Business Law Exam #1 2022/2023 with complete solutions

Four Main Sources of law in the U.S Common Law System 1. Constitutional law (U.S. Constitution and state constitutions) a. If there's ever a conflict between federal and state law, federal takes precedent 2. Statutory law (laws passed by federal and state legislatures) 3. Administrative Law (regulations passed by federal and state agencies) 4. Common law (court decisions from federal and state appellate courts) Constitutions create government and guarantee individual liberties. Constitutional law is the highest source of law and overrules all other sources of law • Establishes structure • Bill of Rights Statutes are laws that are enacted by the legislatures, and are a higher source of law than administrative law Administrative Law are regulations that are enacted by federal and state agencies • Administrative agencies carry out these regulations Common Law are court decisions, which become rules of law in the English/American legal system. This means the decision becomes a binding law that is not just binding on the immediate parties. Specifically, it's the appellate courts that make law through their decisions. Appellate courts hear appeals from trial courts only on issues of law. Facts decided by a trial court cannot be appealed. All trial courts, and lower appellate courts, must follow prior rulings on the same legal issue that were decided by higher appellate courts, in accordance with a rule called precedent, or stare decsisis. How court cases Proceed: 1. Cases start in a trial court. Jury decides facts. Judge applies the law. 2. Loser at trial can appeal automatically to intermediate appellate court. Only legal issues involving how the trial judge applied the law can be appealed. The jury's decision on the facts at trial is final. 3. Loser at intermediate appellate court can petition top appellate court (Supreme court) to hear case, via Writ of Certiorari (Cert). Most requests are denied. How to read cases: 1. Cases will normally be appellate cases (not trial cases) because trial courts do not create precedent. 2. First listed party on appeal may be the plaintiff, or the party who lost at trial. 3. To "brief" a case, identify the Material Facts (those facts relevant to the Legal Issue), the Legal Issue (the legal question that the appellate court must decide), the Holding (the court's decision on the legal issue), and the court's Rationale for the holding. Material facts should include the procedural history, i.e. who filed the suit, and who won at each level prior to this appellate court. The legal issue is always a question. The holding is the answer to that question, which can start with a "yes" or "no' answer on the question and then identify who won the appellate case and what the appellate court ordered. Law can be divided into two broad areas: Criminal Law v. Civil Law Criminal Law Plaintiff: Remedies: Goals: Standard Plaintiff must meet to win?: 1. Government 2. Jail, fine paid to government, etc. 3. Punishment, rehabilitation 4. Proof Beyond a Reasonable Doubt (90% likelihood of guilt) Civil Law Plaintiff: Remedies: Goals: Standard Plaintiff must meet to win?: 1. Private Individual 2. Monetary damages awarded to plaintiff, or court order* 3. Compensate plaintiff 4. Preponderance of Evidence (50% likelihood Plaintiff proved essential elements of case) Injunction orders defendant to stop doing something Specific Performance orders someone to do something How statutes are passed 1. Bill introduced in House or Senate 2. Majority (50%) approval in committee 3. Majority (50%) approval by both House and Senate 4. President or governor signs bill 5. President or governor may, instead, veto bill, in which case legislature can override veto by 2/3 vote in the House and Senate Senate Filibuster Senate has 100 members. Majority is 51 or more. Filibuster means 60% must vote to close debate before a vote on a bill can be taken in the Senate. If supporters of a bill don't have 60%, they can't pass a bill, even if they have majority support. This means that 41% of the members can stop passage of a bill. Contrast how the U.S Constitution is amended 2/3 vote in House and senate, plus approval by 75% or more of state legislatures Separation (division) of powers Article I creates the federal legislature (Congress) Article II creates the executive (President and Vice President) Article II creates the federal judiciary (federal court system) ` Bill of Rights (1st 10 amendments) protect individual freedoms against federal government. 14th amendment added to protect against states. Federalism Government is divided between federal and semi-autonomous states Checks and Balances One branch can check another branch (e.g., veto) Treaty Exclusively a federal law. Regulates relationship between U.S. and foreign country. Approval requires vote in just the Senate, but by 2/3 or greater. Once passed, it is the equivalent of a federal statute Popular Initiative (Referendum) In some states (e.g., Florida and California), the people may sign petition to place a bill or constitutional amendment on the ballot, and then pass either by a majority (50%) vote at the polls. Not available in most states, or on the federal level. Legal philosophies appellate judges use in deciding cases: Natural Law, Legal Positivism, Legal Realism, Historical School