Chapter One

INTRODUCTION TO LAW

 

1. Law is the system of rules of conduct issued by a sovereign state commanding what is right and prohibiting what is wrong.
   
2. We have laws to provide a stable framework to keep society operating as smoothly and justly as possible.
   
3. Four sources of law are judicial decisions, constitutions, statutes, and administrative agency orders.
   
4. Crimes are offenses against society as a whole. Torts are private or civil wrongs or injuries for which the injured person may bring an action for damages.  Ethics is the study of the morality of conduct, its motives, and duties.

Lesson Outline

1. Law is a rule of civil conduct, commanding what is right and prohibiting what is wrong.
   
2. Business law is concerned primarily with those rules of conduct prescribed by government for the performance of business transactions.
   
3. The common law is that system of judge-made law which was developed in England and brought to this country
   
4. Most common law was made statutory law by the colonies and later by the states.
   
5. Equity is a system of law developed through judicial decisions based upon what the courts considered right and just, not upon some statutory law.
   
6. Our laws are derived from judicial decisions, constitutions, statutes, and administrative agency regulations.
   
7. Constitutional law defines the relationships of the parts of  the government to each other and the relationship of the government to its citizens,  The U. S. constitution is the supreme law of the land.  The Bill of Rights is an addition to the U. S. Constitution designed to protect individual liberty.  States also have constitutions, and they must not contradict the U. S. Constitution.
   
8. Statutory laws are formal enactments of organized legislative bodies; Congress, State legislatures, city councils.
   
9. Administrative law consists of rulings of administrative agencies set up by our legislative bodies.  Agencies issue orders and decrees that have the force of law. 
   
10. Law is civil or criminal.  Civil law deals with the enforcement or protection of private rights.
    
11. Criminal law is the branch of law that deals with crimes and the punishment of wrong-doers.  Crimes are classified as felonies or misdemeanors.
    
12. Tort law concerns private or civil wrongs or injuries, other than breaches of contracts.
    
13. Ethics is the study of the morality of conduct, its motives, and duties.
    
14. Ethical judgments are based on personal values developed from religious beliefs, experience, cultural background, and scientific knowledge.
    
15. Ethical principles apply to law where there are serious consequences. They reflect the view of the majority and change over time.
    
16. Ethical standards help determine business practices.  Some standards are legally enforceable and others are voluntary.  

Chapter Two

COURTS AND COURT PROCEDURE

1. The function of the courts is to declare and apply judicial precedents and to interpret the laws passed by the legislative branch of government.
   
2. In our society, courts are bound by decisions of higher appellate courts.  Trial Courts are therefore bound by their appellate courts. All courts both federal and state, are bound by decision of the U.S. Supreme Court.
   
3. The first step in filing a lawsuit is for the plaintiff to file a complaint or petition with the clerk of the court.
   
4. In a jury trial, a jury is selected and sworn in.  The plaintiff and then the defendant make an opening statement.  The plaintiff calls witnesses and they testify.  The defendant then calls witnesses to testify.  After all witnesses have testified and all the evidence has been presented, closing statements are made.   The jury is instructed by the judge, and then the jury deliberates its verdict.

Lesson Outline

1. It is the function of the courts to interpret and apply the law to a given situation.
   Courts must have jurisdiction over the subject matter of the case and over the person of the parties. 
   
2. Courts are classified as Federal, State, or Municipal courts.
   
3. Appellate courts exercise considerable authority over the courts under them.
   
4. Federal courts are classified as Special Federal Courts, District Courts, Circuit Courts of Appeals, and the U. S. Supreme Court.
   
5. Special federal courts include the Court of International Trade and the United States Claims Court.
   
6. Federal district courts are the largest class of federal courts.
   
7. Federal courts of appeals hear appeals from federal district courts.
   
8. The U. S. Supreme Court, for the most part, hears cases appealed from the federal courts of appeals.
   
9. State courts are classified as:  inferior courts, court of original general jurisdiction, appellate courts, and special courts.   
   
10. The state inferior courts include those of a very limited jurisdiction, and may be called justice courts, district courts, magistrate courts, county courts, small claims courts, or municipal courts.
    
11. Courts of original general jurisdictions are, for the average citizen, the most important court in the state.  It is in them that the case is first instituted. Because of variations among the states, the name of the court will not always indicate whether it is an inferior court or a court of record.  District or circuit courts may be inferior courts in some states and courts of record in others.
    
12. Some states have an intermediate appellate court system. All states have a highest appellate court, usually called the state supreme court. However, in New York, the supreme court is a trial court, not an appellate court. The highest court in New York is called the court of appeals.
    
13. Special courts include probate courts, juvenile courts, and domestic relations courts.
    
14. The court officers include:
    1. A judge, justice of the peace, or magistrate, who is the chief officer
    2. The sheriff, constable, bailiff, or marshal, who is the executive officer
    3. Lawyers or attorneys, who represent the plaintiff and the defendant
       
15. The parties in a civil action are the plaintiff, who brings the action, and the defendant, against whom the action is brought.
    1. The complaint or petition is filed with the clerk of the court.
    2. The defendant is subjected to the power of the court by means of a summons.
       
16. The trial procedure follows:
    1. The attorneys make opening statements
    2. The plaintiff presents evidence followed by the defendant's evidence.
    3. The attorney for each side summarizes the evidence.
    4. The judge instructs the jury as to the points of law which govern the case.
    5. The jury adjourns to the jury room and, in secret, arrives at its verdict.
    6. The judge enters a judgment
       
17. If either the plaintiff or the defendant is dissatisfied with the court's judgment and can cite an error of law by the court, an appeal may be taken.
    
18. The procedure in an inferior court like a small claims court is much simpler than in a court of record.

Chapter Three

 BUSINESS TORTS AND CRIMES

1. The basis for intentional tort liability includes (a) an act by the defendant (b) an intention to cause the consequences of the act, and (c) causation. The basis for negligent tort liability includes (a) a duty of the defendant, (b) breach of the duty, (c) the breach was the actual proximate cause of an injury, and (d) injury.
   
2. The generally recognized business torts include product liability, interference with a contract or economic advantage, and confusion about a product. Interference with a contract or economic advantage occurs when a person who is not a party to a business relationship improperly induces one of the parties to break the relationship. Confusion about a product could occur by making false statements about another’s product or by representing goods or services as being the goods or services of another.
   
3. Business crimes are crimes committed against a business or in which the perpetrator uses a business to commit the crime.
   
4. Computer crimes are crimes committed with the aid of a computer or crimes involving computers. The three types of computer crimes that affect business are: trespass -- unauthorized use of or access to a computer; fraud-larceny and embezzlement; and criminal copyright infringement|willful copyright infringement for business advantage or financial gain.

Lesson Outline

1. Torts are either intentional or based on negligence. Torts caused by a business or involving a business are business torts.
   
2. Manufacturers of products incur potential liability in tort for injuries caused by their products. Strict tort liability does not require a plaintiff to prove negligence.
   
3. Business activities which are widely recognized as tortuous are:
   1. Interference with a contract or economic advantage
   2. Confusion about a product
      
4. Interference with a contract or economic advantage occurs when a business relationship has been formed and a third party causes on party to break up that business relationship.
   
5. Confusion about a product is making false statements about another’s product or representing goods or services as being the goods or services of someone else.
   
6. A trademark includes a word, symbol, device, or any combination of these adopted and used by a person to identify and distinguish his or her goods from another person’s goods. The owner of a trademark has the exclusive right to use that mark to distinguish a product or service.
   
7. Unfair competition occurs when the total impression a product gives consumers results in confusion about the origin of the product.
   
8. Business crimes consist of crimes committed against a business or in which the perpetrator uses a business to commit the crime.
   
9. Crimes affecting business include theft, RICO cases, and computer crimes.
   
10. As it relates to business, theft encompasses such crimes as shoplifting, embezzlement, and larceny.
    
11. The Racketeer and Influenced and Corrupt Organizations Act allows injured parties to recover damages for criminal conduct of an enterprise through a pattern of racketeering activity.
    
12. As the number of computers in use has grown, so has the incidence of computer crime. Computer crime can be classified as trespass, fraud, and criminal copyright infringement. Trespass involves the unauthorized use of a computer. Fraud encompasses theft and embezzlement. Criminal copyright infringement requires willful copyright infringement for business advantage or financial gain.

Chapter Four

GOVERNMENT REGULATION OF BUSINESS

1. Government regulates business to eliminate abuses and curtail conduct considered to be unreasonable.
   
2. Administrative agencies may have licensing power, rate-making power, and power over business practices.
   
3. The major antitrust laws include the Sherman Act, the Clayton Act, the Robinson-Patman Act, and the Federal Trade Commission Act.
   
4. The federal government has enacted legislation for environmental protection in the area of clean air, clean water, hazardous waste, and in the cleanup of waste from previous activities.

Lesson Outline

1. Government regulates business in order to eliminate abuses and regulate unreasonable conduct.
   
2. Two forms of administrative agencies include:
   1. Regulatory |they govern to some degree the economic activity of businesses.
   2. Non- regulatory |they dispense benefits for social and economic welfare.
      
3. Regulatory agencies have power in three major areas of regulation:  licensing power, rate-making power, and power over business practices.
   
4. Administrative agencies set policy through rule making.
   
5. There are state administrative agencies, which affect businesses operated in their states.
   
6. Antitrust laws regulate business by promoting competition.
   
7. Federal antitrust laws, such as the Sherman Antitrust and Clayton Acts, apply to commerce between two or more states. Most states also have similar antitrust laws, which prohibit restraints of trade within their state.
   
8. The federal government and many states have enacted laws to protect our environment.  Many of the federal laws are administered by the Environmental Protection Agency.
   
9. Important laws administered by the EPA are (a) The Clean Air Act, (b) The Water Pollution and Control Act, (C0 The Resource Conservation and Recovery Act, and (d) The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
   
10. CERCLA imposes liability for disposal of hazardous wastes on owners and operators of the facility and disposers and transporters of the wastes.
    
11. Businesses could be subject to huge cleanup costs under CERCLA. Before buying property an investigation should be made of potential environment risks.

Index |Calendar | Syllabus