OBE 118 – Legal Environment of Business INTRODUCTION Dr. Donald L. Carper

OBE 118 – Legal Environment of Business INTRODUCTION Dr. Donald L. Carper

Law is powerful • Affects all people, from CEO’s to children • Affects most of life, from work to leisure Law is important • But which is more important -- written law or the people who enforce it? Law is fascinating • Complex, but never just theoretical

 To examine law is to examine social life  One person alone does not require law  Any investigation about law could begin or include  Definitions of law Philosophy of law  History of law  Functions of law and  Sources of law  All of these topics are interrelated

Whatever definition of law chosen there exists a set of rules or “general standards of conduct, established and enforced by government officials.” Law consists of  Norms (standards of behavior)  Regularly enforced by coercion  By persons authorized by society  As stipulated by courts of law

Classifications & Categories of LAW helpful to understanding law

PUBLIC LAW PRIVATE LAW CRIMINAL LAW CIVIL LAW SUBSTANTIVE LAW PROCEDURAL LAW COMMON LAW STATUTORY LAW LAW EQUITY Classifications & Categories of Law helpful to understanding Law

Private v. Public Law • Public law: Body of law directly concerned with public rights and obligations. • Private law: Body of law regulating the rights and duties existing between private persons. The rights and duties are created by the affected parties.

Civil v. Criminal Law • Civil law: Body of law directly concerning the rights and duties between parties. • Criminal law: Body of law dealing with crimes and their punishment

CONTRAST BETWEEN CIVIL AND CRIMINAL LAW

Substantive v. Procedural Law • Substantive law: General principles and detailed rules defining legal rights and duties. • Procedural law: General principles and detailed rules that define the methods of administering the substantive law

SUBSTANTIVE LAW: General principles and detailed rules defining legal rights and duties. Example of a substantive law Definition of minor: “a person below the age of legal competence. For most purposes, in most states, minority ends at age 18. For some purposes, such as the purchase and consumption of alcoholic beverages, it may end later, up to the age 21.”

Procedural Law Examples • Rules of evidence such as the hearsay rule • Method of filing a lawsuit such as the requirement of a complaint and service of summons • To be able to seize assets of a judgment debtor the law requires a creditor to file an affidavit as to the debtor’s ownership of any assets to be seized

EXAMPLES

Case: Oculist's Case (1329), p. 8 • This seal was found in the bed of the Moselle River in France. The Romans were the first people to have specialized eye doctors, called oculists, who were devoted to treating eye diseases such as cataracts

Case: Oculist's Case (1329), p. 8 • The defendant, attempting to heal the plaintiff, left him blind in one eye. The plaintiff has sued in trespass • What was the defendants response? • Was it procedural or substantive? • How did the court rule?

Case: Oculist's Case (1329), p. 8 • Consider the underlying facts and the probable legal treatment today.

Common Law v. Statutory Law • Common law: Laws from the courts as opposed to a legislature or court of equity Common law is also called unwritten law. • Statutory law: Laws enacted by Congress state legislatures or local government. Statutory law is also called written law.

COMMON V. STATUTORY LAW Common and also called case law  From the courts  After the fact  Narrow  Based on actual situations and conflict  Law maker is neutral  Law from court cases may be changed in the future by courts or by the legislature

COMMON V. STATUTORY LAW STATUTORY LAW  From the legislature and executive branch  Prospective  Can be broad or narrow  Can be initiated at any time by legislator  Lawmaker can be an advocate  Interpreted by the courts  May only be changed by courts only if unconstitutional

COMMON LAW STATUTORY LAW

STATUTES, CODES, AND ORDINANCES

Equity • Equity: A civil trial held without a jury when relief sought by the plaintiff is equitable in nature, such as an injunction, or a divorce or dissolution of a marriage. • Other than equity: Often referred to as the common law.

SOURCES OF LAW • Constitutional law • Treaties • Administrative law • Statutory law • Case law • Federal law • State law

Constitutional • The U.S. Constitution is the Supreme Law of The United States. • State constitutions are supreme within their own borders to the extent that they do not violate or are inconsistent with the U.S. Constitution or other federal law.

SOURCE DESCRIPTION TREATIES Agreements With Foreign Nations made by the President and ratified by a 2/3 vote of the Senate. An Exclusive Federal Function.

SOURCE DESCRIPTION STATUTORY LAW Created by Federal, State, and Local Legislatures or Governing Bodies. Neither Federal Nor State Statutes are Valid if in-consistent with the U.S. Constitution. State Statutory Law is invalid if inconsistent with its Constitution. Uniform Statutes Create uniform State Law in those adopting States.

Administrative Law DESCRIPTION • Law Concerned with the power and actions of Administrative agencies at all levels of government. • Enabling Legislation from the U.S. Congress create federal administrative agencies. Also created at State and local levels of government. • Agency functions include: • Rule-making • Investigation • Enforcement, & • Adjudication.

COMMON LAW DESCRIPTION Use of past judicial decisions and reasoning through the application of the doctrine of stare decisis-the rule of precedent-in deciding cases. Originated in England. Applies to situations not otherwise covered by statutory law.

OBE 118 – Legal Environment of Business INTRODUCTION Dr. Donald L. Carper