Business Law

Business Law

Chapter 1 Legal Heritage and the Digital age

1. Schools of Jurisprudential Thought

Jurisprudence- is the philosophy or science of law

1. School of Jurisprudential Thought Classical legal philosophies

Natural school- emphasizes moral theory of law that law should be based on morality and ethics.(choosing between good and evil)  Ex. Documents such as the U.S. Constitution, the Magna Carta, and the United Nations Charter reflect this theory.

Historical school- believes that the law is an aggregate of social traditions and customs that have developed over the centuries. Ex. Historical legal scholars look to past legal decisions (precedent) to solve contemporary problems.

Analytical school- is that law is shaped by logic. Results are reached by applying principles of logic to the specific facts of the case. Ex. If the U.S. constitution would have freed the slaves or granted females the right to vote, it would not have been ratified by the states in 1788.

Sociological school- is that law is a means of achieving and advancing certain sociological goals. Followers of this law are known as realist and believe law is to shape social behaviors. Ex. Laws that impose penalties fro drunk driving reflect this theory.

Command school- law is a set of rules developed, communicated, and enforced by the ruling party.

Critical legal studies school- proposes that legal rules are unnecessary and are used as an obstacle by the powerful to maintain the status quo. Applying arbitrary rules that are based on broad notions of what is fair should solve legal disputes.

Law and economics school- is that promoting market efficiency should be the central goal of legal decisions making. Also called the Chicago school

1. History of American Law 

English common law- law developed by judges who issued their opinions when deciding cases. The principles of these cases became precedent to similar cases.

English common law can by divided into

Law courts- king or queen appointed loyal followers as judges in local areas. These judges were charged with administering the law in a uniform manner. The only relief at law courts was monetary award for damages

Chancery (equity) courts- these courts were under the authority of the Lord Chancellor. Person who believed that the law court could not grant an appropriate remedy could seek relief in the court of chancery. These courts looked into the merit of the case. Remedies from the court of chancery took precedence over the remedies from the law courts.

Merchants courts- were based on common trade practices and usage from merchants who traveled about England and Europe.

1. Adaption of English Common Law:

All states in the US except Louisiana base their legal systems primarily on the English common law.

1. Civil law- dates to 450 BC.  The adjudication of a case is simply the application of the code or statute to a particular set of facts.

Constitution of US- is the law of the land

1. Treaties- a compact made between two or more nations. The constitution provides that the president with the consent of 2/3 of the senate may enter into treaties with foreign government.

Statue- written law enacted by the legislative branch of the federal and state government that establishes certain courses of conduct that covered parties must adhere to

1. Branches of the federal government:

The constitution established the structure of federal government.

Legislative (congress)- has he power to make (enact) laws

Executive (President)- has the power to enforce laws

Judicial (courts)- has the power to interpret laws and determine validity

1. Doctrine of stare decisis- is Latin for stand by the decision.  Based on common law traditions, past court decisions become precedent for deciding future cases. Lower courts must follow the precedents of higher courts. Promotes uniformity of law within a jurisdiction, makes the court system more efficient.

1. How a Bill becomes Law :

1. A member of the US house of representative or US senate introduces a bill in his or her chamber.
2. The bill is referred to the appropriate committee for review and study. The committee 1. reject the bill 2. report it to the full chamber for vote 3. simply not act on it in which case the bill is said to have died in the committee or 4. send the bill to a subcommittee for further study.
3. Bills that receive the vote of a committee are reported to the full chamber, where they are debated and voted on.
4. A bill that is reported to a full chamber must receive the majority vote of the chamber, and if it receives this vote, it is forwarded to the other chamber and if that other chamber votes it in then it is sent to the president’s desk.
5. If the president signs a bill, it becomes law. If the president takes no action for ten days, the bill automatically becomes law. if the president vetoes the bill, the bill can be passed into law if two-thirds of the members of the HS and two thirds of d S vote to override the veto and approve the bill. Many bills that are vetoed by the president do not obtain the necessary two-thirds vote to override the veto.

Chapter 2 Ethics and Social Responsibility of Business

1. LAWRENCE KOHLBERG'S COGNITIVE DEVELOPMENTAL PSYCHOLOGY Moral development based on structure not content
   A. CONTENT refers to the particular moral conclusion or belief
   B. STRUCTURE refers to the underlying reason for the moral conclusion or belief

KOHLBERG'S STAGES OF MORAL DEVELOPMENT 

LEVELS                                 PERSPECTIVE         JUSTIFICATION

Preconventional (childhood)                Self                         Punishment/Reward

Conventional (Adolescent)                  Group                         Group Norms

Postconventional (Adult)                Universal                  Moral Principles