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BUS 205 Week 1 Class Notes and Book Notes

by: Rachel Rheingold

BUS 205 Week 1 Class Notes and Book Notes BUS 205

Marketplace > Colorado State University > BUS 205 > BUS 205 Week 1 Class Notes and Book Notes
Rachel Rheingold
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Chapter 4 reading and lecture notes
Legal and Ethical Issues in Business
Mac V Danford
Class Notes
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This 7 page Class Notes was uploaded by Rachel Rheingold on Wednesday September 21, 2016. The Class Notes belongs to BUS 205 at Colorado State University taught by Mac V Danford in Fall 2016. Since its upload, it has received 16 views.


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Date Created: 09/21/16
Ch. 4 Common Law, Statutory Law, Administrative Law (Class Notes) Three Sources of Law  common law  statutory law  administrative law Common Law  its judge made law  stare decisis  people must know what the law is  Case Analysis o Tarasoff V. University of California  Young girl murdered  Could have been stopped  Therapist involved was an innocent bystander and had no legal duty to warn the girl or anyone  Mandatory reporting?  Innocent bystander clause  Societies norms do have an effect on long standing law o Like in the Tarasoff V. University of California o The innocent bystander act is unlawful Statutory Law  Statutes affect us all o Bill – a proposed statute  Submitted to congress or as a statute through legislature o Veto – a president’s power to reject any legislation passed by congress  Bills are proposed for following reasons o New issue, new worry o Unpopular judicial ruling o Criminal law  Discrimination – congress and the courts o The civil rights movement of the 1950s and 19602 convinced most citizens the African Americans suffered significant and unacceptable discrimination (duhhhhhhh) Conference Committee  The committee examines the differences between the 2 bills and try to reach a compromise  When the committees have settled every difference between the 2 versions o A new modified bill is sent back to each house for a new vote Statutory Interpretation  Courts are called upon to interpret a statue to explain what the language means and how it applies o The basically put it in dummy form  3 steps in interpretation o plain meaning rule o legislative rule o public policy Administrative Law  Background o Congress passed the interstate commerce commission (ICC)  The first administrative agency  The ICC was able to hire and develop a staff that was expert at issues congress controlled  Classification on agencies  Federal  State  Local  Executive – independent 2 o Some federal agencies are part of the executive branch while others are independent agencies  This is a major distinction  Enabling legislation o Congress created a federal agency by passing enabling legislation Power of Agencies  Legislative and interpretive o Legislative rules  Require people to act in a certain way  Have the effect of a congressional statute o Interpretive rules  These do not change the law  They define or apply laws to new situations How Rules Are Made  Informal rulemaking o Proposed rule must be published and public for anyone to see and comment on  Formal rulemaking o Must hold a public hearing and anyone can testify and object the rule at question Investigation  Agencies do a whole bunch of stuff  They all need broad factual knowledge of the field they are a part of  To force disclosure, agencies use subpoenas and searches Subpoenas  An order to appear at a particular place and time o A subpoena requires the person to produce certain documents or things  The information sought o Must be relevant to a lawful agency investigation 3 o Must not be unreasonably burdensome o Must not be privileged Search and Seizure  An agency will want to conduct a surprised search of a party and seize any evidence of a wrong doing Adjudication  To hold a formal hearing about an issue and then decide about it  Most adjudications begin with a hearing before an administrative law judge o Administrative law judge – an agency employee who acts as an impartial decision maker Limits on Agency Power  4 primary methods of reining power o statutory o political o judicial o informational 4 Ch. 4 Common Law, Statutory Law, Administrative Law (Book Notes) Common Law  Common law is judge made law  Bystander cases o This law came from England  You have no duty to assist someone in peril danger unless you created the danger o Common law is hard to change Statutory Law  More law is created by statue than by courts  When the system works correctly, this is the law people (you and me) can control  Bills o Congress has 2 houses  House of Representatives  The Senate o To become a law, a bill must be voted on and approved by both houses o Once both houses pass it, it then goes to the president o If the president signs it, it becomes law and is a statute Administrative Law  These are familiar laws o Help the people stay safe essentially Power of Agencies  Administrative agencies use 3 kinds of power o Rulemaking  To create a new rule is to circulate it o Types of rules – legislative and interpretive  Legislation rules are the most important ones an agency will make  Like statues!  Interpretive rules do not change the law o How rules are made  Informal rulemaking  Agencies may use “notice and comment” method of rulemaking  The agency must publish a proposed rule  Formal rulemaking  Hold hearings open to the public  People against the ruling can oppose it and testify it Investigation  Subpoena – an order to appear at a particular place and time o A subpoena requires the person to justify certain documents or things  The sought out information o Must be relevant o Must not be unreasonably burdensome o Must be privileged  Search and seizure o Adjudicate – hold a hearing and decide something Limits of Agency Power  4 primary methods o statutory control  may require that an agency use formal rulemaking or investigate only certain issues o political control  the presidents influence is greatest with executive agencies o judicial review 2  an individual or corporation directly harmed by an administrative rule, investigation, or adjudication may have their own actions in federal court o informational 3


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