The U.S. Legal System and Business

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The key takeaways are that business law consists of rules to govern commercial relationships and prevent issues like fighting. The US legal system is based on separation of powers between the legislative, executive, and judicial branches as outlined in the constitution.

The three branches of the US government are the legislative branch (Congress), which makes laws, the executive branch (President and agencies), which enforces laws, and the judicial branch (courts), which interprets laws.

The three primary sources of US law are case law (common law), statutory law, and administrative law.

THE U.S.

LEGAL
SYSTEM AND
BUSINESS
Jessica Hopper
What is business law & why
do we need it?
Business Law consists of rules of conduct to govern
commercial relationships. In our society, we
require Laws for things such as preventing
fighting/war and showing that change is possible,
given a rational consideration of options. Without
business law, life would rely solely on “the goodwill
and dependability of one another and cooperative
values would exist with self-interest and profit
motive.
Foundations of the US Government
The United States government is majority based on the US constitution or the “Law of the Land ”.
It sets the ground for how the country and individual states are governed. It is the primary
authority to identify the relationship between business organizations and the government. The
federal government is separated into three independent branches consisting of the
legislative, executive, and judicial branches. The system of checks and balances ensures that
no branch can dominate the government. For example, if the president (executive branch)
vetoes a bill created by congress (legislative branch), the judicial branch can deem it is
unconstitutional by undergoing judicial review.
Primary Sources
of the U.S. Law
Three of the primary sources of U.S. Law
include case law, statutory law, and
administrative law.
Case Law, also known as common
law, is the collection of legal
interpretations made by judges
that are law unless revoked by
a new statutory law. An
example in a business
environment, is when a woman
burned herself on a hot cup of
coffee, the company was found
guilty for not warning against
the hot contents, hence
beginning to label cups with
temperature warning labels.
Primary Sources of the
Statutory Law
U.S. Law

Primary Sources of the


U.S. Law
Statutory Law accounts for the
rules and regulations put
forth by legislatures that are
written into the appropriate
codes after being passed by
congress. Statutory Laws are
important to business
managers because when
opening a store, your
guidelines, materials
allowed, and pay regulations
will all vary depending on the
location of your store.
Administrative Law

Primary Sources of
the U.S. Law
Administrative Law is the collection of
rules and decisions made by
administrative agencies to fill in
particular details missing from
constitutions and statues. This
includes agencies such as
Occupational Safety and Health
Administration (OSHA) and
Environmental Protection Agency
(EPA). OSHA is especially crucial in
running a business due to its tight
regulations on creating a safe and
sanitary work environment.
U.S. Clause

The United States constitution instills the framework for what


we call our nation’s government. The part of the
constitution allowing the government to regulate business
located in Article I, Section 8, and is known as “The
Commerce Clause”. An example of this clause being used
in real life would include the 1937 case of NLRB v. Jones
& Laughlin. This case ultimately determined that
Congress could regulate labor relations due to the fact,
that stopping work would directly affect interstate
commerce.
United States
Court Systems
The United States Court systems is segregated into
Federal and State Court systems. Federal court
systems derives power from Article III, Section 2
of the US Constitution. Consisting of 3 main
levels: trial courts, intermediate appellate courts,
and the court of last resort. Business cases such
as tax deficiency disputes or controversies
between states and lawsuits against foreign
ambassadors will typically begin in this level of
court. In state courts, there is no uniform
structure that exists. This is because states have
the ability to devise its own court system,
although most states hold a system similar to the
federal court system. State Courts handle cases
such as James Lewis. Lewis suffered a worksite
injury in the state of Kentucky against the
manufacturer who also happened to be based in
Kentucky.
Both civil law and criminal law regulate
the behavior of individuals. However,
civil law defines as the body of laws
that govern the rights and
responsibilities either between persons
or between persons and their
government and lays out rights for
persons who rights are violated. In a
civil law case, the defendant must be
DIFFERENCES found guilty by a preponderance of
BETWEEN CIVIL LAW, evidence (greater than 50% chance
CRIMINAL LAW, AND that the claim is true). Criminal Law
regulates situations in which someone
ALTERNATIVE commits an act against the public as a
DISPUTE RESOLUTION whole, such as insurance fraud or price
fixing. Alternative dispute resolution is
used by businesses to resolve issues
without legal action. Some methods
commonly used are negotiation,
mediation, and arbitration. This is
commonly used to resolve cases
involving contracts, insurance, labor,
and numerous others. ADR is typically
preferred due to the inexpensiveness
and ability to possess more control over
the outcome of the dispute.
In conclusion, it is inarguably necessary to have a basic
grasp on U.S. legal systems as a business owner. This
is because by understanding the laws in place you will
keep your company out of legal trouble before it even
begins. Legal issues can cost the company essential
time, money, and reputation. The legal systems are
important because in the event an issue arises, you
will know the courts you will go through and the
methods that are most efficient to you. Therefore,
saving your companies time, money, and reputation
that you worked for.

CONCLUSIONS
Works Cited

■ Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (n.d.).
newconnect.mheducation.com. https://newconnect.mheducation.com/.

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