LEBChapter 1Purpose of law – ensuring of orderliness to all human activitySources of law:1.Primary Sources – legally binding rules and procedures, include federal and state constitutions, statutes (legislative enactments), administrative agency regulations, and court decisions; also, federal treaties and city ordinances.2.Secondary Sources – summarize and explain the law, and sometimes criticize and suggest changes in it. Includes research articles in academic legal periodicals, restatements (which consist of summaries/commentary on specific areas of law by experts), legal texts and encyclopedias, and others.4 Requisites of Legal Systems1.Relatively certain – will remain stable into foreseeable future2.Relatively flexible – to change with the times, technology, shifting attitudes and ethical views3.Known or knowable – knowledge of the rules, or ability to get a lawyer to interpret or provide advice4.Apparently reasonable Common law – all the rules and principles currently existing in any state, regardless of their historical origin, that result from judicial decisions in those areas of law where legislatures have not enacted comprehensive statues. Statutory law – refers to the state and federal statutes in effect at a given time – rules that have been formally adopted by legislative bodies rather than by the courts. Written law that is still subject to interpretation by the corps. Corporation law, criminal, and tax law are statutory in nature. Civil law – parties bringing the suits (plaintiffs) are seeking to enforce private obligations or duties against the other parties (defendants). All the laws that spell out the rights and duties existing among individuals, business firms, and sometimes even government agencies. Ex; contract, tort, and sales law)-Usually receive money for damages. Or injunction – a court decree ordering the defendant to do or not to do some particular thing. Criminal Law – fines or imprisonment when persons are convicted. Constitute when wrongs are against organized society as a whole. Must be proved “beyond a reasonable doubt” -Felony – defined as a crime for which the legislature has provided a max penalty of either imprisonment for more than one year or deathLaw and Business Strategy 1.Avoidance
2.Compliance3.Prevention4.Value – use of the law to produce identifiable value5.Transformation – taking advantage of the law to transform aspects of business in beneficial ways Podia V. Mairs is a wrongful death action which allowed close relatives of deceased people to sue those who wrongful acts have contributed to a death. Mairs drove into Podias while drunk, and him and his two friends Swanson and Newell left him there and ran without calling emergency services. Then later, a car ran of Podias and he died. They all were in fault of being negligent by not preventing an obviously foreseeable risk of a severe fatal consequence.