© 2004 West Legal Studies in Business A Division of Thomson Learning 1 Chapter 1 Introduction to Law and Legal Reasoning

© 2004 West Legal Studies in Business A Division of Thomson Learning 2 §1: Schools of Jurisprudential Thought Natural Law view. Positivist view. Historical view. Legal Realism view. Natural Law view. Positivist view. Historical view. Legal Realism view.

© 2004 West Legal Studies in Business A Division of Thomson Learning 3 Natural Law School Assumes that law, rights and ethics are based on universal moral principals inherent in nature discoverable through the human reason. The oldest view of jurisprudence dating back to Aristotle. The Declaration assumes natural law, or what Jefferson called the Laws of Nature.Declaration Assumes that law, rights and ethics are based on universal moral principals inherent in nature discoverable through the human reason. The oldest view of jurisprudence dating back to Aristotle. The Declaration assumes natural law, or what Jefferson called the Laws of Nature.Declaration

© 2004 West Legal Studies in Business A Division of Thomson Learning 4 Natural Law: Rev. Martin Luther King, Jr. Letter from the Birmingham Jail, April 16, [T]here are two types of laws: just and unjust laws.... A just law is a man-made code that squares with the moral law.... An unjust law is a code that is out of harmony with the moral law.... An unjust law is a human law that is not rooted in eternal and natural law.Letter from the Birmingham Jail Letter from the Birmingham Jail, April 16, [T]here are two types of laws: just and unjust laws.... A just law is a man-made code that squares with the moral law.... An unjust law is a code that is out of harmony with the moral law.... An unjust law is a human law that is not rooted in eternal and natural law.Letter from the Birmingham Jail

© 2004 West Legal Studies in Business A Division of Thomson Learning 5 The Positivist School Law is the supreme will of the State that applies only to the citizens of that nation at that time. Law, and therefore rights and ethics, are not universal. The morality of a law, or whether the law is bad or good, is irrelevant. Law is the supreme will of the State that applies only to the citizens of that nation at that time. Law, and therefore rights and ethics, are not universal. The morality of a law, or whether the law is bad or good, is irrelevant.

© 2004 West Legal Studies in Business A Division of Thomson Learning 6 The Historical School Emphasizes the evolutionary process of law Concentrates on the origins of the legal system Law derives its legitimacy and authority from standards that have withstood the test of time Follows decisions of earlier cases Emphasizes the evolutionary process of law Concentrates on the origins of the legal system Law derives its legitimacy and authority from standards that have withstood the test of time Follows decisions of earlier cases

© 2004 West Legal Studies in Business A Division of Thomson Learning 7 Legal Realism Jurisprudence that holds law is not simply a result of the written law, but a product of the views of judicial decision makers, as well as social,economic, and contextual influences.

© 2004 West Legal Studies in Business A Division of Thomson Learning 8 § 2: Business Activities and the Legal Environment Law regulates many different areas of business. Study of business law also involves a knowledge of ethics in decision-making. Many different laws may affect a single business transaction. Law regulates many different areas of business. Study of business law also involves a knowledge of ethics in decision-making. Many different laws may affect a single business transaction.

© 2004 West Legal Studies in Business A Division of Thomson Learning 9 §3: Sources of American Law U.S. and State Constitutions. U.SState Statutory Lawfederal, state and local. Administrative regulations and decisions. Case Law and Common Law Doctrines. U.S. and State Constitutions. U.SState Statutory Lawfederal, state and local. Administrative regulations and decisions. Case Law and Common Law Doctrines.

© 2004 West Legal Studies in Business A Division of Thomson Learning 10 §4: The Common Law Tradition American law is based largely on English Common Law which was based largely on traditions, social customs, rules, and cases developed over hundreds of years.English Common Law American law is based largely on English Common Law which was based largely on traditions, social customs, rules, and cases developed over hundreds of years.English Common Law

© 2004 West Legal Studies in Business A Division of Thomson Learning 11 The Common Law Tradition [2] At common law, there were two separate court systems with two different types of remedies: COURTS OF LAW (monetary relief), and COURTS OF EQUITY (non-monetary relief) based on notions of justice and fair dealing. At common law, there were two separate court systems with two different types of remedies: COURTS OF LAW (monetary relief), and COURTS OF EQUITY (non-monetary relief) based on notions of justice and fair dealing.

© 2004 West Legal Studies in Business A Division of Thomson Learning 12 Courts of Law Also called kings courts where judges were appointed by the king. Remedies limited to those provided at law, i.e., land, chattel, money. Judges resolved disputes by application of rules of law to the facts of the case before the court. Also called kings courts where judges were appointed by the king. Remedies limited to those provided at law, i.e., land, chattel, money. Judges resolved disputes by application of rules of law to the facts of the case before the court.

© 2004 West Legal Studies in Business A Division of Thomson Learning 13 Courts of Equity Also called courts of chancery in Delaware.Delaware Equitable relief was sometimes available in instances where a strict application of the law to the facts of the case compelled a result that was legal but unjust. Equitable Maxims. Also called courts of chancery in Delaware.Delaware Equitable relief was sometimes available in instances where a strict application of the law to the facts of the case compelled a result that was legal but unjust. Equitable Maxims.

© 2004 West Legal Studies in Business A Division of Thomson Learning 14 Legal and Equitable Remedies Today Today federal and state courts of general jurisdiction have consolidated remedies at law and remedies at equity. Generally, the same court can fashion a remedy that includes both damages and equitable or injunctive relief. Today federal and state courts of general jurisdiction have consolidated remedies at law and remedies at equity. Generally, the same court can fashion a remedy that includes both damages and equitable or injunctive relief.

© 2004 West Legal Studies in Business A Division of Thomson Learning 15 Stare Decisis Stare decisis is a Latin phrase meaning to stand on decided cases. Makes the law stable and predictable. Increases judicial efficiency by relieving courts of having to reinvent legal principles for each case brought before them. Stare decisis is a Latin phrase meaning to stand on decided cases. Makes the law stable and predictable. Increases judicial efficiency by relieving courts of having to reinvent legal principles for each case brought before them.

© 2004 West Legal Studies in Business A Division of Thomson Learning 16 Stare Decisis and Precedent Stare decisis is judge made law based on precedent. Precedents are judicial decisions that give rise to legal principles that can be applied in future cases based upon similar facts. Precedents and other forms of positive law, such as statutes, constitutions, and regulations, are referred to as binding authority and must be followed. Stare decisis is judge made law based on precedent. Precedents are judicial decisions that give rise to legal principles that can be applied in future cases based upon similar facts. Precedents and other forms of positive law, such as statutes, constitutions, and regulations, are referred to as binding authority and must be followed.

© 2004 West Legal Studies in Business A Division of Thomson Learning 17 Cases of First Impression In cases of first impression where there is no precedent, the court may refer to positive law, public policy, and widely held social values in order to craft the best new precedent.

© 2004 West Legal Studies in Business A Division of Thomson Learning 18 Stare Decisis and Legal Reasoning Method used by judges to reach a decision. Many courts and attorneys frame decisions and briefs using the IRAC format: Issue (What is the question to be resolved?) Rule (What law governs this matter?) Application (Apply the law to the facts) Conclusion (Decision or Verdict) Method used by judges to reach a decision. Many courts and attorneys frame decisions and briefs using the IRAC format: Issue (What is the question to be resolved?) Rule (What law governs this matter?) Application (Apply the law to the facts) Conclusion (Decision or Verdict)

© 2004 West Legal Studies in Business A Division of Thomson Learning 19 Types of Legal Reasoning Deductive Reasoning: Makes use of syllogism, a type of logical relationship involving a major premise and a minor premise. Linear Reasoning: Proceeds from point to point, with the final point being the conclusion. Reasoning by Analogy: Analysis that compares facts of present case with facts of similar previously-decided cases. Deductive Reasoning: Makes use of syllogism, a type of logical relationship involving a major premise and a minor premise. Linear Reasoning: Proceeds from point to point, with the final point being the conclusion. Reasoning by Analogy: Analysis that compares facts of present case with facts of similar previously-decided cases.

© 2004 West Legal Studies in Business A Division of Thomson Learning 20 § 5: The Common Law Today Common law today governs transactions not covered by statutory law. Restatements of the Law American Law Institute Summarize the common law of most states Common law today governs transactions not covered by statutory law. Restatements of the Law American Law Institute Summarize the common law of most states

© 2004 West Legal Studies in Business A Division of Thomson Learning 21 §6: Classifications of Law Every type of law will be either: Civil or Criminal, and either Substantive or Procedural, and either Public or Private. * Cyberlaw is law applied to internet transactions. Every type of law will be either: Civil or Criminal, and either Substantive or Procedural, and either Public or Private. * Cyberlaw is law applied to internet transactions.

© 2004 West Legal Studies in Business A Division of Thomson Learning 22 Civil vs. Criminal Civil law defines the rights between individuals or individuals and governments. Criminal law defines an individuals obligations to society as a whole. Civil law defines the rights between individuals or individuals and governments. Criminal law defines an individuals obligations to society as a whole.

© 2004 West Legal Studies in Business A Division of Thomson Learning 23 Substantive vs. Procedural Substantive law defines or creates the rights and obligations of persons and governments. Procedural law provides the steps one must follow in order to avail oneself of ones legal rights or enforce anothers legal obligations. Substantive law defines or creates the rights and obligations of persons and governments. Procedural law provides the steps one must follow in order to avail oneself of ones legal rights or enforce anothers legal obligations.

© 2004 West Legal Studies in Business A Division of Thomson Learning 24 §7: Finding Primary Sources of Law Finding Statutory Law. United States Code (USC). United States Code State Statutes (Texas).Texas Finding Administrative Law. Code of Federal Regulations (CFR). Code of Federal Regulations Finding Case Law Supreme Court Cases at Findlaw.com. Supreme Court Cases Federal Court Cases at Findlaw.com. Federal Court Cases State Court Cases at Findlaw.com. State Court Cases Finding Statutory Law. United States Code (USC). United States Code State Statutes (Texas).Texas Finding Administrative Law. Code of Federal Regulations (CFR). Code of Federal Regulations Finding Case Law Supreme Court Cases at Findlaw.com. Supreme Court Cases Federal Court Cases at Findlaw.com. Federal Court Cases State Court Cases at Findlaw.com. State Court Cases

© 2004 West Legal Studies in Business A Division of Thomson Learning 25 §8: Reading & Understanding Case Law Legal cases are identified by a legal citation (or a cite) as the example below: Toyota Motor Manufacturing, Kentucky, Inc., 534 U.S. 184 (2002). Legal cases are identified by a legal citation (or a cite) as the example below: Toyota Motor Manufacturing, Kentucky, Inc., 534 U.S. 184 (2002). Title: First Party is Plaintiff, second party is Defendant. The parties are either italicized or underlined.

© 2004 West Legal Studies in Business A Division of Thomson Learning 26 Reading & Understanding Case Law [2] Legal cases are identified by a legal citation (or a cite) as the example below: Toyota Motor Manufacturing, Kentucky, Inc., 534 U.S. 184 (2002). Legal cases are identified by a legal citation (or a cite) as the example below: Toyota Motor Manufacturing, Kentucky, Inc., 534 U.S. 184 (2002). This is a U.S. Supreme Court Case found in volume 534, page 184 of the U.S. Supreme Court reporter.

© 2004 West Legal Studies in Business A Division of Thomson Learning 27 Reading & Understanding Case Law [4] Legal cases are identified by a legal citation (or a cite) as the example below: Federal Express Corp. v. Federal Espresso, IncFederal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2 nd Cir. 2000). Legal cases are identified by a legal citation (or a cite) as the example below: Federal Express Corp. v. Federal Espresso, IncFederal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2 nd Cir. 2000). Read this Case at Findlaw.com by clicking on the hyperlink.

© 2004 West Legal Studies in Business A Division of Thomson Learning 28 Law on the Web Findlaw.com. Findlaw.com Legal Information Institute at Cornell Law School. Legal Information Institute at Cornell Law School Library of Congress. Library of Congress Villanova Center for Law and Policy. Villanova Center for Law and Policy Legal Research Exercises on the Web. Findlaw.com. Findlaw.com Legal Information Institute at Cornell Law School. Legal Information Institute at Cornell Law School Library of Congress. Library of Congress Villanova Center for Law and Policy. Villanova Center for Law and Policy Legal Research Exercises on the Web.