Legal Environment of Business Chapters 1-3

Key Legal Concepts

• Law: Enforced rules of conduct prescribed by a governing authority, subject to legal consequences.
• Jurisprudence: The philosophical study of law and legal systems.
• English Common Law: Development of laws through judicial opinions that set precedents for future cases.

U.S. Legal Framework

• Constitution of the United States: The supreme legal authority in the U.S.
• Statute: Legislation enacted by federal or state governments to establish conduct standards.
• Judicial Decision: Individual case rulings from federal or state courts.

Court Systems

• Administrative Agencies: Government bodies such as the SEC and FTC, created to enforce regulations.
• Jurisdiction Types:
  • Limited-Jurisdiction Courts: Hear specific types of cases.
  • General-Jurisdiction Courts: Handle a variety of cases, record trials.
  • Special Federal Courts: Address specialized issues under federal law.

Federal Court Structure

• U.S. District Courts: General trial courts within the federal system.
• U.S. Courts of Appeals: Intermediate appellate courts for federal case reviews.
• Supreme Court of the United States: Highest court, reviews cases from lower courts and judicial decisions.

Legal Principles & Processes

• Stare Decisis: Legal principle of adhering to precedent in court decisions.
• Diversity of Citizenship: Allows federal jurisdiction for cases involving parties from different states or a foreign country.
• Standing to Sue: Requirement for a party to have a stake in the case outcome.

Lawsuit Procedures

• Pleading: Initial paperwork filed to initiate or respond to a lawsuit.
• Discovery: Pre-trial process to gather facts through depositions, interrogatories, and document productions.
• Pretrial Motions: Requests to resolve issues before trial, such as motions for summary judgment.

Alternative Dispute Resolution

• Mediation: Dispute resolution method where a mediator assists in negotiations.
• Arbitration: Involves a neutral third party making decisions on a dispute, often dictated by an arbitration clause in contracts.

Law and Society

• Functions of Law: Maintain peace, shape moral standards, promote justice, facilitate change and planning, and uphold individual freedoms.
• Schools of Jurisprudential Thought: Include Natural Law, Historical, Analytical, Sociological, Command, Critical Legal Studies, and Law and Economics, each with distinct views on the law's nature and purpose.

Legislative Bodies

• U.S. Congress: Bicameral legislature responsible for enacting federal laws.
• State Legislatures: Create state statutes impacting local governance.

Court Decisions

• Majority Decision: Requires majority of justices to agree on case outcomes and legal reasoning.
• Unanimous Decision: All justices agree on the decision and rationale.
• Venue: Determines the appropriate court for a case based on geographical relevance.

Administrative Law

• Administrative Law Judge (ALJ): Presides over disputes in administrative law settings.
• Administrative Procedure Act (APA): Governs federal administrative agencies' processes.
• State and Local Agencies: Handle regulatory issues at state and local levels.

Legal Terms

• Writ of Certiorari: Supreme Court's decision to review lower court cases.
• Class Action: Lawsuit filed by a group with common claims against a defendant.
• Statute of Limitations: Time frame within which a plaintiff must file a lawsuit.

These notes encapsulate the essential terms, definitions, and concepts from the provided text, serving as a comprehensive study guide.