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As an assistant in the legal department of a major corporation, your supervisor
has asked you to do some research on how various laws may be applied in an
upcoming case. Your department needs to coordinate with outside counsel and
wants to be up to speed on how law works. Explain the sources of American
legal system. Is our civil system more or less advantages than the common law
system? Why is it important to understand all sources of law and where to find
them? Explain your answer with examples in a business context?
Two Law Systems
Civil law is the basis of law in most countries, particularly Europe, the Latin American
countries, Japan and Canada. The State of Louisiana in the U.S. also has civil law. Civil law is
historically based on Roman law of legal principles and doctrine. In civil countries, the codified
laws, as passed by the legislature, is considered the main source of law. Courts decide cases
using the previously written codes and statutes. That means the decisions are based on the
general principles of the written law, and by devising analogies from the laws.
Common law is based on customs and practices which were set out before written laws
and came down through the courts even after laws were codified. This system then bases its law
on previously decided cases to a great extent. There are laws passed by the legislature of course,
but they are judged constitutional or not by the judiciary (if tested). That ensures that each new
law passes the “test” of fitting into the case law that has been previously decided (stare decisis).
It is important to have a set of codified (written) federal laws, but they could be
interpreted differently depending on what judge or court jurisdiction the business is in. With a
modified common law system, each court must follow what has already been decided and it
brings a sense of stability. If the courts, for instance, deem a certain type of trade acceptable
because of a contested civil case, then that is the “law of the land.” If a law is passed and the
courts do not rule it to be illegal or unconstitutional, then that law can be counted upon as the
rule. Doing business, it is crucial to have a solid basis of law, or the business can be on shaky
ground in a number of ways—never knowing how the rules or laws will be interpreted each time
they are contested in a court of law.
Referencces
http://www.uscourts.gov/Home.aspx
http://www.blurtit.com/q783094.html
http://www.scvan.org/SG-court.html