Business Law
Chapter One
Our Laws
p.5-17
Section 1-1 Goals

Explain the stages of evolution of law

Describe the differences between
common and positive law

Describe the differences between law
courts and equity courts
Hot Debate – Page 4
1.
Who was at Fault?
2.
What arguments would Donna’s
Attorney present at the civil trial to
determine who was negligent?
3.
What arguments would Wilma’s attorney
present?
Basic Terms

Law



Enforceable rules of conduct in a society
Reflect the culture and circumstances that
create them
Code

Laws grouped into an organized form

Criminal, property, business, family, personal
injury, labor laws
Stages in the Growth of Law
1. Individuals take revenge for wrongs done
to them
2. Awards of money or goods are substituted
for revenge
3. Court systems are formed
4. A central authority figure (sovereign)
intervenes to prevent and punish wrongs
Common vs. Positive

Common Law




Based on current
standards or customs
Usually pronounced
by judges
Used to settle disputes

Positive Law



Dictated from above
Usually from a higher
central authority figure
To prevent disputes
before they happen
Example:

Cigarettes
* Laws should be both predictable and flexible
English Common Law

The Kings Court



1150 by King Henry II
Developed to create
consistency among regions
Appointed Judges


Good weather months judges
would “ride circuit”
Bad weather months judges
met in London to hear cases

Example: Ox Cart
Accident – Page 6
English Common Law

Kings Court Established:

Jurisdiction

The power to decide a case
Jurypanel of citizens, to interpret local customs
 Unique to English Common Law


Precedent
Use of prior cases as a guide for similar cases
Levels of Government



Federal
State
Local

Each level consists of
Constitutions
 Statutes
 Administrative Legislations
 Case Law

Basic Terms

Constitution


A document that sets forth the framework of a
government & its relationship to the people it
governs
Allocation of power between:


People & government – Bill of Rights
State & federal government – Fed regulates
commerce (intrastate and interstate)

Branches of government – checks and balances
between the three branches
Basic Terms

Statutes

Laws enacted by state or federal legislature


Ordinances


Example: What's Your Verdict? Page 9
Laws enacted at the local level
Administrative Agencies

Government bodies formed to carry out
particular laws
Social Security Administration
 Pa Department of Transportation
 County Zoning Commission

Federal
State
Local
Basic terms cont.

Case Law


Usually is made after a trial has ended and
appealed.
The decision of that appeal may create a new
law


Stare decisis
READ “IN THIS CASE”…PAGE 10
What Happens when Laws Conflict?



Any federal, state or local
law that conflicts with the
constitution is
unconstitutional
That law is invalid
Turn to page 618 for
some constitutional laws
Criminal Vs. Civil Law

Criminal Law


Define and set
punishment for
offences against
society
Violates citizen’s right
to live in peace

Civil Law


Define and set
punishment for
offences against
individuals
Example: tenant
refuses to pay rent;
owner can sue
•Crime- an offence against society
Criminal Vs. Civil Law

What’s your verdict? Page 11

Criminal or Civil?

Both – running through a stop sign is a
crime against society
- smashing into Bates is a civil
offense
Law in the Media??

Read Karla Faye Tucker Case - P.12

Is execution ever justified as a punishment
for crime?

Why? / Why not?
Procedural vs. Substantive



Procedural
 Deals with
methods of
enforcing legal
rights and duties
How/when arrests
can be made
Determine equitable
remedies

Stare decisis

lower courts must
follow existing case
law in similar cases
Substantive


Defines rights and
duties
Rules of conduct


Except enforcement
Defines offences




Murder
Theft
Vehicular homicide
negligence
Business Law

Covers rules that apply to business
situations & transactions



Most occur between merchant and consumer
Concerned with Civil law
Torts

Private wrongs against people/organizations

Manufactures make defective products
Two types of Procedural Law

Criminal Procedural

Defines the process
for enforcing the law
when someone is
charged with a crime

Civil Procedural



Used when civil law is
violated
Concerned with
private offences
Police & public
prosecutors generally
do not get involved
Uniform Commercial Code (UCC)


Widely adopted uniform business law
Gives consistency between state
commercial laws

Sales of goods, aspects of banking, leases of
goods, credit transactions, etc.
Review what you know

Think Critically


#10 - #12 & 14
Your Legal Vocabulary

page 13
#1 - 14
page 14