Chapter 1 Flashcards Preview

Business Law > Chapter 1 > Flashcards

Flashcards in Chapter 1 Deck (26):
1

Law

A body of rules of action or conduct prescribed by controlling authority, and having binding legal force. That which must be obeyed and followed by citizens subject to sanctions or legal consequences

2

Functions of the law

Keeping the peace;
Promoting social justice;
Maintaining the status quo;
Facilitating orderly change;
Facilitating planning;
Providing a basis for compromise;
Maximizing individual freedom

3

According to Judge Jerome Frank:

The law always has been, is now, and will ever continue to be, largely vague and variable

4

Jurisprudence

The philosophy or science of law

5

Natural Law School

Postulates that the law is based on what is "correct." Discovered by humans through the use of reason and choosing between good and evil. (Ex. US Constitution, Magna Carta, and United Nations Charter)

6

Moral theory of law

Law should be based on morality and ethics.

7

Historical School

Believes that law is an aggregate of social traditions and customs that have developed over the centuries

8

Analytical School

Maintains that the law is shaped by logic

9

Sociological School

Asserts that the law is a means of achieving and advancing certain sociological goals

10

Command School

Believe that the law is a set of rules developed, communicated, and enforced by the ruling party rather than a reflection of the society's morality, history, logic, or sociology. Law changes when the ruling class changes

11

Critical Legal Studies School

Maintains that legal rules are unnecessary and that legal disputes should be solved by applying arbitrary rules based on fairness

12

Law and Economics School

Believes that promoting market efficiency should be the central concern of legal decision making

13

Common law

Law developed by judges who issued their opinions when deciding a case The principles announced in these cases became precedent for later judges deciding similar cases

14

Law court

A court that developed and administered a uniform set of laws decreed by the kings and queens after William the Conqueror; legal procedure was emphasized over merits at that time

15

Court of Chancery

A court that granted relief based on fairness. Also called Equity Court

16

Merchant Court

The separate set of courts established to administer the "law of merchants"

17

Law Merchant

Laws established by merchants who traveled about England and Europe to solve their commercial disputes

18

Constitution of the United States of America

The supreme law of the United States

19

Legislative (Congress)

Power to make (enact) the law

20

Executive (president)

Power to enforce the law

21

Judicial (courts)

Power to interpret and determine the validity of the law

22

Treaty

A compact made between two or more nations

23

Statutes

Written laws enacted by the legislative branch of the federal and state governments that establish certain courses of conduct that must be adhered to by covered parties

24

U.S. Congress enacts federal statutes which include:

Antitrust laws, security laws, bankruptcy laws, labor laws, equal employment opportunity laws, environmental protection laws, and consumer protection laws

25

State legislatures enact state statutes which include:

Corporation laws, partnership laws, workers' compensation laws, and the Uniform Commercial Code

26

Ordinances

Laws enacted by local government bodies such as cities and municipalities, countries, school districts, and water districts