BUSINESS LAW 201
I. What is Law
A. Law
1. Set of Rules
2. Created by Government
3. Enforced by Government
B. Jurisprudence
1. Philosophy of Law
II.
A. Law as Power
1. Under color of authority
B. Legal Positivism
1. Law is what law says
C. Legal Realism
1. Who is in position to enforce
D. Natural Law
1. Humans have rights regardless of law
III. Three Factors for Free Market System
1. Law
2. Rule of Law
A. Law is generally and equally applicable to everyone
B. System of published laws under which government and people are bound
3. Property
A. Legal rights in an asset
B. Exclusivity
4. Importance of Rule of Law to Business
A. Creates predictability and certainty
B. Provides for peaceful resolution of disputes
C. Provides incentive to maximize asset
D. Attempt to minimize liability
IV. Classification of Laws (not social customs)
1. Common and Civil
Common – emphasis on judges
Civil
2. Public and Private
Public – general applies to everything
1. Constitutional
2. Administrative
3. Criminal
Private
1. Property
2. Contracts
3. Torts
3. Civil and Criminal
Civil – ex: divorce, contract dispute
A case between 2 individuals or an individual and the government discussing the rights of the individual
The burden of proof is much lower because you do not face jail time, you will be found responsible and have to pay compensations
Criminal – state to be found guilty, each crime must be beyond a reasonable doubt
4. Substantive and Procedural
Substantive
Determines rights and responsibilities
Procedural
The rules that are put in place to determine the substantive issues
V. Sources of Law
UCC (Uniform Commercial Code)
Deals with contracts for the sale of goods
Almost identically passed in each state
1. Constitution
Federal – grant of power
State – often limits government power
Three basic concepts established by U.S. Constitution:
1. Set up 3 branches of federal government
2. States retain all power not given
A. Law
1. Set of Rules
2. Created by Government
3. Enforced by Government
B. Jurisprudence
1. Philosophy of Law
II.
A. Law as Power
1. Under color of authority
B. Legal Positivism
1. Law is what law says
C. Legal Realism
1. Who is in position to enforce
D. Natural Law
1. Humans have rights regardless of law
III. Three Factors for Free Market System
1. Law
2. Rule of Law
A. Law is generally and equally applicable to everyone
B. System of published laws under which government and people are bound
3. Property
A. Legal rights in an asset
B. Exclusivity
4. Importance of Rule of Law to Business
A. Creates predictability and certainty
B. Provides for peaceful resolution of disputes
C. Provides incentive to maximize asset
D. Attempt to minimize liability
IV. Classification of Laws (not social customs)
1. Common and Civil
Common – emphasis on judges
Civil
2. Public and Private
Public – general applies to everything
1. Constitutional
2. Administrative
3. Criminal
Private
1. Property
2. Contracts
3. Torts
3. Civil and Criminal
Civil – ex: divorce, contract dispute
A case between 2 individuals or an individual and the government discussing the rights of the individual
The burden of proof is much lower because you do not face jail time, you will be found responsible and have to pay compensations
Criminal – state to be found guilty, each crime must be beyond a reasonable doubt
4. Substantive and Procedural
Substantive
Determines rights and responsibilities
Procedural
The rules that are put in place to determine the substantive issues
V. Sources of Law
UCC (Uniform Commercial Code)
Deals with contracts for the sale of goods
Almost identically passed in each state
1. Constitution
Federal – grant of power
State – often limits government power
Three basic concepts established by U.S. Constitution:
1. Set up 3 branches of federal government
2. States retain all power not given