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  1. Which law system is the American system based on?
    English common law system.
  2. Define law.
    A set of enforceable rules governing relationships among individuals and between individuals and their society.
  3. Why study the legal environment of business?
    • avoid criminal charges
    • establish liability
    • gain/defend reputation
    • become familiar with regulations (local, state, national)
  4. What are the three important factors in the development of legal rules and regulations?
    • predictability
    • stability and continuity
    • social policy
  5. Define morals.
    • Morals are based on values and relate to conscience or general principles of right conduct.
    • Morals define what you should do.
  6. Define justice.
    • Justice is the purpose of the law.
    • Justice is the fair, the equittable.
  7. Describe the natural school of law.
    The law is based on universal moral principles, that are inherent in nature and are discoverable through human reason.
  8. Describe the Positivist school of law.
    Laws are created by legitimate governments and must be obeyed, even if they appear unjust or otherwise at odds with natural law.
  9. Describe the historical school of law.
    Laws derive their legitimacy from the principles and standards that have proved historically workable.
  10. Describe the sociological school of law.
    Law is a tool to promote social justice and the purpose of the law is to shape social behavior.
  11. What are the 4 sources of American law?
    • Constitutional law (state and federal)
    • Legislative law (state and federal)
    • Administrative law (state and federal)
    • Judicial law (state and federal)
  12. What does the Constitution do?
    • The Constitution sets the powers and limitations of the government.
    • It is derived from the will of the people.
  13. What are the 2 parts of judicial law?
    • Common law - body of law developed by the vourts that serves as precedent for determination of later controversies
    • Equity - body of law based upon principles distinct from common law and provising remedies not available by law
  14. Define legislative law.
    statutes adopted by legislative bodies

    • Treaties - agreements between independent nations
    • Executive orders - laws issued by the president or by the govenor of a state
  15. What does stare decisis mean?
    It is the practice of referring to past precendents in deciding current disputes.
  16. What is a precedent?
    It is a prior judicial decision that can be applied to future cases based on similar facts.
  17. What are the 2 forms of remedy?
    • remedy at law (monetary)
    • remedy in equity (non-monetary)
  18. Name examples of remedies in equity.
    • specific performance
    • injunction
    • rescission
    • reformation
  19. What is the primary distinction between law and equity today?
    They differ in the area of remedies (monetary/non-monetary).
  20. What is a remedy?
    A remedy is the relief granted by the court.
  21. What are the 3 classification pairs of law?
    • substantive / procedural law
    • public / private law
    • civil / criminal law
  22. What is substantive law?
    Substantive law creates rights and duties.
  23. What is procedural law?
    Procedural law creates means to enforce rights and duties.
  24. What is public law?
    Public law adresses relationships between a person/legal entity and the state.
  25. What is private law?
    Private law addresses relationships among people/legal entities.
  26. What is criminal law?
    Criminal law redresses wrongs against the whole community.
  27. What is civil law?
    Civil law redresses wrongs against persons and/or entities.
  28. Describe the flow of classifications of the law.
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Review questions for Business Law and the Regulation of Business, 10th edition, Mann&Roberts, chapter 1
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