Business Law: a Discussion of Legal Terms, Concepts and Regulations

Business Law: A Discussion of Legal Terms, Concepts and Regulations

Jaime F Hernandez

Northcentral University

Abstract

Fundamental legal terms, concepts and regulations are necessary to understand how organizations are affected by the different aspect of these laws. Every functional area in the organization is affected by some type of rule, regulation or legal requirements, which add complexity to the management of the organization. Managers must expand their horizons by learning and having an understanding of these requirements and place themselves in a unique position in the decision-making process of the organization. This paper provides a brief discussion of legal terms, concepts and regulations affecting contemporary business in today’s environment.

Business Law: A Discussion of Legal Terms, Concepts and Regulation

Common Law and Stare Decisis

According to Smith, Mann, and Roberts, B. (1987), “The court in common law system has developed a body of law that serves as precedent for determining later controversy.” (p. 13). Throughout the years, the use of common law provided the foundation for the stare decisis principle.

This principle of stare decisis (“to stand by the decision”), whereby rules of law announced and applied by the courts in prior decision are later adhered to and relied in deciding cases of a similar nature, upholds the stability of the common law. (Smith, et al., 1987, p. 13).

The United State legal system is a common law system; with the exception of Louisiana, which has origination from the French civil code, every other state practices common law (lectlaw.com, para. 1). The following brief discussion from Smith, et al. (1987), provides an understanding on how the doctrine of stare decisive woks in the United State in a two parallel court system:

1. The United State Supreme court has never held itself to be rigidly bound by its own decision, and lower Federal courts and State courts has followed that course in...