BLAW 341 EXAM 1 2026 REVISION NOTES AND
STRUCTURED BUSINESS LAW OVERVIEW
GUIDE
◉ Areas of the Law that May Affect Business Decision Making.
Answer: Contracts, sales and e-commerce, negotiating instruments,
intellectual property, professional liability, product liability, torts,
agency, business organizations, environmental laws, courts and
court procedures.
◉ Primary source of law. Answer: -Constitutional Law
-Statutory Law
-Administrative Law
-Case Law
-Executive Orders
A source that establishes the law on a particular issue, such as a
constitution, a statute, an administrative rule, or a court decision.
ex. The U.S. Constitution and state constitutions, Statutory law,
regulations created by administrative agencies, and case law.
◉ Secondary source of law. Answer: A publication that summarizes
or interprets the law, such as a legal encyclopedia, a legal treatise, or
an article in a law review.
,◉ Constitutional law. Answer: The body of law derived from the U.S.
Constitution and the constitutions of the various states.
◉ Statutory law. Answer: The body of law enacted by legislative
bodies (as opposed to constitutional law, administrative law, or case
law). Includes local ordinances. No federal statute may violate the
Constitution, and no state statute or local ordinance may violate the
U.S. Constitution or state constitution.
ex. statutes passed by Congress or by state legislatures.
◉ Ordinance. Answer: A regulation enacted by a city or county
legislative body that becomes part of that state's statutory law.
◉ Uniform laws. Answer: Not law UNLESS AND UNTIL ADOPTED by
legislature. Model laws developed by the National Conference of
Commissioners on Uniform State Laws for the states to consider
enacting into statute.
ex. The Uniform Commercial Code (UCC)
◉ Administrative law. Answer: The body of law created by
administrative agencies in order to carry out their duties and
responsibilities.
,◉ Administrative agency. Answer: a federal, state, or local
government agency established to perform a specific function.
Include both federal agencies (ex. FDA) and state and local agencies
(state pollution-control agency).
◉ Enabling legislation (agency creation). Answer: A statute enacted
by Congress that authorizes the creation of an administrative agency
and specifies the name, composition, purpose, and powers of the
agency being created.
◉ Administrative process. Answer: The procedure used by
administrative agencies in fulfilling their three basic functions:
rulemaking, enforcement, and adjudication (resolve judicially).
◉ Legislative Rules (under APA). Answer: 1. Notice of the proposed
rulemaking. Must be published in the Federal Register.
2. A comment period. The agency must allow ample time for
interested parties to comment in writing on the proposed rule.
3. The final rule. Once the agency has drafted the final rule, it is
published in the Federal Register.
◉ Case Law. Answer: The rules of law announced in court decisions.
Case law interprets statutes, regulations, and constitutional
provisions, and governs all areas not covered by statutory or
administrative law.
, ◉ Stare Decisis (precedent). Answer: To stand on decided cases.
Practice of deciding new cases based on precedent. A higher court's
decision based on certain facts of law and law is a binding authority
on lower within the SAME jurisdiction. Aids legal stability.
1. A court should not overturn its own precedents unless there is a
strong reason to do so.
2. Decisions made by a higher court are binding on lower courts.
◉ Binding authority (controlling precedents). Answer: Any source of
law that a court must follow when deciding a case. Binding
authorities include constitutions, statutes, and regulations. United
Supreme Court case decisions, no matter how old, remain
controlling until they are overruled by a subsequent decision of the
Supreme Court, by a constitutional amendment, or by congressional
legislation.
◉ Departures from Precedent (rare): Brown v. Board of Education
(1954). Answer: The U.S. Supreme Court overturned precedent
when it held that 'separate but equal' facilities were
unconstitutional.
◉ Departures from Precedent (rare): Dobbs v. Jackson Women's
Health Organization (2022). Answer: The U.S. Supreme Court
overturned precedent of Roe v. Wade (1973) when it held the right
STRUCTURED BUSINESS LAW OVERVIEW
GUIDE
◉ Areas of the Law that May Affect Business Decision Making.
Answer: Contracts, sales and e-commerce, negotiating instruments,
intellectual property, professional liability, product liability, torts,
agency, business organizations, environmental laws, courts and
court procedures.
◉ Primary source of law. Answer: -Constitutional Law
-Statutory Law
-Administrative Law
-Case Law
-Executive Orders
A source that establishes the law on a particular issue, such as a
constitution, a statute, an administrative rule, or a court decision.
ex. The U.S. Constitution and state constitutions, Statutory law,
regulations created by administrative agencies, and case law.
◉ Secondary source of law. Answer: A publication that summarizes
or interprets the law, such as a legal encyclopedia, a legal treatise, or
an article in a law review.
,◉ Constitutional law. Answer: The body of law derived from the U.S.
Constitution and the constitutions of the various states.
◉ Statutory law. Answer: The body of law enacted by legislative
bodies (as opposed to constitutional law, administrative law, or case
law). Includes local ordinances. No federal statute may violate the
Constitution, and no state statute or local ordinance may violate the
U.S. Constitution or state constitution.
ex. statutes passed by Congress or by state legislatures.
◉ Ordinance. Answer: A regulation enacted by a city or county
legislative body that becomes part of that state's statutory law.
◉ Uniform laws. Answer: Not law UNLESS AND UNTIL ADOPTED by
legislature. Model laws developed by the National Conference of
Commissioners on Uniform State Laws for the states to consider
enacting into statute.
ex. The Uniform Commercial Code (UCC)
◉ Administrative law. Answer: The body of law created by
administrative agencies in order to carry out their duties and
responsibilities.
,◉ Administrative agency. Answer: a federal, state, or local
government agency established to perform a specific function.
Include both federal agencies (ex. FDA) and state and local agencies
(state pollution-control agency).
◉ Enabling legislation (agency creation). Answer: A statute enacted
by Congress that authorizes the creation of an administrative agency
and specifies the name, composition, purpose, and powers of the
agency being created.
◉ Administrative process. Answer: The procedure used by
administrative agencies in fulfilling their three basic functions:
rulemaking, enforcement, and adjudication (resolve judicially).
◉ Legislative Rules (under APA). Answer: 1. Notice of the proposed
rulemaking. Must be published in the Federal Register.
2. A comment period. The agency must allow ample time for
interested parties to comment in writing on the proposed rule.
3. The final rule. Once the agency has drafted the final rule, it is
published in the Federal Register.
◉ Case Law. Answer: The rules of law announced in court decisions.
Case law interprets statutes, regulations, and constitutional
provisions, and governs all areas not covered by statutory or
administrative law.
, ◉ Stare Decisis (precedent). Answer: To stand on decided cases.
Practice of deciding new cases based on precedent. A higher court's
decision based on certain facts of law and law is a binding authority
on lower within the SAME jurisdiction. Aids legal stability.
1. A court should not overturn its own precedents unless there is a
strong reason to do so.
2. Decisions made by a higher court are binding on lower courts.
◉ Binding authority (controlling precedents). Answer: Any source of
law that a court must follow when deciding a case. Binding
authorities include constitutions, statutes, and regulations. United
Supreme Court case decisions, no matter how old, remain
controlling until they are overruled by a subsequent decision of the
Supreme Court, by a constitutional amendment, or by congressional
legislation.
◉ Departures from Precedent (rare): Brown v. Board of Education
(1954). Answer: The U.S. Supreme Court overturned precedent
when it held that 'separate but equal' facilities were
unconstitutional.
◉ Departures from Precedent (rare): Dobbs v. Jackson Women's
Health Organization (2022). Answer: The U.S. Supreme Court
overturned precedent of Roe v. Wade (1973) when it held the right
