Overview

American business law traces its roots to English common law, yet it has evolved through constitutional principles, statutory enactments, and administrative regulations. Understanding these sources—and how they interact—provides the foundation for every contract, tort, and regulatory framework you’ll study in this course.

Key Concepts and Sources

• English Common Law: Judge‑made precedents that form the backbone of contract and tort doctrines.
• Constitutional Law: U.S. Constitution establishes federalism, separation of powers, and the Commerce Clause—critical for interstate business regulation.
• Statutory Law: Legislation enacted by Congress and state legislatures (e.g., Uniform Commercial Code Articles 2 & 9).
• Administrative Regulations: Rules issued by agencies like the SEC, FTC, and EPA—carry force of law under enabling statutes.
• Case Law: Judicial opinions interpreting statutes and the Constitution; relies on stare decisis for consistency.
• Restatements & Model Codes: ALI Restatements (Contracts, Torts) and the UCC harmonize state laws.

Step‑by‑Step Example

Scenario: Congress passes a federal statute regulating online sales. A state law already governs e‑commerce within that state. Which law controls?

Step 1: Identify supremacy clause—federal law pre‑empts conflicting state statutes.

Step 2: Determine if Congress intended to occupy the field. If yes, state law is void.

Step 3: Apply Commerce Clause analysis—online sales affect interstate commerce, giving Congress authority.

Final Answer: The federal statute pre‑empts the conflicting state e‑commerce law under the Supremacy Clause and Commerce Clause.

Quick Tip