Corporations Law: Case Study Analysis

Running head: CORPORATIONS LAW
CASE STUDY ANALYSIS
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Chapter 1: Pages- 2-23
The most significant function of in any society is providing stability, continuity and
predictability such that the people will be able to order their affairs. If a society is required to
survive, the citizens must know their legal rights and duties, what is legally right and what is
legally wrong. They must be aware about the sanctions that can be imposed upon them, if they
do any wrong acts. If the incur any loss or damage due the wrongs done by others, they are able
to seek compensation. By stating the rights, duties and advantages of the citizens, the law allows
the individuals to do their business with confidence.
Law: Although law has many definitions, in general, Law can be said to be a group of
enforceable rules that govern relationships among the individuals of a society and also the
relationships between those individuals and their respective society (Finnis, 2017).
Legal reasoning: the process that is being used by the judges while adjudicating a case to
determine the law applicable in the dispute related to the case and then applying such law to the
facts of the case.
In this chapter, it is discussed that how the legal environment can affect the decision
making of business. Next, the main sources of the American law together with common law
tradition and some schools of legal thought are also enumerated here.
Chapter 2: Pages 24- 44
The court must have a proper jurisdiction on the individual or the company sued or on
the subject matter of the dispute.
Two types of jurisdiction: In personam jurisdiction and in rem jurisdiction.

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Alternate dispute resolution (ADR): the process of resolving the dispute outside the court
(Menkel-Meadow, 2015). The main advantage of ADR is the flexible nature of it. In present
days, more than 90% of the civil suits are settled outside the court. In this chapter, different
forms of ADR have been discussed which are negotiation, mediation and arbitration.
Negotiation: the simplest form of ADR where parties try to settle their disputes in an informal
manner.
In mediation, a neutral party acts like a third party who mediates and works for both parties to
solve the dispute.
Arbitration is a method where an arbitrator who can be a third party or an expert, hears the
dispute and resolve it.
Chapter 3: Pages 45- 65
In USA, the Civil procedure comprises of civil procedural rules which controls the
procedure in federal courts, 50 state courts and also the courts of the territories (Sime, 2019). The
civil procedures are distinct from the criminal procedures.
Chapter 4: Pages 66- 83
The law governing business has its origin in the law making authority given by the
federal constitution. Certain powers are delegated by the Constitution to the national
government and the states retain all powers with them. Every branch of the federal government
has power to restrict the act of other two branches.
Judicial review: the power of the courts to decide the actions of the governmental organization
unconstitutional (Ely, 2017). Constitution can limit the powers in two manners; by limiting the

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state and federal power by independent checks and by restricting the federal legislation authority
by enumerating the powers can be exercised by the Congress.
Chapter 5: Pages 84- 103
Ethics are basically moral principles which are referred for making decisions; they can also be
regarded values (Ferrell & Fraedrich, 2015). In this chapter, business ethics have been discussed.
Usually, ethical business practice is being followed in order to run company in a smooth way.
Ethics constitutes of moral intensity, external control, internal control, corporate culture and
other significant factors. It is a study of business situations, decisions and activities where the
issue to determine right and wrong are addressed. It is an important topic of business. It is not
only applicable to commercial business but also applicable to non-profit businesses, government
organizations, charities and other enterprises. Few ethical issues are child labor, low labor cost,
discriminations, overtime work, environment, health and safety regulations and others.
Chapter 6: Pages 104-124
Tort: The tort law makes an attempt to compensate the damage or harm inflicted by means of
awarding damages to the plaintiff who can prove that the defendant was liable for the loss of the
plaintiffs (Goldberg, Sebok & Zipursky, 2016). There are different types of torts and the
defences to those tort claims. The basis of tort is wrongs done and compensation given for it.
Two types of tort: intentional and unintentional
Damages for tort are compensatory damages or punitive damages.
Forum shopping: it states that the plaintiff has the option to choose the court in order to institute
a suit.