Good Morning Finance 270. Finance 270 Summer The Legal & Regulatory Environment of Business

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1 Good Morning The Legal & Regulatory Environment of Business

2 I. The Court System The Parties Involved Judges, Magistrates, & Justices Jurors Lawyers Litigants A. Judges, Magistrates, & Justices Trial Judges - manage courtroom activity, determine applicable rules of law, render decisions, and apply constitutional limitations & guarantees. Responsible for findings of fact. Justices - Decide appeals with the primary basis being those concerned with issues of law. Reasons (opinions) are generally given. (precedent)

3 B. Jurors C. Lawyers Petit jury vs. Grand jury Number of jurors - Not less than 6 nor greater than 12. Juror compensation: Federal vs. State Juror qualifications, exemptions, & excuses Find or determine the facts from conflicting evidence Lawyer, attorney, counsel, solicitor, barrister, legal executive, licensed conveyancer, advocate First duty: Administration of Justice (Officer of the Court) Knowledge of procedural & substantive law Conflict? The price of justice & number of lawsuits.

4 II. The Two Court Systems Federal & State (50) Three levels - Trial, Appellate & Supreme courts A. Jurisdiction - the power of a particular to hear a case 1. State vs. Federal issues 2. General vs. Limited Courts Traffic, criminal, probate, family law, juvenile, etc. B. State Courts - created & empowered by State Constitutions & legislative statute 1. General Trial Courts - Superior or Circuit Courts 2. Appellate (Courts of Appeal) & Supreme Courts 3. Small Claim Courts (Illinois Small Claims ) Illinois Courts

5 C. Federal Courts - created & empowered by the U.S. Constitution & legislative statute (Article III) 1. The Federal Court system - Figure 3.2 (pg. 73) 2. Federal Jurisdiction Questions of Federal law The United States as one of the parties Controversies among the states Certain suits between citizens of different states ( Diversity of citizenship ) 3. District Courts - Trial courts: least one for each state/district 4. Appellate Courts - 12 Districts & Special Court of Appeals

6 C. Federal Courts (con t) 5. Supreme Court - reconcile decisions of lower courts Writ of Certiorari - must be approved by four Justices Resolves cases involving major constitutional issues or interpretation of federal law. No state court review with the exception of state supreme courts. State cases must involve a federal question. III. The Power of Judicial Review (Marbury vs, Madison, 1803) Judicial Review - the power of judges to to review laws passed by the legislature & actions taken by the executive branch and declare them unconstitutional. Judicial Restraint - power used only in unusual cases Judicial Activism - power used whenever the needs of society justify it s use

7 III. The Power of Judicial Review (con t) A. Judicial Restraint (Sidebar 3.9 pg. 81) 1. Followers favor a very limited role for the courts in the US system of government. 2. Litigation is not the appropriate technique for bringing about social, political and/or economic change. AKA: Strict Constructionism or Judicial Abstention B. Judicial Activism (Sidebar 3.10 pg. 82) 1. Followers favor a more expansive role for the courts in the US system of government. 2. Courts have a major role to play in correcting the wrongs of society. 3. Constitutional issues must be decided within the context of modern society.

8 IV. The Judicial Process Judges may decide a case by the use of existing statutes and existing statutes and case law (precedent). Judges may NOT decide (refuse) a case by the use of existing statutes and existing statutes and case law (precedent). If no statute or case law is available, new law may be created. Of primary concern: Will a decision provide justice in the case and establish sound precedent for future cases?

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