The conduct of individuals, businesses, and other organizations are
governed by the rule of law. Laws are a body of rules that must be
followed or there are consequences. In order to enforce the laws or
determine if a person or other entity is either acting within the scope of
the law or has acted outside of the law requires a system of courts or
other tribunals as well as a controlling authority that sets the rules of
law.
In this module, we will review the development of the rule of law, the
court system, the resolution of legal disputes, and the role of the United
States Constitution and State Powers.
Upon completion of this module the student will be able to:
Dene
law and how laws relate to society
Describe the sources of law in the United States and the Federal and State Court Systems
Identify the major U.S. Constitutional doctrines as they relate to business
Lecture Content: Legal Heritage and the Digital Age
What is the Law
Law is a set of rules that a controlling authority of a society, country, or community develops to regulate the
actions of its members. Laws may be based upon cultural, religious, customs or other types of conduct. Laws
provide sanctions or legal consequences if the members fail to comply with the laws.
Funcons
of Laws
Laws serve a variety of functions for society. Laws provide consistency and allow individuals and businesses to
plan future courses of action or conduct to comply with the laws and regulations that govern them. Laws are
designed to keep the peace, shape moral standards, promote social justice, facilitate planning, maintain the status
quo, protect health, and provide a structure for business. Laws must be able to evolve and change with the norms
of society and the changes that technology requires.
Schools of Jurisprudence
The study, knowledge, philosophy or science of the law is referred to as Jurisprudence. The most prevalent form
of jurisprudence seeks to analyze, explain, classify, and criticize entire bodies of law. Classical legal philosophies
have been categorized into various “schools” of legal theory. If you understand which school a judge or scholar
follows you can determine how they will analyze laws in the future.
When judges are asked to determine the meaning or legality of a law they will use the legal theory of the school of
jurisprudence that they adhere to in deciding the case.
The primary schools of jurisprudence are the Natural Law School, Historical School, Analytical School, Sociological
School, Command School, Critical Legal Studies School, and the Law and Economics School.
Sources of Law
The laws of the United States are comprised of English common law, the U.S. Constitution, Treaties, Federal
Statutes, State Statutes, Ordinances, Executive Orders, Regulations and Orders of Administrative Agencies, and
Judicial Decisions.
English common law was the law of England and Wales that was developed by judges applying the rulings of
previous cases to the set of facts of the current case they were deciding.
The Doctrine of Stare Decisis is the foundation for English common law and subsequently the laws of the United
States. Stare Decisis requires a court to follow the prior decisions of the courts of the same jurisdiction. The past
decisions become precedent for deciding future cases. This provides for consistency and stability of the application of the
law.
The Constitution of the United States of America is the supreme law of the land. Any federal, state, or local law
that conicts
with the U.S. Constitution is unconstitutional and therefore, unenforceable. The U.S. Constitution
establishes the framework for our government and their powers. Powers not given explicitly to the federal
government by the U.S. Constitution are reserved for the states. States can have their own constitutions that
establish the legislative, judicial, and executive branches of state government. The state constitutions cannot
conict
with the U.S. Constitution.
Crical
Legal Thinking (or How to Analyze a Set of Facts Like a Lawyer)
There are many occasions that require you to determine if a law has been violated, if someone is liable for
damages due to an injury, if a future course of action will be legal, or if a law or regulation applies to a set of facts.
The easiest method of analyzing a legal situation is to utilize a critical legal thinking method known as FIRAC or
IRAC. This structure can be used to logically organize a memorandum, letter, or a paper for a legal writing
assignment and provide a conclusion to the legal issue presented.
F acts
I ssue
9/5/2018 Module 1: Legal Environment of Business – Fall 2018-…
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R ule of law
A nalysis of the law as applied to the facts
C onclusion
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