Business Law review for quiz one

BUSINESS LAW—REVIEW FOR FIRST QUIZ·CHAPTER ONE-LEGAL HERITAGE-Define “law”Is a body of rules of action or conduct prescribed by controlling authority, and have binding legal force. Sanctions.-Functions of the law (eight)1. Keeping the peace, which includes making certain activities crimes.2. Shaping moral standards.3. Promoting the social justice4. Maintaining the status quo.5. Facilitating orderly change.6. Facilitating planning7. Providing a basis for compromise.8. Maximizing individual freedom.-Fairness and Flexibility·Fairness is being on testing (social justice)·Flexibility is being on testing (technology)-School of Law·Natural law school-moral theory·Historical school-aggregation of social norms·Analytical school-logic·Sociological school-means to social end·Command school-ruling party·Critical legal studies school-fairness·Law and economics school-market efficiency-History of American law·Based upon English Common law.·English law is divided into three gen eral areas (or courts)-Law Court-Court of Chancery (equity)-Merchant Court (law merchant) though the Merchant Court has been absorbed -Sources of the U.S. law·Constitutions-Federal-State·Treaties-only at the federal level·Codifie d law-Statutes (federal and state)-Ordinances and resolutions (local)·Executive orders·Administrative Regulations (EPA, FDA, etc.)-Sources of law-Judicial Decisions·Judicial decisions provide the judiciary’s interpretation of statutes, ordinances, and regulations.·Judicial decisions also set forth the legal principles used to decide a case. ·Judges and Courts do not make law.-Sources of law-Judiciary Precedent·Precedent is the concept that provides order to the authority of the various courts in the U.S.-It is an “historical” concept-It means that past case decisions guide future decision making.-It also ranks the courts in their authority.-Sources of law-Judiciary Stare Decisis.·Stare Decisis: let the decision stand-Promotes stability in law-Efficiency and predictability are results-Constitutional Issue of Gratz and Grutter·Laws affecting a particular class of people can be made.·The law must further a compelling government interest.·The law must be narrowly tailored.·The law is subject to strict scrutiny.·CHAPTER TWO-Constitutional Law-The Constitution and Bill of Rights·Constitution drafted in 1787 and ratified by the States in 1788.·Serves two major functions:-Creates the three branches of government and allocated power among the branches. -Protects individual rights by limiting the government’s power to restrict those rights·Appendix A, page 629, of your textbook, contains the text of the Constitution and all of its Amendments.-Federalism and Separation of Powers·Federalism: the states and the federal government share power.·Powers delegated to the Federal Government are called “enumerated powers.”·“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”– The Tenth Amendment.-Doctrine of Separation of Powers·Article I: creates and defines the Legislative Branch (the branch that directly represents the people).·Article II: creates and defines the Executive Branch (the Presidency). ·Article III: creates and defines the Judiciary in general, and the Supreme Court, specifically.-Other courts are created by Congress. (Art. III, Sec. 1; Art. I, Sec. 8, Cl.9)-How many Justices does the Constitution allow to sit on the Supreme Court? -Supremacy Clause·Article VI, Section 2 of the Constitution (page 633)·The “preemption doctrine” is the concept of federal law taking precedence overstate and local laws.-Exclusive jurisdiction: where the federal government has explicitly stated that it, alone, regulates certain activities.-Concurrent jurisdiction: where states and local governments can concurrently regulate activities, so long as the state or local law does not conflict with the federal law.-Commerce Clause·“The Congress shall have Power …; To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;”--Art. I, Sec. 8, Cl. 3 (page 630)· Of all provisions of the Constitution, the Commerce Clause has the greatest impact on business.·Interstate commerce can be regulated by definition –it is commerce among the states.·Intrastate commerce can be regulated since such commerce may have an “effect”on interstate commerce (the “effect on interstate commerce test.” ·States and Local governments can use their “police powers” to regulate both inter- and intrastate business.·Police powers: laws enacted to protect the public health, safety, morals, and general welfare.-Zoning laws; environmental laws; laws governing business entities;property laws.-State laws cannot unduly burden interstate commerce.-Dormant Commerce Clause-Bill of Rights·The first ten amendments to the Constitution, and added in 1791.·The Bill of Right enumerates and guarantees certain fundamental rights of the individual.-14th Amendment·The 14th Amendment, through the “incorporation doctrine,” extends the protections of the people from federal governmental intrusion to include actions of state and local governments, too.·T herefore, at the state and local level, a citizen cannot be denied the “due process of law” when the state acts to take a person’s property, liberty, or life.-Freedom of Speech·First Amendment·Three types of speech-Fully protected: political speech-Limited protected: Offensive Speech and Commercial SpeechSuch speech cannot be forbiddenTime, place, and manner can be regulated·Unprotected Speech: this is speech that can be forbidden. Types of speech that can be forbidden:-Dangerous-Fighting words-Inciting violent or revolutionary overthrow-Defamatory-Child pornography-Obscene·What is “obscene speech?”·“I know it when I see it.”·Test:-Average person would find the speech applies to the prurient interest.-It depicts or described sexual conduct in a patently offensive way.-The work, taken as a whole, lacks serious literary, artistic, political,or scientific value.-Freedom of Religion·Two protections regarding religion·Establishment Clause: the government cannot establish a state religion, nor promote one religion over another.·Free Exercise Clause: Generally prohibits the government from interfering witha person’s practice of their religion. Not an absolute prohibition.-Other Constitutional Clauses·14th Amendment Clauses that impact persons and businesses·Equal Protection Clause·Due Process Clause·Privileges and Immunities Clause-Equal Protection Clause·The state cannot “deny to any person within its jurisdiction the equal protection of the laws.”·Purpose: to prohibit invidious discrimination, though classification of people is not illegal by itself.·Three tests for equal protection cases.·Strict Scrutiny-Used when people are classified using a suspect class (race)-Compelling governmental interest·Intermediate Scrutiny-Used when people are classified using a protected class (age, sex)-Reasonably related to a legitimate governmental purpose.·Rational Basis-Used for all other classifications-Justifiable reason –a “rational basis” for the law-Due Process Clause·No person shall be deprived of life, liberty, or property without due process of law.·Substantive Due Process: a law must be written so that a “reasonable person” could understand and follow it. “Void for vagueness.”·Procedural Due Process: the government must give a person proper notice of an impending action and a hearing before taking action.-Privileges and Immunities Clause·14th Amendment and Article IV of the Constitution·A state cannot pass laws that unduly discriminate in favor of their citizens.。