Exam 1 Business Law

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1
Common Law
Judge-made law
2
Stare Decisis
Using the rulings on a particular issue and applying them in future cases - "Let the decision stand"
3
Bystander's Liability
You have no duty to assist someone in peril unless you created the danger.

Cases and how the law has molded over years:
-Union Pacific Railway Co. vs. Cappier
-Carey v. Davis
-Osterlind v. Hill
-Tarasoff v. Regents of the University of California
4
Bill
A proposed statute submitted to Congress or a state legislature.
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Reasons Bills are passed
New issue, Unpopular Judicial Ruling, Criminal Law
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Veto
The power of the precedent of the president to reject legislation passed by Congress.
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Statutory Interpretation
How a statute is interpreted and applied
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Plain meaning rule
Tool for statutory interpretation: When a statue's words have ordinary, everyday significance. The words are straight forward.
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Legislative History and Intent
Tool for statutory interpretation: If the language is unclear, the court must look deeper. The court will look at the law's history of what was happening when that law was written.
10
Public Policy
Tool for statutory interpretation: If the legislative history is unclear, courts will rely on public policy.
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Administrative Law
Rules and regulations created by government agencies who were created by Congress!!!!
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Independent Agencies
President CANNOT fire head of agency (checks and balance!)
-Part of executive branch

Examples: FCC, EPA, FTC, NLRB, etc.
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Executive Agencies
-President HAS the power to fire / hire head of agencies
-Part of executive branch

Examples: IRS, FBI, FDA, etc.
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Promulgate
Administrative rulemaking (power of agencies)
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Informal Rule making
Small group makes rule and uses trial and error type system where it is enforced and feedback is given overtime until they reevaluate using public comments
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Formal Rule making
Hearings with experts and public input with hope of making rule better
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Administrative Hearings
Administrative law judge: hears claim and determines if agency got the initial ruling correct

-Person can appeal to administrative panel (still part of agency)

-If they still don't like the answer (and have money to throw), can file to US District Court
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Article I
Established legislative branch / Congress
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Article II
Established executive branch
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Article III
Established judicial system
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Bill of Rights
First 10 Amendments of the Constitution which establishes people's individual rights
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Article I Section 8
Lists the 18 types of statutes Congress is allowed to pass such as imposing taxes, declaring war, and coining money
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Commerce Clause
Gives Congress power to regulate commerce with interstate trade (encouraging trade between states) as well as foreign nations
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Substantial Effect Rule
Stated that Congress may regulate any activity that has a substantial economic effect on the Commerce Clause
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Dormant aspect of Commerce clause
Prevents states from creating regulations / higher taxes on other states discriminating against interstate commerce (Ex. Think of Texas oranges being sold in Florida and Florida imposing higher taxes- would be unconstitutional and not allowed)
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Supremacy Clause
Makes the Constitution and federal statutes and treaties, the top power
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Executive Power
Appointment, Legislation, Foreign Policy
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Judicial Power
Adjudicating cases, Judicial review
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Judicial Review
federal courts can declare a statute or governmental action unconstitutional and void
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Marbury vs. Madison
established judicial review
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Judicial Activism
The court's willingness to become involved in major controversial issues and decide cases on constitutional grounds
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Judicial Restraint
The court's not becoming involved in controversial issues and leaving it to legislative law makers
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Protected rights
Amendments to the constitution protecting people from the power of the federal government
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Texas vs. Johnson- Flag Burning case
Johnson burned the American flag but was protected under the first amendment
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Time, place, and manner
Government may regulate the blank, blank, and blank of speech even if it is protected in 1st Amendment
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Procedural Due Process
Before depriving anyone of liberty or property, the government must go through certain steps, or procedures to ensure that the result is fair.
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The Takings Clause
When the government takes property for public use, it has to pay a fair price.
Example: Taking private land to build a highway- must pay for land
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Substantive Due Process
A form of due process that holds that certain rights are so fundamental that the government may not eliminate them
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14th Amendment
Equal protection clause: different scrutiny for different violatoins
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Minimum Scrutiny
14th Amendment- Economic and social relations. Government actions that classify people or corporations on these bases are almost always upheld
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Intermediate Scrutiny
14th Amendment- Gender. Government classifications are sometimes upheld
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Strict Scrutiny
14th Amendment- Race, ethnicity, and fundamental rights. Classifications based on any of these are almost never upheld
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Precedent
The tendency to decide current cases based to previous rulings
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Branches of Government
Legislative, Executive, and Judicial powers
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Legislative Power
Gives the ability to create new laws. Includes Congress
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Executive Powers
is the authority to enforce laws. The president is the Commander in chief of the armed forces.
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Judicial Powers
gives the right to interpret laws and determine their validity. Supreme Court is the head of the Judicial branch.
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State Constitution
establishes the state government guarantees the rights of state residents
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US Constitution
Supreme law in the United States in 1787. Originally written, then revised and addition of Bill of Rights.
50
State Legislature
Passes statues on state laws and creates state agencies
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State Courts
create state common law interpret statues review constitutionality of statues and other acts
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Congress
Passes statues, ratifies treaties, creates administrative agencies
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Federal Courts
interpret statues create federal common law review the constitutionality of statues and other legal acts
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1st Amendment
Free speech, free press, and the free exercise of religion. *
PROTECTION FROM GOV'T ACTOIN! NOT PRIVATE ACTION!!!

speech protected until likely to create imminent lawless action
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Regulations
Laws that agencies create
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Criminal Law
Penal Law (statute) passed by Congress or state legislature and prohibits certain behavior that is prosecuted by the gov't
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Civil Law
regulates the rights and duties between parties
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Can same set of rules lead to both a criminal and civil case?
YES!
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Does a justice's life experience impact a case?
YES!
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Alexis de Tocqueville
French aristocrat known for founding Democracy in America (1835)
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What is so unique about the American court system?
Level playing field (anyone can sue anyone), transparency (anybody can watch any trial), judicial system letting anyone have access to legislature
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Where does our system of law come from?
England (late 1700's) and used English law as baseline and went from there
63
Binding Precedent
A decision of a higher court that must be followed by lower courts in the same hierarchy
(trial court--> court of appeals --> Supreme court)
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Role of Judges and Courts
Judges and Courts INTERPRET the law!! They do not make laws****
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Circuit Split
A split among the federal circuit courts of appeals on the meaning of a federal law. Resolved once Supreme Court makes executive decision.

Creates possible option of moving a lawsuit to a place where the court has more favorable laws (ex. Car manufacturers and favorable laws in Michigan)
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Nation was created to protect PEOPLE FROM GOVERNMENT!!!
Nation was created to protect PEOPLE FROM GOVERNMENT!!!
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Founders set up National Government that respected state government
Each state has its own court system
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Law Evolution: 1700's
Individual Liberties (property laws)
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Law Evolution: 1800's
Uninos, product safety, labor laws, anti-trust laws-
during Industrial Revolution
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Law Evolution- 1900's
TECHNOLOGY, Auto Manufacturing safety and standards, environmental protection, contract laws (keeping up with technology / internet)
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Law Evolution: 2000's
Artificial intelligence and TSA- US laws shift with society and technology
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3 functions of the U.S. Constitution
1. Establishes national gov't / sets up 3 branches (legislative, executive, judiciary)

2. Creates system of checks and balances through
things like: Veto, impeachment, Senate has to approve judicial nominees, judicial review, Amendment of the Constitution, Gridlock is status quo, etc.

3. Guarantee of basic individual rights in Bill of Rights
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Statutes
Laws written by Congress / legislative body (state, federal, etc.)
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How is a statute created?
1. Bill created and sponsored by a Senator
2. Given to committee who debates and votes
3. If votes through, goes to Executive branch / president who can sign or veto
4. If voted through but vetoed by president, than senate can vote and if senate votes 2/3 in favor, than Bill can be passed
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Example of courts overriding it's own precedent
Plessy v. Ferguson (1896)- separate but equal is constitutional
--->
Brown v. Board of Education (1954)- school segregation is unconstitutional
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Injunction
An order to not do something (restraining order)
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Who creates government agencies?
Congress
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Legislative Promulgation
Power of agencies: New regulation requiring individual to act a certain way.
Example: Making people not pour mercury in body of water
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Interpretive Promulgation
Power of Agencies: Interpreting another rule (does not create new regulations)
80
3 Enforcement Tools for agencies
-Subpoena: Order to have somebody appear at a particular time and place to provide evidence

-Subpoena duces tecum- Requires the person to appear and bring documents.
(Subpoenas must be relevant, not be too burdensome, and not be privileged)

-Inspection- agency going to them (to a factory or wherever and inspecting / searching)
81
4 Limits on Agency Power
-Freedom of Information Act (FOIA): allows people to access agency information through a request form (think of blueprint for hospital burner example)
-Statutory control
-Political control: can vote people into power who will write more favorable laws
-Judicial review: court can limit power if agency is outside of what they are allowed to do
82
What was important about Wickard vs. Filburn?
Congress can regulate any activity that has a substantial economic effect on the interstate commerce
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What was important about US vs. Lopez?
Gun Free school zone act: Congress goes too far and Lopez wins b/c it had no effect on economic commerce- Congress tries to use substantial effect rule but loses because
84
What was important about Marbury vs. Madison?
Gave us the concept of Judicial review to determine if something was unconstitutional or not
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2nd Amendment
Right to bear arms- was used for protection for foreigners ,hunting, etc. back in the day and is very controversial
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3rd Amendment
Protection from housing soldiers
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4th Amendment
Unreasonable searches and seizures- would have to go to judge for a warrant
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5th Amendment
Due process and self incrimination- you don't have to testify against yourself: no gov't incentive to torture to get info (You don't have to say shit)
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6th Amendment
Right to a speedy trial: not having a case hang over a person for years on end
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7th Amendment
Trial by Jury: Letting jury or judge (depends) decide fate
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8th Amendment
Cruel and unusual punishment: was not an uncommon thing when created
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9th Amendment
People entitled to rights not listed in the Constitution
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10th Amendment
Any power not given to Federal government is reserved by the states
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What is important about Miller v. California test?
Used to determine whether something is obscene or not and if it is protected
95
How are administrative agencies created?
Enabling legislation: defining a problem to be solved, establishing the agency, defining the agencies power
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