1. 2011©Cengage Learning. All Rights Reserved.

2. Judicial System and History 2011©Cengage Learning. All Rights Reserved.

3. Having the law evolve one step at a time ensures flexibility so that laws can 2011©Cengage Learning. All Rights Reserved. develop and adapt to a growing society with changing values.

4. NATURE AND SOURCE OF LAW A system of rules and enforcement methods by which society regulates and controls the conduct and affairs of its members. 2011©Cengage Learning. All Rights Reserved.

5. The Legal Systems Civil Law  Operates on the concept of numerous rules designated to cover and define the entire span of human conduct. Common Law  Case by-case approach  judgment rendered by a court is a definition of a dispute or conduct. 2011©Cengage Learning. All Rights Reserved.

6. Principle of Stare Decisis Concept of predictability Once a judgment is rendered it becomes recorded Future problem should be resolved in the same manner as the earlier case most courts use similar cases as guidelines trying to apply the law consistently 2011©Cengage Learning. All Rights Reserved.

7. Courts Bound Lower courts are bound by decisions of higher courts & must follow that higher court’s earlier rulings. Courts of equal stature not required to follow one another’s rulings. Higher courts decide the rule of law on their own, unbound by the lower court’s precedent. 2011©Cengage Learning. All Rights Reserved.

8. THE COURTS Superior Court  California voters passed Proposition 220 which allowed the merger of municipal and superior courts.  Superior court has jurisdiction over all court matters previously handled by superior and municipal courts.  handles civil trials involving disputes over $25,000; probate, divorces, adoptions, and other family matters; criminal felonies; and appeals by an appellate division. 2011©Cengage Learning. All Rights Reserved.

9. Small Claims Court Claims for damages not in excess of $7,500 for individuals & $5,000 for businesses. Authorized to issue equitable relief such as rescission, restitution, reformation, and specific performance. 2011©Cengage Learning. All Rights Reserved.

10. Small Claims Court A person may not file more than two actions a year in excess of $2,500. The defendant may appeal an unfavorable decision but the plaintiff, by choosing this court, waives the right to appeal any decision of the court. 2011©Cengage Learning. All Rights Reserved.

11. California’s Appellate Courts Superior Court District Court of Appeal California Supreme Court 2011©Cengage Learning. All Rights Reserved.

12. Federal Courts District Court Courts of Appeal U.S. Supreme Court 2011©Cengage Learning. All Rights Reserved.

13. ADR Alternative dispute resolution  method of settling disputes outside of court  Commonly through mediation or arbitration The California Association of REALTORS®’ deposit receipts and listing agreements require mediation and offer a means of arbitration. 2011©Cengage Learning. All Rights Reserved.

14. Mediation A process in which a neutral third party tries to help the parties reach an agreed resolution. The process is voluntary The parties can quit at any time. The mediator acts as a facilitator. 2011©Cengage Learning. All Rights Reserved.

15. Mediation The mediator has no authority to award his or her own decision. The resolution, if any, must come from mutual agreement by the parties. 2011©Cengage Learning. All Rights Reserved.

16. Arbitration An arbitrator seeks to hear the evidence and arrive at an appropriate award. The arbitrator seeks justice and is not concerned with compromise or agreement between the parties. 2011©Cengage Learning. All Rights Reserved.

17. Arbitration Most real estate contracts make the arbitration binding. This means that the courts will enforce the arbitrator’s award and the parties 2011©Cengage Learning. All Rights Reserved.

18. The parties are free to select anyone that they want to arbitrate or mediate and use any procedure acceptable to both parties. Whoever writes the contracts specifies the rules and the agency that will provide the arbitrators and mediators. 2011©Cengage Learning. All Rights Reserved.

19. LEGAL TERMS AND CONCEPTS Jurisdiction Venue Statute of Limitations Statue of Frauds 2011©Cengage Learning. All Rights Reserved.

20. LEGAL TERMS AND CONCEPTS Parol Evidence Rule Doctrine of “Reasonableness” Dictum 2011©Cengage Learning. All Rights Reserved.

21. HISTORY OF CALIFORNIA LAND California discovered in 1554 by the Spanish Spanish settlers began colonizing California land in 1769 Mexico won independence from Spain in 1821 & California became part of Mexico 1848 the United States annexed California 2011©Cengage Learning. All Rights Reserved.

22. Mexican Influence Retained Treaty of Guadalupe Hidalgo provided that the United States would recognize the property rights of Mexican citizens in California California adopted community property laws Procedures authorized for legitimization of Spanish and Mexican land grants by the issuance of U.S. patents 2011©Cengage Learning. All Rights Reserved.

23. Californian’s Ownership Private-property rights obtained through the process of preemption  a persons could buy up to 160 acres of land from the federal government for $1.25 per acre  Settlers could also acquire up to 160 acres (later 640 acres) almost free by cultivating the land continuously for five years (later reduced to three years) under the Homestead Act 2011©Cengage Learning. All Rights Reserved.

24. Ownership the federal government owns approximately 45% of the total land area of California the state owns about 3% local governments approximately 2% approximately 50% is privately owned What’s your share? 2011©Cengage Learning. All Rights Reserved.