1. Business Law Chapter 1.2 Types of Laws

2. Type of Law Constitutional LawBased on constitutions Statutory LawEnacted by legislative bodies Administrative LawRules and regulations made by administrative agencies Civil LawAddresses wrongs done to individuals Criminal LawAddresses wrongs done to societies ProceduralDeals with methods of enforcing legal rights and duties SubstantiveDefines legal rights and duties BusinessRules that apply to business situations and transaction

3. Constitution Primary function of the US Constitution and the various state constitutions: provide a framework for allocating the powers of government. Basic rights upon which the federal government can not infringe are in the Bill of Rights. First 10 amendments to the Constitution (pg 27) 1 st amendment: Freedom of Religion: Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Gorvernment for a redress of grievance. 2 nd amendment: A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

4. Bill of Rights (cont) 3 rd amendment: no soldier shall, in time of peace, be quartered in any house without the consent of the owner, nor in time of war, but in a manner to be prescribed by law. 4 th amendment: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probably cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. 5 th amendment: No persona shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time or War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb, nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use without just compensation.

5. Bill of Rights (cont) 6 th amendment: In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the assistance of counsel for his defense. 7 th amendment: In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise reexamined in any Court of the United States, than according to the rules of the common law. 8 th amendment: Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

6. Bill of Rights (cont) 9 th amendment: The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people. 10 th amendment: The powers nor 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.

7. Five Sources of Law Constitution Supreme law of the land All federal, state, and local laws may not conflict with the Constitution Concerned with defining and allocating certain powers in our society Between people and their government Bill of Rights Between states and the federal government Ex: commerce clause Between branches of the government Checks and Balances between the three branches

8. Five Sources of Law Statutes: Enacted by legislatures Ex: Federal Statute of Limitations which are laws passed by a legislative body in common law systems that sets the maximum time after an event when legal proceedings may be initiated. When the period of time specified in a statute of limitations passes, a claim can no longer be filed. Ordinances: Legislation enacted by local (city, town, country) governments. Ex: Fort Wayne Ordinances on Fire Pits, Parking, Zoning, etc Case Law: made when an appellate court (court of appeals) endorses a rule to be used in deciding court cases. Stare decisis: requires that lower courts must follow established case law in deciding similar cases. Does not bind the Supreme Court

9. Five Sources of Law Administrative Law Comes from Administrative agencies Ex: Social Security Administration, EPA, OSHA, FDA Controlled by the Executive Branch of the government Create rules and regulations

10. What happens when laws conflict? Supremacy Rules Federal over State; State over City Constitutional law over statutory law; statutory law over administrative law Higher court decision over a lower court decision Unconstitutional: if Courts find law conflicts with Federal or State Constitution. Constitution can be amended

11. Civil vs Criminal law Civil law: a group of laws designed to provide legal remedy for wrongs against individuals. Defendant is liable for damages if case is lost. Must pay compensation to the plaintiff (the one bringing the suit). Tort: private or civil wrong for which the law grants a remedy Intentional: intentional conduct that results in damages Negligence: damage is caused by careless conduct Strict liability: even when the defendant did not intend to harm or was not negligent in action; activity was deemed to be so dangerous to the public that there must be liability. Dynamiting at a construction site.

12. Civil vs Criminal Law Criminal law: Offense is against society rather than an individual Violates a citizen’s right to live in peace Government investigates the incident and brings charges against the individual if a criminal act was perpetrated.

13. Procedural and Substantive Laws Procedural laws (or adjective law) comprises the rules by which a court hears and determines what happens in civil lawsuit, criminal or administrative proceedings. The rules are designed to ensure a fair and consistent application of due process (in the U.S.) or fundamental justice (in other common law countries) to all cases that come before a court. Criminal Procedure defines the process for enforcing the law when someone is charged with a crime. Civil Procedure: concerned with private offences. Does not involve the police or prosecutor.

14. Procedural and Substantive Laws Substantive Law: The part of the law that creates, defines, and regulates rights, including, for example, the law of contracts, TORTS, wills, and real property; the essential substance of rights under law.

15. Business Law Rules that apply to business situations and transactions. Civil laws concerning contracts, property, business entities. Could also include criminal law Uniform Commercial Code Set of laws formulated by the National Conference of Commissioners. Goal was to formulate a model statute to recommend to that states for adoption.