

What is liability in business law?

The legal responsibility for something, such as a debt or obligation

Why must businesspersons develop legal reasoning skills?

To evaluate how laws apply to a situation and determine the best legal course of action.

What is the difference between primary and secondary sources of law?

Primary sources establish the law (e.g., constitutions), while secondary sources explain or clarify it (e.g., legal articles)

What are examples of primary sources of law?

Constitutions, statutes, administrative rules, and court decisions

What are secondary sources of law?

Books and articles that clarify primary authority (e.g., law review articles, Restatements, treatises, legal encyclopedias).

What is the supreme law of the land?

The U.S. Constitution

What is statutory law?

Laws enacted by legislative bodies at federal, state, or local levels.

What is the National Conference of Commissioners on Uniform State Laws?

An organization that drafts uniform laws for states to adopt

What are administrative regulations?

Rules and decisions issued by federal, state, or local administrative agencies

When something isn't addressed in statutes, what do courts look to?

Case law and common law

What is Case Law?

is a body of law derived from judicial decisions, interpreting statutes, regulations, constitutional provisions, and other case law.

When does Case Law apply?

Case law governs all areas NOT covered by statutory law or administrative law and is part of our common law tradition

What is American law based on?

English Common Law, developed from traditions, customs, rules, and cases.

When did the English legal system begin?

1066, when the Normans conquered England.

What is common law?

Judge-made law

What were the two separate court systems at common law?

Courts of Law (monetary relief) and

Courts of Equity (non-monetary relief)

What are courts of law also called?

"King's courts," where judges appointed by the king resolved disputes with land, chattel, or money remedies.

What are courts of equity?

Courts awarding non-monetary relief such as specific performance, injunctions, or rescissions

What is specific performance?

Court order requiring a party to perform as promised in a contract

What is an injunction?

Court order directing someone to stop doing something

What is recission?

Cancellation of a contract, returning parties to pre-contract position

How are legal and equitable remedies used today?

The same court may award both monetary and equitable remedies, depending on adequacy.

What does "Stare Decisis" mean?

Latin for "to stand on decided cases."

Why is stare decisis important?

It makes law stable, predictable, and increases judicial efficiency.

What is a precedent?

A judicial decision that establishes legal principles for future similar cases.

What is binding authority?

Any source of law a court must follow (constitutions, statutes, regulations, controlling precedent).

What is controlling precedent?

A binding authority that requires courts to follow prior decisions in their jurisdiction

What is persuasive authority?

Legal sources a court may consult for guidance but is not required to follow (precedents from other jurisdictions, fairness, customs, unpublished opinions)

When is persuasive authority used?

In cases of first impression (no precedent exists).

When can courts depart from precedent?

If the prior decision is incorrect or social/technological changes make it inapplicable

Give an example of departure from precedent

Brown v. Board of Education overturning "separate but equal" (Plessy v. Ferguson)

What case overturned Roe v. Wade?

Dobbs v. Jackson Women's Health Organization.

What is the FIRAC method?

A framework judges/attorneys use for legal reasoning: Facts, Issue, Rule, Application, Conclusion

Why is there rarely one “right” answer in law?

Judges' personal beliefs affect decisions, and strong arguments exist for both sides

What does common law govern today?

Transactions not covered by statutory law

What is the relationship between statutory law and case law?

Case law interprets statutory law

What is the Restatement of the Law?

Secondary source summarizing common law in areas like contracts, torts, and agency.

Who publishes Restatements?

The American Law Institute

Name some current Restatements.

- Contracts (Second)

- Judgements (second)

- Products Liability (third)

- Torts (second)

What is jurisprudence?

The study of law.

What is the Natural Law School?

Assumes law, rights, and ethics are based on universal moral principles inherent in nature and discoverable through human reason

What is the key idea of the Natural Law School?

A higher law applies to all human beings, and unjust laws should not be followed

Who is associated with Natural Law philosophy?

Aristotle, Thomas Jefferson ("Laws of Nature"), Rev. Martin Luther King, Jr.

What are MLK’s two types of laws?

Just laws (align with moral law)

Unjust laws (not rooted in eternal/natural law)

What is the Positivist School of Law?

Law is the supreme will of the state at a given time; rights and ethics are not universal. Written law must be obeyed, even if unjust, to prevent anarchy.

What is the Historical School of Law?

Emphasizes law's evolution over time. Legitimacy comes from standards that have stood the test of time. Closely linked to "Originalism"

What is Legal Realism?

Holds that law is shaped by judges' views and by social, economic, and contextual influences

What is the Sociological School of Jurisprudence?

Law is a tool for promoting social justice; judges must account for economic and social realities. Willing to depart from precedent.

What is Oliver Wendell Holmes Jr.'s view of law?

"Law is what officials do about it."

What legal philosophy is associated with the civil rights movement?

The Sociological School of Jurisprudence

What is the spectrum of legal philosophies?

Legal Realism (Sociological) ←———→ Originalism (strict constitutional interpretation)

Name U.S. Supreme Court cases illustrating debates in legal philosophy

- Griswold v. Connecticut (1965)

- Roe v. Wade (1973)

- Obergefell v. Hodges (2015)

- Dobbs v. Jackson Women's Health (2022)

What constitutional provisions relate to schools of legal thought?

10th Amendment (state police powers) and Article V (amending the Constitution)

What are the four possible classifications of every type of law?

- Civil or Criminal

- Substantive or Procedural

- Public or Private

- Federal or State.

What is civil law?

Defines rights between individuals or between individuals and government

What is criminal law?

Defines an individual's obligations to society as a whole.

What is substantive law?

Defines or creates the rights and obligations of persons and governments

What is procedural law?

Provides the steps to enforce legal rights or obligations

What is CyberLaw?

Refers to laws governing electronic communications and transactions (internet-related issues like copyright, contracts, banking)

Where can you find statutory law?

U.S. Code (USC) and state statutes (e.g., Nevada Revised Statutes)

Where can you find administrative law?

Code of Federal Regulations (CFR) and state administrative regulations (e.g., Nevada Administrative Regulations).

Where can you find federal case law?

United States Reports (Supreme Court), Federal Reporter, and Federal Supplement.

Where can you find state case law?

State-specific reporters (e.g., Nevada Reports, California Reporter, Pacific Reporter)

What is a legal citation?

A reference that identifies legal cases, statutes, or regulations

Example: What does Morse v. Frederick, 127 S.Ct. 2618 (U.S. 2007) mean?

Plaintiff = Morse

Defendant = Frederick

Case in volume 127 of Supreme Court Reporter, page 2618, decided by the U.S. Supreme Court in 2007.

What is the FIRAC method used for?

Case analysis: Facts, Issue, Rule, Application, Conclusion

Who is the plaintiff/petitioner?

The party who initiates a lawsuit

Who is the defendant/respondent?

The party against whom the lawsuit is brought

Who is the appellant/petitioner?

The party who takes an appeal to a higher court

Who is the appellee/respondent?

The party against whom an appeal is taken

What are damages?

A monetary award sought as a remedy for a breach of contract or tort

What is a statute of limitations?

A statute setting the maximum time period during which legal action can be brought

What is the difference between a judge and a justice?

They are mostly synonymous titles given to court decision-makers in different courts

What is a court opinion?

The court's reasons, rules of law, and judgment in a case

What is a unanimous opinion?

An opinion representing the view of all judges in the case

What is a majority opinion?

A court opinion representing the majority of judges deciding the case

What is a concurring opinion?

An opinion by judges who agree with the majority outcome but not the reasoning

What is a dissenting opinion?

An opinion by judges who disagree with the majority decision

What is a per curiam opinion?

A unanimous opinion that does not indicate which judge authored it