Essentials of Business Law Chapter 1

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Natural Law
universal law guided by a moral reasoning that enable all to know the difference between right and wrong; “an unjust law is no law” example: abortion.
Positive Law
a just law is one created by the sovereign or ruling authority; *a legislature, executive, or the judiciary; a positivist believes a law enacted by the sovereign must be followed and that there is no unjust law if enacted by the recognized political authority; basically, a law is a law.
Legal Realism
recognizes that lawmakers are influenced by many factors, and that these influences affect the decision being made; concerned with results; a legal realist prefers laws that leave room for decision makers’ discretion as they implement the law.
Law
a set of guidelines that help maintain order in society.
The Supreme Source of Law for the US
4 primary sources of law: constitution, statutory law, judicial decisions, administrative law; the supreme source of law is through the interpretation and application of constitutional provisions (constitutional law).
Constitutional Law
All law in the United States must be consistent with the constitution, if that law is to be enforced. It establishes a federation as our government structure, with both a national government and independent state governments.
Uniformal Commercial Code
The UCC addresses topics of law involved in commercial transactions . The UCC concerns itself with topics of sales law, commercial paper, and secured transactions in personal property.
Regulations of Department of Agriculture
Part of the administrative agency; It is part of administrative law: these market failures: lack of adequate information concerning products in the marketplace; tendency of certain markets to favor natural monopolies; inability to internalize externalities, and finally failure to provide certain public goods, created a need for more corrective action by the government.
How To Find An Attorney
-asking friends & family
-state bar certified lawyer referral services
-yellow pages/telephone directory
-contact local bar association.
Fees
there are two types of fee agreements: contingency and non contingency; a person is only entitled to attorney fees for winning a lawsuit if there is either a statutory provision permitting the recovery of attorney fees or a contract providing that attorney fees are recoverable, otherwise there is no right to recover attorney fees for being a successful in a lawsuit.
Contingency Agreements
the attorney agrees to take a % of the $ you are entitled to upon winning the lawsuit, if you lose the lawsuit, the attorney is not entitled to any fees. However, whether you lose or win you are responsible for paying any court costs. It must be in writing and state the percentage agreed by the client and attorney.
Hourly
permits the attorney to charge you for the actual time spent on your legal matter.
Fixed
charged for routine items such as preparing a will; the set fee will not vary.
Retainer
may be a partial payment of the entire fee, that operates like a down payment in that the attorney charges against the retainer and requires the client to put more $ up when the retainer drops to a certain amount.
Codified
when a law has been placed into one of the existing codes.
Different Branches of Government
Legislative, Executive, and Judicial.
Legislative
Makes the law and frames a public policy; creates the congress and consists of the senate and the house of reps.
Executive
Enforces, executes, and administers the law; establishes the presidency and its duties.
Judicial
settles public disputes that arise within the society and more; creates the judiciary.
Legal Remedy
where a person is seeking money damages (monetary=money).
Specific Performance
used when a contract has been breached (broken) and the harmed person wants the specific contract performance agreed to; usually only given to when the item is unique and money damages would not be adequate.
Classifications of Laws
three basic classifications
-substantive or procedural
-public or private
-evil or criminal.
Substantive Laws
affects individuals by either granting them legal rights or legal duties on them.
Procedural Laws
enforce the rights or duties granted by the substantive laws by imposing on the government a structure that must be followed when establishing or enforcing substantive laws.
Private Laws
Contract law, property law, tort law, and business entity law are examples of this law.
Public Laws
deals with how the government is organized and how it interacts with the people of the country (constitutional, criminal, and administrative).
Civil Law
concerned with how individuals interact with each other.
Criminal Law
concerned with the behavior that is considered unacceptable to society at large; the governments attempt to restrict behavior that disrupts the societal order.
Common Law
Judge-made law. Judges generally follow precedent. When court decide a case, they tend to apply the legal rules that other courts have used in similar cases.

The principle that precedent is building on later cases is called stare decisis, which means “let the decision stand”.

Precedent
The tendency to decide current cases based on previous rulings.
Statute
A law created by a legislative body. The Constitution gave to the United States Congress the power to pass laws on various subjects.
Jurisprudence
The philosophy of law. It is concerned with the basic nature of law.

1. Legal positivism: The law is what the sovereign says it is.
2. Natural Law: An unjust law is no law at all.
3. Legal realism: Who enforces the law is more important than what the law says.

Sovereign
The recognized political power, whom citizens obey.
Plaintiff
The party who is suing.
Defendant
The party being sued.
Court Orders
Judges have the authority to issue court orders that place binding obligations on specific people or companies.
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