Business Law CH 1-4 Flashcards

Questions and Answers

What must the class be large enough for in a class action lawsuit?

The class must be large enough to make individual suits impractical from the standpoint of the courts.

What is personal jurisdiction?

It is a determination by the court that the parties to a lawsuit are entitled to resort to the power of the courts in a particular geographical jurisdiction by virtue of their residency.

What does in rem jurisdiction pertain to?

It pertains to jurisdiction based on property issues rather than the location of the people involved in the lawsuit.

What are dispositive motions?

They are motions filed by the defendant to object to the complaint and point out specific defects, aiming to get rid of a dispute before trial. Signup and view all the answers

What is a default judgment?

A court may enter a default judgment against a defendant who fails to file an answer, effectively admitting the plaintiff's allegations. Signup and view all the answers

What is notice pleading?

Notice pleading requires a plaintiff's complaint to contain enough information to give the defendant a reasonable idea of the claims. Signup and view all the answers

What does the discovery process in civil cases aim to ensure?

It aims to take surprise out of litigation and ensures that the results of lawsuits are based on merits rather than legal skill. Signup and view all the answers

What is venire?

A panel of potential jurors. Signup and view all the answers

What is voir dire?

It is the process of questioning prospective jurors to determine their qualifications and biases. Signup and view all the answers

What are peremptory challenges?

Objections raised by a party rejecting a prospective juror without needing to give a reason. Signup and view all the answers

What does a motion to dismiss determine?

It determines whether there is law to support the cause of action based on the complaint. Signup and view all the answers

What is summary judgment?

It determines whether there is a genuine issue as to any material fact based on affidavits and pleadings. Signup and view all the answers

What is judicial review?

The doctrine that allows federal courts to determine whether acts by the federal or state governments conform to the Constitution. Signup and view all the answers

What is federalism?

The doctrine under which lawmaking is divided between a federal government and state governments. Signup and view all the answers

What are police powers?

Government powers related to public safety, health, welfare, and morals regulated by state governments. Signup and view all the answers

What is the importance of a Business Law course in a business/management curriculum or a business person?

Legal concepts, principles, and rules provide the foundation for the conduct of business. Signup and view all the answers

How can businesspeople use the law to a strategic advantage?

Knowledge of the law allows a business person to identify legal risks and effectively reduce or eliminate liability. Signup and view all the answers

What is law?

A regime or structure that orders human activities and relations. Signup and view all the answers

What is Law Merchant?

Medieval legal system mainly in Europe that established practical rules of commerce and trade. Signup and view all the answers

What is substantive law?

Laws that regulate and control the rights and duties of persons. Signup and view all the answers

What is procedural law?

Laws that establish the process by which litigation is conducted. Signup and view all the answers

What is public law?

Law which affects the public at large. Signup and view all the answers

What is private law?

Law that pertains to the relationships between individuals. Signup and view all the answers

What is criminal law?

Legally-enforceable rules that forbid certain conduct detrimental to the welfare of the state. Signup and view all the answers

What is civil law?

Deals with disputes between individuals or organizations. Signup and view all the answers

What does equity involve?

Equity does not involve a request for monetary damages. Signup and view all the answers

What is stare decisis?

The doctrine that law should adhere to decided cases and stand by the decision. Signup and view all the answers

What is res judicata?

The legal doctrine that once a dispute is settled, the parties cannot bring it up again. Signup and view all the answers

What are Vago's purposes and functions of law?

To maintain order, settle disputes, and encourage social change. Signup and view all the answers

What is the consensus perspective?

Law serves as an objective referee in disputes. Signup and view all the answers

What is the conflict perspective?

Law is an instrument of repression favoring the powerful. Signup and view all the answers

What are the objectives of the legal system?

Promote order, allow justice, cultivate reasonableness. Signup and view all the answers

What are the four sources of law?

Constitutions, legislations, common law rules, administrative agencies. Signup and view all the answers

What is judicial review?

The power of courts to declare laws and executive actions unconstitutional. Signup and view all the answers

Why was Marbury v. Madison important to judicial review?

It established the principle of judicial review for the court. Signup and view all the answers

How did the Common Law come to be?

Henry II streamlined the court system and standardized it. Signup and view all the answers

How did the Common Law spread across England?

Through a system of 'ridings' and 'circuits' for judges. Signup and view all the answers

How did equity develop in England and the US?

Equitable remedies developed due to convenience and efficiency. Signup and view all the answers

Why has the US experienced an 'orgy of statute-making'?

Legislators create more statutory law with less room for interpretation. Signup and view all the answers

What is judicial federalism?

The existence of federal and state justice systems. Signup and view all the answers

How would you characterize the caseloads of civil and criminal courts in the US?

There are considerably more civil cases than criminal cases. Signup and view all the answers

What is jurisdiction?

The court's power or authority to conduct trials and decide cases. Signup and view all the answers

What is venue?

The district or county of the principal defendant's residence. Signup and view all the answers

What is subject matter jurisdiction?

Determines which court is responsible for hearing specific cases. Signup and view all the answers

What is geographical jurisdiction?

Where the action giving rise to the dispute occurred. Signup and view all the answers

What is the basic structure of the state judicial system?

Three levels: trial courts, intermediate appellate courts, and a final appellate court. Signup and view all the answers

What is the basic structure of the federal judicial system?

US Supreme Court, US Courts of Appeals, and US District Courts. Signup and view all the answers

What is the appeal of right?

Entitlement to one appellate review. Signup and view all the answers

What is a discretionary appeal?

Appeals that the highest court chooses to hear. Signup and view all the answers

What is the history of development of the federal judicial system?

Federal courts were created in Article III of the Constitution. Signup and view all the answers

What is the Erie doctrine?

District court judges must apply the law of their state in diversity cases. Signup and view all the answers

What is the Strawbridge rule?

All plaintiffs must be citizens of a state different from any defendant. Signup and view all the answers

What is Rule 10 of the Supreme Court?

Governs review on writ of certiorari based on conflicts in decisions. Signup and view all the answers

What is diversity of citizenship?

Exists between citizens of different states or countries. Signup and view all the answers

What is the federal question doctrine?

Federal courts must have a federal question to review state cases. Signup and view all the answers

What is certiorari?

A request the Supreme Court grants to hear a case. Signup and view all the answers

What is a majority opinion?

Written by justices voting with the majority. Signup and view all the answers

What does pro se mean?

For one's own behalf; in person. Signup and view all the answers

What is a small claims court?

A court limited by the monetary amount in controversy. Signup and view all the answers

What is general jurisdiction of courts?

Courts have the power to hear almost any type of case. Signup and view all the answers

What is limited jurisdiction of courts?

Courts can only hear certain types of cases. Signup and view all the answers

What are concurring opinions?

Individual comments from a justice in the majority. Signup and view all the answers

What are dissenting opinions?

Explanations from a justice in the minority. Signup and view all the answers

What is the amount in controversy?

A jurisdictional issue regarding the claim's monetary value. Signup and view all the answers

What are the requirements for selecting federal judges?

They are appointed by the president and confirmed by the Senate. Signup and view all the answers

What are the justiciability doctrines?

Standing, advisory opinions, ripeness, mootness, political questions. Signup and view all the answers

What are the elements of standing?

An individual injury, causation, and judicial redressability. Signup and view all the answers

What are the elements of advisory opinions?

Two or more parties with adverse interests. Signup and view all the answers

What is the element of ripeness?

Whether facts have become sufficiently concrete. Signup and view all the answers

What are the elements of mootness?

Case or controversy must exist at the time of filing. Signup and view all the answers

What are limitations on the judiciary generally?

Cases may not be re-litigated if terminated with prejudice. Signup and view all the answers

What is the significance of the Hertz case?

It supported the 'nerve center' test for corporate citizenship. Signup and view all the answers

What Court of Appeals Circuit is NC in?

#4: Maryland, WV, VA, NC, and SC. Signup and view all the answers

How hard is it to get cert from the US Supreme Court?

The court grants about 10% of the 8,000 petitions for cert each year. Signup and view all the answers

What is a plaintiff?

The party who files a claim in court. Signup and view all the answers

What is a defendant?

One who answers a complaint. Signup and view all the answers

What is an appellant?

The party who appeals from one court to another. Signup and view all the answers

What is an appellee?

The party against whom an appeal is filed. Signup and view all the answers

What do long-arm statutes provide?

They extend personal jurisdiction to out-of-state parties. Signup and view all the answers

What are the requirements for class action lawsuits?

Commonality and adequacy of representation. Signup and view all the answers

Study Notes

Importance of Business Law

Business Law encompasses legal concepts and rules essential for conducting business operations.
It defines who can conduct business and ensures compliance with legal standards.
The law governs relationships between parties and enables government regulation of business behavior.

Strategic Use of Law in Business

Legal knowledge helps identify and mitigate legal risks, reducing potential liabilities.
Law facilitates opportunities like licensing intellectual property and forming joint ventures for competitive advantage.

Legal Concepts

Law: A system regulating human conduct, requiring predictable and enforceable rules.
Law Merchant: Historical European legal system focused on commerce and trade practices.
Substantive Law: Rules that define rights and duties and resolve disputes.
Procedural Law: Establishes the process for litigation and court procedures.

Types of Law

Public Law: Affects the public at large; includes constitutional, administrative, and criminal law.
Private Law: Governs relationships between individuals, like contracts and torts.
Criminal Law: Prohibits certain behaviors detrimental to society and imposes penalties.
Civil Law: Addresses disputes between individuals or organizations, focusing on compensation.
Equity: Focuses on remedies other than monetary damages, ensuring fairness.

Legal Doctrine

Stare Decisis: Doctrine requiring courts to adhere to precedents set by previous cases.
Res Judicata: Once a dispute is resolved, parties cannot re-litigate the same issue.
Dicta: Non-essential statements by a court that do not influence the case's outcome.

Functions of Law

Maintains social order and resolves disputes.
Facilitates social change through legal mechanisms.
Serves as an objective referee in disputes to ensure fair outcomes.

Legal System Objectives

Promote order and timely resolution of legal controversies.
Ensure justice through fair rules and processes.
Balance individual rights with necessary government regulation.

Sources of Law

Constitutions serve as the "supreme law of the land."
Legislation includes laws enacted by legislative bodies.
Common law evolves from court decisions and legal precedents.
Administrative laws pertain to rule-making by government agencies.

Judicial Review and Historical Context

Judicial review allows courts to declare laws unconstitutional, ensuring the Constitution's supremacy.
In Marbury v. Madison, the foundation for judicial review was established.
The Common Law system was standardized under Henry II, promoting consistency in judicial decisions.

Court Structures

State Judicial System: Comprised of trial courts, intermediate appellate courts, and a supreme court.
Federal Judicial System: Includes the US Supreme Court, US Courts of Appeals, and US District Courts.
Jurisdiction: The authority of a court to hear cases based on geographical areas and subject matter.

Types of Jurisdiction

Personal Jurisdiction: Court's authority based on a party's residency.
Subject Matter Jurisdiction: Court's authority based on the nature of the dispute.
Venue: The location appropriate for trial, typically where the defendant resides or where the dispute arose.

Specialty Legal Concepts

Diversity of Citizenship: Occurs when parties are from different states or countries, affecting jurisdiction.
Long-arm Statutes: Extend legal jurisdiction over non-residents based on specific connections to the state.
Class Action Lawsuits: Require commonality, adequacy, numerosity, and typicality among class members.

Judicial Limitations

Justiciability doctrines include standing, ripeness, mootness, and political questions to determine if a case can be heard.
Federal judges are appointed by the president and confirmed by the Senate.

Key Legal Principles

Appeal of Right: Ensures that parties can appeal to a higher court for a fair review.
Certiorari: The process by which the Supreme Court chooses which cases to hear, requiring the consent of at least four justices.

Opinions in Court

Majority Opinion: Carries the weight of law and sets a precedent.
Concurring Opinions: Additional thoughts from justices agreeing with the majority.
Dissenting Opinions: Views from justices disagreeing with the majority’s decision.

Case and Controversy Elements

Amount in Controversy: Minimum monetary value needed for a court to have jurisdiction in civil cases.
Significance of Hertz Case: Established the "nerve center" test for corporate citizenship in determining jurisdiction.

Additional Context

North Carolina belongs to the Fourth Circuit of Appeals.
Class action lawsuits are governed by stringent requirements to ensure proper representation and efficiency in the legal system.

Legal Terms and Concepts

Dispositive Motions: Allow defendants to argue defects in the plaintiff's complaint, seeking case dismissal without a trial, aiming to settle disputes pre-trial.
Default Judgement: Issued when a defendant fails to respond to a lawsuit, effectively admitting the plaintiff's allegations.
Notice Pleading: Requires a plaintiff's complaint to inform the defendant of the nature of the claims, enabling a sufficient defense preparation.
Complaint: The initial legal document filed by the plaintiff, outlining the factual basis for the lawsuit.
Answer: The defendant's formal response to the plaintiff's complaint, addressing the claims made.
Discovery Process: Aimed at removing surprises in litigation, ensuring both parties access to evidence, and focusing on the merits of the case, not the skill of legal counsel.

Jury Procedures

Jury Selection: Involves randomly summoning potential jurors (venire) and conducting voir dire for questioning and dismissal based on suitability.
Venire: A panel of potential jurors selected for the trial process.
Voir Dire: The examination of prospective jurors to ascertain their qualifications and potential biases.
Peremptory Challenges: Allows parties to reject jurors without stating a reason.
Challenges for Cause: Requests to dismiss jurors based on a specific belief that they cannot serve fairly or impartially.

Motions and Judgments

Motion to Dismiss: Evaluates whether the law supports the cause of action presented in the complaint.
Motion on the Pleadings: Assesses if there is a genuine material fact issue based solely on pleadings.
Summary Judgement: Determination made on the existence of genuine material fact issues based on affidavits and pleadings.
JNOV (Judgment Notwithstanding the Verdict): A request for the judge to overturn a jury’s decision that is seen as unreasonable based on the provided evidence.

Class Actions and Arbitration

Batson Challenge: A mechanism to prevent racially motivated juror dismissals; courts may deny peremptory challenges based on prohibited reasons.
Class Action: A legal case where one individual represents the interests of a group with similar claims.
Class Action Fairness Act: Facilitates defendants' ability to transfer state cases to federal court, allowing federal jurisdiction for class actions exceeding $5 million.
Minimal Diversity: Legal term denoting at least one plaintiff from a different state than at least one defendant.
Forms of ADR: Includes negotiation, mediation (third-party assistance), and arbitration (dispute resolution by appointed authorities).

Governance and Constitutional Principles

Articles of Confederation: Established a weak central government, leading to economic conflict among states; only a legislative branch existed.
Difference Between Articles and Amendments: Articles were the original Constitution, while amendments are later changes or clarifications, both holding equal legal weight.
Separation of Powers: Constitutional principle that allocates distinct functions to each government branch.
Checks and Balances: Mechanism requiring each government branch to monitor and limit the powers of the others.
Judicial Review: Courts' authority to assess the constitutionality of government actions.
Federalism: Division of lawmaking authority between the federal government and state governments.
Police Powers: Regulatory powers for public safety, health, welfare, and morals, traditionally held by state governments.

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Explore the foundational concepts of business law through these flashcards. Each card delves into the principles and regulations that govern business conduct, emphasizing the importance of law in business and management curricula. Perfect for reinforcing your understanding of the legal framework in which businesses operate.