1. Sources of Law
Chapter 2

2. WHAT IS THE PURPOSE OF THE LAW?
Laws sets standards that govern our conduct—let’s us know what is expected of us and others—provides method to settle disputes—PROVIDES JUSTICE AND HARMONY IN OUR SOCIETY!

3. OVERVIEW Sources of Law
Constitutional Law (Federal and State)
Statutory Law (Federal and State)
Administrative Regulations
Court Decisions through interpreting the law

4. U.S. CONSTITUTION Established our form of government
Provides the framework as the “ultimate” decision maker in interpreting laws
Outlines and protects our rights
Strong/flexible – Limited/just
Strong: provides for national government
Limited and just: Protects our guaranteed rights.

5. STRUCTURE OF CONSTITUTION
Articles
Amendments
First 10 are the Bill of Rights

6. ARTICLES I-III Establishes our three branches of government.
WHY is this important?

8. System of Checks and Balances
Each branch has some authority over the others
The Legislative Branch passes laws
The Executive Branch enforces laws
The Judicial Branch interprets laws

9. Taking a look at the U.S. Constitution…
Recent vacancies on the Supreme Court
The Constitution and balance of power in action!

10. ARTICLES IV - VII Relationships between states, full faith and credit
How will the Constitution be amended
Establishes the U.S. Constitution, federal laws, federal treaties as supreme law of the land
Ratifies the original constitution.

11. Relationship between “Business Law” and the Constitution
Branches of government to pass, enforce and interpret laws
Framework and processes all flow from the authority granted by the Constitution
Framework to ensure constitutionality

12. STATE CONSTITUTIONS
Sets forth much of the same framework for a State that the U.S. Constitution sets forth for the United States.
The U.S. Constitution is supreme
The Wisconsin State Constitution

13. STATUTORY LAW
Federal laws (statutes) are compiled in the USC (United States Code)
Commercial transaction laws are compiled in the UCC (Uniform Commercial Code)
Wisconsin laws (statutes are compiled in the WI Stats. (Wisconsin State Statutes)

14. Courts involvement in Law
Common Law
Interpretation of Statutes
Judicial review

15. 1. COMMON LAW
Historically, the compiled record of previous decisions made by various judges throughout the districts
Based on precedent
Stare decisis “Standing by the decision”
Unless there is a good reason, cases presenting same legal issue should be based on precedent

16. 2. STATUTORY INTERPRETATION
Provides clarity
Evaluates the legislative intent of the law
Evaluates old laws that new law replaces
Evaluates past precedent

17. 3. Judicial Review Courts reviewing for constitutionality Statutes
Administrative Regulations
Executive Actions

18. Cases for Analysis

19. ADMINISTRATIVE REGULATIONS
Regulations that are Agency specific
Administrative Agency:
A board, bureau, office, department etc. of the executive branch that implements the law which originates with the legislative branch.
A REGULATORY AGENCY!
FBI, Federal Aviation, Homeland Security
Dept of Motor Vehicles, County Emergency Government

20. ADMINISTRATIVE REGS Federal Administrative Statutes
Compiled in the CFR (Code of Federal Regulations)
Wisconsin Administrative Codes

21. How is business law derived from the U.S. Constitution?
U.S. Constitution sets forth the framework of our government (separation of powers) grants powers to Congress to make laws
U.S. Constitution sets for the framework of the Supreme Court and lower courts as the judicial body (justice system!)
Laws and regulations are to be in compliance with the U.S. Constitution (Constitutional)
U.S. Constitution is supreme and Supreme Court is highest judicial body

22. Summary
The Constitution contains the framework of government and separation of powers; framework for ensuring rights; U.S. Constitution is supreme
The purpose of the law:
Helps to achieve justice in harmony in society
Sets standards that govern conduct
A means to settle disputes
Laws come from a variety of sources
Constitution
Statutes
Court Decision
Administrative Regulations