Legal and Regulatory

Environment

Sources of Law

Constitutional Lawlaw derived from the

Constitution.
Common Law
Precedents set by
prior actions of
courts
Statutory Law
Laws created by
legislative
acts(federal, state,
local)
Regulatory Law
Law made by the
authority of

Courts and the Resolution of

Disputes

Court Systems
Jurisdiction legal
power to interpret law
and render decisions.
Federal
State
Trail Court- hear facts;
interpret law and render
decision
Appellate Court- deals
solely with appeals from
trial courts about the
interpretation of law
Alternatives
Mediation- negotiation
Arbitration- binding
determination by 3rd
party.

Legal and Regulatory

Environment

Criminal Lawprohibition of
activity; fines or
imprisonment as
punishment.
Civil Law- rights of
duties of
individuals and
organizations;
fines for
violations.
Business Lawrules and

Business Law

Elements of Business
Law

Uniform Commercial
Code
Statutory laws
covering business
topics

Sales Agreement
Rights of buyers and
sellers, transfer of
ownership, warranties,
legal placement of risk
during manufacture
and delivery.

Torts and Fraud

Tort private or civil
wrong

Product liability tort

resulting from negligence
in the design, production,
consumption or sale of a
product.

Business Law

Contract Law

An agreement
between parties
that is enforceable
in a court
Voluntary
Agreement
Consideration
Something of
value is
exchanged
Mutuality of
Obligation

Legal Purpose
Competent
Parties

Business Law

Property Law

Anything of value
for which a person
or business has
sole right of
ownership.
Real property
Personal property
Intangible
personal property

Intellectual
Property
Copyrights
Trademarks
Patents

Law of Bankruptcy

Bankruptcy
Chapter

Requires dissolution
and liquidation to pay
debts
Chapter

11

Temporary suspension
of debt while a
reorganization is
proposed
Chapter

13

Similar to chapter 11
but limited to
individuals

Responsible Business
Conduct

FSGO
Both

employee

and
organization are
responsible for
business
violation of
federal law.

Sarbanes-Oxley

Criminalized
securities
fraud and
strengthened
penalties for
corporate
fraud.