1 A Primer on Legal Analysis for Business Case Study Wayne Smith, Ph.D. Department of Management CSU Northridge Lauren Ross, J.D. Department of Business Law CSU Northridge

2 Contents “at a glance” Brief Review of Law Facts and “Rules of Construction” Statutory and Common Law Analysis Organization of the Discussion and Argument “Signposting” and Revising

3 Law Law and Policy –Interrelated topics –At the organizational-level, we are interested primarily in improving the management of resources Increase Rewards, Reduce Risks Both quantitatively and qualitatively The Hierarchy of Laws –Constitutions, statutes (ordinances), administrative regulations, and common (judge-made) law The Hierarchy and Jurisdiction of Courts –Federal, State, Municipal Primary Authority (Binding) –“the law” and official court records (e.g., UCC, CA Penal Code) Secondary Authority (Persuasive) –Everything else (e.g., law reviews, restatements, academic journals)

4 Precedent and Stare Decisis Precedent –Binding (same jurisdiction) or Persuasive (diff. jurisdiction) Stare Decisis –“let the [prior, related] decisions stand” –By understanding stare decisis, business professionals can predict how a court will decide similar issues in the future Organizations want the law (like everything else in professional life) to be… –Predictable –Understandable –Efficient –Consistent

5 Distilling Precedential Value from a Case Decision IRAC Methodology –It’s not the only approach, but it’s straightforward and generalizable (list relevant facts first) Issue –What legal question needs to be answered? Rule –What law (statutes/common law) applies? Application –How do you relate the rule to the facts? Conclusion –What is the answer?

6 Facts Identify the legally significant facts –Facts that are material –Facts that make a case “turn” Identify key background facts –Dates, times, places, direction, magnitude Organize the facts intelligibly –Often chronologically, but never “by issue” Describe the facts accurately and objectively –Don’t evaluate or embellish –Be objective, but include “emotional” facts as needed

7 Basic Concepts of Legal Method How Rules are Constructed –Elements of a Rule –The Result and Its Relationship to the Elements –Exceptions in a Rule –Sub-Elements Focus only on questions within the scope of the problem –In BUS 302, we identify the questions/issues –In professional life, you (often) identify the questions/issues The key is to take a given rule and apply it to a unique set of facts.

8 Drafting the discussion Purpose –Writing Role as student Intelligent, interesting, and creative –Writing Role as professional Credible, compelling, and convincing Process –Linear (“waterfall”) vs. Recursive (“spiral”) Identify and narrow issues Research Analyze and Organize Write Rewrite Audience –Discussion towards organization/business value –Argument towards prevailing in a formal tribunal or litigation process

9 Organizing the Discussion (part 1 of 2) 1.For each issue, state your conclusion and set up your discussion of the issue in an introduction a)Be objective and candid b)Present strongest and most significant issues first 2.For each issue, state your conclusion in terms of the law/rule/policy 3.Describe the law relevant to your conclusion for each issue a)Start with the language of the rule (e.g., statute) i.Describe only the relevant law ii.Describe the law in enough detail to enable your reader to understand the discussion b)Add at least one analogous (similar) fact from a previously- decided case that supports your argument 4.Explain why the law supports your conclusion for each issue

10 Organizing the discussion (part 2 of 2) 5.Describe any reasonable counter-argument for each issue and state why it is unpersuasive a)Again, add at least one analogous (similar) fact from a previously-decided case that supports your counter-argument (but remember, this fact will be different from the fact used in 3b) 6.Describe how the law supports the counter-argument for each issue 7.Explain why the counter-argument does not change your conclusion for each issue (or sub-issue) 8.Edit the discussion to include “signposts” (next slide)

11 Overview of “Signposting” Thesis Statements –What is your conclusion? –Appears no later than the first or second paragraph Paragraphs –Approximately 4 to 8 sentences or perhaps ½ of a printed page –Too many short paragraphs?->superficial or fragmented analysis –Too few long paragraphs?->entangled or diffused ideas Topic Sentence –What is the purpose (main idea) of your paragraph? –Appears no later than the first or second sentence in each paragraph –Can the topic sentences be extracted to form an outline—i.e., an extended table of contents? Transitions –What are the relationships between ideas? –Guide the reader—deliberately and intuitively

12 Transitions Relationship Between IdeasTransitional Words and Phrases Similarity between the previous point and the next one Similarly, Also, In addition, Further, Furthermore, Moreover Difference between the previous point and the next one However, Nevertheless, Nonetheless, Although, On the other hand Enumeration of pointsFirst, second, third, etc. Causal relationshipConsequently, Therefore, Thus, Because Temporal relationshipSubsequently, Previously, Later, In the meantime, Then, Recently

13 Revising and Editing Be direct and precise Blend precision with simplicity Use verbs whenever possible to make your writing forceful Be concise Eliminate unnecessary information and repetition Edit intrusive or misplaced words and phrases Use correct grammar, punctuation, and spelling

14 Sources Dernbach, J., et al. (2007), A Practical Guide to Legal Writing and Legal Method, 3 rd ed., Austin:Wolters Kluwer.