Class Notes for Class #1

The Ubiquitous Nature of Law

  • Laws are implicated in various scenarios:

    • Slapping someone

    • Running a red light

    • Being paid less than minimum wage

    • Apartment complexes

    • Underpaying income tax

    • High credit card interest rates

    • Building a shed in the backyard

Legal Foundations

  • Patricia Gardner Young, JD, CPA

    • Adjunct professor of business law.

  • Includes excerpts from Paul Fulbright's lesson plan.

Learning Objectives

  • Understand the legal doctrine of stare decisis

  • Classify law into broad categories

  • Differentiate between law and equity

  • Identify and apply important equitable maxims

Chapter Overview

  • Impact of legal issues on business planning and strategy

  • Good legal insight creates value and opportunities

  • Definitions and scope of primary and secondary sources of law

Introduction to Law

  • Definition of Law: A body of rules enforced by authority, creating duties, obligations, and rights

    • Sources: Constitution, legislations, judicial decisions

    • Resolves disputes, enforces promises

  • Definition of Jurisprudence: The science and philosophy of law; describes various legal approaches

Categories of Law

  • Civil vs. Criminal

    • Civil Law: Compensatory for losses

    • Criminal Law: Protects society; punishes behavior (e.g. theft, murder)

  • Substantive vs. Procedural

    • Substantive: Provides rights and creates duties

    • Procedural: Structure for pursuing rights

Functions of Law

  • Establish rules and consequences

  • Dispute resolution mechanisms

  • Promote business and good faith

  • Reliability in law application

  • Promote social equality and justice

Role of Counsel

  • Applying legal theories in practice

  • Different types of legal counsel:

    • Private Practice Attorney: Works independently or at law firms

    • Government Attorneys: Employed by governmental agencies

    • In-House Counsel: Employee providing legal advice within a company

Strategic Legal Solutions: The Big Picture

  • Strategies businesses may consider:

    1. Value creation through law

    2. Risk prevention

    3. Legal loophole avoidance

    4. Noncompliance with laws

Primary Sources of American Law

  • Primary Sources (binding):

    1. Constitutional Law

    2. Statutory Law

    3. Administrative Law

    4. Common Law

Constitutional Law - Foundation

  • Foundation of U.S. Law; supreme law of the land

  • Establishes government structure, enumerated powers, civil rights

Troubles and Key Concepts of Law

  • Law's role is to ensure equal protection and maintain systems of justice

  • Principles like stare decisis enhance stability in law

  • Law intersects social issues, corporate responsibility, and ethics

Corporate Social Responsibility (CSR)

  • Acknowledges importance of good corporate citizenship

  • Perspectives: Narrow (profit-maximization) to Broad (stakeholder interests)

Ethical Decision-Making Framework

  • Define dilemmas and assess impacts on stakeholders

  • Standards of legal and ethical considerations for decisions

  • Explore community-based nonprofits and benefit corporations

Amendments and Case Laws

  • The U.S. Constitution shaped by amendments

  • Bill of Rights protects individuals and companies

  • Each amendment guarantees specific freedoms and responsibilities.