The U.S. Legal System

The United States is a federalist system, meaning there is government authority at both national and state levels. The national government has specific powers, and the 50 U.S. states retain substantial autonomy and authority. Both the federal government and state governments are divided into executive, legislative, and judicial branches. Written constitutions, both federal and state, form a system of separated powers, checks, and balances among the branches (see Figure M1.1).

Figure M1.1

The Legislative System

A figure shows the constitution system.

© Mary Anne Poatsy

Sources of Law

There are four sources of law: constitutional law, statutory law, administrative regulations, and common law. Constitutional law, the written text in the U.S. Constitution and the Bill of Rights, is the foundation of the laws of the United States. All other laws are subordinate to the laws in these two documents. Statutory laws are laws passed by the legislative branches of the government. The executive and legislative branches of the federal or state government also establish regulatory bodies. The Securities and Exchange Commission, the Federal Trade Commission (FTC), and the Food and Drug Administration (FDA) are examples. These regulatory bodies have the power to pass administrative laws—rules and regulations within their area of authority. The judicial branches of the government not only apply established constitutional and statutory laws when deciding cases but also create law when their decisions become precedents for future case decisions. This type of unwritten but applied law is referred to as common law, or case law.

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