Leb Exam #2 Study Guide
BUSINESS LAW EXAM #2 STUDY GUIDE
Chapter 1: Nature & Sources of Law
I. What is “law”?
• *The general purpose of law is to create an orderly society; ensuring orderliness to all human activity; still no definition of law that has universal approval; law is very broad
• Primary sources – legally binding rules/procedures, federal/state constitutions, states, administrative agency regulations, court decisions
• Secondary sources – research articles, restatements, legal texts and encyclopedias; summarize and explain law; not legally binding
II. Law and Business
• Should law factor into business strategy? Is it ok to use the law to your advantage? Any other good reasons for a business to use the law to its advantage? Must factor legal and regulatory factors into strategic business planning; analyze governmental policy and attempt to proactively improve firms’ legal environment; companies should leverage their legal resources into source of competitive advantage
III. Rules and Process – law is both rule & process
• Rule-oriented approach to the law – views law as rules that are in effect within state/nation at a given time; law is body of principles, standards, rules that courts apply
• Process-oriented approach to the law – views law in broader light as processes by which rules/principles are formulated, rather than rules/principles themselves
IV. Requirements for a good legal system under democratic govnt
• Certainty – reasonable certainty about laws based on assumption legal principles will remain stable over long periods of tie; courts reluctant to overturn established principles
• Flexibility – societal changes occur rapidly so rules must be relatively flexible; each change presents new legal problems that must be resolved; problems step from scientific/ technological advances, changing business methods, shifting attitudes/morals, politics; many problems settled through judicial process where duty to arrive at solution falls on courts
•
Chapter 1: Nature & Sources of Law
I. What is “law”?
• *The general purpose of law is to create an orderly society; ensuring orderliness to all human activity; still no definition of law that has universal approval; law is very broad
• Primary sources – legally binding rules/procedures, federal/state constitutions, states, administrative agency regulations, court decisions
• Secondary sources – research articles, restatements, legal texts and encyclopedias; summarize and explain law; not legally binding
II. Law and Business
• Should law factor into business strategy? Is it ok to use the law to your advantage? Any other good reasons for a business to use the law to its advantage? Must factor legal and regulatory factors into strategic business planning; analyze governmental policy and attempt to proactively improve firms’ legal environment; companies should leverage their legal resources into source of competitive advantage
III. Rules and Process – law is both rule & process
• Rule-oriented approach to the law – views law as rules that are in effect within state/nation at a given time; law is body of principles, standards, rules that courts apply
• Process-oriented approach to the law – views law in broader light as processes by which rules/principles are formulated, rather than rules/principles themselves
IV. Requirements for a good legal system under democratic govnt
• Certainty – reasonable certainty about laws based on assumption legal principles will remain stable over long periods of tie; courts reluctant to overturn established principles
• Flexibility – societal changes occur rapidly so rules must be relatively flexible; each change presents new legal problems that must be resolved; problems step from scientific/ technological advances, changing business methods, shifting attitudes/morals, politics; many problems settled through judicial process where duty to arrive at solution falls on courts
•