Chapter 1

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  1. Why Nation's Are Economically Weak or Strong
    • Dependency theory
    • Natural resources
    • Education and technology
    • Climate
    • Private market
    • Law and the legal system
  2. Law
    Law is intended to tell members of society what they can or cannot do.

    • Law is made up of rules
    • These rules are laid down by the stte and backed up by enforcement.
  3. The Rule of Law
    The Rule of Law's that are made are generally and equally applicable.

    They apply to all or most members of society and they apply to various groups in the same way.
  4. Property
    Property is the legal right that allows you to exclude others from your resources. It makes what is yours "yours." "ownership" the right to turn to public authorities like the police or the courts to help you keep others from interfering with what you own.

    1) Public Property applies to public resources owned by the government (or" state") like roads, public buildings, and monuments.

    2) Private Property, which applies to resources that you own as an individual.

    3) Common Property, which applies to resources like land that more than one individual owns jointly.
  5. Property in its Broadest Sense
    Property is the central concept of Western legal systems.

    A "right" means that legally you can keep others from interfering with that right. To be able to exclude others is the essence of property.
  6. The Wheel of Property
    • Property: The legal right to exclude others from various resources. Also called "ownership."
    • Criminal Law: Provides public protection for private resources and punishes those who harm them.
    • Administrative and Regulatory Law: Concerns public laws that protect, tax, regulate, or redistribute and owner's resources.
    • Tort Law: Protects and compensates owners through private civil lawsuits when their resources, including those they have in themselves, are wrongfully harmed by the actions of others.
    • Law of Business Organizations: Identifies how individuals can own and use resources in groups. Includes corporate governance.
    • Contract Law: Determines how resources, including labor, are exchanged between owners.
    • Constitutional Law: Establishes the framework of the state whose purpose is to protect property in its broadest sense.
  7. Jurisprudence
    • Jurisprudence is the philosophy of law.
    • The origin of law and its justification.

    • "Schools" of Law
    • Natural Law
    • Positive Law
    • Historical Law
    • Sociological Jurisprudence
    • Legal Realism
  8. Common Law and Civil Law
    Common law: emphasizes the role of judges in determining the meaning of laws.

    Civil law: relies more on legislation than judicial decisions for law.
  9. Public and Private Law
    • Public law: includes those matters that involve the regulation of society. *Special areas of property concern land, goods, copyrights patents, and trademarks.
    • Constitutional law: Which involves the interpretation and application of either the federal of state constitutions.
    • Administrative law: Which covers the legal principles that apply to government agencies, bureaus, boards, or commissions.
    • Criminal law: Which specifies various offenses against the proper order of the state.

    • Private law: Covers those legal problems and issues that concern your private resource relationships with other people. Including.
    • Property law: Which involves the recognition of exclusive right in both tangible (physically touchable) and intangible resources. *Special areas of property law concern land, goods, copyrights, trademarks, patents, and trade secrets.
    • Contract law: Which covers the rules of how owners transfer resources by exchanging them. Contracts often involve enforceable promises to exchange resources in the future.
    • Tort law: Which establishes rules for compensation when an o
    • wner's legal boundaries are wrongfully crossed by another. Tort law often but not always requires actual injury to the owners resources.
  10. Civil and Criminal Law
    Civil: Cases my include suits for Brach of contract or tort case, such as suits for personal injuries. Typically, they involve a request for damages or other appropriate relief, but not punishment of the wrongdoer.

    Criminal: Cases involve a representative of government attempting to prove the wrong committed against society and seeking to have the wrongdoer punished by the court system.
  11. Substantive Law and Procedural Law
    Substantive law: the legal relationship of people with other people or between the and the state.

    Procedural law: the method and mans by which substantive law is made and administered.
  12. Federal Law
    U.S. Constitution: the supreme law of the nation.

    Legislation passed by Congress called "acts", "statutes", and/or "codes"
  13. State Law
    • State Constitution: the supreme law of the state (but must follow at least the U.S. Constitution). State legislation are "acts", "statutes", and/or "codes".
    • Municipal/Local/County: Ordinance
  14. Judicial Decisions or Case Law
    Case Law: Previously heard cases that decisions interpret the recant constitutional, legislative, and regulatory laws.

    Decision or Opinion: Judges write their decision or opinion setting out reasons.

    The decision or opinion now become precedents.

    Citation: How to find previous cases in their "reporters".

    Stare decisis: is the doctrine of prior precedents. "let the prior decision stand".

    Holding: the precise legal response in an opinion by an appellate court on an issue of law raised on appeal.

    Dicta: Statements made in a judicial opinion that are not essential to the decision of the case.

    Constitutional relativity:  the courts should understand the constitution relative to the times in which they interpret it.

    Originalism: Stands for the idea that courts should interpret the Constitution only according to the intentions of those who wrote it.

    Conflicts of law: Rules of law the courts uses to determine that substantive law applies when there is an inconsistency between laws of different states or countries.
  15. Sources if Law Hierarchy in Review
    • U.S. Constitution and Amendments
    • Statutes
    • Federal administration regulation
    • State constitutions
    • State statutes
    • State administrative regulation
    • Local ordinances
    • Case law
  16. Legal Sanctions
    Sanctions: methods to encourage or to force compliance with the obedience to the law.

    • Remedy:  the right of an individual to take another person's resources (especially money)
    •  because that person has failed to meet the requirement of the law. (breach of contract)
  17. Sanctions for Criminal Conduct
    • Death
    • Imprisonment
    • Fine
    • Removal from office
    • Disqualification firm holding any office and from voting
  18. Sanctions for Breach of Contract
    Breach of Contract: When one party to a contract fails to do what he or she agreed to do.

    Compensatory damages: the usual remedy for a breach is a suit for dollar damages are awarded to make the victim of the breach feel "whole" in the economic sense.

    Specific performance: the remedy may be a decree/order by the court commanding that the breaching party perform a bargain as agreed.
  19. Sanctions for Tortious Conduct
    Tort is a civil wrong other than a breach of contract.

    1)Intentional torts: legal wrong caused by one who desires to cause the wrong or where the wrong is substantially likely to occurs from the behavior.

    2) Negligence: a person's failure to exercise reasonable care that foreseeable causes another injury.

    3) Strict liability: a party may be required to respond in tort damages without regard to such party's use of due care.

    Punitive damages/ Exemplary damages: are a civil punishment for intentional or extremely negligent wrongdoing. It's purpose is to deter others from such conduct in the future. The sanction/ remedy for tortious conduct to compensate injured plaintiff.
  20. Sanctions for violating Statutes and Regulations
    Statutes and Regulations often set boundaries of what it is proper for businesses to do in producing and selling goods and competing with other producers in the market.
  21. Property-Based Legal System and Corporate Governance
    Corporation: is a business chartered by the state to do business as legal persons.
  22. The Specific Sense or Corporate Governance
    Corporate governance: defines the legal relationship between corporate agents like managers or boards of directors and the shareholder owners of the corporation.
  23. The General Sense of Corporate Governance
    In a broad general sense, corporate governance includes the legal property relations that large businesses have with each other, with their customers, and with society.
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Chapter 1
2015-02-06 02:14:03

Law as a Foundation for Business
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