Understanding Business Law: Key Concepts and Case Studies
1. Civil Suits and Criminal Convictions
In the O.J. Simpson case, a family member of the victim filed a civil suit. To be convicted of a crime, a person must commit a guilty act (actus reus) with a guilty mind (mens rea) during the commission of the act.
2. Court Authority and Jurisdiction
The authority of a court to hear a particular case is called jurisdiction.
3. Strict Liability Crimes
Strict liability crimes are certain statutory offenses where mens rea is not essential. Examples include traffic crimes, public safety violations, and statutory rape.
4. Responsible Corporate Officer Doctrine
The responsible corporate officer doctrine means that corporations cannot turn a blind eye to illegal activities.
5. Property Crimes
- Burglary
- Larceny
- Theft of trade secrets
- Theft of services
- Arson
- Receipt of stolen goods
- Forgery
6. Theft of Trade Secrets
Revealing the Coca-Cola recipe, for example, is illegal and considered theft of trade secrets.
7. Larceny
In People v. Whitmer (2013), the dealership employee committed larceny by charging fake credit card numbers.
8. Public Order Crimes
Publix employees protesting on a Publix truck on the freeway is a public order crime.
9. White-Collar Crime
People v. Sisuphan (2010) exemplifies white-collar crime (larceny), as the employee intended to deprive the organization of money.
10. Probable Cause
Messerschmidt v. Millender (2012) set a precedent for probable cause.
11. Exclusionary Rule
The Exclusionary Rule (Fruit of the Poisonous Tree) excludes evidence obtained in violation of the Fourth Amendment from trial.
12. Eighth Amendment
The Eighth Amendment prohibits excessive bail, fines, and cruel and unusual punishments.
13. Miranda Rights
Miranda v. Arizona (1966) requires police to inform suspects of their constitutional rights.
14. Stare Decisis
Brown v. Board of Education introduced the doctrine of stare decisis (to stand on decided cases), requiring courts to respect prior decisions.
15. Exceptions to Miranda Rule
Exceptions to the Miranda Rule include public safety, certain confessions, and when a suspect unequivocally asserts the right to counsel.
16. First Impression Cases
In cases of first impression, courts may refer to positive law, public policy, or widely held social values.
17. Doctrine of Sovereign Immunity
This doctrine exempts foreign nationals from U.S. court jurisdiction unless immunity is waived.
18. Political Factors and Retaliation
Political factors can affect international trade, such as the EU’s ban on Russian imports due to the conflict with Ukraine.
19. International Arbitration
International disputes can be arbitrated in the U.S., as seen in Carnival Cruise’s contracts.
20. International Tort Claims
Kiobel v. Royal Dutch Petroleum Co. (2013) exemplifies international tort claims, where the U.S. declined jurisdiction over a lawsuit filed by a U.S. citizen against a foreign company for actions that occurred abroad.
21. Objective Theory of Contracts
When a contract is unclear, a judge interprets it based on the objective theory of contracts.
22. Contract Formation
Contract formation requires:
- Offer
- Acceptance
- Consideration
- Contractual Capacity
- Legality
23. Bilateral and Unilateral Contracts
A bilateral contract involves a promise for a promise (e.g., exchanging cars). A unilateral contract involves a promise for an act (e.g., paying for a car wash).
24. Contractual Intent
Lucy v. Zehmer (1954) demonstrated serious intention in contract formation. Leonard v. Pepsico, Inc. highlighted the lack of reasonable intent in advertisements.
25. Advertisements as Offers
Basis Technology Corp. v. Amazon.com, Inc. established that advertisements are generally not offers.
26. Cases of First Impression and Legal Precedent
Cases involving new technologies, like harassing text messages, can set legal precedents.
27. IRAC Method
Legal cases and decisions follow the IRAC format: Issues, Rules, Application, and Conclusion.
28. Types of Law
- Substantive or Procedural
- Civil or Criminal
- Public or Private
29. In Personam Jurisdiction
In personam jurisdiction gives courts power over individuals and corporations within their geographic boundaries.
30. In Rem Jurisdiction
In rem jurisdiction concerns disputes over property located within a specific state.
31. Long-Arm Statute
The long-arm statute allows jurisdiction over out-of-state defendants with sufficient in-state contacts.
32. Federal Court Jurisdiction
Cases reach federal court through diversity of citizenship (parties from different states) and controversies exceeding $75,000.
33. International Jurisdiction
Gucci America, Inc. v. Wang Huoqing demonstrated international jurisdiction over a foreign defendant.
34. Writ of Execution
A writ of execution directs how to collect a judgment.
35. Alternative Dispute Resolution (ADR)
ADR methods resolve disputes outside of court, including negotiation, mediation, and arbitration.
36. Negotiation
Negotiation is the least formal ADR method, often occurring before legal proceedings.
37. Commencing a Lawsuit
A complaint is the first document filed to start a lawsuit.
38. Standard of Evidence in Civil Trials
The standard of evidence in civil trials is a preponderance of the evidence.
39. Full Faith and Credit Clause
The Full Faith and Credit Clause requires states to recognize other states’ legal documents, like marriage licenses.
40. State Regulatory Power
States have broad regulatory power but cannot regulate interstate commerce.
41. Mini-Trials
Mini-trials are non-judicial dispute resolution forums where parties present evidence and arguments.
42. Contractual Jurisdiction
Jurisdiction in contract disputes often depends on where the breach occurred.
43. Administrative Rules
Administrative agencies create rules with the force of law.
44. FCC Regulations
The FCC can fine broadcasters for airing inappropriate content, even if unintentional.
45. Supremacy Clause
The Supremacy Clause invalidates state laws that conflict with federal law or the Constitution.
46. Unconstitutional Restrictions of Speech
Laws restricting speech based on “bad taste” are often unconstitutional.
47. Administrative Subpoenas
Witnesses can be compelled to appear before administrative judges with a subpoena ad testificandum.
48. Material Breach of Contract
A material breach occurs when a party fails to perform a significant contractual obligation.
49. Anticipatory Repudiation
Anticipatory repudiation occurs when a party indicates an intention not to perform future contractual obligations.
50. Contract Remedies
Remedies for breach of contract include specific performance, monetary damages, and other equitable relief.
51. Mailbox Rule
The mailbox rule states that an acceptance is effective upon dispatch, not receipt.
52. Principle of Comity
Comity is the recognition of one nation’s laws and judicial decisions by another.
53. Uniform State Laws
The National Conference of Commissioners on Uniform State Laws drafts model laws for states to adopt.
54. Arbitration Agreements
Courts generally enforce agreements to arbitrate disputes.
55. Business Ethics
Acting ethically for publicity and profit is not inherently unethical.
56. Interstate Commerce
Businesses engaged solely in intrastate commerce are generally exempt from federal regulation.
57. Warrantless Searches
Administrative agencies can conduct warrantless searches in highly regulated industries.
58. Admissibility of Confessions
Confessions made before arrest but after detention can be admissible if voluntary.
59. Duress Defense
Duress can be a defense to criminal charges if the defendant was coerced into committing the crime.
60. Exhaustion Doctrine
The exhaustion doctrine requires parties to exhaust administrative remedies before seeking judicial review.
61. Offer and Acceptance
Offers can be accepted by any reasonable means.
62. Breach of Contract
Breach of contract occurs when a party fails to perform a contractual duty.