Chapter 1
Laws and Their Ethical Foundation
Legal Vocabulary Terms
1. Case Law – Law made when an appellate
court endorses a rule to be used in deciding
court cases
2. Civil Disobedience – An open, peaceful,
violation of a law to protest its alleged
injustice
3. Civil Law – Group of laws that allows
individuals to seek legal remedies for wrongs
done to them
4. Code – Laws grouped into an organized form
5. Common Law – Law based on the customs of
a group of people
6. Constitution – Document that sets forth the
framework of a government and its
relationship to the people it governs
7. Criminal Law – Group of laws defining and
setting punishments for offenses against
society
8. Equity - Fairness
7. Ethics – The practice of deciding what is right
or wrong in a reasoned, impartial manner
8. Jurisdiction – Power of a court to decide a
case
9. Laws – Enforceable rules of conduct in a
society
10.Ordinance – Legislative enactment by a city
11.Positive Law – Law dictated from above
12.Procedural Law – Group of laws that set forth
how rights and responsibilities can be legally
exercised and enforced through the legal
system
13.Stare Decisis – Doctrine requiring lower
courts to adhere to existing case law
14.Statute – Law enacted by state legislatures or
federal legislatures
• The laws reflect the culture and circumstances
that create them; they differ from culture to
culture.
• The stages in the growth of a law are:
– Individuals are free to take revenge for wrongs
done to them
– A leader acquires enough power to be able to
force revenge-minded people to accept an award
of goods or money instead
– The leader gives this power to a system of courts
– The leader or central authority acts to prevent and
punish wrongs that provoke people to do wrong
• There are two systems of law in the world
– English common law (all of U.S. except Louisiana)
– Roman Civil Law
• Laws should be predictable and flexible.
• Laws that are unpredictable create a climate
of chaos, unrest and an unstable society.
• Laws that are too strict will eventually be
overthrown.
• Common law is usually formed from the rules
used by judges to settle people’s disputes.
• The history of English Common Law
– Disputes were settled on the basis of local
customs
– This made it difficult for a central government to
follow as people moved from one area to another
– In 1150, King Henry II decided to improve the
situation
– Each area came together as a court to hear cases
– King Henry recognized the importance of deciding
court cases in harmony with the customs of the
people in that are, so citizens were chosen to help
interpret each area’s customs. This is what
evolved as what we call a Jury today.
• The English Common Law system achieves
uniformity while maintaining an ability to
adapt to changes in society.
• It has been a model for legal systems
worldwide, including the United States.
• The common law courts follow a precedent.
This means the courts use prior cases as a
guide for deciding similar new cases.
• This helps provide stability in the law.
Think Critically
• You are on your daily jog when a car negligently
pulls out in front of you. Unable to stop, you run
into it and injure yourself. Should you be able to
recover damages for the harm done to you?
• Cracked Mirror, a local rock band, contracts to
play for your high school dance. A week before
the dance, the group cancels its appearance. It is
found out that the band booked another concert
that pays $800 more. If you sue the band for
damages, what would be an appropriate amount
and why?
What are the sources for law?
• Laws in this country are created at all three
levels of government – federal, state and local.
• The forms that these laws can take are:
constitutions, statutes, case law and
administrative law.
• A constitution designs the framework of a
government. We are governed by the
constitution of the United States and our
state.
• The Supreme Court of the United States is the
highest court in this country and has final
interpretation of the constitution.
• Constitutions are the highest sources of law.
• We elect representatives to act on the state’s
behalf. These representatives work to enact
laws called statutes.
• The power that is given to cities and towns to
create laws are called ordinances.
• Case law is made from court decisions in
actual court cases.
– Example: after a trial ends, someone appeals the
decision to a higher court. The higher court uses
the decisions made in the lower courts to form
case law.
• Administrative law regulates government
agencies.
– Examples: zoning laws, taxation, immigration
• The main types of laws are:
– Civil law – refers to the group of laws that allows
people to seek legal remedies for wrongs done to
them. Involves private disputes between people
and/or organizations. Examples: not paying your
bills, violating a contract.
– Criminal law – when a crime has been committed
against society and disrupts a stable environment
and interferes with citizens’ right to live in peace,
it is governed by criminal law. Examples: stealing,
assault, illegal drug use.
• Business law covers rules that apply to
business situations and transactions.
• Business law is mainly concerned with civil
law, especially contracts.
• Ethics is a practice of deciding what is right or
wrong in a reasoned, impartial manner.
• Business ethics are the ethical principles used
in making business decisions.