What are the different sources of law in the United States?
What is the difference between negligence and an intentional tort?
What is a contract and what are the elements of a valid contract?
What is the difference between a void contract and a voidable contract?
What is the difference between possession and title of personal property?
What is the Statute of Frauds and to what type of agreements does it apply?
What is the warranty of merchantability, the warranty of fitness for a particular purpose, and what is a disclaimer?
List three requirements in order for negotiable instruments to be valid.
What is a Holder in Due Course?
What is the difference between a general partnership and a limited partnership?
What is the role of the board of directors in a corporation?
What is the difference between liquidation bankruptcy and realignment bankruptcy?
Full Answer Section
Statutes:
- Federal Statutes: Laws enacted by the U.S. Congress, applicable nationwide.
- State Statutes: Laws enacted by state legislatures, applicable within their respective states.
- Local Ordinances: Laws enacted by local governments, applicable within their jurisdictions.
3. Case Law:
- Court Opinions: Judges' rulings in specific cases, which can create precedent for future cases with similar facts and legal issues.
- Federal Courts: Supreme Court decisions are binding on all lower federal courts.
- State Courts: State Supreme Court decisions are binding on all lower courts within that state.
4. Administrative Regulations:
- Rules and regulations issued by federal and state agencies to implement statutes and address specific issues.
5. Secondary Sources:
- Treaties: Agreements between the United States and other nations, considered part of federal law.
- Restatements of Law: Compilations of legal principles and rules, not binding but persuasive in court.
- Law Review Articles: Scholarly writings discussing legal issues, offering insights and arguments.
6. Common Law:
- Unwritten body of law based on judicial decisions, primarily relevant in areas not covered by statutes or regulations.
Each source of law has its own ranking in the legal hierarchy. Generally, higher sources take precedence over lower ones. For example, federal law preempts conflicting state laws, and Supreme Court decisions bind all lower courts.
Negligence vs. Intentional Tort
Negligence:
- Occurs when someone fails to exercise reasonable care under the circumstances, resulting in harm to another.
- Requires proof of four elements: duty of care, breach of duty, causation, and damages.
- Examples: car accidents, slip-and-fall injuries, medical malpractice.
Intentional Tort:
- Involves deliberate and intentional wrongdoing that inflicts harm on another.
- Does not require proof of a duty of care, only the intentional act and resulting harm.
- Examples: assault, battery, trespass, fraud.
Contract
Contract: A legally binding agreement between two or more parties, creating mutual obligations.
Elements of a Valid Contract:
- Offer and Acceptance: One party makes an offer, and the other party accepts it unconditionally.
- Consideration: Each party must exchange something of value, such as money, goods, or services.
- Capacity: Both parties must be mentally competent and legally capable of entering into contracts.
- Legal Purpose: The contract must not violate any laws or public policy.
Void vs. Voidable Contract
Void Contract:
- Has no legal effect from the beginning and cannot be enforced.
- Examples: contracts entered into by minors or under duress, contracts involving illegal activities.
Voidable Contract:
- Can be declared void by one party under certain circumstances.
- Examples: contracts induced by fraud or misrepresentation, contracts entered into without sufficient understanding.
Possession vs. Title
Possession: Physical control over something, regardless of legal ownership.
Title: Legal ownership of something, with the right to possess, use, and dispose of it.
Possession and title can exist separately. One person can possess something they don't own, and another person can own something they don't possess.
Statute of Frauds
Statute of Frauds: A law requiring certain types of contracts to be in writing to be enforceable.
Applies to contracts for:
- Sale of land or real estate
- Sale of goods beyond a certain value
- Agreements not to be performed within one year
- Certain types of guarantees
Warranties
Warranty of Merchantability: Implied warranty that goods sold are of average quality and fit for ordinary use.
Warranty of Fitness for a Particular Purpose: Implied warranty that goods sold are fit for a specific purpose made known to the seller.
Disclaimer: A statement that excludes or limits a warranty.
Negotiable Instruments
Three requirements for validity:
- Unconditional promise to pay a sum of money
- Payable on demand or at a definite time
- Signed by the maker or drawer
Holder in Due Course
A person who acquires a negotiable instrument in good faith, for value, and without notice of any defenses or claims against it.