OBE 118 – Legal Environment of Business Introduction to Law OBE 118 – Legal Environment of Business INTRODUCTION Dr. Donald L. Carper Copyright, Donald L. Carper, HRP & Associates, 2005

Law is powerful Law is important Law is fascinating Introduction to Law Law is powerful Affects all people, from CEO’s to children Affects most of life, from work to leisure Law is important But which is more important -- written law or the people who enforce it? Law is fascinating Complex, but never just theoretical Copyright, Donald L. Carper, HRP & Associates, 2005

 To examine law is to examine social life Introduction to Law  To examine law is to examine social life  One person alone does not require law  Any investigation about law could begin or include  Definitions of law  Philosophy of law  History of law  Functions of law and  Sources of law  All of these topics are interrelated Copyright, Donald L. Carper, HRP & Associates, 2005

 Norms (standards of behavior)  Regularly enforced by coercion Introduction to Law Whatever definition of law chosen there exists a set of rules or “general standards of conduct, established and enforced by government officials.” Law consists of  Norms (standards of behavior)  Regularly enforced by coercion  By persons authorized by society  As stipulated by courts of law Copyright, Donald L. Carper, HRP & Associates, 2005

Classifications & Categories of LAW helpful to understanding law Introduction to Law Classifications & Categories of LAW helpful to understanding law Copyright, Donald L. Carper, HRP & Associates, 2005

Classifications & Categories of Law helpful to understanding Law Introduction to Law Classifications & Categories of Law helpful to understanding Law PUBLIC LAW PRIVATE LAW CRIMINAL LAW CIVIL LAW SUBSTANTIVE LAW PROCEDURAL LAW COMMON LAW STATUTORY LAW LAW EQUITY Copyright, Donald L. Carper, HRP & Associates, 2005

Introduction to Law Private v. Public Law Public law: Body of law directly concerned with public rights and obligations. Private law: Body of law regulating the rights and duties existing between private persons. The rights and duties are created by the affected parties. Copyright, Donald L. Carper, HRP & Associates, 2005

Introduction to Law Civil v. Criminal Law Civil law: Body of law directly concerning the rights and duties between parties. Criminal law: Body of law dealing with crimes and their punishment Copyright, Donald L. Carper, HRP & Associates, 2005

CONTRAST BETWEEN CIVIL AND CRIMINAL LAW Introduction to Law CONTRAST BETWEEN CIVIL AND CRIMINAL LAW Civil Criminal Nature Rights and duties of individuals to each other Wrongs against society as a whole Person Initiating Action Plaintiff or person injured Either federal, state, or local prosecutor Burden of Proof in Trial Preponderance of the evidence Beyond a reasonable doubt Result sought Money damages or equitable remedy Death, fine or imprisonment Copyright, Donald L. Carper, HRP & Associates, 2005

Substantive v. Procedural Law Introduction to Law Substantive v. Procedural Law Substantive law: General principles and detailed rules defining legal rights and duties. Procedural law: General principles and detailed rules that define the methods of administering the substantive law Copyright, Donald L. Carper, HRP & Associates, 2005

Example of a substantive law Introduction to Law SUBSTANTIVE LAW: General principles and detailed rules defining legal rights and duties. Example of a substantive law Definition of minor: “a person below the age of legal competence. For most purposes, in most states, minority ends at age 18. For some purposes, such as the purchase and consumption of alcoholic beverages, it may end later, up to the age 21.” Copyright, Donald L. Carper, HRP & Associates, 2005

Procedural Law Examples Rules of evidence such as the hearsay rule Introduction to Law Procedural Law Examples Rules of evidence such as the hearsay rule Method of filing a lawsuit such as the requirement of a complaint and service of summons To be able to seize assets of a judgment debtor the law requires a creditor to file an affidavit as to the debtor’s ownership of any assets to be seized Copyright, Donald L. Carper, HRP & Associates, 2005

EXAMPLES Substantive law Procedural law Agency Introduction to Law EXAMPLES Substantive law Procedural law Agency Administrative procedure Contracts Appellate procedure Criminal law Criminal procedure Partnerships Evidence Torts Civil procedure Copyright, Donald L. Carper, HRP & Associates, 2005

EXAMPLES Substantive law Procedural law Agency Introduction to Law EXAMPLES Substantive law Procedural law Agency Administrative procedure Contracts Appellate procedure Criminal law Criminal procedure Partnerships Evidence Torts Civil procedure Copyright, Donald L. Carper, HRP & Associates, 2005

Case: Oculist's Case (1329), p. 8 Introduction to Law Case: Oculist's Case (1329), p. 8 This seal was found in the bed of the Moselle River in France. The Romans were the first people to have specialized eye doctors, called oculists, who were devoted to treating eye diseases such as cataracts Copyright, Donald L. Carper, HRP & Associates, 2005

Case: Oculist's Case (1329), p. 8 Introduction to Law Case: Oculist's Case (1329), p. 8 The defendant, attempting to heal the plaintiff, left him blind in one eye. The plaintiff has sued in trespass What was the defendants response? Was it procedural or substantive? How did the court rule? Copyright, Donald L. Carper, HRP & Associates, 2005

Case: Oculist's Case (1329), p. 8 Introduction to Law Case: Oculist's Case (1329), p. 8 Consider the underlying facts and the probable legal treatment today. Copyright, Donald L. Carper, HRP & Associates, 2005

Common Law v. Statutory Law Introduction to Law Common Law v. Statutory Law Common law: Laws from the courts as opposed to a legislature or court of equity Common law is also called unwritten law. Statutory law: Laws enacted by Congress state legislatures or local government. Statutory law is also called written law. Copyright, Donald L. Carper, HRP & Associates, 2005

COMMON V. STATUTORY LAW Common and also called case law Introduction to Law COMMON V. STATUTORY LAW Common and also called case law  From the courts  After the fact  Narrow  Based on actual situations and conflict  Law maker is neutral  Law from court cases may be changed in the future by courts or by the legislature Copyright, Donald L. Carper, HRP & Associates, 2005

COMMON V. STATUTORY LAW STATUTORY LAW Introduction to Law COMMON V. STATUTORY LAW STATUTORY LAW  From the legislature and executive branch  Prospective  Can be broad or narrow  Can be initiated at any time by legislator  Lawmaker can be an advocate  Interpreted by the courts  May only be changed by courts only if unconstitutional Copyright, Donald L. Carper, HRP & Associates, 2005

COMMON LAW STATUTORY LAW Introduction to Law COMMON LAW STATUTORY LAW Creation Judicial branch through decisions in cases appearing before the courts Legislative branch through a formal law-making process Form Rules found in official fact patterns & decisions of prior cases Codified text Scope Narrow-limited to actual cases Broad-subject only to constitutional limitations Effects of Social Forces Indirect-judges somewhat insulated from political pressure Direct-Through the political process Copyright, Donald L. Carper, HRP & Associates, 2005

STATUTES, CODES, AND ORDINANCES Introduction to Law STATUTES, CODES, AND ORDINANCES Copyright, Donald L. Carper, HRP & Associates, 2005

Introduction to Law Equity Equity: A civil trial held without a jury when relief sought by the plaintiff is equitable in nature, such as an injunction, or a divorce or dissolution of a marriage. Other than equity: Often referred to as the common law. Copyright, Donald L. Carper, HRP & Associates, 2005

Equity Other than Equity Subject Matter Fact Finding Remedies Introduction to Law Equity Other than Equity Subject Matter Family law, matter juvenile, probate trusts, foreclosure, when remedy it law is inadequate Everything but equity Fact Finding No jury-chancellor of trial makes findings and a issues degree Jury-leading to judgment Remedies Specific performance, injunction, recission, restitution, reformation Money damages or replevin Enforcement Contempt of court Can attach defendant’s property Copyright, Donald L. Carper, HRP & Associates, 2005

SOURCES OF LAW Constitutional law State law Treaties Introduction to Law SOURCES OF LAW Constitutional law Treaties Administrative law Statutory law Case law Federal law State law Copyright, Donald L. Carper, HRP & Associates, 2005

Introduction to Law Constitutional State constitutions are supreme within their own borders to the extent that they do not violate or are inconsistent with the U.S. Constitution or other federal law. The U.S. Constitution is the Supreme Law of The United States. Copyright, Donald L. Carper, HRP & Associates, 2005

An Exclusive Federal Function. Introduction to Law SOURCE DESCRIPTION TREATIES Agreements With Foreign Nations made by the President and ratified by a 2/3 vote of the Senate. An Exclusive Federal Function. Copyright, Donald L. Carper, HRP & Associates, 2005

State Statutory Law is invalid if inconsistent with its Constitution. Introduction to Law SOURCE DESCRIPTION STATUTORY LAW Created by Federal, State, and Local Legislatures or Governing Bodies. Neither Federal Nor State Statutes are Valid if in-consistent with the U.S. Constitution. State Statutory Law is invalid if inconsistent with its Constitution. Uniform Statutes Create uniform State Law in those adopting States. Copyright, Donald L. Carper, HRP & Associates, 2005

Administrative Law DESCRIPTION Introduction to Law Administrative Law DESCRIPTION Law Concerned with the power and actions of Administrative agencies at all levels of government. Enabling Legislation from the U.S. Congress create federal administrative agencies. Also created at State and local levels of government. Agency functions include: Rule-making Investigation Enforcement, & Adjudication. Copyright, Donald L. Carper, HRP & Associates, 2005

COMMON LAW DESCRIPTION Introduction to Law COMMON LAW DESCRIPTION Use of past judicial decisions and reasoning through the application of the doctrine of stare decisis-the rule of precedent-in deciding cases. Originated in England. Applies to situations not otherwise covered by statutory law. Copyright, Donald L. Carper, HRP & Associates, 2005

COMMON LAW DESCRIPTION Introduction to Law COMMON LAW DESCRIPTION Use of past judicial decisions and reasoning through the application of the doctrine of stare decisis-the rule of precedent-in deciding cases. Originated in England. Applies to situations not otherwise covered by statutory law. Copyright, Donald L. Carper, HRP & Associates, 2005