Upgrade to remove ads
ACCT 352 Powerpoints 1-4
Terms in this set (92)
What do law, the rule of law, and property provide for a successful modern businesses?
a necessary foundation and set maxiimum conditions for generating "wealth of nations".
-property identifies and protects the set of tangible and intangible resources that can be transferred in the marketplace.
-Property provides the necessary incentive to owners to risk improvement to resources by ensuring that they will benefit from improvement and that others will not deprive them of benefit
-Property creates security for capital borrowing and investment
What is Law?
-A body of rules of action or conduct prescribed by the controlling authority, and having binding legal force.
-That which must be obeyed and followed by citizens subject to sanctions or legal consequences
What is the Rule of Law?
Laws are made generally (apply to various groups in the same way) and equally (apply to all or most members of society) applicable.
-Order that is implemented by law can be either for good or for bad. Society is further ordered by the need for the rule of law.
-Under the rule of law, laws apply to lawmakers as well as the rest of society
What are the Functions of Law?
-Keeping the peace
-Shaping moral standards
-Promoting social justice
-Maintaining the status quo
-Facilitating orderly change
-Providing a basis for compromise
-Maximizing individual freedom
Facilitating planning Example
well-designed commercial laws allow businesses to plan their activities, allocate their resoures, and assess their risks.
Maximizing individual freedom Example
the rights of freedom of speech, religion, and association granted by the First Amendment to the US Constitution
What does Property mean?
What is Property?
The legal right to exclude or keep others from interfering with something.
Recognizes a party's private, exclusive rights in resources.
What is ownership?
Private, exclusive rights in resources
Property in Private marketplace
The rules of the state create the private market by establishing private property in limited resources that are voluntarily exchanged through the system.
This right of property lays the foundation for the private marketplace.
What is the central concept underlying Western legal systems?
What are the different classifications of Law?
Civil Law vs. Common Law
Public Law vs. Private Law
Civil Law vs. Criminal Law
Substantive Law vs. Procedural Law
What are the two major legal systems?
Civil Law and Common Law
What is Civil Law (legal system)?
A system of law that is based on codification (the systematic and comprehensive statutory treatment of the law). The law exists primarily in statue.
the systematic and comprehensive statutory treatment of the law
What is Common Law?
Law based on written judicial decisions thatt establish precedent. Doesn't have a written code of law, but has a law that is primarily derived from written judicial decisions of judges that establish precedent.
Common Law Examples
Adoption of English Common Law in America
All states except Loisiana base their legal systems on the English common law.
Louisiana bases it's law on the civil law because of it's French heritage
Civil Law Examples
Former French colonies
What is Public Law?
Law regulating society in general, such as constitutional law (defining the power and authority of government), administrative law (the role and function of governmental agencies), and criminal law (the authority of the state to punish certain actions).
What is Private Law?
Law that regulates the relationships between and among private persons in their private relationships.
What is Civil Law (law classification)?
Law dealing with private rights between people
-torts & contracts
What is Criminal Law?
Law dealing with offenses against society at large and wrongs to society as a whole.
-prosecued by government
-results in Punishment
What is Substantive Law?
The part of the law creating, defining, and regulating rights, duties, and powers. Distinguishes laws that identify the "what", meaning the substance of the rules defining what can or cannot be done.
What is Procedural Law?
The part of the law telling the methods/means for having rights or duties enforced. Address the "how", meaning the methods or means of having leal rights enforced.
What are the 4 primary sources of domestic law in the US?
Constitutions, Legislation, Administrative Regulation, and Judicial Decisions or Case Law.
What are Constitutions?
Set forth the fundamental rights of the people living within the US, describing and empowering the various branches of government and setting forth limitations on that power
What is Legislation?
Laws enacted by Congress or the legislature of a given state and ordinances adopted by a given locality.
-A given state statute may be based on a uniform law or on a model act. Each state is free to depart from the uniform law or model act as it sees fit.
What is Administrative Legislation?
Rule or order by federal, state, or local regulatory agencies
What are Judicial Decisions or Case Laws?
decisions by courts that interpret and enforce laws or the common law.
the body of judicial decisions that interpret and enforce any of the foregoing sources of law as well as those relationships among individuals or between individuals and their society which are not otherwise subject ti constitutional, statutory, or administrative law.
The U.S. Constitution
-"Supreme Law of the Land"
-Established structure of federal government
-Enumerates federal powers
-Reserves all other powers to states
Codified Law: Statutes and Ordinances
-The U.S. Congress enacts federal statues
-State legislatures enact state statutes
-Municipalities and local government bodies enact ordinances
-Federal laws preempt state and local laws
-issued by the president and state governors
ex. order requiring federal agencies to buy more hybrid vehicles
ex. order allowing oil drilling on federal land
-Power derived from express delegation from legislative branch or implied from constitutional powers
Regulations and Orders of Administrative Agencies
Empowered by legislative and executive branches of government
-adopt rules and regulations
-hear and decide disputes
Many agencies regulate business
-SEC, FTC, DOT
What are Judicial decisions?
Courts decide controversies.
Also called opinions.
Usually state the rationale used by the court in reaching that decision; foundation of the Common aw.
What is the Doctrine of Stare Decisis?
-Based on the common law tradition, past court decisions become precedent for deciding future cases.
-Lower courts follow the precedent established by higher courts
-Both federal and state courts must follow the precedents established by the US Supreme Court decisions
-Courts in one state or local jurisdiction are not bound by precedent of another state or local jurisdiction, but may look at it for guidance.
What are the advantages of Stare Decisis?
- Judges follow precedents
-Gives certainty and predictability
-Flexibility (power to depart from or change precedent when warranted ex. Brown v Board)
What are the disadvantages of Stare Decisis?
-volume of cases
-conflicts of law
What is the priority of law in the US?
1. The Constitution and treaties take precedence over all other laws
2. Federal statues take precedence over federal regulations
3. Valid federal law takes precedence over conflicting state or local law
- Preemption Doctrine
What us the priority of State laws in the US?
1. State constitutions rank as the highest state law
2. State statutes take precedence over state regulations
3. Valid state laws takes precedence over local laws
What is Criminal Conduct?
Crime --> Punishment
The enforcement of the law takes difference forms with different classifications of tlaw.
ex. Criminal law is viewed as a wrong against society and is enforced by the use of personal punishment inflicted on behalf of sorely as a whole
What is crime?
-court punishes on behalf of society
What are some punishments for committing crimes?
What is a breach of contract?
it involves the failure to meet promises made under agreement and enforcement will attempt to focus on remedying the failure to perform under the agreement through compensating the injured party with money damages to cover over the injury.
Courts can also have the party in the wrong pay for any consequences of the breach.
It is possible that the court could rescind the contract, treating it as if it did not happen and putting the injured party back in it's original position.
What are some remedies to breaching a contract?
-Compensatory: you pay a fine, tort
-Consequential: punitive damage
What is Tort?
What is Tort Law?
Tort law enforces the idea of making an injured party "whole" again after suffering a wrong inflicted by someone else. It seeks to primarily compensate for an injury or loss, typically in the form of money damages.
-Tort law allows for the payment of punitive damages
What is punitive damage?
Money payment that is not directly tied to actual out of pocket losses, but tied to a purpose of making an example out of a defendant because of their egregious conduct.
Contracts are important
#nathanscott and kellerman
What is the legal system and Corporate Governance?
1. Corporation- legal person
2. Ownership- shareholders
3. Resource control: Board of Directors and Mnagers
4. Corporate governance- rules protecting owners' property interest
What is Corporate Governance?
rules protective owners' property interest.
How many jurors does the US have in court?
What does corporate governance in a property based environment require?
a viable (practical) court system.
if you own it, you have a court system to protect your property.
What are the two major court systems in the US?
1. Federal Court System
2. Court systems of each state (and District of Columbia)
How much money did companies win in some of the top verdicts this year?
Man, AG v. Freightliner: $850 million
Gulsby Engineering v. Gulf Liquids: $700 Million
Cook v. Rockwell: $554 Million
similar to the legal costs of cases, the jury awards damages against businesses, especially in the more complex liability, fraud, and breach of contract cases.
What is the order in which a case will travel through the courts when appealing?
Trial Courts --> Appellate Courts --> Supreme Court
Appellate and Supreme courts don't have juries.
What is court jurisdiction?
it's power to hear a case. A court must have personal jurisdiction over the parties (the power to bring the parties to the case into it's courtroom to hear the matter).
Initially a court must have subject matter jurisdiction over the case (authority to hear the kind of case)
What is subject matter jurisdiction?
the authority to hear certain types of cases.
Can it hear a breach of contract case, can it hear a bankruptcy case, can it hear a small claims case or a multi-million dollar negligence case?
Not all courts have the authority to hear all kinds of cases, so subject matter jurisdiction is key to understanding how courts operate, at all levels, starting with the trial courts and moving up through the appellate courts and to the highest level of the court system—the supreme court.
Supreme Court System cycle
Limited-jurisdiction trial courts -> intermediate appellate courts -> general-jurisdiction trial courts
Private court is the lowest level & you don't have to go to jail (civil)
Is the state Supreme Court always the state's highest court?
How do courts operate?
Courts operate within authority set forth under it state constitution, establishing the court system and granting it authority. That is further fleshed out in state statute and governed through specific procedural rules established within the court system itself.
State courts sources of authority
Court Rules of Procedure
Typical state Court system
Highest: Supreme Court
State Appeals Courts
State Trial Courts of General Jurisdiction: Civil Division, Criminal Division, Probate Division, Domestic Relations Division, Junebile Division
Smeall Calims Courts, Municipal Courts, Justice of the Peace Courts
What do Limited-jurisdiction trial courts do?
Hear matters of specialized or limited nature
-Family Law Court
-Misdemeanor Criminal Court
-Small Claims Court
What do General-jurisdiction trial courts do?
Hear cases of a general nature that are not within the jurisdiction of limited-jurisdiction courts
-Real estate business law, contracts, negotiable instruments
Record and store testimony and evidence
What do Intermediate Appellate Courts do?
Hear appeals from trial courts
Review trial court record to determine if there have been any errors at trial tat would require reversal or modification
No new testimony or evidence
What does the highest state court do?
Heats appeals from intermediate state courts and certain trail courts
No new testimony or evidence
Decisions of state supreme courts are final, unless a question of law is involved that is appealable to the US Supreme Court
Article III of the Constitution Reviews:
Questions of Federal Law
US as party
Suits Between Citizens of different states ---> Federal Jurisdiction
What does Article III of the Constitution do?
Establishes the federal court system.
it is a Judicial article
What is Jurisdiction?
the ability of the court to hear a matter
Is limited in federal court to only the following types of cases:
-Federal law questions
-Where the US government is a party
-Disagreements between state governments
-Diversity of citizenship cases (suits between citizens of different states)
What do Federal Question cases do?
Allows for federal courts to have original authority to hear cases, from trial, where there are issues at stake involving interpretation of the United States Constitution, or issues involving application and/or interpretation of federal law or regulation. Unlike some other sources of federal court jurisdiction, there is no monetary limit on the case.
-US Constitution issues
-Federal Statues Issues
-No $ Limit
What is Diversity of Citizenship?
Diversity of citizenship jurisdiction in federal court means that a federal court has jurisdiction to hear cases between citizens of different states.
-That means plaintiffs and defendants in a case must be from different states (than defendants).
Here, however, there is a dollar limit for jurisdiction. Only cases in which there is a claim sought of $75,000 or more can be brought to federal court under a diversity of citizenship bases.
Who is the plaintiff?
the person who files the suit
Who is the defendant?
the one defending
What do Federal District Courts do?
serve as the trial court in the federal system, with similar roles played as a trial court in the state system,.
-Federal Trial courts
- general jurisdiction
-;lifetime appointments for judges
What is the US Courts of Appeals?
Intermediate appellate courts
Hear appeals from the district courts located in their circuit
13 Circuits (11 + D.C. + Federal)
- 3-judge panel (en banc)
-Review the record of lower courts or administrative agency proceedings
-Determine if there has been any error of law that would warrant reversal or modification of the lower court decision
-No new evidence or testimony
What states are in the 3rd circuit?
NJ, PA, and DE
US Supreme Court
Hears appeals from:
-Federal Circuit Courts of Appeals
-Highest State courts
-special federal courts
-conflicting decisions of US circuit courts
Decision becomes "Law of Land" - not subject to review
No new evidence or testimony
9 justices with lifetime appointments
Accepts about 100 Cases each year out of about 10,000 petitions filed.
Decisions can be:
-Majorit (more than 5-4)
-Tie (lower court decision stays the same)
What does the US Supreme Court do?
appeals are heard by the Supreme court only upon the court granting a writ of certiorari (a grant of allowance to proceed to the Supreme Court). Few types of cases have an automatic appeal of right to the highest court in the land. The Court may grant certiorari in cases involving significant constitutional issues, especially where there exists conflicting decisions of federal appellate courts. Supreme Court decisions become the law of the land, setting precedent for the entire nation on major legal issues.
What is a Petition for Certiorai?
A petition asking the supreme court to hear a case
What is a Writ of Certiorai?
An official notice that the Supreme Court will review acase.
Exclusive Federal Jurisdiction
5. Federal Crimes
7. Suits against the US
8. Other specified federal statues
Exlusice State Jurisdiction
Matters not subject to federal jurisdiction
Concurrent jurisdiction of both Federal and State Courts
2. Federal questions
2. Diversity of citizenship
Article III and suing
Plaintiff must have a state in the outcome of the case
-one cannot sue on behalf of a friend who has been injured.
It must personally effect you/
What does In Personam Jurisdiction do?
Personal jurisdiction exists over any plaintiff who files a lawsuit
Personal jurisdiction exist over dependance who is within the boundaries of the state
-Corporation is subject to personal jurisdiction in any state where it is incorporated, has principal office, or does business.
- Long-Arm Statute
What is the Long-Arm Statue?
allows state courts to obtain personal jurisdiction over persons or businesses located in another state
-allows summons to be served in other states
-must have minimum contacts with state
-must uphold notions of fear play and substantial justice
Exercised over non-residents who have:
-committed torts within the state
-Entered into a contract either in the state or that affects the state (internet sales - interactive sites)
-Transacted other business in the state that allegedly cases injury to another person.
What is a venue?
Court near location in which incident occurred the where parties reside
-Several courts may have jurisdiction
-Which one is proer venue?
ex. cime occured in California, so California court is likely venue
<ay be change of venue to avoid pretrial publicity that may have prejudiced potential jurors
What is forum selection?
Parties may specify in a contract what court to use
What is Choice of law?
parties may agree on the state's or country's law that will apply to the contract
YOU MIGHT ALSO LIKE...
BUSI 2371 Stibora Test 1
Law: Chapter 1
Business Law Test 1
Blaw mid term
OTHER SETS BY THIS CREATOR
CISC 465 midterm
MISY430 Chapter 10
MISY430 Chapter 9
MISY430 Chapter 4