Business Law Exam 1 Study Guide

Chapter 1
Jurisprudence- the philosophy of law
3 Theories of Jurisprudence:
Legal Positivist whatever sovereign says is law, right or
wrong
Legal Realist what counts is who enforces that law & by
what process
Natural Law- St Thomas Aquinas said An unjust law is no
law at all and need not to be obeyed
Precedent the tendency to decide current cases based on previous
rulings
Common law accumulation of precedent, judge-made laws
Stare decisis - let the decision stand
Statutes laws made by legislatures
6 Sources of Law
US Constitution
Statutes
Common Law
Court Orders
Administrative Law
Treaties
Federalism multiple levels of government, each with specified
powers. Power is shared between one central authority and numerous
local authorities and individual jurisdictions.
The Supremacy Clause (Article VI of the Const) states that the
Constitution and its federal statutes and federal treaties, shall be the
supreme law of the land.
Chapter 2
2 Ethical Theories
Utilitarian- maximize happiness, minimize pain; based on
greatest good for greater population
Deontological ethical decisions are made for good and moral
reasons; moral based, regardless of outcome
2 Corporate Models
Shareholder Model maximize shareholder profits
Stakeholder Model take care of company, employees,
customer, community, and shareholders.
3 distinctions between civil and criminal litigation
Civil
Vs.
Criminal
Preponderance of Evidence,
Burden of
Beyond a Reasonable

>51%
2 or more
citizens/entities
$ Solution or required
action

Proof
Parties involved

Doubt
Govt. against plaintif

Result

Jail/fine/probation

Chapter 3
Name several special Trial courts: Bankruptcy Court, Tax Court, US
court of International Trade.
2 Cases that qualify to be tried in the Federal District Court:
Federal Question Cases claim based on the constitution of a
federal statute or treaty
Diversity Cases 1) plaintif and defendant are citizens of
diferent states and 2) the amount >$75,000
Appeal structure
Interrogatories written questions opposing party must answer in
writing, formal
Depositions question in person under oath, more informal, can be
witnesses too
Civil burden of proof preponderance of the evidence (slightly more
likely)
Criminal burden of proof- beyond a reasonable doubt tougher
4 potential resolutions
Affirm allow to stand
Modify affirm with changes
Reverse & remand nullify the lower decision & return for
reconsideration or retrieval
Reverse turn loser into winner
Mediation mediator leads to voluntary settlement
Arbitration arbitrator decides settlement between two parties
Voir dire process of selecting the jury speak the truth
Chapter 4
3-step process a court uses when interpreting a statute1. Plain meaning rule when a statutes words have ordinary,
everyday significance, the court will apply those words
2. Legislative History & Intent if the language is unclear, the court
must look deeper (go of of common law)
3. Public Policy if the legislative history is unclear, courts will rely
on general public policies
Flow of a Bill through Congress: Committee House vote Other
committee senate vote conference committee new vote other
new vote presidential signing
2

Presidents veto is overridden 2/3 both House & Senate

2 Kinds of Federal Administrative agencies (created by Congress)
Executive Agencies president has greater control, can fire head
ex: IRS, FBI, FDA, Nuclear Regulatory Commission
Independent Agencies president has no removal power ex:
FCC, FTC, SEC, EPA, NLRB
Freedom of Information Act gives everyone access to 1) information
on how the government operates and spends it money and 2) any
information the government has about you
Chapter 5
Checks and Balances
Supreme Court has control over final say on laws and actions
President has power of veto
President proposes legislation at the State of the Union address
President appoints judges and head of federal agencies
Supreme Court can impeach the president
Congress can declare war
Congress can congressionally override the presidents veto
Congress can override SC by amending the Constitution
Judicial Review the power of federal courts to declare a statute or
governmental action unconstitutional or void
Civil Rights Act of 1964 Title VII protects against race, religion, color,
national origin and sex discrimination later added age and disability
Commerce Clause gives Congress the power to regulate commerce
with foreign nations and among states.
Significant Efect rule If your company is big enough to have an
impact on another states economy you are considered interstate
commerce even if you are only in one state
1st Amendment freedom of speech (political & commercial), press,
assembly, religion, and petition
Chapter 6
Intentional Torts
Assault fear inflicted of battery
Battery intentional harm
False imprisonment keeping someone without cause & consent
Defamation
o Slander oral
o Libel written
Trespass
Conversion taking/using personal property without consent
3

Fraud
Intentional Infliction of Emotional Distress extreme &
outrageous conduct that causes emotional harm
Tortious Interference with Contract intentional interference with
a business contract by a third party
Damages
Compensatory restoring to a condition before the injury
(medical expenses, wages, pain and sufering)
Punitive intended to punish the defendant
Chapter 7
Tort violation of a duty imposed by civil law
Negligence injuries cause by neglect & oversight
Strict Liability for ultra hazardous activity & defective products
Res Ipsa Loquitur the thing speaks for itself the facts imply the
defendants fault
Assumption of Risk if you knowingly take on the risk they are not
liable
5 Elements to win a negligence case
1. Duty of due care
2. Breach
3. Factual Cause
4. Proximity Cause
5. Damages
Contributory negligence - plaintif slightly negligent as well, recover
nothing
Comparative negligence can generally recover the % you were not
responsible for
Chapter 8
For a valid search and seizure warrant must: 1) claim specifically where
you are searching and what is to be seized and 2) must have probable
cause for search
Probable cause likely that evidence of a crime will be found
7 reasons for searching without a warrant
1. Plain view
2. Stop and frisk
3. Emergencies
4. Automobiles
5. Lawful arrest
6. Consent
7. No expectation of Privacy

Chapter 9
GATT General agreement on Tarifs and Trade sought to eliminate
trade barriers and tarifs
WTO World Trade Organization resolves trade disputes, formed from
GATT, can impose sanctions
NAFTA North American Free Trade Agreement eliminated trade
barriers in North America
EU European Union 27 countries all regulated under one govern,
using euro
CISG United Nations Convention on Contracts for International Sale of
Goods creates uniform international laws for international sales
FCPA Federal Corrupt Practices Act makes bribery to government
officials illegal
Letter of Credit guarantee of payment in international trade
Sovereign Immunity statute that states that American courts cant
usually hear suits against foreign governments
Repatriation of Profits pulling the profits out of the country and taking
them back home
Expropriation when the government takes property owned by foreign
investors
Constitution
1st freedom of religion, press, petition, speech, assembly
2nd right to bear arms
4th no unreasonable search and seizure without warrant and probable
cause
5th trial by jury, no double jeopardy, no self-incrimination, due
process, limited power of eminent domain
6th Right to speedy and public trial and to an attorney
8th No excessive bail, fines, or cruel and unusual punishment
14th - equal protection for all races