1. Our Legal System Business Law Mr. DelPriore

2. Our Laws What is law? What is law? Enforceable rules of conduct in a society Enforceable rules of conduct in a society Reflect culture and circumstances Reflect culture and circumstances Code – Code – Laws grouped into an organized form Laws grouped into an organized form Civilizations through history had similarities Civilizations through history had similarities

3. Forming a Legal System Four Stages: People take revenge for wrongs done People take revenge for wrongs done Awards (money or goods) substituted for revenge Awards (money or goods) substituted for revenge Court systems are formed Court systems are formed Central authority figure intervenes Central authority figure intervenes Prevents and punishes wrongs Prevents and punishes wrongs

4. Common law vs. Positive law Legal system will fail if it is inflexible Legal system will fail if it is inflexible People change People change Best systems of law gradually evolve Best systems of law gradually evolve Common law (REACTIVE) Common law (REACTIVE) Law based on current standards of people Law based on current standards of people Usually pronounced by judges- use to settle disputes Usually pronounced by judges- use to settle disputes Positive law (PROACTIVE) Positive law (PROACTIVE) Laws set by central authority to PREVENT Laws set by central authority to PREVENT

5. Origin of our legal system? 49 of 50 states based on English Common Law 49 of 50 states based on English Common Law Louisiana has law based on civil law Louisiana has law based on civil law Prior to English common law in England: Prior to English common law in England: Feudal barons (territorial rulers) acted as judges Feudal barons (territorial rulers) acted as judges Laws varied from region to region Laws varied from region to region Difficult for central government to maintain control Difficult for central government to maintain control

6. The King’s Court King Henry II appointed nobles as judges King Henry II appointed nobles as judges Followed the same set of guidelines Followed the same set of guidelines Traveled from village to village to do this Traveled from village to village to do this In winter, judges assembled in London In winter, judges assembled in London As the “Kings Bench” As the “Kings Bench” First formal appellate court First formal appellate court Baron courts still decided minor cases Baron courts still decided minor cases Kings Court always had jurisdiction Kings Court always had jurisdiction Heard the most important cases Heard the most important cases

7. Jury Kings Court appointed a panel of citizens Kings Court appointed a panel of citizens Acted as jury to help interpret local customs Acted as jury to help interpret local customs Kept the people happy, involved Kept the people happy, involved Unique to English common law system Unique to English common law system English common law follows precedent English common law follows precedent Using prior court cases as a guide Using prior court cases as a guide For similar cases For similar cases

8. Equity courts King appoints Chancellor King appoints Chancellor Clergyman respected for fairness, or equity Clergyman respected for fairness, or equity Held a hearing with no jury Held a hearing with no jury Advantages Advantages Chancellors could issue an injunction Chancellors could issue an injunction Prohibits something from doing something Prohibits something from doing something Disadvantages Disadvantages Only nobles protected Only nobles protected King realized that all citizens needed protection King realized that all citizens needed protection A system of equity courts was developed A system of equity courts was developed Chancellor oversaw these courts Chancellor oversaw these courts

9. What are the sources of our laws? Laws created at all three levels of gov’t. Laws created at all three levels of gov’t. They include: They include: Constitutions Constitutions Statutes Statutes Administrative regulations Administrative regulations Case law Case law

10. Constitutions Document Document Sets framework of a government Sets framework of a government Relationship to the people it governs Relationship to the people it governs When adopted or amended, or when courts interpret constitutions: When adopted or amended, or when courts interpret constitutions: Constitutional law is made Constitutional law is made You: You: Governed by U.S. Constitution and state’s Governed by U.S. Constitution and state’s

11. Constitution Allocates power: Allocates power: Between the people and government Between the people and government Bill of Rights – protects us from our government Bill of Rights – protects us from our government First 10 Amendments First 10 Amendments Between the federal and state governments Between the federal and state governments Foreign and interstate commerce – Federal gov’t. Foreign and interstate commerce – Federal gov’t. Intrastate commerce – Regulated by state Intrastate commerce – Regulated by state Among the branches of government Among the branches of government Checks/balances –Ensures no branch is too powerful Checks/balances –Ensures no branch is too powerful ex. Constitution gives judicial branch power to conduct trials, not the Executive or Legislative ex. Constitution gives judicial branch power to conduct trials, not the Executive or Legislative

12. Statutes Legislatures are empowered by people Legislatures are empowered by people Act for the people and create laws Act for the people and create laws Some power left to the local government: Some power left to the local government: Ordinances – Laws made at the local level Ordinances – Laws made at the local level (Think town, township, or borough laws) (Think town, township, or borough laws)

13. Administrative Regulations All levels of government can create these All levels of government can create these Administrative agencies Administrative agencies Governmental bodies Governmental bodies Formed to carry out particular laws Formed to carry out particular laws Examples: Examples: PENNDOT PENNDOT Dept. of Education Dept. of Education FDA FDA IRS IRS Others? Others?

14. Case Law Created by judicial branch Created by judicial branch Example: Example: Ruling has been made in a lower court Ruling has been made in a lower court An appeal is made to a higher court An appeal is made to a higher court Higher court makes ruling, publishes new rules for future cases Higher court makes ruling, publishes new rules for future cases Federal courts make rules for federal laws Federal courts make rules for federal laws State courts make rules for state laws State courts make rules for state laws Doctrine of Stare Decisis Doctrine of Stare Decisis Requires lower courts to follow established case laws in deciding similar cases Requires lower courts to follow established case laws in deciding similar cases

15. What happens when laws conflict? Constitution  “highest law of the land” Constitution  “highest law of the land” Any federal/state/local law is invalid if: Any federal/state/local law is invalid if: Conflicts with the federal constitution Conflicts with the federal constitution If a law does conflict, it is unconstitutional If a law does conflict, it is unconstitutional Supreme Court decides if it is unconstitutional Supreme Court decides if it is unconstitutional

16. What are the main types of laws? Civil law Civil law Legal rights of an individual are violated Legal rights of an individual are violated Wrongs against individual persons Wrongs against individual persons One person has the right to sue One person has the right to sue Criminal Law Criminal Law Crime – an offense against society Crime – an offense against society Government investigates alleged wrongdoings Government investigates alleged wrongdoings If it is a crime, and guilty party can be found… If it is a crime, and guilty party can be found… The government can (and usually will) prosecute The government can (and usually will) prosecute Fine, imprisonment, execution, etc. Fine, imprisonment, execution, etc. A crime can be both a criminal and civil offense A crime can be both a criminal and civil offense

17. Substantive vs. Procedural Substantive laws Substantive laws Defines rights and duties Defines rights and duties What is an unlawful offense? What is an unlawful offense? Murder, theft, vehicular homocide, negligence, etc. Murder, theft, vehicular homocide, negligence, etc. Procedural laws Procedural laws Methods for enforcing legal rights and duties Methods for enforcing legal rights and duties How will we enforce the law? How will we enforce the law? What will we do when the law is broken? What will we do when the law is broken? How and when you can be arrested… How and when you can be arrested… Methods used in trials Methods used in trials

18. Procedural Example Civil Procedure Criminal Procedure Used when a civil law is violated Defines the process for enforcing the law when someone is charged with a crime Concerned with private offenses Concerned with offenses against society Police probably will not get involved Police get involved by enforcing the law

19. Business Law Rules that apply to business transactions Rules that apply to business transactions Civil and criminal laws apply Civil and criminal laws apply Civil: Civil: Contracts - binding agreement between two or more Contracts - binding agreement between two or more Torts – offense against people of organizations Torts – offense against people of organizations ex. Manufacturer makes defective products that result in injury ex. Manufacturer makes defective products that result in injury Criminal: Criminal: An employee is stealing from his/her employer An employee is stealing from his/her employer Enron Enron

20. Chapter 1: Our Laws What is law? What is law? Reflect culture and circumstances Reflect culture and circumstances Code – Code – Civilizations through history had similarities Civilizations through history had similarities

21. Forming a Legal System Four Stages: People ______________ for wrongs done People ______________ for wrongs done Awards (money or goods) substituted for revenge Awards (money or goods) substituted for revenge Central authority figure intervenes Central authority figure intervenes

22. Common law vs. Positive law Legal system will fail if it is ____________ Legal system will fail if it is ____________ People change People change Best systems of law _____________________ Best systems of law _____________________ Common law (_________________) Common law (_________________) Law based on current standards of people Law based on current standards of people Usually pronounced by judges- use to settle disputes Usually pronounced by judges- use to settle disputes Positive law (________________) Positive law (________________) Laws set by central authority to PREVENT Laws set by central authority to PREVENT

23. Origin of our legal system? Louisiana has law based on civil law Louisiana has law based on civil law Prior to English common law in England: Prior to English common law in England: Feudal barons (territorial rulers) acted as judges Feudal barons (territorial rulers) acted as judges Laws varied from region to region Laws varied from region to region Difficult for central government to maintain control Difficult for central government to maintain control

24. The King’s Court ______________ appointed nobles as judges ______________ appointed nobles as judges Followed the same set of guidelines Followed the same set of guidelines Traveled from village to village to do this Traveled from village to village to do this In winter, ____________________________ In winter, ____________________________ As the “Kings Bench” As the “Kings Bench” Baron courts still decided minor cases Baron courts still decided minor cases Kings Court always had jurisdiction Kings Court always had jurisdiction Heard the most important cases Heard the most important cases

25. Jury Kings Court appointed ________________ Kings Court appointed ________________ Acted as jury to help interpret local customs Acted as jury to help interpret local customs Kept the people _____________________ Kept the people _____________________ Unique to English common law system Unique to English common law system English common law follows ___________ English common law follows ___________ For similar cases For similar cases

26. Equity courts King appoints Chancellor King appoints Chancellor Clergyman respected for fairness, or equity Clergyman respected for fairness, or equity Held a hearing with no jury Held a hearing with no jury Advantages Advantages Chancellors could issue an injunction Chancellors could issue an injunction Prohibits something from doing something Prohibits something from doing something Disadvantages Disadvantages King realized that _________________________ King realized that _________________________ A system of equity courts was developed A system of equity courts was developed Chancellor oversaw these courts Chancellor oversaw these courts

27. What are the sources of our laws? Laws created at all three levels of gov’t. Laws created at all three levels of gov’t. They include: They include:

28. Constitutions Sets framework of a government Sets framework of a government Relationship to the people it governs Relationship to the people it governs When __________________________, or when courts interpret constitutions: When __________________________, or when courts interpret constitutions: Constitutional law is made Constitutional law is made You: You: Governed by U.S. Constitution and state’s Governed by U.S. Constitution and state’s

29. Constitution Allocates power: Allocates power: Between the people and government Between the people and government _____________ – protects us from our government _____________ – protects us from our government Between the federal and state governments Between the federal and state governments Foreign and interstate commerce – Federal gov’t. Foreign and interstate commerce – Federal gov’t. Intrastate commerce – _______________________ Intrastate commerce – _______________________ Among the branches of government Among the branches of government Checks/balances –Ensures no branch is too powerful Checks/balances –Ensures no branch is too powerful ex. Constitution gives judicial branch power to conduct trials, not the Executive or Legislative ex. Constitution gives judicial branch power to conduct trials, not the Executive or Legislative

30. Statutes Legislatures are empowered by people Legislatures are empowered by people Some power left to the local government: Some power left to the local government: Ordinances – __________________________ Ordinances – __________________________ (Think town, township, or borough laws) (Think town, township, or borough laws)

31. Administrative Regulations All levels of government can create these All levels of government can create these Administrative agencies Administrative agencies Governmental bodies Governmental bodies Formed to ____________________________ Formed to ____________________________ Examples: Examples:

32. Case Law Created by judicial branch Created by judicial branch Example: Example: Ruling has been made in a __________________ Ruling has been made in a __________________ An appeal is made to a ____________________ An appeal is made to a ____________________ Higher court makes ruling, publishes new rules for future cases Higher court makes ruling, publishes new rules for future cases Federal courts make rules for federal laws Federal courts make rules for federal laws State courts make rules for state laws State courts make rules for state laws Doctrine of __________________________ Doctrine of __________________________ Requires lower courts to follow established case laws in deciding similar cases Requires lower courts to follow established case laws in deciding similar cases

33. What happens when laws conflict? Constitution  “_________________________________” Constitution  “_________________________________” Any federal/state/local law is invalid if: Any federal/state/local law is invalid if: Conflicts with the federal constitution Conflicts with the federal constitution If a law does conflict, it is _______________ If a law does conflict, it is _______________ Supreme Court decides if it is unconstitutional Supreme Court decides if it is unconstitutional

34. What are the main types of laws? Civil law Civil law Legal rights of an individual are violated Legal rights of an individual are violated Wrongs against individual persons Wrongs against individual persons Criminal Law Criminal Law Crime – _________________________________ Crime – _________________________________ Government investigates alleged wrongdoings Government investigates alleged wrongdoings If it is a crime, and guilty party can be found… If it is a crime, and guilty party can be found… The government can (and usually will) prosecute The government can (and usually will) prosecute A crime can be ___________________________ A crime can be ___________________________

35. Substantive vs. Procedural Substantive laws Substantive laws Defines rights and duties Defines rights and duties ____________________________________? ____________________________________? Murder, theft, vehicular homocide, negligence, etc. Murder, theft, vehicular homocide, negligence, etc. Procedural laws Procedural laws Methods for enforcing legal rights and duties Methods for enforcing legal rights and duties ________________________________________? ________________________________________? What will we do when the law is broken? What will we do when the law is broken? How and when you can be arrested… How and when you can be arrested… Methods used in trials Methods used in trials

36. Procedural Example Civil Procedure Criminal Procedure Used when a civil law is violated Defines the process for enforcing the law when someone is charged with a crime Concerned with private offenses

37. Business Law Rules that apply to _______________________ Rules that apply to _______________________ Civil and criminal laws apply Civil and criminal laws apply Civil: Civil: Contracts - __________________________________ Contracts - __________________________________ Torts – _____________________________________ Torts – _____________________________________ ex. Manufacturer makes defective products that result in injury ex. Manufacturer makes defective products that result in injury Criminal: Criminal: An employee is stealing from his/her employer An employee is stealing from his/her employer Enron Enron