Legal Environment of Business Notes

Topics: Common law, Law, Statute Pages: 5 (1582 words) Published: May 23, 2012


a. Types of Schools of Jurisprudential Schools.

1. The Natural Law School
A. Denotes a system of moral and ethical principles based on a person’s natural instinct and use of natural intelligence. i. Dates back to Greek Philosopher Aristotle (384-322 B.C.) distinguished between natural law and laws governing a nation. 2. The Positivist School

A. Positive Law-National and written law
i. POSITIVISTS believe there is no higher law than written laws. Natural laws are instead called human rights. 3. The Historical School
A. Evolutionary process of law by concentrating on the origin an history of the legal system. i. Legal doctrines that have been established through time and history that shape law today 4. Legal Realism

A. Based on the idea that law is just one of many institutions in society and law is shaped by social forces and needs. i. 1920 and 1930’ scholars and jurists rebelled against historical school jurisprudential thought. ii. Realists do not believe law can be evenly applied due to Judges being human with diverse law philosophies and personalities. B. Sociological school is strongly influenced by realism. This tool is used to promote justice in society such as civil rights movements.

II. Business Activities and the Legal Environment

1. Laws may affect single business transactions
A. Laws affect businesses in hiring, firiring, safety, manufacturing, marketing, bus. Finance and more. i. Breach-To break, fail, dishonor performance in a contract ii. Laws will affect “payment under contract”, insufficient funds, disputes, management power, etc. 2. Ethics and Bus. Decision Making

A. Decision makers must decide between good business decision and what is ethical. i. Ethics-the study of what constitutes right or wrong behavior. III. Sources of American Law
A. US Constitution and State Constitutions
B. Statutory Law-Local State government laws as well as laws by Congress and state legislation C. Regulations created by administrative agencies, such as the FDA, EPA, etc. D. Case law and common laws

1. Constitutional Law
A. General organization, powers, and limits of their respective government. i. Article VI—the Constitution I sthe supreme law of the land. ii. Laws in violation of the constitution will be declared unenforced and unconstitutional iii. 10th Amendment reservesto the states all powers not granted to the federal government. iv. State Law is supreme within all borders as long as it does not violate the constitution. 2. Statutory Law

A. Laws enacted by legislative bodies an any level of government: congress, state, . i. Ordinances—Statutory laws include ordinances (city level such as zoning, safety codes, building codes) ii. Uniform Laws—Laws set forth to keep rules and regulations consistent among states. Mainly to regulate commercial transactions. States can choose to adopt or not adopt such laws. iii. Uniform Commercial Code—UCC—Issued in 1952 with joint effrorts from NCCUSL and the American Law Institute. Common laws to facilitate Commercial transactins within the 50 states, virgin islands, and District of Columbia. iv. NCCUSL revises articles in the UCC and submits to the states for adoption. 3. Administrative Laws—Rules, orders and decisions of administrative agencies. A. Administrative Agency—a federal, state, or local government agency established to perform a specific function. FDA, EPA…etc… i. Federal Agencies—Cabinet departments within the executive branch. Federal (national) level agencies that regulate within all 50 states. FDA is part of the Department of Health and Human Services. Exec. Agencies are subject to approval by the president. ii. Independent Regulatory Commissions—Fed. Trade Commission. Pres power less pronounced. iii. State and Local...
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