Our Legal SystemOur Legal System

Business LawBusiness Law

Mr. DelPrioreMr. DelPriore

Our LawsOur Laws

What is law?What is law? Enforceable rules of conduct in a Enforceable rules of conduct in a

societysociety Reflect culture and circumstancesReflect culture and circumstances

Code – Code – Laws grouped into an organized formLaws grouped into an organized form Civilizations through history had Civilizations through history had

similaritiessimilarities

Forming a Legal SystemForming a Legal System

Four Stages:Four Stages: People take revenge for wrongs People take revenge for wrongs

donedone Awards (money or goods) Awards (money or goods)

substituted for revengesubstituted for revenge Court systems are formedCourt systems are formed Central authority figure intervenes Central authority figure intervenes

Prevents and punishes wrongsPrevents and punishes wrongs

Common law vs. Positive lawCommon law vs. Positive law

Legal system will fail if it is inflexibleLegal system will fail if it is inflexible People changePeople change Best systems of law gradually evolveBest systems of law gradually evolve

Common law (REACTIVE)Common law (REACTIVE) Law based on current standards of Law based on current standards of

people people Usually pronounced by judges- use to Usually pronounced by judges- use to

settle disputessettle disputes Positive law (PROACTIVE)Positive law (PROACTIVE)

Laws set by central authority to PREVENTLaws set by central authority to PREVENT

Origin of our legal system?Origin of our legal system?

49 of 50 states based on English 49 of 50 states based on English Common LawCommon Law Louisiana has law based on civil lawLouisiana has law based on civil law

Prior to English common law in Prior to English common law in England:England: Feudal barons (territorial rulers) acted Feudal barons (territorial rulers) acted

as judgesas judges Laws varied from region to regionLaws varied from region to region Difficult for central government to Difficult for central government to

maintain controlmaintain control

The King’s CourtThe King’s Court

King Henry II appointed nobles as judgesKing Henry II appointed nobles as judges Followed the same set of guidelinesFollowed the same set of guidelines

Traveled from village to village to do thisTraveled 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 courtFirst formal appellate court

Baron courts still decided minor casesBaron courts still decided minor cases Kings Court always had jurisdictionKings Court always had jurisdiction

Heard the most important casesHeard the most important cases

JuryJury

Kings Court appointed a panel of Kings Court appointed a panel of citizenscitizens Acted as jury to help interpret local customsActed as jury to help interpret local customs

Kept the people happy, involvedKept the people happy, involved Unique to English common law systemUnique to English common law system English common law follows English common law follows precedentprecedent

Using prior court cases as a guideUsing prior court cases as a guide For similar casesFor similar cases

Equity courtsEquity courts

King appoints ChancellorKing appoints Chancellor Clergyman respected for fairness, or equity Clergyman respected for fairness, or equity Held a hearing with no juryHeld a hearing with no jury Advantages Advantages

Chancellors could issue an injunctionChancellors could issue an injunction Prohibits something from doing somethingProhibits something from doing something

DisadvantagesDisadvantages Only nobles protectedOnly nobles protected

King realized that all citizens needed King realized that all citizens needed protectionprotection

A system of equity courts was developed A system of equity courts was developed Chancellor oversaw these courtsChancellor oversaw these courts

What are the sources of our laws?What are the sources of our laws?

Laws created at all three levels of Laws created at all three levels of gov’t.gov’t.

They include:They include: ConstitutionsConstitutions StatutesStatutes Administrative regulationsAdministrative regulations Case lawCase law

ConstitutionsConstitutions

DocumentDocument Sets framework of a governmentSets framework of a government Relationship to the people it governsRelationship to the people it governs When adopted or amended, or when When adopted or amended, or when

courts interpret constitutions:courts interpret constitutions: Constitutional lawConstitutional law is made is made

You:You: Governed by U.S. Constitution and state’sGoverned by U.S. Constitution and state’s

ConstitutionConstitution Allocates power:Allocates power:

Between the people and governmentBetween the people and government Bill of Rights – protects us from our governmentBill of Rights – protects us from our government

First 10 AmendmentsFirst 10 Amendments

Between the federal and state Between the federal and state governmentsgovernments

Foreign and interstate commerce – Federal Foreign and interstate commerce – Federal gov’t. gov’t.

Intrastate commerce – Regulated by stateIntrastate commerce – Regulated by state Among the branches of governmentAmong the branches of government

Checks/balances –Ensures no branch is too Checks/balances –Ensures no branch is too powerfulpowerful

ex. Constitution gives judicial branch power to ex. Constitution gives judicial branch power to conduct trials, not the Executive or Legislativeconduct trials, not the Executive or Legislative

StatutesStatutes

Legislatures are empowered by Legislatures are empowered by peoplepeople Act for the people and create lawsAct for the people and create laws

Some power left to the local Some power left to the local government:government: OrdinancesOrdinances – – Laws made at the local Laws made at the local

levellevel (Think town, township, or borough laws)(Think town, township, or borough laws)

Administrative RegulationsAdministrative Regulations

All levels of government can create All levels of government can create these these

AdministrativeAdministrative agenciesagencies Governmental bodiesGovernmental bodies Formed to carry out particular laws Formed to carry out particular laws Examples: Examples:

PENNDOTPENNDOT Dept. of EducationDept. of Education FDAFDA IRSIRS Others?Others?

Case LawCase Law Created by judicial branchCreated 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 courtAn appeal is made to a higher court

Higher court makes ruling, publishes new rules for Higher court makes ruling, publishes new rules for future casesfuture cases

Federal courts make rules for federal lawsFederal courts make rules for federal laws State courts make rules for state lawsState courts make rules for state laws

Doctrine of Doctrine of Stare DecisisStare Decisis Requires lower courts to follow established case Requires lower courts to follow established case

laws in deciding similar caseslaws in deciding similar cases

What happens when laws conflict?What happens when laws conflict?

Constitution Constitution “highest law of the “highest law of the land”land”

Any federal/state/local law is invalid Any federal/state/local law is invalid if:if: Conflicts with the federal constitutionConflicts with the federal constitution

If a law does conflict, it is If a law does conflict, it is unconstitutionalunconstitutional Supreme Court decides if it is Supreme Court decides if it is

unconstitutionalunconstitutional

What are the main types of laws?What are the main types of laws? Civil lawCivil law

Legal rights of an individual are violatedLegal rights of an individual are violated Wrongs against individual personsWrongs against individual persons One person has the right to sueOne person has the right to sue

Criminal LawCriminal Law CrimeCrime – an offense against society – an offense against society Government investigates alleged wrongdoingsGovernment 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) prosecuteThe government can (and usually will) prosecute Fine, imprisonment, execution, etc.Fine, imprisonment, execution, etc.

A crime can be both a criminal and civil offenseA crime can be both a criminal and civil offense

Substantive vs. Procedural Substantive vs. Procedural

Substantive lawsSubstantive laws Defines rights and dutiesDefines rights and duties What is an unlawful offense?What is an unlawful offense?

Murder, theft, vehicular homocide, negligence, Murder, theft, vehicular homocide, negligence, etc.etc.

Procedural lawsProcedural laws Methods for enforcing legal rights and Methods for enforcing legal rights and

dutiesduties 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 trialsMethods used in trials

Procedural ExampleProcedural Example

Civil ProcedureCivil Procedure Criminal ProcedureCriminal Procedure

Used when a civil law Used when a civil law is violated is violated

Defines the process Defines the process for enforcing the law for enforcing the law when someone is when someone is charged with a crime charged with a crime

Concerned with Concerned with private offenses private offenses

Concerned with Concerned with offenses against offenses against society society

Police probably will Police probably will not get involved not get involved

Police get involved by Police get involved by enforcing the law enforcing the law

Business LawBusiness Law

Rules that apply to business transactionsRules that apply to business transactions Civil and criminal laws applyCivil and criminal laws apply Civil:Civil:

Contracts - binding agreement between two or Contracts - binding agreement between two or moremore

Torts – offense against people of organizationsTorts – offense against people of organizations ex. Manufacturer makes defective products that result ex. Manufacturer makes defective products that result

in injuryin injury

Criminal:Criminal: An employee is stealing from his/her employerAn employee is stealing from his/her employer EnronEnron

Chapter 1: Our LawsChapter 1: Our Laws

What is law?What is law? Reflect culture and circumstancesReflect culture and circumstances

Code – Code – Civilizations through history had Civilizations through history had

similaritiessimilarities

Forming a Legal SystemForming a Legal System

Four Stages:Four Stages: People ______________ for wrongs People ______________ for wrongs

donedone Awards (money or goods) Awards (money or goods)

substituted for revengesubstituted for revenge Central authority figure intervenes Central authority figure intervenes

Common law vs. Positive lawCommon law vs. Positive law

Legal system will fail if it is ____________Legal system will fail if it is ____________ People changePeople 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 Usually pronounced by judges- use to

settle disputessettle disputes Positive law (________________)Positive law (________________)

Laws set by central authority to PREVENTLaws set by central authority to PREVENT

Origin of our legal system?Origin of our legal system?

Louisiana has law based on civil lawLouisiana has law based on civil law

Prior to English common law in Prior to English common law in England:England: Feudal barons (territorial rulers) acted Feudal barons (territorial rulers) acted

as judgesas judges Laws varied from region to regionLaws varied from region to region Difficult for central government to Difficult for central government to

maintain controlmaintain control

The King’s CourtThe King’s Court

______________ appointed nobles as judges______________ appointed nobles as judges Followed the same set of guidelinesFollowed the same set of guidelines

Traveled from village to village to do thisTraveled from village to village to do this In winter, ____________________________ In winter, ____________________________

As the “Kings Bench”As the “Kings Bench”

Baron courts still decided minor casesBaron courts still decided minor cases Kings Court always had jurisdictionKings Court always had jurisdiction

Heard the most important casesHeard the most important cases

JuryJury

Kings Court appointed ________________Kings Court appointed ________________ Acted as jury to help interpret local customsActed as jury to help interpret local customs

Kept the people _____________________Kept the people _____________________ Unique to English common law systemUnique to English common law system English common law follows English common law follows ______________________

For similar casesFor similar cases

Equity courtsEquity courts

King appoints ChancellorKing appoints Chancellor Clergyman respected for fairness, or equity Clergyman respected for fairness, or equity Held a hearing with no juryHeld a hearing with no jury Advantages Advantages

Chancellors could issue an injunctionChancellors could issue an injunction Prohibits something from doing somethingProhibits something from doing something

DisadvantagesDisadvantages

King realized that _________________________King realized that _________________________ A system of equity courts was developed A system of equity courts was developed Chancellor oversaw these courtsChancellor oversaw these courts

What are the sources of our laws?What are the sources of our laws?

Laws created at all three levels of Laws created at all three levels of gov’t.gov’t.

They include:They include:

ConstitutionsConstitutions

Sets framework of a governmentSets framework of a government Relationship to the people it governsRelationship to the people it governs When __________________________, or When __________________________, or

when courts interpret constitutions:when courts interpret constitutions: Constitutional lawConstitutional law is made is made

You:You: Governed by U.S. Constitution and state’sGoverned by U.S. Constitution and state’s

ConstitutionConstitution Allocates power:Allocates power:

Between the people and governmentBetween the people and government _____________ – protects us from our government_____________ – protects us from our government

Between the federal and state Between the federal and state governmentsgovernments

Foreign and interstate commerce – Federal gov’t. Foreign and interstate commerce – Federal gov’t. Intrastate commerce – _______________________Intrastate commerce – _______________________

Among the branches of governmentAmong the branches of government Checks/balances –Ensures no branch is too Checks/balances –Ensures no branch is too

powerfulpowerful ex. Constitution gives judicial branch power to conduct ex. Constitution gives judicial branch power to conduct

trials, not the Executive or Legislativetrials, not the Executive or Legislative

StatutesStatutes

Legislatures are empowered by Legislatures are empowered by peoplepeople

Some power left to the local Some power left to the local government:government: OrdinancesOrdinances – – ____________________________________________________ (Think town, township, or borough laws)(Think town, township, or borough laws)

Administrative RegulationsAdministrative Regulations

All levels of government can create All levels of government can create these these

AdministrativeAdministrative agenciesagencies Governmental bodiesGovernmental bodies Formed to ____________________________Formed to ____________________________ Examples: Examples:

Case LawCase Law Created by judicial branchCreated 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 Higher court makes ruling, publishes new rules for future casesfuture cases

Federal courts make rules for federal lawsFederal courts make rules for federal laws State courts make rules for state lawsState courts make rules for state laws

Doctrine of Doctrine of ____________________________________________________ Requires lower courts to follow established case Requires lower courts to follow established case

laws in deciding similar caseslaws in deciding similar cases

What happens when laws conflict?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 constitutionConflicts with the federal constitution

If a law does conflict, it is If a law does conflict, it is ______________________________ Supreme Court decides if it is Supreme Court decides if it is

unconstitutionalunconstitutional

What are the main types of laws?What are the main types of laws? Civil lawCivil law

Legal rights of an individual are violatedLegal rights of an individual are violated Wrongs against individual personsWrongs against individual persons

Criminal LawCriminal Law CrimeCrime – _________________________________ – _________________________________ Government investigates alleged wrongdoingsGovernment 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) prosecuteThe government can (and usually will) prosecute

A crime can be ___________________________A crime can be ___________________________

Substantive vs. Procedural Substantive vs. Procedural

Substantive lawsSubstantive laws Defines rights and dutiesDefines rights and duties ____________________________________?____________________________________?

Murder, theft, vehicular homocide, negligence, Murder, theft, vehicular homocide, negligence, etc.etc.

Procedural lawsProcedural laws Methods for enforcing legal rights and Methods for enforcing legal rights and

dutiesduties ________________________________________?________________________________________? 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 trialsMethods used in trials

Procedural ExampleProcedural Example

Civil ProcedureCivil Procedure Criminal ProcedureCriminal Procedure

Used when a civil law Used when a civil law is violated is violated

Defines the process Defines the process for enforcing the law for enforcing the law when someone is when someone is charged with a crime charged with a crime

Concerned with Concerned with private offenses private offenses

Business LawBusiness Law

Rules that apply to _______________________Rules that apply to _______________________ Civil and criminal laws applyCivil and criminal laws apply Civil:Civil:

Contracts - __________________________________Contracts - __________________________________ Torts – _____________________________________Torts – _____________________________________

ex. Manufacturer makes defective products that result ex. Manufacturer makes defective products that result in injuryin injury

Criminal:Criminal: An employee is stealing from his/her employerAn employee is stealing from his/her employer EnronEnron