Legal Foundations Chapters 1-3: Stare Decisis and Precedent
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Questions and Answers

What type of commerce does the Commerce Clause give Congress the exclusive power to regulate?

  • Commerce with the federal government
  • Intrastate commerce only
  • International commerce only
  • Foreign commerce, interstate commerce, and commerce with the Indian Tribes (correct)
  • What is the main goal of Alternative Dispute Resolution (ADR)?

  • To resolve disputes through the federal or state court system
  • To negotiate settlement agreements
  • To provide a framework for international law
  • To resolve disputes outside of the federal or state court system through the help of third parties (correct)
  • What is an example of Informal ADR?

  • Face-to-face negotiations through intermediaries (correct)
  • Arbitration
  • Mediation
  • Expert evaluation
  • What is the primary difference between a formal hearing and an arbitration hearing?

    <p>The application of the rules of evidence</p> Signup and view all the answers

    What is the largest provider of ADR services?

    <p>American Arbitration Association (AAA)</p> Signup and view all the answers

    What is the term for when parties agree to an arbitration clause in a contract?

    <p>Private arbitration</p> Signup and view all the answers

    What is the primary role of a mediator in the mediation process?

    <p>To facilitate a settlement between the parties</p> Signup and view all the answers

    What is the primary advantage of arbitration over litigation?

    <p>The speed and flexibility of the process</p> Signup and view all the answers

    What is the primary purpose of the principle of stare decisis in the legal system?

    <p>To ensure consistency in court decisions and provide a framework for future cases</p> Signup and view all the answers

    What is the significance of precedent in the legal system?

    <p>It sets a binding standard for trial courts to follow in similar cases</p> Signup and view all the answers

    What is the constitutional right that protects businesses from regulation of their political speech?

    <p>Freedom of speech</p> Signup and view all the answers

    Under the federal system, what powers do Congress have to regulate businesses?

    <p>Powers to regulate bankruptcy, patents, and copyrights exclusively</p> Signup and view all the answers

    What is the main difference in privacy between commercial businesses and residential businesses?

    <p>Commercial businesses have limited privacy, while residential businesses have more privacy</p> Signup and view all the answers

    What is the primary purpose of the principle of stare decisis in the context of taxation?

    <p>To provide a guideline for businesses to conduct transactions and avoid taxation</p> Signup and view all the answers

    What is the significance of precedent in the context of appellate court decisions?

    <p>It sets a binding standard for trial courts to follow in similar cases</p> Signup and view all the answers

    What is the primary limit on the federal government's power to regulate businesses?

    <p>The federal system's limited powers</p> Signup and view all the answers

    Study Notes

    • Stare decisis is the principle that similar cases with similar facts under similar circumstances should have similar outcomes, guiding businesses in determining the burden of taxation.
    • Precedent is applying the law made in previous appellate court opinions to current cases with similar facts, binding on the trial courts.

    Constitutional Protections

    • Businesses have constitutional rights that protect them, but with limits on free speech.
    • Corporations are allowed to use political speech, and any attempt to regulate it would be dealt with by strict scrutiny.
    • Privacy depends on location and circumstances, with commercial businesses having less privacy than residential businesses.

    Federal Powers

    • The federal government has limited powers to regulate individuals and businesses under the federal system.
    • Congress has exclusive powers to regulate bankruptcy, patents, and copyrights under Article I.

    Commerce Clause

    • The Commerce Clause gives Congress the exclusive powers to regulate foreign commerce, interstate commerce, and commerce with the Indian Tribes.

    Dispute Resolution

    • Alternative Dispute Resolution (ADR) refers to non-judicial methods of resolving disputes outside of the federal or state court system through third-party assistance.
    • Main ADR methods include mediation and arbitration.
    • Informal ADR involves face-to-face negotiations through intermediaries to arrive at a mutually agreeable solution.
    • Formal ADR involves arbitration, mediation, and expert evaluation, often required by state and federal courts before allowing certain civil lawsuits to go to trial.

    Arbitration

    • Arbitration is a method of ADR in which parties present their sides of the dispute to one or more neutral parties who render a decision.
    • Arbitration involves a hearing similar to a court hearing, but less formal, with no discovery and no application of rules of evidence.
    • Parties seeking arbitration typically apply for an arbitrator through an ADR agency, such as the American Arbitration Association (AAA).

    Mediation

    • Mediation is a method of ADR in which a mediator attempts to settle a dispute by learning the facts of the matter and negotiating a settlement between the parties.
    • Mediation is a non-binding process, and the parties are not required to accept the mediator's proposal.

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    Learn about the principle of stare decisis and its application in legal cases, including understanding past rulings and their impact on business decisions.

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