Business Law

Means let the decision stand.

• The lower courts have to abide by the rulings in previous
• cases

• ~Binding authority – any source of law that a court must
• follow when deciding a case. (ex: constitutions, statutes, and regulations)

• ~Persuasive
• authorities- Precedents from other jurisdictions

• ~When courts decide that a given precedent should no longer
• be followed

~The court will rule contrary to the precedent

• ~Ex:
• Brown vs. Board of education of Topeka ruled separate educational facilities
• for whites and blacks ruling overturned

Every case has to have two parts:  

1. Liability- what was the wrongdoing

2. Damage- what was the injury

What can the court do?

• The ultimate decision of the court that relieves the
• innocent party by enforcing a right or compensating for the violation of the
• right.

(i.e.compensation for a wrongdoing)

• 1.Equitable – non monetary, based on justice and
• fairness. You would do a Petition.

2. Legal– compensation in monetary terms. You would do a complaint.

A.  The one who has damage and brings a complaint.

B. The one against whom an action is brought and has a liability.

Owners are shareholders

Owners elect directors

Directors appoint officers

Officers manage the corporation

Suggests making a profit while obeying the law

• The minimum degree of ethical behavior expected of a
• business firm

Compliance with the law