Chapter 1
Introduction to Law
© 2012 South-Western, a part of Cengage Learning
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TEXT
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Carper/McKinsey/Meiners/Ringleb/Edwards,
Introduction to Law for Business
Not Kubasek, The Legal Environment of
Business
© 2012 South-Western, a part of Cengage Learning
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Quote
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“No law perfectly suits the convenience of
every member of the community: the only
consideration is, whether upon the whole it
be profitable to the greater part.”
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Livy, History of Rome, c. 10 B.C.
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U.S. Law is based on the English
Common Law
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English common law derived its legitimacy from
experience and custom
Influenced by Norman invasion of 1066
Kings Courts
Chancellor courts (equity)
Use of case law as precedent
Second most common legal system in the world
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WHAT IS “LAW”?
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Text: “a body of rules and conduct prescribed
by controlling authority and having binding
legal effect”
Prescribed by whom?
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Separation of Powers
Who determines whether a law has “binding
legal effect”?
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Judicial Review
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Modern U.S. Common Law
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Federalism – Union of states under federal government
The Constitution is the foundation of all U.S. laws
Doctrine of stare decisis or precedent
 Mandate that Inferior courts follow decisions of
superior courts
 Provides stability and predictability to legal system
Alternate references for term common law
 Case law
 Court law
 Unwritten law
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Stare Decisis
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Latin term meaning “To stand by decided cases.”
Treating these cases as “Precedent.”
Application of doctrine in typical situations
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Variables to consider when applying rule
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Jurisdiction issues (Which court, Which State?)
Identity or similarity of facts
Currency
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Change in cultural values
Change in scientific knowledge
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THE LAW IS DYNAMIC
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Examples:
 Affirmative Action: what impact will Fisher have?
 DOMA: enacted by controlling authority, but will it have binding
legal effect?
 Changes caused by societal, cultural and economic changes:
 The role of women
 Plessy v. Ferguson
 Discrimination against the LGBT community
 Intellectual property law
 International law
 Environmental law
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Lawmaking by other than courts
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Legislators
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Executive Branch
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Federal & State – Doctrine of Supremacy
Statutes
Codes
Ordinances
Treaties
Veto
Executive orders
Treaties
Administrative agencies
People
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Initiatives
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Classifications & Categories of Law
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Federal
State
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Civil
Criminal
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International
Domestic
Procedural
Substantive
Private
Public
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Federal v. State Law
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Federal law
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National in origin
Consistent with constitution
Supreme over state law
Exclusive in International affairs
Multiple sources of federal law
State Law
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Ordinary affairs of citizens including most
contract, tort, and criminal law
Multiple sources of state law
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Civil v. Criminal Law
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Civil law: Body of law directly concerning the
rights and duties between parties
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Criminal law: Body of law dealing with crimes
and their punishment
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Contrast Between Civil And Criminal Law
Civil
Criminal
Nature
Rights and duties of individuals
to each other
Wrongs against society as a
whole
Person Initiating Action
Plaintiff or person injured
Either federal, state, or local
prosecutor
Burden of Proof in Trial
Preponderance of the evidence
Beyond a reasonable doubt
Result sought
Money damages or equitable
remedy
Death, fine or imprisonment
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Private v. Public Law
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Public law: Body of law directly concerned
with public rights and obligations
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Private law: Body of law regulating rights and
duties existing between private persons. The
rights and duties are created by the affected
parties
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International v. Domestic Law
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International law: Governing relations
between sovereign nations
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Domestic law: Law of a particular sovereign
nation
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Challenges include international trade, travel,
and violence given the limited ability to
enforce international law
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Procedural Law v. Substantive
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Procedural law: General principles and
detailed rules that define the methods of
administering the substantive law
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Substantive law: General principles and
detailed rules defining legal rights and duties
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THE IMPACT OF STARE DECISIS
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If the facts of a new case are essentially
identical to a case previously decided by an
appellate court, the inferior court must follow
the old decision
If the new case is somewhat different, but the
underlying rationale and policy of the old
case makes sense, extend the previous
ruling to the new facts.
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IMPACT OF STARE DECISIS, CONT’D
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If the new case is not the same and the
underlying rationale of the old case doesn’t
make sense in this new case, distinguish the
new case from the old one and limit the rule
from the old case
If the new case is essentially identical to the
old case, but the underlying rule no longer
makes sense, overrule the previous
precedent.
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EXAMPLES OF OVERRULED CASES
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Plessy v. Ferguson
Brown v. Board of Education
Citizens United
Potentially Fisher v. University of Texas
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Relationship Between Law and Ethics
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Legal rules and rules of ethics serve different goals
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Is an action legal?
Is an action morally or ethically correct?
Law is imperfect –exclusive compliance with the law may
fall short of correct behavior. It is possible to comply with
the letter of the law and still not act in a moral manner
What Are Ethics?
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Ethics is study of the general nature of morals and moral choices
to be made by the individual in relationships with others
Rules or standards governing the conduct of the member of a
profession, e.g., the legal profession
Standards of fair and honest conduct
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Ethics Terms
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Morals: Relating to whether conduct is right or
wrong, generally similar to ethics although used in a
more personal sense
Norms: Standards of behavior
Normative Judgments: Value judgments as to right
and wrong
Non-normative: Statements of fact which are value
neutral
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How do we determine what is a “right”
decision?
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Negotiations
Westside Federal layoffs
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Is Legal Compliance Sufficient?
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Kitty Genovese Case
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Ethical standards and decision making
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Duty-based ethics: Actions are morally correct if they
comply with existing obligations owed another or
ourselves
 Often religious based
 Kantian ethics
Utilitarianism: Determining right conduct is based on
consequences; that the purpose of the behavior should
be the greatest happiness of the greatest number people
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Eric J. v. Betty M.
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Who is the appellant? Respondent?
Who was the plaintiff? Defendant?
What precedent did the appellant cite?
How did the court distinguish the Soldano
case?
How do you feel about the decision? Did the
court promote ethical conduct? Why or why
not?
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Moral Reasoning
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A rational thought process directed at testing
whether action is right or wrong. The conclusion is
a determination of moral responsibility or
culpability
Deductive logic
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A method of logical reasoning from two or more
propositions to a conclusion. Inferences are drawn from
a general premise to a specific premise. The conclusion
is valid if the proposition on which the conclusion is
based is true
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Using Court Cases
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Federal v. State cases
Trial v. Appellate court cases
Citation – manner in which court cases are identified, 76
Cal. App. 4th 715, 90 Cal.Rptr.2d. 4 (California, 1999)]
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76 - volume
Cal. App. – name of the reporter
4th – edition of reporter
715 – page where case can be found
90 Cal.Rptr.2d. 4 – parallel citation to another reporter
California – state in which decision was rendered
1999 – year the case was decided
Additional example: 77 W. 2d 345 (1969)
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Using Court Cases -Terminology
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Unanimous opinion: A judicial decision with complete
agreement by all judges
Majority opinion: A written opinion by a judge outlining
the views of the majority of the judges of the court
deciding the case
Concurring opinion: A written opinion wherein a judge
agrees (concurs) with the result reached by another
judge, but for different reasons from those stated by the
other judge
Dissenting opinion: A written opinion by a judge or
judges who vote contrary to the majority opinion and
holding of the court
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Terminology, Cont’d
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Appellant/Respondent
Petitioner/Respondent
Plaintiff/Defendant
Judges/Justices
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