Chapter 1: Introduction to Law

Law: A body of rules that govern individuals and their relationships provisioned by a
recognized governmental authority (legislative authority). Law gives us basic freedom, rights,
and protections.
I. Classifications of Law
Public vs. Private
Public: Laws enacted by an authorized governmental authority (individual and government
relationship).
Private: Laws developed between two individuals (individual and individual relationship or
individual and constitution relationship).
Ex: The requirements two individuals face when agreeing on a contract are public laws, but the
terms are private.
Criminal Law vs. Civil Law
Criminal: Wrong against society, penalty is to get a fine or prison (government and individual
relationship).
Civil: Wrong against another person, penalty is to compensate formed party (restitution)
(individual and individual relationship).
Ex: running a red light while intoxicated falls under criminal law, but injuring a person while
intoxicated would fall under civil law.
Substantive Law vs. Procedural Law
Substantive: Given rights and responsibilities.
Procedural: Provide means for enforcing substantive law (also used in criminal cases).
Ex: In a breached contract, there’s a substantive right to expect performance and may collect,
how the suit is brought up and the trial process is procedural.
Common Law vs. Statutory Law
Common (uncodified law): System of law developed by Judges that settles disputes by
consulting and looking at previous precedent (stare decisis). 90% of US law is based on
precedent (precedent is binding).
Ex: owning and passing title to real property to someone else.
Statutory (codified law): Written laws that are code-based. 90% of Lebanese law is based on
written codes [precedent (relating to statutes, which are state laws) is guiding].
Ex: marital property rights.
Precedent: examining all prior cases in the same area to judge the new case.

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 Court of Law vs. Court of Equity
Court of Law: When suing, you’re entitled to money/compensation only.
Equity: a body of law that attempts to do justice when the law doesn’t provide a remedy.
Court of Equity: Law attempts to do justice but when the law doesn’t provide a remedy,
injustice remedy, or when the application of law is unfair, the court can issue injunctions. Courts
award equitable remedies when the legal remedy of money damages would be inadequate.
Injunctions: Judicial order prohibiting certain conduct or ordering certain acts. Specific
performance or restraint order.
Equitable remedies: injunctions, specific performance (performing the contractual obligations),
rescission (cancelation of a contract).
II. Purposes of Law
Keeping Order: Penalties applied by law violations prevents feuds and primitive methods for
settling disputes, such as force.
Influencing Conduct: They make business change the ways that they operate.
Ex: Antitrust Laws prohibited price fixing and limited mergers.
Honoring Expectations: Business commit resources like people and time to projects with the
expectation that contracts will be honored.
Ex: Investors buy stock with the knowledge that they will enjoy some protection of that
investment.
Promoting Equality: Used to achieve equality in aspects of life in which equality is not a
reality.
Ex: Equal-Right-To-Employment Acts, Social Welfare Programs, Antitrust Laws.
Law as the Great Compromiser: Law meshes different views into one united view so that
everyone is partially satisfied.
III. Characteristics of Law
Flexibility: As society changes, laws must change.
Consistency: Although it’s flexible, law must also be predictable, so it can be relied on.
Pervasiveness: The law must be general and cover all necessary areas (all-encompassing)
without infringing on individual freedoms or becoming too complex to enforce.
Mandatory: binding.
General: applies to everyone.
IV. Theory of Law (Jurisprudence)

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Jurisprudence: Latin for “Wisdom of the law”, are of legal study centered around different
theories or value bases for laws. In other words, it’s a uniform application of laws to all
situations.
Brief: tool used by lawyers, law students, and judges to summarize a case and focus on its facts
and key points of the decision by the court.
Positive Law: We need laws in order to regulate our relationships and tell us what to do and not
to do.
Natural Law: We have innate rights as human beings that no law can take from us.
Protection of Individuals and Relationships: Laws exist to protect individuals from other more
powerful individuals.
Social Contract: Law is the opinion of the people who are in power at the specific time in
question.
V. Sources of Statutory Law
There are 52 constitutions; 51 state (legislative and executive authorities) and one federal .
Each source decreases in influence from top to bottom.
Constitutional Law: The #1 law. It applies to all states and is very hard to adjust. Protects
general rights of people (speech, religion, and property) and provides a framework for all other
forms of law.
Federal Legislative Enactments: Congressional Law and Executive Orders
Congressional Laws (state): made by the US Congress, which consists of House of
Representatives and House of Senates and is responsible for statutory laws at the federal level.
Cite/citation: a reference for acts contained in the United States Code (USC).
Executive Orders (federal): laws that deal with those matters under the direct control of the
executive brand (POTUS).
Federal Administrative Regulations: Federal government administrative agencies develop
specifics for carrying out legislative enactments of Congress.
Ex: SEC, FDA, FEC
State Constitution: Provides authority for the state statutory law structure. Can’t contradict
Federal laws (statutes).
Some state laws are uniform laws to help run businesses better.
State Legislative Enactments: Same as Federal Legislative Enactments but with the state
congress and the state governor. Can’t contradict Federal laws.
State Administrative Regulations: Same as Federal Administrative Regulations. Can’t
contradict Federal laws.
County Ordinances: Statutes within counties, cities, and townships. Can’t contradict state laws.

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Private Law: The final source of written law and is found in contracts and personal agreements.
VI. International Law
International law is not a neat body of law, but a combination of the laws of various companies.
Custom: Every country has its boundaries for allowable behavior, unwritten but recognized laws
and develops over time.
Caveat emptor: let the buyer be aware.
Treaties: Agreements between nations. Can be multilateral (between multiple nations; UN),
bilateral (between two nations), or universal (all nations).
Private Law in International Transactions: Businesses involved in multinational trade and
production (contractual obligations) rely on private law to ensure performance and contractual
obligations.
Party autonomy: allows uniform operations throughout the world if contracts are recognized as
valid in most countries, parties can choose which law will apply for their international
transactions.
International Organizations: WTO (World Trade Organization) provides the means for
facilitating multinational commercial transactions; UN (United Nations) develops contracts for
the international sale of goods and services.
Doctrines of International Law: A number of principles of international law that are widely
accepted and honored by most countries.
Act of State Doctrine: Theory that protects governments from reviews of their actions by courts
in other countries. In other words, it’s the process of expropriation (taking of private property) is
one of eminent domain in which courts of other countries cant interfere.
Trade Law and Policies: Tariffs, restrictions, and trade agreements.
Ex: GATT (US and EU); NAFTA (Canada, Mexico, and US).
Uniform International Laws: Attempt to introduce uniformity in international contract law, UN
developed contracts for the international sale of goods.
European Union: Tariff-free group of European countries that have joined together to enjoy the
benefits of barrier-free trade.
Cases: vicarious liability for copyright infringement.

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 Chapter 3: The Judicial System
I. Types of Courts
Trial Court (circuit, district, county, superior court): the place where judicial system where
the facts of a case are presented. It handles non-diversity civil cases and state criminal cases.
1st level of courts.
Plaintiff vs. Defendant (if the plaintiff sues the defendant then the defendant becomes the
responder)
Process: Presentation of facts, evidence, witnesses, decision is made by judge or jury.
Judicial Review: Judges control proceedings by making sure the witness can answer questions
and selecting jury members.
De novo appeal: when a case is appealed to the general state trial court from lesser courts.
Appellate Court (state and federal): usually three judges automatically reviews the conduct
during the trial of the judge, the lawyers, and the witnesses.
2nd level of court that we go to if we don’t agree with the decision of the trial court.
Appellant (Petitioner) vs. Appellee (Respondent)
Process: Review process of the trial courts and make sure no legal mistakes were made as well as
check if the conduct of both parties was legal. NO new evidence or jury allowed.
Judicial Review: The judges don’t hold trial. They review errors in applying substantial and
procedural law. The error discussed should be a reversible error. The judges that are for the
decision publish their opinion and precedents. The judge against can issue an unpublished
dissenting opinion.
Appellate Brief: Both lawyers tell the judge their own opinions about what happened at the trial
court and why the other party is wrong. Can be written or oral.
Dissenting opinion: the judge’s explanation for a vote different from that of the majority.

II. Types of Appellate Court Decisions

Reverse: Trial court was completely wrong (reversible error and decision is reversed).
Affirm: Trial court was correct and no reversible error.
Modify: Part of the trial court decision is changed (change ruling of lower court).
Remand: Require trial court judges to redo the trial after fixing error. Error that requires further
proceedings.
They only look for reversible errors (material).

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The decision of the appellate court is published, analyzed, reviewed, and may be applied in the
future.
Automatic right of appeal: when state Supreme Court appeals a federal question to US
Supreme Court (federal), or when the case involves federal constitutional issues.
Material fact: changes the outcome of the case.

III. Stare Decisis (let the decision stand)

Stare Decisis: Latin for “Stand by things decided”, the legal principle of determining points in
litigation according to precedent.
Setting Precedent: Examine own previous or other decisions on the same topic for a new case.
Doesn’t mean similar cases will be decided identically because several factors influence the
weight given to precedent.
Quality of Precedent: Where the case originates is crucial to whether precedent is used.
Ex: A state court doesn’t have to follow another states precedent.
Purposes of Precedent: Assurance of consistency and reliability. Same as purposes of law.
Interpretation of Precedent: Use of precedent is variable and not fixed. It depends on the dicta
of the case.
Dicta: A full decision of reasoning and precedent before the rule of law is given at the end of the
case decision.
Exceptions to the stare decisis: precedent isn’t followed when it’s from a different state, is
interpreted differently because of the dicta, and the facts of the case are different from the facts
of the original case (precedent becomes guided not binding).

IV. Parties in the Judicial System

Plaintiff: Party that initiates the lawsuit and seek some type of recovery (Appellant in appellate
court).
Defendant: Who plaintiffs seek recovery from. Accused of committing some violation of the
law or the rights of the plaintiff (Appellee in appellate court).
Lawyer: Representatives of both parties or draft contracts, wills, and other legal documents to
prevent legal problems from arising. Client secrecy is extremely important and can only be
broken if the client allows the lawyer or the lawyer can predict future behavior because they cant
talk about the past.
Fedutionary duty: lawyer must put your best interest in mind.
Solicitors (Juriste): Sits with client to review paperwork and give legal advice.
Barristers (Avocat): Go to court.

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Notaire: Handles real property and estates and can prepare legal documents.
Judge: Control the proceedings in a case and the outcome in some cases.

V. Jurisdiction
Jurisdiction: The authority or power of a court to speak the law.
There’s a two-step process to decide which court has jurisdiction over a case.
1) Subject Matter
The content of the case controls which court has jurisdiction. This court can be:
Federal Court System: Courts of Original Jurisdiction, Courts of Appeal, and U.S. Supreme
Court.
Courts of Original Jurisdiction:
a. Specialty Courts: Bankruptcy Court, U.S. Courts for International Trade, Indian Trial
Court, Tax Court, and U.S. Claims Court.
b. Federal District Court: Interpret Federal statutes and often resolve constitutional issues.
Federal District Court is visited under 3 cases: The U.S. or a Federal Agency is a party, the suit
(applying or interpreting) involves a federal question, or the suit involves diversity of citizenship
(don’t need the passport) and the damage claims are greater than $75,000.
Opinions of Federal court judges are published in the Federal Supplement.
There must be at least one federal court in every state (94 in total in 50 states)
Diversity of Citizenship: When parties are from different states.
Federal Supplement: A book that includes some opinions and previous decisions (precedent)
Concurrent Jurisdiction: Two courts have authority to hear the case (usually federal and state).
Exclusive Jurisdiction: One court has authority to hear the case.
Original jurisdiction: Supreme Court where parties directly
Courts of Appeal:
Every few states are grouped into Federal circuits and each circuit has a court of appeals (13
circuits).
Some cases go directly to courts of appeal.
Number of judges vary for each case, most have 3 (must be odd).
U.S. Supreme Court:
Petitioner vs. respondent.

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Made up of nine judges.
Everyone has a right to apply but Supreme Court has the authority to hand pick cases and issues
a writ of certiorari.
Judges are nominated by the president and confirmed by the Senate.
The opinions of this court serve as precedent for every other court in the country.
Judges are only changed if one retires or dies.
Certiorari may be granted in conflict among the circuits about the law and acts as a trial court
when one state is suing another.
Writ of Certiorari: A statement of cases the Supreme Court accepts.
State Court System: General Trial Court, Courts of Appeal, Supreme Court.
General Trial/Circuit/District/County Court: Small Claims Court ($200-$25,000 amount
recoverable, usually less than $1,000), Justice of Peace/County Court, City Court, Probate Court,
Family Court.
Limited Jurisdiction: Comparable to specialty courts in the Federal Court System.
2) In Personam Jurisdiction
Here, we decide which of the federal/state courts will decide the case (who has in personam
jurisdiction)
Property Ownership: Party who owns real property in a state is subject to jurisdiction of that
state’s courts. Also known as In Rem Jurisdiction.
Volunteer Jurisdiction: A court has jurisdiction over a person who agrees to be subject of that
court.
Presence of a Party in the State: Determined by residence and minimum contact.
Residence: Individual is present in a state if they’re a resident (lived in state at any point in any
given year), corporations are residents of the states in which they are incorporated.
Minimum Contacts: Corporations and residents can be subject to a state court’s jurisdiction if
they have minimum contacts in that state due to the “Long Arm Statute”. Basically, a state can
have a law where accidents take place must be dealt with in the state.

VI. International Court

Their decision provide precedent for parties involved in international. Hold no enforcement
power or authority over the parties. Optional for both parties.
International Court of Justice (ICJ): Judges elected by the UN General Assembly and can
only have a maximum of two judges from the same country.

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 Chapter 4: Managing Disputes
Alternative Dispute Resolution: Means of resolving disputes between individuals/entities
outside the courtroom. Usually cheaper, faster, confidential, and gives a different view.

I. Types of Alternative Dispute Resolutions (ADR)

Arbitration: Oldest form of ADR, mandatory in all cases involving amounts below a dollar limit
between $25,000-$50,000.
Decisions can be binding, nonbinding (one or more agree to wait and see decision before
accepting), or mandatory (law specifies issue should be settled by arbitrator, binding).
Procedure: Could be presented by lawyers, decision made 30 days after all evidence is shown.
The decision can only be changed if the award resulted from corruption, fraud, or undue
influence.
Parties mutually agree on the number of arbitrators (1 or 3) and who they are.
Arbitrator: Like a judge but not appointed by the government. Doesn’t need a license, just has
to be educated on the topic at hand. Should be discrete, unbias, and ethical.
Mediation: Intervention of third party to get a compromise for both parties. Confidential and
nonbinding (unless both parties agree and sign). Only tries to solve the problem, no decision
made.
MedArb: Start with mediation, if it fails you move to arbitration and a decision is made. Can be
binding or nonbinding.
Mini-trial: Lawyers of both parties present a case to senior officials of both companies and
someone in a neutral position provides input on how it would go down in court so they can
choose if they want to settle. Confidential and nonbinding.
Rent-a-Judge: Rent judge who listens and applies procedural law as if in court making a regular
decision. Private and faster but costs the same as a court hearing.
Summary Jury Trial: After the judge and jury hear the case but before evidence and the
process, the judge suggests a settlement. If one party rejects, a normal trial ensues.
Early Neutral Evaluation: Present the case to a third lawyer and he suggests a settlement.
Either both agree, or they go to court.
Peer Review: A panel selected by employees and employers make a nonbinding ruling.

II. ADR vs. Litigation

Speed and Cost: Costs of ADR have increased and their speed is slowing, but they’re still
cheaper and faster than litigation.

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Protection of Privacy: Any matter can be kept private in ADR but everything is public in
litigation.
Creative Remedies: Without court jurisdiction restraints, creative remedies can be crafted to
satisfy both parties.
Judge and Jury Unknowns: Eliminating the middlemen that are the judge and jury. May get a
fairer decision or solution.
Absence of Technicalities: Strict procedural courts that apply in litigation don’t apply in ADR.
Proceedings are a lot laxer and more informal.

III. Litigation
Litigation: Legal proceedings between parties in front of a court.
Lawsuit based on a feeling of violation of rights and damages are determined in trial. Plaintiff’s
claim must be based on some statutory/common law.
1. Submit Complaint: Plaintiff drafts petition. He has statutes of limitation.
Make sure of court jurisdiction, lawyer tells judge you’re competent to handle the case.
You state the facts of the case and your evidence (clear enough for defendant to understand),
state the remedy wanted (legal compensation (money), or equitable remedy).
Statute of Limitation: A time limit for when a person is able to file a lawsuit.
Class Action Suit: Group raises a complaint against one defendant.
Derivative Suit: Shareholders sue a corporation to recover damages for actions by the
corporation.
2. Summons: A notification to counterparty. Provide copy of lawsuit, delivered to
defendant. Once served, server must issue an affidavit with court to indicate when and
where service was made. Delivered by process server or by officer of court.
Affidavit: A written statement confirmed by oath for use as evident in court.
Process Server: An officer of the court.
3. Answer: Where parties’ position in the case are found. The defendant’s position is found
in the answer and the plaintiff’s position is found in the pleading.
You have 20-30 days to respond. Failure to do so grants the plaintiff their request.
The defendant can accept or reject all or some of the claims and could counterclaim.
4. Motion: Request to court that it takes a certain action.
Types of motion:
 Motion to dismiss

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  Motion for summary judgement
 Motion for judgement on the pleadings
Motion to Dismiss: Require court to dismiss the case.
Ex: If legal base is wrong (subject matter).
Motion for Summary Judgement: Requires that the moving party is entitled to judgement
under the law and no issues of fact remain disputed (both parties agree on all facts).
Motion for judgement on the pleadings: complaint and answer where the defendant is asking
the court to make a decision based on the pleadings (documents) without going forward. When
there is no solution for the plaintiff the court has a right to dismiss the case.
Ex: taking your neighbor to court for being annoying or mean. There is nothing in the law that
can do anything about the situation.
5. Discovery: Procedural right aimed at protecting both parties by revealing all document
and witnesses and giving it to the counter part before revealing it in court.
Request for Admission: Admit certain documents (request from one party to another for the
admission of facts so that proof requested at trial is limited).
Request for Integratory: To see facts and ask questions about them (written questions
submitted to opposition).
Request for Production: Require other side to produce requested documents.
Deposition: Questioning of either party before trial under oath. Better to discover damaging info
here than to have a surprise at the trial.
If the case isn’t settled, trial begins.
Trials in a court of law have a jury unless both parties don’t want one. In a court of equity, there
is no jury unless both parties want one.
Jury can be 6 to 8 to 12 to even 36. Jury decision must be unanimous.
Jury Selection: Vote from pool of candidates. Usually obliged but there are excuses to miss jury
time. Once the pool is available, the process of voir dire determines if they’re qualified to serve.
For Cause: Incapable of making an impartial decision.
Peremptory Challenge: Lawyer is uncomfortable with juror. Can remove without cause.
Voir Dire: Preliminary examination of witness or jury and is used to narrow down jurors for
panel.
Trial Process: Attorney for each party has an opening statement which summarizes what each
party hopes to prove and how.
Plaintiff’s lawyer goes first, presenting case and evidence.

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By the end of the case, plaintiff must show enough evidence to establish prima facie case, in
which the plaintiff has offered evidence on all elements required. IF NOT MET, the defendant
can motion for a directed verdict. If rejected by the judge the trial is continued.
Then the defendant has the same opportunity to present witnesses and evidence.
Direct Examination: Questioning your witness under oath.
Cross-Examination: Defense can’t bring witness but can question plaintiff’s witness.
Redirect Examination: Plaintiff can pose questions again to clarify.
Burden of Proof: Controls who has the responsibility for proving which facts.
Hearsay Testimony: Evidence offered by a witness who does not have personal knowledge of
information being given, but just heard it from someone else.
Expert Testimony: Lawyer can bring in an expert’s testimony. The issue the court faces is
determining whether the expert’s testimony reflects scientific knowledge or if it was contrived
for the trial.
Closing Argument: Final words where the attorneys highlight the main points for jurors and
point out defects in the other party’s case.
Then the jurors receive instructions from the judge on how to apply the law to the facts. Jurors
discuss privately and come up with a unanimous decision.
Hung Jury: When the jury decision is tied.
Verdict: Jury’s decision.
Post-Trial: Losing party can issue motion for Judgement NOV.
Judgement NOV: The power a judge enjoys to reverse a jury’s verdict. Very rare. Only when the
decision is clearly against the evidence presented.
Types of Evidence Chosen: Court of Law (Preponderance of Evidence), Court of Equity (Clear
and convincing), and Criminal Court (Beyond Reasonable Doubt)
Preponderance of Evidence: The strongest evidence is chosen.
Ex: Written testimony over verbal story.
Beyond Reasonable Doubt: The standard the prosecution must meet which states that there is
no other logical explanation that can be derived from the facts, except that the defendant is
guilty.

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 Chapter 5: Business and the
Constitution
U.S. Constitution: Legal document signed by every state. It contains 7 articles and 27
amendments. It’s a document that details the authority of the US government and its rights of its
citizens.

I. U.S. Constitution Articles

Articles 1-3: Separation of power in which each branch has curbing power over the other.
Legislative, Executive, Judiciary.
Legislative (article 1): Commerce clause (regulates commerce between Indian tribes, foreign
countries and between states). Main function to create laws. Can delete/create any court. Can
limit budget for expenditure for executive branch. Must ratify/approve anything the president
wants to do.
Ex: house of senates, and house of registration.
Executive (article 2): Execute laws. Can veto some laws the legislative branch creates,
responsible for appointment of judges and is responsible for foreign relations and treaty
negotiations.
Ex: office of president, administration and administrative agencies (IRS, SEC, Federal reserve).
Judiciary (article 3): Interprets law and can overrule laws made by congress. Can’t pass laws.
Ex: US Supreme Court and its jurisdiction.
Exclusive vs. non-current jurisdiction:
 State: exclusive jurisdiction over police power and civil status.
 Federal: exclusive jurisdiction over citizenship and currency.
 State and federal: concurrent jurisdiction over taxation and tax collection.
System of “Checks and Balances”: The branches’ unique function and curbing power to avoid
accumulation of power from one branch.
Article 4: State Interrelationships. Each state should respect the laws of others
Ex: Marriage license approved by all.
Article 5: Amendments of U.S. Constitution. Rules on how to amend/modify the constitution.
Ex: You need 80% of the senate’s votes to change a law.

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Article 6: Supremacy Clause (when state laws conflict with federal laws, this then fives the
federal constitution the right to overrule the state laws). Govern conflicts between state and
federal laws.
Preemption: Laws issued by congress (federal government) that are superior to those of the state.
Article 7: Every state needs to ratify/agree to the constitution by local representatives.

II. U.S. Constitution Amendments

Bill of Rights: First 10 Amendments. Specific rights that apply to all citizens. Decided by the
Supreme Court.
1st Amendment: Freedom of Speech (not absolute). Protected, unprotected, and partially
protected speech.
Three types of free speech applied to business.
Corporate Political Speech: When a certain business clearly supports one candidate in elections
and has the 1st amendment’s full protection. Corporate contribution of money in connection with
any federal election is prohibited.
Bellotti doctrine: corporations have the same degree of protection for political speeches as
individuals do.
Speech on Social Issues (corporate speech): When businesses act upon social issues. (Speech that
isn’t advertising nor political that explains and defends corporate policies.
Commercial Speech (Advertising): Regulated by the Federal government, but doesn’t have full
protection of the 1st Amendment because it concerns people. Any speech who’s purpose is to
further the economic interests of the business.
Balancing test: the court examines whether the state interest in welfare or safety outweighs the
federal interest in preventing interstate commerce from being unduly burdened.
These are all supported by the Political Action Committee (PAC).
Political Action Committee (PAC): Association of employees to make the expression of opinion
equitable and is separate of corporations and labor unions.
Protection of sensationalism: using a strongly emotional subject matter to excite or thrill
people.
4th Amendment: Search warrant (protection of privacy from unlawful searches).
5th Amendment: Right to protect their property.
Right of Eminent Domain: Right of a governmental body to take private property for public use
and have to compensate based on market value.

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Due Process of Right (14th amendment): Can’t strip property without notice so party can have
time to prove innocence.
6th Amendment: Jury trial.
14th Amendment: Equal Protection of the Law (everyone is treated the same exact way).
Disparate treatment is only justified if some rational basis is determined. Due process of law.

III. Standards for Taxation of Businesses (Interstate Commerce)

Interstate commerce: regulated by congress and it’s whether or not an activity directly and
indirectly affects other states then it is subject to federal regulation.
Intrastate commerce: activity that is regulated by the state and its only the concerns of the state.
No Discrimination against interstate commerce: Tax can’t be more for an item shipped from
outside the state than for an item produced in the state.
No Burden to Interstate Commerce: Tax can’t burden interstate trade.
Connection (nexus) of Business to State: A business must have some connection to a state to be
taxed.
Police power: the states’ power to pass laws that promote public welfare and protect public
health and safety and is only upheld when it doesn’t outweigh the burden imposed on interstate
commerce. For the state to regulate interstate commerce, the court looks at two factors: whether
federal regulations supersedes state involvement, and whether the benefits of the statute
outweigh the burden on interstate commerce (to prevent an unfair advantage to intrastate
businesses over interstate businesses) and which the court checks through the balancing test.
Apportionment fairly: Tax divided proportionally between states where a business has HQ.

IV. Due Process (14th amendment)

Due process of law: right to a hearing, right of notice before a trial, the right to pass through a
proper judicial process before being convicted/vindicated.
Procedural Due Process: The right that requires notice and the opportunity to be heard before
rights or properties are taken are taken away from a business or individual.
Substantive Due Process: Right to have laws that don’t deprive citizens/businesses of
property/right without justification and reason.
Void for vagueness doctrine: the right to stop a law from passing because the term cannot
strictly defined.

V. Eminent Domain (5th amendment)

When a governmental body wants to exercise their right of Eminent Domain, they must look at
three factors.

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Public Purpose: Interpreted restrictively. The city decides whether it’s for public use.
Taking: Deprive the landowner of use of a property.
Just Compensation: Give the previous owner the fair and just market value of the land.
When all these are met they have the right to take private property and give it to the public.

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 Chapter 1: Yates v. US Case
Court: US Supreme Court
Number of judges: six
Year: 2015
Parties and their roles: US (respondent/prosecutor); John L. Yates (petitioner/defendant)
Facts: Yates caught undersized fish in federal waters and to prevent federal authorities from
confirming that he harvested undersized fish, he ordered the crew to toss them out into the water
after he was specifically told not to. He was charged with obstruction of justice.
Issues of case: interpretation and obstruction of law.
Trial court decision: convicted and appealed to the Supreme Court. His conviction was upheld.
He was sentenced to 30 days in jail and three years of supervised probation as well as carrying a
felony convicted for life by the majority.
Decision: the fish weren’t “tangible objects” for the purpose of the obstruction of justice statute
because this law was meant to cover files and electronic records. The conviction was then
reversed.
Reasoning: the court held that the statute was passed in the wake of financial and ethical
collapses in companies and wasn’t intended to have generic application. It was designed to
protect investors and restore trust in financial markets. It was directed at electronic files and
documentation.

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 Chapter 3: Hard Candy, LLC v. Hard
Candy Fitness
Court: Florida district court
Number of judges: one
Year: 2015
Parties and their roles: Hard candy LLC (respondent/prosecutor); Hard Candy Fitness,
MGHCandy LLC, NEV Hard Candy Fitness LLC, and New Evolution Ventures LLC
(petitioner/defendant)
Facts: Hard Candy was a nail polish place that then extended to cosmetics and they tried suing
Hard Candy Fitness in Florida. Hard Candy Fitness filed for a motion to dismiss or to be
transferred to the Northern District of California.
Issues of case: infringement through clubs, apparel, website, and fitness DVD.
Trial court decision: defendants MGHCandy, LLC, Guy Oseary, and Madonna Louise Ciccone
are dismissed from this action since they were not directly involved and the request to transfer
this case to a different venue is granted since all companies were based in California.
Reasoning: the Florida long-arm statute and the Due Process Clause

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 Chapter 4: Pulte Home Corporation
vs. Simerly
Court: US Supreme Court
Number of judges: one
Year: 2013
Parties and their roles: Simerly and Trent (respondent/prosecutor); Pulte Home Corporation
(petitioner/defendant)
Facts:
Issues of case: trespass, nuisance, negligence, negligence per se, riparian rights, unjust
enrichment, and ejectment based on the company’s actions in causeinf excess storm water and
sediment to enter
Trial court decision: convicted and appealed to the Supreme Court. His conviction was upheld.
Decision:
Reasoning:

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 Chapter 5: Citizens United vs. Federal
Election Commission
Court: US Supreme Court
Number of judges: one
Year: 2010
Parties and their roles: Citizen United (respondent/prosecutor); Federal Election Commission
(FEC) (petitioner/defendant)
Facts: Citizens United, a not for profit organization, developed a movie, Hillary, in which it
depicted Clinton, a Democratic Party candidate. The image given to Clinton was critical and the
aim of the documentary was to show that she is unfit for office. Additionally, they wanted to
have the movie widely distributed and to do so was to first pay a cable company 1.2 million
dollars to display it on demand and within 30 days of the elections.secondly, they created three
different ads. Meanwhile, the 441 section of the BCRA prohibits ‘electioneering communication’
and this only applies to profitable companies and it bans any type of broadcast concerning a
candidate within 30 days of a primary election.
Issues of case: breach in the first amendment: freedom in political speech (Bipartisan Campaign
Reform Act).
Trial court decision: district court denied Citizens United’s motion for preliminary injunction
and granted the FEC’s motion for summary judgment.
Decision: The Supreme Court revised the initial ruling and reversed it.
Reasoning: the trial court decision was based on the fact that the Citizens United’s case fits
exactly into the mold of the BCRA and the movie was clearly against Clinton. Thus, the court
rejected Citizens United’s injunction. The Supreme Court, on the other hand, considered the first
amendment and the prohibitions with regards to political speech to be forms of censorship and
thought that if the court didn’t change its position it could give power to the government to
silence opposition, which goes against democracy (freedom of speech). Lastly, all speakers use
money for their speeches, which makes it irrelevant that corporate funds should have no
correlation to the public’s political support.

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