Chapter 1 Notes...so far
Chapter 1 Notes...so far Finance 26074
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This 6 page Class Notes was uploaded by Sarah Cross on Sunday February 7, 2016. The Class Notes belongs to Finance 26074 at a university taught by Lois J. Yoder Beier (P) in Spring 2016. Since its upload, it has received 101 views.
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Date Created: 02/07/16
Notes from Wednesday 1/27, Monday 2/1, and Wednesday 2/3 The Legal Environment of Business Chapter 1 Defining “Law”- p.38 & 39 A set of rules for society to follow There are 51 Court Systems in the United States Doctrine of Separation of Powers p.515 Established the three separate branches of government Established multiple levels of government that operate separately but at the same time. Ex: Federal and State Gov’t The power of Judicial Review p. 72 Any court has the ability to review the actions of the Executive and Legislative branches to determine if they are legal. Marbury v. Madison (1803 U.S. Supreme Court Case) *Memorize Names, Date, Significance* Established Judicial Review The Judiciary Act of 1792 was found Unconstitutional Today Justices are still asked their interpretations of Marbury v. Madison Two Philosophies: Judicial Restraint and Judicial Activism Judicial Restraint: Interpret Constitution according to the times in which it was written, Less likely to overturn precedence, Just includes the decision, does not include a remedy Judicial Activism: Constitutional Relativity, More likely to overturn precedence, includes a remedy along with the decision The Power of Judicial Review gives the judicial branch slightly more power than the other two branches. Sources of the Law p. 47-50 o Constitutions: U.S. and State; All laws must be in compliance with these constitutions o Statutes: Federal- U.S. code State – Ohio Revised Code o Case Law- Common Law: Cases are the primary source of law Precedent Oriented Legal System Precedent P. 45 & 48 previous decisions made by a court that other courts are legally obliged to follow. Why follow Precedent? Keeps the law uniform If filing a lawsuit, you can research how similar cases were decided Stability Fair Precedent can be ignored due to… Obsolete- It no longer is appropriate due to changing society. Example given in class was Airspace Erroneous Decision Distinguishing Facts- something in the precedent that is different from the case at hand. Legal Systems Common Law System: Utilizes the Doctrine of Precedent Civil Law System: Relies on Statutes, No Doctrine of Precedent, Little room for interpretation Louisiana has a Civil Law system set up by the French and Spanish settlers o Administrative Law- Regulatory committees Ex: IRS, SEC, FTC Corporations spend the highest percentage of their legal fees just to comply with regulations. o Executive Orders- president issues executive orders at Federal Level, Governor issues them at State Level o Executive orders can be challenged in court o Treaties Classifying Laws o Procedural Laws v. Substantive Laws p.47 Procedural Laws- even if you have a great case made for substantive law, if you do not follow procedural law, you may lose the case or have it dismissed. Procedural laws include statute of limitations, and time limits to appeal a case. Substantive Laws- deal with the main issues and facts of the case. o Public Laws v. Private Laws Ignorance to the law is not an excuse Public Laws: Criminal Law, Constitutional Law, Administrative Law Private Law: Contract Law, Tort Law, Property Law Classifying Types of Cases o Civil Cases v. Criminal Cases p.46 Plaintiff: Criminal- lawsuit is brought on by the gov't against a private entity. Purpose is to punish the wrongdoer. Civil Cases- tort, contract, property cases (plaintiff is private entity) o Purposes: The criminal system is meant to punish the wrongdoer and the civil systems purpose is to compensate the innocent victim. o Private Law v. Public Law p.209 : does not violate the 5 amendment; Double Jeopardy because 5 thamendment states that a defendant cannot be tried twice by the same government entity o Procedures Time Frame p.209: criminal case has to be speedy 6-12 months. Civil Cases can take 2-3 years. Grand Jury: only exists in criminal cases. Only the prosecutor addresses the Grand Jury. The purpose of the Grand Jury is to decide if the prosecution has enough evidence to proceed to trial. If it is determined they do, an indictment is issued. A petit Jury is the typical jury in a trial. Criminal jury decides if defendant is guilty or not; Civil decides if defendant is liable or not. Burdens of Proof: the plaintiff bears the burden of proof. Who has the most convincing evidence. There are three standards of Burden of Proof... Beyond a Reasonable Doubt (most difficult to prove): If there is reasonable doubt, the jury must acquit. *Used in Criminal Cases* Clear and Convincing Evidence Standard: the plaintiff must tilt the scale of justice 65-75% in their favor. *used in civil cases* Preponderance of the Evidence Standard a.k.a Manifest Weight of the Evidence Standard (easiest to prove): Tip the scale of Justice 51% in the favor of the plaintiff. *used in civil cases* Types of Civil Remedies p.50-52 o P. 89 Prayer for relief (Expresses what type of remedy is sought) o o Remedies at Law (Legal Remedies): the plaintiff is seeking money. A jury is required due to suing for damages. The burden of proof for this type of remedy is Preponderance of the Evidence Standard. o Remedies at Equity (Equitable remedies): the plaintiff asks the judge to force the defendant to do something, or stop them from doing something. The burden of proof for this type of remedy is Clear and Convincing Evidence Standard. o Typical Remedies at Law... o Compensatory Damages: if awarded compensatory damages they are not taxed. It regains what the plaintiff has lost. A dollar amount is put to everything including lost opportunities. The plaintiff is made whole again financially. o Punitive Damages: 1 to 5 X compensatory damages. Usually only awarded in intentional tort cases. This can be taxed. o Nominal Damages: If you cannot prove damages you will be paid minimal damages. o Liquidated Damages: when drafting a contract if it is breached, provides a formula to calculate damages. o Typical Remedies at Equity o Injunctions- the judge forces defendant to either temporarily or permanently stop an activity. o Specific Performance- Make the defendant live up to the terms of the contract agreed on. This is only used in instances where there is unique property. All Real-Estate is considered unique because it has a specific longitude and latitude. Stock of a closely held corporation and antiques are other examples. o Rescission- cancel the contract, return parties to position they held before contracting. o Reformation- reform/rewrite the contract to carry out intent of private parties. To invoke reformation there must be an error in the contract that directly benefits one party while damaging the other. o Accounting- makes a partner of the business account for the financial condition of the business. o Dissolution – the legal end of a partnership or corporation. o Partition – divide a parcel into equal parts o Foreclosure- if you default on a contract you will be made to turn over the parcel to the bank. Or if it is involving a car, it can be repossessed. Eminent Domain p. 489 – the public taking of private property for the need of the public. Under the 5thamendment the party must be justly compensated for the property being seized. Areas of Law o Torts (Private Law) p. 51: A wrong against a person or his property. o Three Theories of Tort Liability o Tortfeasor: defendant in a tort case Intentional Torts- mindfully committing a wrong against a person or property. The Tortfeasor did it on purpose. Negligence- most common/ successful theory. A wrong committed on accident. Ex: malpractice Strict Liability- The tortfeasor is liable if the action that causes damage is inherently dangerous, or ultra hazardous. (Not intentional or Negligent) Ex: Explosives, transporting hazardous material, harboring wild animals in a residential area. Contracts o Two entities entering into a legal agreement with equal bargaining power at arms length. Property p.40 o Real Property- land and anything permanently attached to it. o Personal Property- Anything that is not real property Tangible- has physical existence Intangible- has value, but no physical existence Ex: stock, bonds, copyright, patton, trademark, accounts/notes recievable
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