1. Law, the Courts, and Contracts
Ch 4
Law, the Courts, and Contracts

2. Learning Outcomes 4.1 Discuss the basis and primary sources of law.
4.2 Discuss the classifications of law.
4.3 Define the concept of torts and discuss how the tort of negligence affects health care.
4.4 List and discuss the four essential elements of a contract.
LO Discuss the basis of and primary sources of law.
LO Discuss the classifications of law.
LO Define the concept of torts and discuss how the tort of negligence affects health care.
LO List and discuss the four essential elements of a contract.

3. 4-3
Learning Outcomes
4.5 Differentiate between expressed contracts and implied contracts. 4.6 Discuss the contractual rights and responsibilities of both physicians and patients 4.7 Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts.
LO Differentiate between expressed contracts and implied contracts.
LO Discuss the contractual rights and responsibilities of both physicians and patients.
LO Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 3

4. Sources of Law: Federal Government
Legislative Branch (Congress)
Senate, House of Representatives
Write, debate, and pass bills
Executive Branch (President)
Executive orders become law without approval of Congress
Judicial Branch (Supreme Court)
Intreprets and oversees laws
LO Discuss the basis of and primary sources of law.

5. State Legislation Legislative Executive Judicial branch
4-5
State Legislation
Legislative
Those responsibilities not governed by the federal government are duties of the state
Executive
Governor is the head of the state
Judicial branch
LO Discuss the basis of and primary sources of law. 5

6. Powers of Federal/State Government
4-6
Powers of Federal/State Government
LO Discuss the basis of and primary sources of law.
Table 4-1 6

7. Other Types of Law Constitutional Case Common
4-7
Other Types of Law
Constitutional
Derives from federal and state constitutions
Case
Established from common law and legal precedent
Common
Body of unwritten law formed in England
LO Discuss the basis of and primary sources of law. 7

8. Question Tell whether the following statement is true or false.
4-8
Question
Tell whether the following statement is true or false.
Case law is law that is derived from federal and state constitutions.
True
False
LO Discuss the basis of and primary sources of law. 8

9. 4-9
Answer
False
Constitutional law is law that is derived from federal and state constitutions. Case law is law established through common law and legal precedent.
LO Discuss the basis of and primary sources of law. 9

10. Four Types of Law Constitutional Case Statutory Administrative
4-10
Four Types of Law
Constitutional
Based on U.S. constitution
Case
Set by legal precedent
Statutory
Enacted by state or federal legislatures
Administrative
Enacted to define specific agency powers
LO Discuss the basis of and primary sources of law. 10

11. Classifications of Law
4-11
Classifications of Law
Substantive
Defines and regulates legal rights and obligations
Procedural
Defines rules used to enforce substantive law
LO Discuss the classifications of law. 11

12. Classifications of Law (cont.)
4-12
Classifications of Law (cont.)
Criminal
Law involving crimes against state
Civil
Involves wrongful acts against persons
People can sue another person, a business, or the government
LO Discuss the classifications of law. 12

13. Types of Criminal Law Felony Misdemeanor
4-13
Types of Criminal Law
Felony
An offense punishable by death or by imprisonment in a state or federal prison for more than one year
Misdemeanor
A crime punishable by fine or by imprisonment in a facility other than a prison for less than one year
LO Discuss the classifications of law. 13

14. Tort Liability Tort Tortfeasor
4-14
Tort Liability
Tort
A civil wrong committed against a person or property excluding breach of contract
Must involve injury, damage to property, or deprivation of civil liberties
May be intentional or unintentional
Tortfeasor
Person guilty of a tort
LO Define the concept of torts and discuss how the tort of negligence affects health care. 14

15. 4-15
Intentional Torts
LO Define the concept of torts and discuss how the tort of negligence affects health care.
Table 4-2 15

16. Question Tell whether the following statement is true or false.
4-16
Question
Tell whether the following statement is true or false.
A physician commits fraud when he tells staff members not affiliated with the case that a patient in his care has HIV/AIDS.
True
False
LO Define the concept of torts and discuss how the tort of negligence affects health care.
Table 4-2 16

17. 4-17
Answer
False
A physician commits invasion of privacy when he tells staff members not affiliated with the case that a patient in his care has HIV/AIDS. Fraud involves deceitful practices when depriving another of his rights.
LO Define the concept of torts and discuss how the tort of negligence affects health care.
Table 4-2 17

18. Unintentional Torts: Negligence
4-18
Unintentional Torts: Negligence
Charged when a health care practitioner fails to exercise ordinary care and a patient is injured
Can also be charged to an institution
What would/could a reasonably careful hospital do under similar circumstances?
LO Define the concept of torts and discuss how the tort of negligence affects health care. 18

19. Evidence of Medical Malpractice
4-19
Evidence of Medical Malpractice
Expert testimony
Existing federal and state laws
Hospital bylaws
Custom and community practice
Accreditation standards
LO Define the concept of torts and discuss how the tort of negligence affects health care. 19

20. The Court System Federal courts Jurisdiction: power to hear a case
4-20
The Court System
Federal courts
Jurisdiction: power to hear a case
State courts
Local, trial, appellate, Supreme Court
LO Define the concept of torts and discuss how the tort of negligence affects health care. 20

21. Court Systems in the U.S. 4-21
LO Define the concept of torts and discuss how the tort of negligence affects health care.
Figure 4-4 21

22. Players in the Court Scene
4-22
Players in the Court Scene
Plaintiff
Person bringing charges
Prosecution
Government as plaintiff in criminal case
Defendant
Party against whom charges are brought
LO Define the concept of torts and discuss how the tort of negligence affects health care. 22

23. 4 Essential Elements of Contracts
4-23
4 Essential Elements of Contracts
Definition: voluntary agreement between two parties in which specific promises are made for consideration
Agreement
Consideration
Legal subject matter
Contractual capacity
LO List and discuss the four essential elements of a contract. 23

24. Types of Contracts Expressed contracts Implied contracts
4-24
Types of Contracts
Expressed contracts
Written or oral agreement in which all terms are explicitly stated
Implied contracts
Unwritten or unspoken agreement whose terms result from the actions of the parties involved
LO Differentiate between expressed contracts and implied contracts. 24

25. Termination of Contracts
4-25
Termination of Contracts
Failure to pay for services
Failure to keep appointments
Failure to follow physician instructions
Patient seeks services of another physician
LO Differentiate between expressed contracts and implied contracts. 25

26. Aspects of Physician/Patient Contract
4-26
Aspects of Physician/Patient Contract
Third party payment contract
Fair Debt Collection Practices Act
Implied contracts
Managed care plan contracts
LO Differentiate between expressed contracts and implied contracts. 26

27. Contractual Rights of Physicians
4-27
Contractual Rights of Physicians
Make reasonable limitations on physician/patient relationship
Set up a practice based on credentials
Set up an office and determine hours
Specialize
Decide what services will be provided and how they will be provided
LO Discuss the contractual rights and responsibilities of both physicians and patients. 27

28. Patient Care Partnership/rights
4-28
Patient Care Partnership/rights
Considerate and respectful care
Information on diagnosis and treatment
Information to give informed consent
Right to refuse treatment
Confidentiality
Continuity of care
Knowledge of hospital rules
sub1
suba
sub2
LO Discuss the contractual rights and responsibilities of both physicians and patients. 28

29. Implied Duties of Patient
4-29
Implied Duties of Patient
Follow physician instructions and cooperate as well as able
Give all relevant information to the physician to form diagnosis
Follow physician orders for treatment
Pay fees for services rendered
LO Discuss the contractual rights and responsibilities of both physicians and patients. 29

30. Law of Agency Law governing relationship between principle and agent
4-30
Law of Agency
Law governing relationship between principle and agent
May be expressed or implied
Agent: one who acts for another
Respondeat superior: Physician is responsible for acts of employee
LO Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 30

31. Question Tell whether the following statement is true or false.
4-31
Question
Tell whether the following statement is true or false.
Under the doctrine of respondeat superior, physicians are liable for the acts of their employees performed within the course and scope of employment.
True
False
LO Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 31

32. 4-32
Answer
True
Under the doctrine of respondeat superior, physicians are liable for the acts of their employees performed within the course and scope of employment if two elements are present. First, the employee must be engaged in furtherance of the master's business; and, second, he or she must be acting within the scope of the master's business.
LO Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 32