1. 25-1 Chapter 1 Legal Heritage and the Digital Age

2. What is Law?  The law consists of rules that regulate conduct of individuals, businesses, and other organizations within society  It is intended to protect persons and their property from unwanted interference from others  The law forbids persons from engaging in certain undesirable activities Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-2

3. Definition of Law  That which must be obeyed and followed by citizens, subject to sanctions or legal consequences  A body of rules of action or conduct prescribed by controlling authority and having binding legal force Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-3

4. Functions of the Law  Keeping the peace  Shaping moral standards  Promoting social justice  Maintaining the status quo  Facilitating orderly change  Facilitating planning  Providing a basis for compromise  Maximizing individual freedom Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-4

5. Qualities of the Law  Fairness  The U.S. legal system is comprehensive, fair, and democratic  Flexibility  The U.S. law evolves and changes along with the norms of society, technology, the growth and expansion of commerce in the U.S. and the world Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-5

6. Schools of Jurisprudential Thought  Natural Law School  Law is based on what is “ correct ”  Law should be based on morality and ethics  Historical School  Law is an aggregate of social traditions and customs  Changes in the norms of society will gradually be reflected in the law Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-6

7. Schools of Jurisprudential Thought  Analytical School  Law is shaped by logic  The emphasis is on the logic of the result rather than on how the result is reached Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-7

8. Schools of Jurisprudential Thought  Sociological School  Law is a means of achieving and advancing certain sociological goals  The purpose of law is to shape social behavior  Command School  Law is a set of rules developed, communicated, and enforced by the ruling party  The law changes when the ruling class changes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-8

9. Schools of Jurisprudential Thought  Critical Legal Studies School  Legal rules as unnecessary  Legal disputes should be circumstantially solved by applying arbitrary rules of what is deemed “fair”  Law and Economics School  Promoting market efficiency should be the central concern of legal decision making Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-9

10. History of American Law  English system of law was adopted as a system of jurisprudence in early American colonies  Acted as a foundation for American judges to develop a common law in America Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-10

11. English Common Law  Developed by judges who issued their opinions when deciding cases  Principles announced in these cases became precedent for later judges deciding similar cases  English Common Law can be divided into cases decided by different courts Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-11

12. English Common Law  Law Courts  Uniform system of courts emphasizing form over substance  Granted only monetary damages  Courts of Chancery (equity courts)  Equitable remedies shaped to fit each situation  Merchant Courts  Solved commercial disputes based on trade practices Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-12

13. Sources of Law in the United States  Constitutions  The U.S. Constitution is the “supreme law of the land”  Establishes structure of federal government  Legislative branch  Executive branch  Judicial branch Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-13

14. Sources of Law in the United States  Enumerates federal powers  Reserves all other powers to states  State have their own constitutions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-14

15. Sources of Law in the United States  Treaties  The President, with the advice and consent of the Senate, may enter into treaties with foreign governments  Treaties become part of the supreme law of land  Treaties affect international business Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-15

16. Sources of Law in the United States  Federal Statutes  Statutes are written laws that establish certain courses of conduct that covered parties must adhere to  The U.S. Congress enacts federal statutes  Federal statutes are organized in to code books  These code books constitute codified law Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-16

17. Sources of Law in the United States  State Statutes  State legislatures enact state statutes which are placed in code books or on the Internet  Ordinances  Law enacted by local government bodies  Ordinances are codified Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-17

18. Sources of Law in the United States  Executive orders  Issued by the president and state governors  Example - Prohibiting U.S. companies to sell goods and services to an enemy country during war  Power derived from express delegation from legislative branch or implied from constitutional powers Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-18

19. Sources of Law in the United States  Regulations and Orders of Administrative Agencies  Empowered by legislative and executive branches of government  Adopt rules and regulations  Enforce statutes  Hear and decide disputes  Many agencies regulate business  Example – SEC & FTC Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-19

20. Sources of Law in the United States  Judicial decisions  Federal and state courts issue judicial decisions  Judicial decisions state the rationale used by the court in reaching that decision Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-20

21. Sources of Law in the United States  The rationale includes:  Interpretations of statutes  Ordinances  Administrative regulations  Announcement of legal principles Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-21

22. Doctrine of Stare Decisis  Based on the common law tradition, past court decisions become precedent for deciding future cases  Lower courts follow the precedent established by higher courts  Federal and state courts follow the precedents established by U.S. Supreme Court decisions  Courts in one jurisdiction are not bound by precedent of another jurisdiction, but may look at it for guidance Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-22

23. Priority of Law in the United States  The U.S. Constitution and treaties take precedence over all other laws  Federal statutes take precedence over federal regulations  Valid federal law takes precedence over conflicting state or local law Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-23

24. Priority of Law in the United States  State constitutions rank as the highest state law  State statutes take precedence over state regulations  Valid state law takes precedence over local laws Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-24

25. Digital Law  The electronic age arrived before new laws were written that were specific for this environment  Courts have applied existing laws to the new digital environment by requiring interpretations and applications  Congress has enacted new federal statutes to regulate the digital environment Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-25

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