25-1 Chapter 1 Legal Heritage and the Digital Age.

25-1

Chapter 1Legal Heritage and the Digital Age

What is Law?

The law consists of rules that regulate conduct of individuals, businesses, and other organizations within society

It is intended to protect persons and their property from unwanted interference from others

The law forbids persons from engaging in certain undesirable activities

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1-2

Definition of Law

That which must be obeyed and followed by citizens, subject to sanctions or legal consequences

A body of rules of action or conduct prescribed by controlling authority and having binding legal force


Functions of the Law

Keeping the peace Shaping moral standards Promoting social justice Maintaining the status quo Facilitating orderly change Facilitating planning Providing a basis for compromise Maximizing individual freedom


Qualities of the Law

Fairness The U.S. legal system is comprehensive, fair, and

democratic Flexibility

The U.S. law evolves and changes along with the norms of society, technology, the growth and expansion of commerce in the U.S. and the world


Schools of Jurisprudential Thought

Natural Law School Law is based on what is “correct” Law should be based on morality and ethics

Historical School Law is an aggregate of social traditions and

customs Changes in the norms of society will gradually be

reflected in the law



Analytical School Law is shaped by logic The emphasis is on the logic of the result rather

than on how the result is reached



Sociological School Law is a means of achieving and advancing certain

sociological goals The purpose of law is to shape social behavior

Command School Law is a set of rules developed, communicated,

and enforced by the ruling party The law changes when the ruling class changes



Critical Legal Studies School Legal rules as unnecessary Legal disputes should be circumstantially solved

by applying arbitrary rules of what is deemed “fair”

Law and Economics School Promoting market efficiency should be the central

concern of legal decision making


History of American Law

English system of law was adopted as a system of

jurisprudence in early American colonies

Acted as a foundation for American judges to develop

a common law in America


English Common Law

Developed by judges who issued their opinions when

deciding cases

Principles announced in these cases became

precedent for later judges deciding similar cases

English Common Law can be divided into cases

decided by different courts


English Common Law

Law Courts Uniform system of courts emphasizing form over

substance Granted only monetary damages

Courts of Chancery (equity courts) Equitable remedies shaped to fit each situation

Merchant Courts Solved commercial disputes based on trade

practices


Sources of Law in the United States

Constitutions The U.S. Constitution is the “supreme law of the

land” Establishes structure of federal government

Legislative branch Executive branch Judicial branch



Enumerates federal powers Reserves all other powers to states State have their own constitutions



Treaties The President, with the advice and consent of the

Senate, may enter into treaties with foreign governments

Treaties become part of the supreme law of land Treaties affect international business



Federal Statutes Statutes are written laws that establish certain

courses of conduct that covered parties must adhere to

The U.S. Congress enacts federal statutes Federal statutes are organized in to code books These code books constitute codified law



State Statutes State legislatures enact state statutes which are

placed in code books or on the Internet Ordinances

Law enacted by local government bodies Ordinances are codified



Executive orders Issued by the president and state governors

Example - Prohibiting U.S. companies to sell goods and services to an enemy country during war

Power derived from express delegation from legislative branch or implied from constitutional powers



Regulations and Orders of Administrative Agencies Empowered by legislative and executive branches

of government Adopt rules and regulations Enforce statutes Hear and decide disputes

Many agencies regulate business Example – SEC & FTC



Judicial decisions Federal and state courts issue judicial decisions Judicial decisions state the rationale used by the

court in reaching that decision



The rationale includes: Interpretations of statutes Ordinances Administrative regulations Announcement of legal principles


Doctrine of Stare Decisis

Based on the common law tradition, past court decisions become precedent for deciding future cases

Lower courts follow the precedent established by higher courts

Federal and state courts follow the precedents established by U.S. Supreme Court decisions

Courts in one jurisdiction are not bound by precedent of another jurisdiction, but may look at it for guidance


Priority of Law in the United States

The U.S. Constitution and treaties take precedence over all other laws

Federal statutes take precedence over federal regulations

Valid federal law takes precedence over conflicting state or local law


Priority of Law in the United States

State constitutions rank as the highest state law State statutes take precedence over state regulations Valid state law takes precedence over local laws


Digital Law

The electronic age arrived before new laws were written that were specific for this environment

Courts have applied existing laws to the new digital environment by requiring interpretations and applications

Congress has enacted new federal statutes to regulate the digital environment



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25-1 Chapter 1 Legal Heritage and the Digital Age.

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