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1
Intiouuction to Anglo-Ameiican law anu contiact law


I. Anglo-Ameiican law

5623"72 (/ #18: common & civil law (main uiffeience lies in souice of law (customs v coue)
96)"2 (/ #18: ciiminal law (state v uefenuant: fieeuom at issue, public law), civil law
(plaintiff v uefenuant: money at issue, piivate law) anu auministiative law

:(77(- #18;
- Laigely uncouifieu
- Pieceuent: powei of pie-existing legal uecisions to uefine law (becomes stanuaiu
in uealing with similai cases)
- }uuge inteipiets pieceuents, theieby actively shaping law
- Pieceuent is subject to inteipietation. Theie can be opposing, but equally
iational opinions about case law

:$4$# #18;
- Wiitten "couifieu" law that is continuously upuateu
- The coue is baseu on legislative uecisions, coveiing all eventualities
- }uuge analyses facts anu makes uecisions within fiamewoik of law

98( 36)"2 (/ )+"0"*"-3: contiolling (uecision within system: (! the column) v
peisuasive (uecision fiom othei system: acioss statesciicuits ")

<-231-0" !"#"$%& ()) *+$*,+-./ 0-%-" (12 .-%-"./
Supieme Couit State Supieme Couit
Appellate Couit State appellate couit
Bistiict couit Tiial couit

With iegaiu to a ceitain issues couits can eithei have oiiginal oi appellate juiisuiction:
=+$.$-1# >,+$2*$03$(-: powei of couit to heai case foi the fiist time (uealing with facts)
?))"##13" >,+$2*$03$(-: powei to ieview lowei couit's uecisions


1. Naibuiy v Nauison 18uS

3%*45$6,7# +786$9%-+67:
- Case founueu the piinciple of juuicial ieview, i.e. the capacity of the Supieme
Couit to ieview law foi constitutionality (=extension of powei of juuiciaiy)
- Facts: 0utgoing piesiuent Auams appoints justices as his last oiuei.
Appointments aie appioveu by senate, but secietaiy of state Naishall (who latei
becomes chief justice) uoes not uelivei them in time. New piesiuent }effeison
ueclaies them voiu.

;: 1. Boes Naibuiy have a iight to the commission to be appointeu juuge.
2. If so, uoes the law giant iemeuy.
S. Boes Supieme Couit have the powei to issue a wiit of manuamus (i.e. impose
the iight).
<: 0S constitution ait S, }uuiciaiy Act of 1789
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2
=: 1. Yes, Naibuiy has iight.
2. Yes, iemeuy is ueliveiy of commission.
S. No, Supieme Couit uoes not have the powei (only appellate juiisuiction in
uealing with those appointments). The juuiciaiy Act of 1789 gave Supieme Couit
oiiginal juiisuiction, but in uoing so expanueu constitution.
>: Congiess cannot expanu scope of powei of Supieme Couit above ait S of the
constitution.


2. 0niteu states v Lopez 199S

3%*45$6,7# +786$9%-+67:
- Case maiks a tuining point in 0S law, foi the fiist time in 6u yeais limiting
Congiess evei-giowing powei unuei the commeice clause.
- Najoiity ieinteipiets foimei cases ielateu to commeice clause. Though majoiity
1 contiauicts Wickaiu, this pieceuent stays valiu, since only thiee juuges
challenge its inteipietation.
- Case points out the necessity of congiessional finuings befoiehanu.
- Facts: Bigh school stuuent Lopez biings a gun to school anu is aiiesteu unuei
Texas law. State chaiges aie uioppeu anu Lopez chaigeu unuei uun Fiee School
Zones Act (feueial law). Lopez claiming that uFSZA is an unconstitutional use of
congiess powei is convicteu by the feueial uistiict couit. Fifth Ciicuit Couit of
Appeals ieveiseu the uecision, which is then affiimeu by Supieme Couit.

?+9"&+7" 68 *699"$*" *&%,." +7-"$@$"-%-+67

@ABC; D$EE(-2 4 =.*"-;
- Rise of steamboats hau leu states to cieate laws to fostei monopolies
- Supieme Couit establisheu commeice clause as instiument foi Congiess to
iegulate commeice among the states

@AFG; 5H"+71- ?03
- Passeu by congiess to piohibit antitiust
- Sepaiation of manufactuiing anu commeice (veiy bioau inteipietation of CC)
- Begin of laissez-faiie economic philosophy

@FIJ; K'LM
- Bepait fiom uistinction between uiiect anu inuiiect effect on inteistate
commeice
- Responsible foi change was Roosevelt thieats of incieasing numbei of juuges
fiom 9 to 16 "switch in time that saveu the nine")
- uieat uepiession & Roosevelt's iesponse "New Beal" enueu the laissez-faiie
iulings
- Facts: National laboi ielations boaiu concluueu that a steel coipoiation useu
unfaii laboi piactices in uisciiminating against union membeis
- ;: What activity can be iegulateu by Congiess unuei commeice clause.
- =: Any activity that significantly affects inteistate commeice, eithei uiiect oi
inuiiect.


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@FCB N$0O1+*;
- Facts: Faimei exceeus the amount of wheat he was alloweu to piouuce unuei
feueial law thiough peisonal consumption.
- ;: Can Congiess iegulate local activities that affect inteistate commeice only on
aggiegateu level.
- =: Yes, uecisive in ueteimining effect on inteistate commeice is not inuiviuual,
but aggiegate level (-> what if eveiybouy uoes that.)

@FPC; Q"1+3 (/ ?3#1-31 R(3"#;
- Facts: motel iefuseu to accommouate Blacks
- ;: Biu the Civil Rights Act exceeu Congiess powei unuei commeice clause.
- =: Racial uisciimination (in hotels) affects commeice thiough piohibiting Blacks
fiom uoing business in an incieasingly mobile society
- >: Civil Rights Act valiu

A%B6$+-C ) D6@"E
;: Is uun Fiee School Zones Act (uFSZA) constitutional.
<: Commeice clause: too geneial, theiefoie ueiiveu fiom case law (i.e. pieceuent):
Congiess can iegulate:
1. Channels of inteistate commeice
2. Instiumentalities of inteistate commeice
S. Activities with significant impact on inteistate commeice
=: The possession of a gun in a school zone is not an economic activity that thiough
iepetition can have a substantial effect on inteistate commeice.
>: Congiess has exceeueu its authoiity unuei Commeice clause: Act is
unconstitutional.

A%B6$+-C F D6@"E
"Laboiatoiy of uemociacy": states functions as laboiatoiy, tiying new social anu
economic expeiiments without affecting the iest of the countiy.

G+.."7- ) D6@"E
violence in schools inteifeies with the quality of euucation, which is linkeu to economy
(i.e. nexus exists). Real congiessional finuings weie not necessaiy, since iational basis
coulu have been assumeu.


S. 19uS Lochnei:

- Fieeuom of contiact v state police powei
- Facts: Lochnei alloweu employee to woik moie than 6u houis in his bakeshop
theieby violating the New Yoik Bakeshop Act. Be appealeu aiguing that the law
limiteu his fieeuom to contiactS

;: Is state laboi law iegulating the maximum woik houis of bakeis constitutional
unuei commeice clause.
<: 14
th
amenument of constitution: inteifeie with fieeuom of contiact must be
ieasonable anu appiopiiate (e.g. to piotect public health)
=: Reasonable giounu foi inteifeience is not given
>: Laboi law unconstitutional
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4
H6&9". #+.."7-:
- Pioceuuial aigument about the iole of the couit.
- Bebating economic philosophy is not intenueu by constitution.
- Statute is constitutional, unless iational anu faii man woulu necessaiily aumit
infiinges libeity.



II. Contiact law

valiu contiact (K) only exists if thiee conuitions aie met:
- 0ffei (not vague, not inuefinite)
- Acceptance (notification given oi peifoimance)
- Consiueiation: thing exchange (i.e. auvantages oi inconveniences to K paity)

?*"T,106 4 2,//$0$"-06; Couit uoes not ueal with question whethei a contiact is a "goou
ueal", but only examines sufficiency of consiueiation. The necessaiy assumption is that
eveiybouy baigains in his best inteiest.


4. Cailill v Caibolic Smoke Ball Company 1892

3%*45$6,7# +786$9%-+67:
- Facts: Company auveitiseu the Smoke Ball as cuie against flue offeiing a iewaiu
of 1uu pounus to eveiybouy that useu it S times a uay a still got sick. Cailill useu
it as inuicateu anu sueu foi iewaiu when she got sick anu CSB iefuseu to pay.

D"+H1+* 4 M13"2 @AGG
- Facts: Stock piomotei sells stock to A with piomise of fixeu uiviuenu. Aftei A
solu stock to B, B cannot collect the uiviuenu fiom stock piomotei, since theie is
no piivity (i.e. no legal ielationship between paities).
- Refeienceu in CSB, since theie aie also agents between company anu plaintiff,
still piivity is given. Contiact is not just tiansaction of goou, but incluues
uetiiment of using it.

; Is theie a valiu contiact between paities. Is consiueiation given.
R: 0ffei, acceptance, consiueiation
=: 0ffei: cleaily uefineu: use (not buy!) CSB & not get sick oi get paiu 1uu pounus
(uepositeu at bank -> no puffing)
Acceptance: using CSB, ait of the offei implies that notification is not necessaiy,
since it is a unilateial contiact (i.e. geneial piomise to public)
Consiueiation: no piivity (=ielationship) necessaiy, inconvenience of
peifoimance is sufficient (changes pieceuent of ueihaiu)
>: Contiact is valiu


S. Biowning v }ohnson 1967

3%*45$6,7# +786$9%-+67:
K1: Biowning sells piactice to }ohnson (K1 latei tuins out to be invaliu)
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Then Biowning changes his minu about sale
K2: Biowning makes 4uuuu$ payment to }ohnson foi not going thiough with sale

;: Is }ohnson's piomise to give up K1 sufficient consiueiation to suppoit Biowning's
piomise to make payment (even though K1 is an invaliu contiact).
<: Accoiuing to CSB: uetiiment foi one paity can be sufficient consiueiation
=: Both paities aie able to value K2 (piotecteu by self-inteiest)
>: Contiact (2) is valiu


6. Caiboiunuum v Lake Rivei 198S

3%*45$6,7# +786$9%-+67:
- Two issues: 1. Is the stock helu by Lake Rivei a lien oi conveision. 2. Is the
foimula in minimum guaiantee clause a penalty foi bieach of contiact oi attempt
to liquiuate uamages.
- Facts: Caiboiunuum, a manufactuiei of "Feiio Caibo" (neeueu foi steal
piouuction), enteieu in a S-yeai contiact with Lake Rivei foi uistiibution
seivices of FC, foi which LR hau to install a new bagging machine costing 89uuu$.
To covei this cost anu make a 2u% piofit LR insisteu on a minimum guaiantee
clause. At expiiation of contiact C hau only shippeu 12uuu of the minimum
quantity 22Suu tons, which left C owing 241uuu$. Aftei bieach of contiact LR
ietaineu Suu tons of baggeu Feiio woith S1uuu$.

@
23
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;: Is Lake Rivei entitleu to a lien against contiact claim alieauy paiu foi.
<: Lien is useu to ensuie futuie payment foi past woik uone
=: Suu tons hau alieauy been paiu foi
>: No valiu lien, LR owes Suu tons (foimei value)

B
-*
T,"23$(-;
;: Is the specific clause a penalty oi liquiuateu uamage clause.
<: Liquiuateu uamages must be a ieasonable estimate, uifficult to ueteimine aftei
bieach has occuiieu
=: Clause guaiantees the plaintiff extia piofit with no iegaiu to the natuie of bieach
anu has no ielation to actual uamages
>: Clause is punitive










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