LO 1-1: What is the importance of studying laws and regulations for business?
Laws and regulations are fundamental foundations for business: they shape strategic advantage, sustain business practices, protect innovation, define liabilities, and guide ethical decision-making. Studying law provides a legal vocabulary and the ability to identify legal issues, make sound business decisions to prevent disputes, and know when to consult counsel. (Chapter 1)
LO 1-2: What does ‘property’ mean in legal context?
In law, ‘property’ refers to the right of ownership itself — the legal right to exclude others from a resource. It gives incentive for wealth creation and allows individuals and businesses to possess, use, transfer, and develop resources under the rule of law. Property may be public, private, or common. (Chapter 1)
LO 1-3: How is stare decisis different in common law nations versus civil law nations?
Stare decisis (following prior precedent) is central in common law systems where judges’ prior decisions create law and bind future cases; in civil law systems judges rely more heavily on legislation and are less bound by prior judicial decisions, though they may refer to settled cases. The role and weight of precedent differ markedly between these systems. (Chapter 1)
LO 1-4: What legal sources do lawyers consult and how are they hierarchically arranged?
Lawyers consult a hierarchy of sources: (1) U.S. Constitution and amendments; (2) federal statutes; (3) federal administrative regulations; (4) state constitutions; (5) state statutes; (6) state administrative regulations; (7) local ordinances; and (8) case law (which interprets all other sources). Higher sources prevail over lower ones when conflicts occur. (Chapter 1)
Define ‘law’ as used in Chapter 1.
Law = rules laid down by the state and backed by enforcement. It is a formal social force intended to tell society what is permitted or prohibited and requires enforcement institutions (courts, police) to sustain order and property rights.
What is the ‘rule of law’ and how does it go beyond laws as commands of the state?
The rule of law means laws are generally and equally applicable, clear, publicized, stable, just, and protect fundamental rights. It requires accessible, fair, efficient processes and timely delivery of justice by competent, independent representatives. Unlike mere commands, the rule of law demands accountability and equal application. (World Justice Project’s four principles summarized in Chapter 1)
List the World Justice Project’s four universal principles defining the rule of law.
1) Government, officials, and individuals are accountable under the law. 2) Laws are clear, publicized, stable, just, applied evenly, and protect core rights. 3) Law enactment, administration, enforcement processes are accessible, fair, efficient. 4) Justice is delivered timely by competent, ethical, independent representatives with adequate resources and community representation.
Explain why property (ownership) is central to a modern private market.
Property is the legal right to exclude others from resources. Enforcement of property rights under the rule of law provides incentive to develop and invest in resources, enabling markets to function — e.g., contract law for exchange, tort law to compensate harm to property, corporate law to structure ownership and use of resources.
What are the three types of ownership fences (property types)?
1) Public property — owned by government (roads, public lands). 2) Private property — owned by individuals. 3) Common property — owned jointly (e.g., shared land).
What does ‘property in its broadest sense’ include?
Property in its broadest sense includes ownership of tangible and intangible resources (land, goods, IP) and constitutional and human rights (liberty, free speech). Think of property as including rights in oneself and one’s efforts (Locke, Madison).
Summarize the ‘wheel of property’ — how different areas of law relate to property.
Constitutional law protects property broadly; administrative/regulatory law regulates, taxes, or redistributes owners’ resources; tort law compensates when resources are wrongfully harmed; contract law governs exchanges of resources; corporate law identifies group ownership/use of resources; criminal law punishes those who harm property. All these surround the central concept of property.
What is ‘jurisprudence’?
Jurisprudence is the philosophy of law — theories about the origin, purpose, and justification of law.
Describe the ‘natural law’ school.
Natural law asserts law contains universal moral principles found in nature and discoverable through reason. Human laws contradicting natural law are improper. (Linked to Locke’s view that property is part of natural law.)
Describe ‘positive law’ jurisprudence.
Positive law views law as commands of the state backed by force and punishment. Law is what is enacted by authorized institutions rather than moral universals.
Describe the ‘historical school’ of law.
The historical school emphasizes legal principles that have stood the test of time and that law reflects a people’s cultural traditions — different nations may therefore have different laws (Savigny).
Describe ‘sociological jurisprudence’.
Sociological jurisprudence argues law should evolve to meet societal changes — legal interpretation should consider contemporary developments (e.g., the Second Amendment context today vs. historical firearms).
Describe ‘legal realism’.
Legal realism looks beyond statutory words to what officials (police, judges, prosecutors) actually do in practice. Justice is ‘what officials do about it’ — focuses on real-world enforcement and application (example: posted speed limits vs. actual policing practices).
Contrast ‘common law’ and ‘civil law’ systems.
Common law (U.S., UK, Canada, India, etc.) emphasizes judges’ role in creating and interpreting law; prior judicial decisions (precedent) are binding (stare decisis). Civil law nations rely more on legislation; judges decide facts but are less bound to make law through precedent. Louisiana in the U.S. is partially civil law due to French influence.
What is ‘public law’ vs ‘private law’? Give examples.
Public law regulates society (government acting for the public): constitutional law, administrative law, criminal law. Private law concerns private resource relationships between individuals/businesses: property law, contract law, tort law.
Differentiate ‘civil law’ (noncriminal) and ‘criminal law’.
Civil law (noncriminal lawsuits) seeks damages or equitable relief between private parties (e.g., breach of contract, tort). Criminal law involves government prosecuting offenses against society, seeking punishment (fine, imprisonment, etc.).
Define ‘substantive law’ and ‘procedural law’.
Substantive law defines legal rights and duties (e.g., elements of breach of contract). Procedural law sets out the steps and rules for enforcing those rights (e.g., time to sue, evidence rules, appeal procedures).
Give the hierarchy of sources of law from highest to lowest (federal/state/local context).
1) U.S. Constitution and Amendments; 2) Federal statutes (acts); 3) Federal administrative regulations; 4) State constitutions; 5) State statutes; 6) State administrative regulations; 7) Local ordinances; 8) Case law (judicial decisions interpreting all above). Higher sources void conflicting lower sources.
What are the main parts of federal law your attorney will check?
1) U.S. Constitution; 2) Legislation passed by Congress (statutes/codes); 3) Federal administrative regulations (e.g., EPA rules). Constitutional conflicts can void statutes or regulations.
What is ‘case law’ (judicial decisions) and why are they important?
Case law = judicial opinions that interpret constitutional, statutory, and regulatory law and sometimes create common law. Appellate decisions become precedents for future similar cases, providing detail, predictability, and clarification of legal boundaries.
