Business Law Chapter One

Our Laws

p.5-17

Section 1-1 Goals

Explain the stages of evolution of law

Describe the differences between common and positive law

Describe the differences between law courts and equity courts

Hot Debate – Page 4

1. Who was at Fault?

2. What arguments would Donna’s Attorney present at the civil trial to determine who was negligent?

3. What arguments would Wilma’s attorney present?

Basic Terms

Law Enforceable rules of conduct in a society Reflect the culture and circumstances that

create them

Code Laws grouped into an organized form

Criminal, property, business, family, personal injury, labor laws

Stages in the Growth of Law

1. Individuals take revenge for wrongs done

to them

2. Awards of money or goods are substituted for revenge

3. Court systems are formed

4. A central authority figure (sovereign)

intervenes to prevent and punish wrongs

Common vs. Positive

Common Law Based on current

standards or customs Usually pronounced by

judges Used to settle disputes

Example: Cigarettes

Positive Law Dictated from above Usually from a higher

central authority figure To prevent disputes

before they happen

* Laws should be both predictable and flexible

English Common Law

The Kings Court 1150 by King Henry II Developed to create

consistency among regions Appointed Judges

Good weather months judges would “ride circuit”

Bad weather months judges met in London to hear cases

Example: Ox Cart Accident – Page 6

English Common Law

Kings Court Established: Jurisdiction-

The power to decide a case Jury-

panel of citizens, to interpret local customs Unique to English Common Law

Precedent- Use of prior cases as a guide for similar cases

Levels of Government

Federal State Local

Each level consists of Constitutions Statutes Administrative Legislations Case Law

Basic Terms Constitution

A document that sets forth the framework of a government & its relationship to the people it governs

Allocation of power between: People & government – Bill of Rights State & federal government – Fed regulates

commerce (intrastate and interstate) Branches of government – checks and balances

between the three branches

Basic Terms Statutes

Laws enacted by state or federal legislature Example: What's Your Verdict? Page 9

Ordinances Laws enacted at the local level

Administrative Agencies Government bodies formed to carry out

particular laws Social Security Administration Federal Pa Department of Transportation State County Zoning Commission Local

Basic terms cont.

Case Law Usually is made after a trial has ended and

appealed. The decision of that appeal may create a new

law Stare decisis

READ “IN THIS CASE”…PAGE 10

What Happens when Laws Conflict?

Any federal, state or local law that conflicts with the constitution is unconstitutional

That law is invalid Turn to page 618 for

some constitutional laws

Criminal Vs. Civil Law

Criminal Law Define and set

punishment for offences against society

Violates citizen’s right to live in peace

Civil Law Define and set

punishment for offences against individuals

Example: tenant refuses to pay rent; owner can sue

•Crime- an offence against society

Criminal Vs. Civil Law

What’s your verdict? Page 11

Criminal or Civil?

Both – running through a stop sign is a crime against society

- smashing into Bates is a civil offense

Law in the Media??

Read Karla Faye Tucker Case - P.12

Is execution ever justified as a punishment for crime?

Why? / Why not?

Procedural vs. Substantive

Procedural Deals with

methods of enforcing legal rights and duties

How/when arrests can be made

Determine equitable remedies

Stare decisis lower courts must

follow existing case law in similar cases

Substantive

Defines rights and duties

Rules of conduct Except enforcement

Defines offences Murder Theft Vehicular homicide negligence

Business Law

Covers rules that apply to business situations & transactions Most occur between merchant and consumer Concerned with Civil law

Torts Private wrongs against people/organizations

Manufactures make defective products

Two types of Procedural Law

Criminal Procedural Defines the process

for enforcing the law when someone is charged with a crime

Civil Procedural Used when civil law is

violated Concerned with

private offences Police & public

prosecutors generally do not get involved

Uniform Commercial Code (UCC)

Widely adopted uniform business law Gives consistency between state

commercial laws Sales of goods, aspects of banking, leases of

goods, credit transactions, etc.

Review what you know

Think Critically page 13 #10 - #12 & 14

Your Legal Vocabulary page 14 #1 - 14