Business Law
Introduction to Law –
Chapter 1
Objectives
Explain the stages in the evolution of law
 Describe the differences between common
law and positive law
 Describe the difference between law
courts and equity courts

HOT DEBATE!!!
Let’s see how much you ALREADY know!
 Read and discuss the Hot Debate on page
4 with a partner. Be prepared to discuss
your answer.
 You have 5 minutes!

1. WHAT IS LAW???
Laws: enforceable rules of conduct in a
society


Reflect the culture and circumstances that
create them
Code: laws are grouped into organized
form


King of Babylon 4000 years ago Code
of Hammurabi – SAME law principles
2. Stages of Growth of Law: How
Legal Systems are Formed
1.
2.
3.
4.
Individuals take revenge for wrongs
done to them
Awards of money or goods are
substituted for revenge
Court systems are formed  to hear the
injured
A central authority figure intervenes to
prevent and punish wrongs issues
laws
Stage 1: Taking Revenge
Injuries sustained call for personal
revenge
 Usually disrupt the people’s normal routine
and result in harm to innocent bystanders
 Often results in one individual seizing
power and exerting control to restore
peace to the society
 Still prevalent in gangs

Stage 2: Awarding $$

Sovereign – the powerful person from
Stage 1 then goes on to award money or
goods as a substitute for revenge
Stage 3: Forming Courts
Elders or priests generally preside over
these courts
 Sovereign presides over the most
important cases

Stage 4: Prevention

The sovereign:
Uses the courts to prevent problems from
arising
 Issues laws to punish behaviors that injure
others

3. Common Law vs. Positive Law
Common Law:




Reflects the wisdom, or lack thereof, of
their creators
Should be: predictable and flexible
Laws based on current standards or
customs of the people
Positive law:



Laws dictated by central authority to
prevent disputes and wrongs
Very inflexible
4. World’s Greatest 2 Systems of Law

English Common Law
The US follows this type (except LA)
 Jurisdiction evolved: the power to decide a
case
 ‘Uniform and consistent’


Roman Civil Law
LA uses
 Individual attention

5. Equity: An Alternative to
Common Law
Common laws follow precedent (use prior
cases to help determine new cases).
 Disadvantage of common law: you had to
wait until injury actually occurred to take
legal action
 Equity Law (meaning FAIR): You can take
legal action to prevent wrongdoings


Injunction – an order that prohibits something
from being done
Think about it…

Why do societies need laws and courts?
Laws - To protect individuals and settle
disputes between individuals
 Courts - settle disputes, award damages,
prevent/punish wrongs

Think about it…

Differences between law courts and equity
courts
Law courts follow precedents AFTER an
injury has occurred
 Equity courts follow precedents but can also
issue injunctions to stop actions in order to
PREVENT harm from being done.

Quick Content Check!

List the 4 stages of how the legal system
evolved.

What are some differences between
common law and positive law?

Describe the difference between law
courts and equity courts.
TO DO LIST:
Page 8: Questions, 1, 2, 4, 6, 7, 8
 Stages of Law Cartoon


Create a cartoon strip depicting the FOUR
stages of growth of law.
 Use
paper, pencils, markers or technology
provided.
 Your cartoon strip MUST include AT LEAST 4
slides
 Make sure to accurately represent EACH stage of
growth!!!
Lesson 1-2 Objectives
Explain how constitutional, statutory, case,
and administrative laws are created
 Explain how to resolve conflicts between
constitutional, statutory, case, and
administrative laws
 Describe the differences between criminal
and civil, substantive and procedural, and
business and other forms of law

Hierarchy of Law
a.
Constitutions
b.
Statutes
c.
Administrative Regulations
d.
Cases
6. Constitutions
Constitutional law: when constitutions are
adopted or amended or when the courts
interpret the Constitution



A constitution is a document that sets forth the
framework of a gov. and the relationship to people it
governs
US Constitution and state constitutions allocate
powers between:
1.
2.
3.
People and their government – Bill of Rights
State and federal government – regulate foreign and
interstate business
Three branches of government – maintain balance of
power
Types of Laws

What types of laws do you follow on a
daily basis?

Statutes: laws enacted by state and federal
legislatures


Give 3 examples!
Ordinance: legislation at the local level

Give 3 examples!
Administrative Agencies:
Governmental bodies formed to carry out
particular laws




EPA, Social Security Administration, IRS,
DMV
Creates rules and regulations
Supervised by the governor, mayor,
or president
Case law



Usually made after a trial has ended and one of
the parties has appealed the result to a higher
court
(but the Supreme Court can change its
mind later!)
Appellate court (court that hears the appeal)
publishes its opinion on the case used in
future similar court cases
Stare decisis: legal doctrine that requires lower
courts must follow established case law in
deciding similar cases
 In
This Case, page 10
7. What Happens When Laws
Conflict?
Laws made by different levels of government
may conflict
Constitutions and Validity:




Supreme law of the land nothing may conflict
with it
Unconstitutional: law is invalid because it conflicts
with constitution
Statutes and validity



MUST be constitutional
Must NOT conflict with higher level of gov
8. Statutes and Validity
Are either of the following examples
legal/valid?:
 A city enacted a law making it illegal to sell
gasoline for more than $1/gallon.
 A city enacted a law making the death
penalty mandatory for persons who
commit murder within the city limits.

9. Law and Validity



Courts are NOT the final authority on
effect of statutes
Legislative bodies can nullify a court’s
interpretation by abolishing or rewriting it
People have power to amend
constitution


16th amendment income taxes
21st amendment repeal of prohibition
What are the main types of laws?

READ: What’s your verdict, pg 11
10. Criminal vs. Civil Laws:
Civil laws: group of laws that redress wrongs
against individual persons / property



When private legal rights or property of an
individual are violated
defendant loses liable (must compensate)
Criminal Law: when citizen’s right to live in
peace is violated




Crime: offense against society
Acting in the name of the people, gov investigates
wrongdoing and will prosecute
Loss = Conviction
Crime may be both civil and criminal


 OJ Simpson
According to the FBI (2011)
School violence http://youthviolence.edschool.virginia.edu/violence-in-schools/national-statistics.html
1.
2.
3.
4.
Which school has the most bullying in it?
Which school is most likely to have gang
activity?
Which school has the most colt or
extremist activity?
Which gender is more likely to bring a
gun to school?
Percentage of students in grades 9-12 who reported
carrying a weapon at least 1 day during the previous 30
days, by location and sex: Various years, 1993-2005
The U.S. is world’s leading incarcerator
U.S. rate of incarceration of 941 inmates
per 100,000 population record high
 The U.S. now locks up its citizens at a rate
SIGNIFICANTLY higher than that of other
industrialized nations
 For every 100,000 population:

 139
in England/Wales
 116 in Canada
 91 in Germany
 85 in France
11. Procedural vs. Substantive Laws:
Procedural law: deals with methods of enforcing
legal rights and duties




Specify how and when police can make arrests and what
methods can be used in trial
Determine equitable remedies
Examples
Substantive law: defines YOUR rights and duties



All rules of conduct for citizens
Defines offenses murder, theft, vehicular homicide,
breach of contract, negligence
12. Business Law:

Covers all business situations and transactions

Most business transactions involve merchant and
consumer

Concerned mostly with civil law, especially contracts

Tort: unintentional violation of another person’s rights,
usually due to negligence. This is a form of civil
offenses and damages can be recovered.


May also be governed by criminal law
Laws vary from state to state must be constitutional

Uniformity is becoming more and more important!!!
TO DO LIST:





Questions 1-14, pg 13
FINISH Stages of Law Cartoons /
Worksheet
Ch 1-1 quiz tomorrow
Ch 1-2 quiz Monday
TEST TUESDAY
Ch 1-2 Review:




Review/Re-read: ‘Concepts in Brief’, pg
14
Complete: Vocab, pg 14
Ch 1-2 Review sheet AND
Answer questions: 16, 19, 20, 22, 27, 29,
31, 32, 33 – pg 15-16