buisness law-chapter 1

  1. Doctrine of stare decisis
    the principle that lower courts must follow precedents det by hire courts. "stand by things decided"
  2. Equity
    fairness or a body of principles constituting what is fair and right.
  3. criminal law
    the branch of the law that imposes penalties for wrongs against society. ranges from major crimes such as murder to minor offenses such as traffic offenses. government acts as prosecuter, representing the public.
  4. civil law
    a classification of law that applies to legal matters not governed by criminal law and that protects rights and provides remedies for breaches of duties owed to others.
  5. substantive law
    a classification of law that creates,defines,and regulates partys rights,duties,and powers.
  6. preocedural law
    a classification of law that prescribes the steps or processes, for enforcing the rights and duties defined by substantive law.
  7. decsribe the civil-law and common-law systems
    the civil law system is based on statues and constitiution. scholarly bodies interpret the laws. common law system is based on prior court cases or precedents
  8. explain how the common law changes
    common law changes through court examination of precedent. a court may aply a precedent to new cases or discard it if it has lost its usefulness,or it may make landmark decisons that depart from precedent.
  9. distinguish between civil and criminal law.
    criminal law applies to acts society deems so harmful to the public welfare that government is responsible for prosecuting and punishing the perpetrators. civil law applies to legal matters that are not governed by criminal law,protecting rights and providing remedies for breaches of duties owed to others.
  10. equal pretection clause
    part of the fourteenth amendement to the US Constitiution phohibiting state laws that discriminate unfairly or arbitrarily, and requiring equal treatment to all persons under like circumstances.
  11. national association of insurance commissioners (NAIC)
    an association of Insurance Commissioners from the 50 US States, District of Columbia, and its territories whose purpose it is to coordinate insurance regulation activity amoung the varous state insurance departments.
  12. original jurisdiction
    the power of a court in which cases are initiated to hear those cases.
  13. diversity jurisdiction
    the authority of federal district courts to hear cases involving parties from differtnt states that involve amounts in controversy over a legal minimum.
  14. Writ of certiorari
    an appellate courts order directing a lower court to deliver its record in a case for appellate review.
  15. confilict of law
    a body of law that resolves questions when states laws conflict.
  16. administrative law
    the statutory laws that grant power to administrative agencies to act and the body of law that is created by administrative agencies themselves
  17. describe the provisions of the US Constitution relevant to the insurance business
    • Commerce Clause; requlates commerce between states and within states.
    • Delegation of Powers to Congress; delegates to states any powers that it does not specificaly reserve for the federal government or forbid states to exercise.
    • Due Process Clause; guarantees notice and a hearing before the federal government can deprive any person of life, liberty, or property. The fourteenth Amendment extends the same protection in state governmnet actions, which can give rise to a complaint by an insurer if the state changes a premium rate without giving sufficent notice to the insurer. the fourteenth amendments equal protection clause also prohibits state laws that discriminate unfairly and protects both individuals can corporations.
  18. explain the role of the National Associatioon of Insurance Commissioners (NAIC) in promoting uniformity in the states' regulation of insurance.
    the NAIC pools information to help regulators coordinate responses to changing conditions in the insurance marketplace. the NAIC also develops model laws,regulations and guidelines
  19. discuss how administrative agencie become sources of law
    agency rules,regulations,and rulings have the full force of law and constitute the body of admistrative law. the gegislative delegation of rule making power to an administrative agency is constitutional as long as the llegislation carefully defines the scope of the lelegated power. the agency exercises its rulemaking power within the defined scope. the rules are subject to court (judicial) overview.
  20. allegation
    a claim made in the compaint by the plaintiff, specifying what the plaintiff expects to prove to obtain a judgement against the defendant.
  21. complaint
    the allegations made by a plaintiff in a lawsuit.
  22. pleading
    a formal written statement of the facts and claims of each party to a lawsuit.
  23. cause of action
    a plaintiffs legal grounds to sue a defendant
  24. answer
    a document filed in court by a defendant responding to a plaintiffs complaint and explaining why the paintiff should not win the case.
  25. counterclaim
    a complaint brought by the defendant against the plaintiff
  26. motion
    a formal request for the court to take a particular action.
  27. motion to dismiss
    a request that a court terminates an action because of settlement,voluntary withdrawal, or precedural defect.
  28. discovery
    a pretrial exchange of all relevant information between the plaintiff and defendant
  29. deposition
    a pretrial discovery tool involving oral examination of a witness to produce a written verbatim record.
  30. interrogatories
    specific written question or reuests raised by one party to a lawsuitthat the opposing party must answer in writting.
  31. sobpoena
    a legal order to a witness to appear at a certain place and itme to testify or to produce documents.
  32. direct examiniation
    questioning one's own witness during a legal proceding.
  33. cross examination
    questioning an opposing party during a legal proceeding to bring out information favorable to the questioners own postion or to challenge the witness testimony.
  34. relevance
    a quality of evidence that suggets the evidence is more or less likely to be true
  35. materiality
    a quality of evidence that tends to establish a particular element of the claim that has legal significance.
  36. competence
    a quality of evidence that suggests the source is reliable and the evidence is adequate to justiy admission in court.
  37. hearsay rule
    the rule of evidence that prevents the admission of out-of-court statements not made under oath by a person who is unavailable to tesify
  38. general verdict
    a kind of verdict that entails a complete finding and a single conclusion by a jury on all issues presented
  39. special verdict
    a kind of verdict reached by a jury that makes finding of fact by answering specific questions posed by the judge. the judge then applies the law tot he facts as the jury has found them.
  40. res judicata
    a doctrine that bars parties to a lawsuit on which final judgement has been rendered from bringing a second lawsuit on the same claim or a related. transaction.
  41. identify the filing parties and the purpose of the complaint and the answer in a lawsuit
    the plaintiff and defandant. the complaint is the first pleading filed with the court and set out the plaintiffs allegations,explains why the plaintiff has "cause" and states what remedy the plaintiff requests. after having received the sumons the defendant has to answer with either a counter claim, or file a entry of appearance.
  42. explain the purpose of pretrial discovery and some of the tools used during discovery
    the purpose of pretrial discovery is to enable each party to know as much as possible before trial and prevents surprises. some tools used during discovery are depositions,interrogatories,subpoenas and motions.
  43. discuss the three requirements for evidence presented during trial
    evidence must have relevance,must be material adn must have competence
  44. contrast two different decisions an appellate court might render regarding improper evidence presented at trial.
    if an appellate court finds that the trial court improperly admitted evidence that was prejucicial or harmful, to the appellants case, the court can send the case back to the lower court for a new trial. however, an appellate court might determine that the evidence, although improperly admitted at trial, did not prejudice the appellant.
  45. alternative dispute resolution (ADR)
    precedures to help setttle disputes without litigation,including arbitration,mediation, and negotiation
  46. mediation
    an ADR method by which disputing parties use a neutral outside party to examine the issues and develope a mutally agreeable settlement.
  47. when is altenative dispute resolution binding on parties
    when the dispute is taken to arbitration. an impartial third party that both sides agree will be binding.
  48. explain the role of the mediator in altenative dispute resolution
    the mediator is a neutral third party who acts as a catalyst to help paries analyze their disputes, consider possible solutions, and devise a compramise formula
  49. explain how mini-trials and court sponsored mock summary jury trials can lead to negotiation of major disputes
    mini trials present the issues to both parties in a dispute hopefully encouraging negotiation or settlement. Summary jury trials are brieg mock trials before juries. the parties can accept the jury's advisory verdict or the verdict can provide the basis for further negotiations toward settlement.
  50. legislative rule
    a type of substanitive administrative agency rule that comes from a statutory delegation of authority and that has the same force as a law enacted by congress or a legislature.
  51. interpretative rule
    a type of administrative agency rule that interprets statutes,providing quidance for agency staff or regulated parties, but that lacks the force and effect of law and therefore is not binding on individuals.
  52. procedural rule
    a type of adminsitrative agency rule that prescribes procedures for agency operations, legislative rule making,and adjudication precedings.
  53. standing to sue
    a party's right to sue as one who has suffered or will suffer a legal wrong or an aderse effect from an action
  54. final order
    an administrative agency's final conclusion or desposition of any material priate right of a party,terminating an agency proceeding
  55. exhaustion of adminsitrative remedies
    the completion of all possible administrative preocedures and appeals in a case;required before a party can appeal an agency action to a court.
Card Set
buisness law-chapter 1
educational objective