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Tiêu đề Preferred Stock
Trường học Standard University
Chuyên ngành Law
Thể loại Bài viết
Năm xuất bản 2023
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PREMARITAL AGREEMENT A contract made in anticipation of marriage, specifying the rights and obligations of the parties.. A typical premarital agreement is used by one spouse or both spou

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Suppose a debtor owes three creditors

$5,000 each All three are equally entitled to payment, but the debtor has only $12,000 in assets Instead of paying each creditor $4,000, the debtor pays two creditors in full and pays the third creditor the remaining $2,000

preference Some state statutes prescribe that certain transfers are void—of no legal force or binding effect—because of their preferential character If a state anti-preference provision protects any actual creditor of the debtor, the trustee inBANKRUPTCYcan take advantage of it

Bankruptcy law does condemn certain preferences The bankruptcy trustee can void any transfer of property of the debtor if the trustee can establish the following:

1 The transfer was“to or for the benefit of a creditor.”

2 The transfer was made for, or on account

of, an “antecedent debt”—that is, a debt owed prior to the time of the transfer

3 The debtor was insolvent at the time of the transfer

4 The transfer was made within 90 days before the date of the filing of the bankruptcy petition or was made between

90 days and one year before the date of the filing of the petition to an insider who had reasonable cause to believe that the debtor was insolvent at the time of the transfer

5 The transfer has the effect of increasing the amount that the transferee would receive in

a liquidation proceeding under chapter 7

of the bankruptcy law (11 U.S.C.A § 701

et seq.).11 U.S.C.A § 547

Under this language, the court must focus

on the relative distribution between classes as well as the amount that will be received by the members of the class of which the creditor is a member The language also requires the court

to focus on the allowability of the claim for which the preference was made If the claim would have been entirely disallowed, for exam-ple, then the transfer will be voided, because the creditor would have received nothing under the distributive provisions of the bankruptcy code

Other statutory provisions, however, create exceptions; if a transfer comes within an exception, the bankruptcy trustee cannot inval-idate the transfer even though the aforemen-tioned five elements exist For example, to the

extent that such transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the transferee, and such transfer was made in the ordinary course of business or financial affairs of the debtor and the transferee,

or made according to ordinary business terms, the transfer may not be voided

PREFERRED STOCK Stock shares that have preferential rights to dividends or to amounts distributable on liquida-tion, or to both, ahead of common shareholders Preferred stock is given preference over

receive dividends at a fixed annual rate The earnings of a corporation are applied to this payment before common stockholders receive dividends If corporate earnings are insufficient for the fixed annual dividend, the preferred stock will absorb the total amount of earnings, and the common stockholders will be precluded from receiving a dividend When corporate income exceeds the amount that is needed to pay preferred stockholders, the remainder

is generally paid to common stockholders

In special situations, the remainder may be distributedPRO RATAto both classes of stock, in which case the preferred stock is said to

“participate” with the common stock

Preferred stock can be cumulative or noncumulative If it is cumulative, and if the fixed dividend remains unpaid, it becomes a debit upon the surplus earnings of succeeding years Accumulated dividends must be paid in full before common stockholders can receive dividends When preferred stock is noncumula-tive, its preference is extinguished by the failure

of the corporation to have sufficient earnings to pay the fixed dividend in a given year

Preferred stock made headlines during the economic downturn of 2008 Amid the global economic recession, the U.S Treasury partially nationalized several financial institutions for the purpose of stabilizing them and quieting the growing panic among bank customers The Treasury did this by giving those institutions more than $250 billion in exchange for shares

of preferred stock The officers and directors

of those companies also agreed to limits on executive compensation By 2009 many of those financial institutions had paid back the loans and reclaimed ownership of the stock

68 PREFERRED STOCK

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A forejudgment; bias; partiality; preconceived

opinion A leaning toward one side of a cause for

some reason other than a conviction of its justice

Juror Prejudice

A juror can be disqualified from a case for being

prejudiced, if his or her views on a subject, or

attitude toward a party, will unduly influence

the final decision Jurors can also be disqualified

if they have had communication about the case

with any parties, witnesses, lawyers, or court

personnel in the case Assessing this type of

juror bias requires consideration of a number of

factors, including the nature of the

communi-cation, the length of the contact, the possibility

of removing juror taint by a limiting instruction

by the judge to the rest of the jurors, and the

impact of the communication on both the juror

involved and the rest of the jury

Judicial Prejudice

Judges are also required to be free from prejudice

and to avoid the appearance of impropriety

when presiding over any legal proceeding Judges

must remove themselves from any case in which

they have a bias for or against a party, attorney,

or witness in the case They must also remove

themselves from any case in which they have a

personal stake in the outcome, as when a judge

owns stock in a company that is being sued

Judges who fail toRECUSEthemselves from a case

in which they have a bias for or against a party

may face disciplinary proceedings, and their

rulings may be challenged on appeal

Dismissals With and Without Prejudice

When a lawsuit is dismissed without prejudice,

it signifies that none of the rights or privileges of

the individual involved are considered to be lost

or waived The same holds true when an

admission is made or when a motion is denied

with the designation without prejudice

A dismissal without prejudice permits a new

lawsuit to be brought on the same grounds

because no decision has been reached about the

controversy on its merits The whole subject in

LITIGATIONis as much open to a subsequent suit

as if no suit had ever been brought The purpose

and effect of the words without prejudice in a

judgment, order, or decree dismissing a suit are

to prohibit the DEFENDANT from using the

defense of RES JUDICATA in any later action by

the same PLAINTIFF on the subject matter A

dismissal with prejudice, however, is a bar to relitigation of the subject matter

A decision resulting in prejudicial error substantially affects an appellant’s legal rights and is often the ground for a reversal of the judgment and for the granting of a new trial

PRELAW EDUCATION

A preparatory curriculum comprising introductory law courses and interdisciplinary subjects, offered

to undergraduate students to instruct them in and acquaint them with the subject MATTER OF LAW, thereby assisting them in deciding whether to seek admission to law school and facilitating the process of law study in law school

COLLEGES AND UNIVERSITIESoffer several types of prelaw education to undergraduate students who are interested in attending law school Some institutions offer a prelaw major course of study leading to a degree, a few offer a six-year course of study that combines undergraduate and law school education, and almost all offer an informal prelaw curriculum that emphasizes skills and knowledge essential to the study andPRACTICE OF LAW The AMERICAN BAR ASSOCIATION does not rec-ommend any particular major for law school

Although political science is a popular prelaw major, there is no specific major preferred by law schools Law students can major in anything from engineering to history to the fine arts Some law schools state in their catalogs that they neither recommend prelaw courses nor grant an applicant any additional consideration because

he or she pursued a prelaw education

A particular major is not important to a law school admissions committee, but good grades are critical for acceptance In addition, admis-sions committees seek a diverse first-year class and may look at volunteer and extracurricular activities as well as a college transcript and the results of theLAW SCHOOL ADMISSION TEST(LSAT)

Law schools have no prerequisite courses for admission However, colleges offer courses that help hone the skills that will be important to a law student Such “lawyering” skills include analytical thinking and problem solving, critical reading, writing, and oral communication

Courses in English, composition, and speech will enhance these means of communication

The legal profession finds its basis in the formation and operation of government institu-tions, and courses in political science and history

PRELAW EDUCATION 69

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help develop a better understanding of these institutions Creative thinking is also an impor-tant skill in the legal profession Courses in math and, specifically, logic are recommended

Because law is a social science that focuses on human behavior, courses in psychology, sociol-ogy, religion, and philosophy may also be useful

FURTHER READINGS Basch, Margaret, 1998 “Teaching Law, Making Lawyers.”

Chicago Daily Law Bulletin 144 December).

Maguire, Daniel L 2002 “Future Lawyers Faced with Ethical Dilemmas ” Georgia Bar Journal 8 (October).

CROSS REFERENCES Case Method; Legal Education.

PRELIMINARY HEARING

A proceeding before a judicial officer in which the officer must decide whether a crime was commit-ted, whether the crime occurred within the territorial jurisdiction of the court, and whether there is probable cause to believe that the defendant committed the crime

After the police have arrested a crime suspect, the suspect is entitled to a preliminary hearing Designed as a safeguard against unrea-sonable arrest and detention, the hearing is conducted to determine whether there is sufficient evidence to hold the DEFENDANT for trial State and federal rules of CRIMINAL PROCE-DURE provide for when a hearing must be held and what issues must be raised, which depend

in large part on whether the crime is a misdemeanor, gross misdemeanor, or felony

The most common preliminary hearing is the initial appearance, which is also called the

“first appearance.” Various procedural steps may be taken during the initial appearance In minor misdemeanor cases, the initial appear-ance may be the only one, if the defendant pleads guilty When the charge is more serious, the accused at the initial appearance may be informed of the charges, advised of theRIGHT TO COUNSELand the right to remain silent, warned that any statement made may be used against the suspect in court, and advised of how to seek release on bail In Coleman v Alabama, 399 U.S

1, 90 S Ct 1999, 26 L Ed 2d 387 (1970), the U.S.SUPREME COURTheld that the right to counsel under the SIXTH AMENDMENT extends to a preliminary hearing Thus, the amendment grants to the indigent defendant a right to the appointment of counsel for that hearing

In some jurisdictions, including the federal courts, a plea may be entered, and bail may be set

at this first appearance In other jurisdictions, the suspect will not be allowed to make a plea if the offense is a felony or gross misdemeanor, and a preliminary hearing, also called a “preliminary examination,” will be promptly scheduled The Supreme Court, in Gerstein v Pugh, 420 U.S 103, 95 S Ct 854, 43 L Ed 2d 54 (1975), mandated that persons arrested without a warrant and held by the police must be given

a preliminary hearing to determine whether there is PROBABLE CAUSE Probable cause means that a reasonable ground exists for belief in the facts, and the hearing examines whether a prudent person would believe that the suspect committed the offense in light of those facts In County of Riverside v McLaughlin, 500 U.S 44,

111 S Ct 1661, 114 L Ed 2d 49 (1991), the Court made it a constitutional requirement that

a prompt judicial determination of probable cause follow a warrantless search It ruled that a determination must be made without unrea-sonable delay, and in no event later than

48 hours after arrest Therefore, all state and federal warrantless arrests must comply with the holdings of Gerstein and County of Riverside

In gross misdemeanor and felony cases, there is typically a second appearance, which is known as the“preliminary hearing” or “prelim-inary examination.” Rule 5(c) of the Federal Rules of Criminal Procedure and state rules of criminal procedure follow essentially the same process for this type of hearing Unlike the informality of a first appearance, the prelimi-nary hearing is an adversarial proceeding, which includes the PROSECUTOR and the defendant’s attorney This hearing tests the existence of probable cause early in the proceedings by allowing the introduction of evidence, the examination and CROSS-EXAMINATION of wit-nesses, and limited forms of discovery (the disclosure of information) Although the fea-tures of a preliminary hearing or examination are similar to those of a trial, the hearing is confined to determining whether the defendant should stand trial or be released A defendant may challenge the constitutionality of police actions, including searches and seizures, as well

as the use of confessions Under the federal rules, this hearing must be conducted within ten days of the initial appearance if the defendant is

in police custody, and within 20 days if the defendant is not in custody

70 PRELIMINARY HEARING

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In felony cases in states where the GRAND

proceeding, defendants often waive the

pre-liminary hearing, because the grand jury will

make the probable cause determination

How-ever, some defendants request a preliminary

hearing because it allows them to gain

information about the basis of the

prosecu-tion’s case or to move for dismissal of the case

For example,O.J.SIMPSONrequested a

prelimi-nary hearing in 1994 after being charged with

two counts of first-degree MURDER Although

Simpson’s attorney, ROBERT SHAPIRO, failed to

secure a dismissal, he was able to elicit

information from police and forensic

wit-nesses that proved valuable at Simpson’s 1995

murder trial, which ended in Simpson’s

acquittal

FURTHER READINGS Battelle, Anthony E 1999 “Management of the Prelimi-nary Hearing under Construction Rule L-4 for Large, Complex Cases.” Dispute Resolution Journal 54 (February 1): 23.

Hammock, Edward R 1997 How to Handle Your First Criminal Trial New York: Practising Law Institute.

Klotter, John C 2002 Legal Guide for Police: Constitutional Issues 6th ed Cincinnati, Ohio: Anderson Pub.

Saltzburg, Stephen A., Daniel J Capra, and Angela J Davis.

2009 Basic Criminal Procedure 5th ed St Paul, Minn.:

West.

CROSS REFERENCE Appearance.

PRELIMINARY INJUNCTION

A temporary order made by a court at the request

of one party that prevents the other party from

ELECTRONIC PRIVACY INFORMATION CENTER,

Plaintiff,

Civil Action No

v.

DEPARTMENT OF JUSTICE,

Defendant.

PLAINTIFF’S MOTION FOR A PRELIMINARY INJUNCTION

Pursuant to Fed R Civ P 65, plaintiff Electronic Privacy Information Center respectfully moves for entry of a preliminary injunction to

enjoin defendant Department of Justice’s unlawful attempts to impede plaintiff’s efforts to obtain agency records concerning the

Administration’s policy of conducting surveillance of domestic communications without the prior authorization of the Foreign Intelligence

Surveillance Court Plaintiff seeks an order requiring defendant to expedite the processing of plaintiff’s Freedom of Information Act request

for records concerning the warrantless surveillance program and to complete the processing of plaintiff’s request within 20 days.

The grounds for this motion are set forth in the accompanying memorandum of points and authorities Plaintiff asks that the Court,

pursuant to Local Rule 65.1(d), schedule a hearing on this application for a preliminary injunction at the Court’s earliest convenience.

D.C Bar No 360418

D.C Bar No 484136

D.C Bar No 422825

CENTER 1718 Connecticut Avenue, N.W Suite

200 Washington, DC 20009

Counsel for Plaintiff

Preliminary Injunction

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

A sample motion for preliminary injunction.

ILLUSTRATION BY GGS CREATIVE RESOURCES REPRODUCED BY PERMISSION OF GALE,

A PART OF CENGAGE LEARNING.

PRELIMINARY INJUNCTION 71

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pursuing a particular course of conduct until the conclusion of a trial on the merits

A preliminary injunction is regarded as extraordinary relief The party against whom it

is sought must receive notice and an opportunity

to appear at a hearing to argue that theINJUNCTION

should not be granted A preliminary injunction should be granted only when the requesting party is highly likely to be successful in a trial on the merits and there is a substantial likelihood

of irreparable harm unless the injunction is granted If a party has shown only a limited probability of success, but has raised substantial and difficult questions worthy of additional inquiry, a court will grant a preliminary injunc-tion only if the harm to him or her outweighs the injury to others if the injunction is denied

PREMARITAL AGREEMENT

A contract made in anticipation of marriage, specifying the rights and obligations of the parties

Such an agreement typically includes terms for property distribution in the event the marriage terminates

A premarital agreement, also known as a prenuptial or antenuptial agreement, is a contract between two persons who intend to marry All states recognize premarital agree-ments through statutes or court decisions A premarital agreement is an unusual contract It

is an agreement between marrying persons that,

at least in part, contemplates the breakup of the marriage The subject matter of the agreement

is unique: no other contract can address such matters as CHILD CUSTODY, child education, or spousal maintenance The relationship of the parties is special: the contract is made not by two parties operating at arm’s length, but by two persons who are preparing to marry The contract is enforceable without consideration

or the exchange of value, whereas most contracts require consideration Finally, the contract might not be enforced until years after

it was first formed Although they are excep-tional, premarital agreements have become increasingly popular in the United States

The practice of making premarital agree-ments is ancient Marrying Jews have made marital contracts called ketubahs for more than two thousand years The modern secular premarital agreements that exist in the United States can be traced back to sixteenth-century England Many of the first premarital

agreements were used by women as a way of protecting their own property Until the nine-teenth century, women were considered the property of their husbands, and what was the premarital property of a wife became the property of her husband A premarital agree-ment became the only way for a woman contemplating marriage to retain control and possession of her own property

Initially, the rights of women in premarital agreements were limited Women had few contractual rights, and courts often struck down premarital agreements that favored women This situation changed in the mid- to late nineteenth century, when states began to enact Married Women’s Property Acts to protect women’s property rights After that time, the number of premarital agreements created in the United States steadily increased

Premarital agreements can cover a variety of topics The most common include property and financial support rights during and after marriage, personal rights and obligations of the couple during marriage, and the education and rearing of children to be born to the couple

A typical premarital agreement is used by one spouse or both spouses to keep PERSONAL

marriage or to protect certain property before one spouse embarks on a risky investment or new career

In the absence of a premarital agreement, statutes and the courts may control the property, financial, and child-rearing issues that face a divorcing couple Under the property-distribution laws in many states, a spouse who brings a large amount of cash, property, and other financial holdings to a marriage and makes them part of the marital estate (combin-ing them with marital assets for the benefit of both parties) may lose much of that property to the other spouse uponDIVORCE A spouse who brings substantially more money or property to

a marriage may want a premarital agreement to protect some or all of those assets in the event the marriage fails

Marrying couples have included a wide assortment of provisions in their premarital agreements Some agreements identify who will wash dishes, who will dispose of trash, where the couple will shop, and what will occur in the event one spouse is unable to perform sexually Couples are free to contract on any subject, as

72 PREMARITAL AGREEMENT

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long as the agreement does not violate PUBLIC

POLICY or a criminal statute

Some scholars and social critics argue that

the premarital agreement itself is contrary to

public policy They maintain that government

should promote marriage and that premarital

agreements promote divorce because they

anticipate divorce Supporters counter that

premarital agreements actually promote mar-riage because they give married couples the ability to fashion their own relationship

The supporters of premarital agreements have won the argument Courts in all states recognize that marriage is, in part, a business relationship and that couples should be free

to remain autonomous within a marriage Many

This premarital agreement is made on this day of , 20 _, between and .

Whereas the parties intend to marry under the laws of the state of _, and wish to set forth in advance of their marriage

the rights and privileges that each will have in the property of the other in the event of death, divorce, or other circumstance which results

in the termination of their marriage;

Whereas both parties acknowledge that they have read and understand this agreement, have not been subjected to any form of coercion,

duress, or pressure, and believe this agreement to be fair and to represent their intentions with regard to their assets and to any estate that

shall result from their marriage;

The parties hereby agree as follows:

1 Each party shall separately retain all of his or her rights in his or her separate property, free and clear of any claim of the other party,

without regard to any time or effort invested during the course of the marriage in the maintenance, management, or improvement of

that separate property.

2 At all times, the parties shall enjoy the full right and authority with regard to their separate property as each would have had if not

married, including but not limited to the right and authority to use, sell, enjoy, manage, gift, and convey the separate property.

3 The parties agree that each shall be responsible for any tax obligations associated with their separate property.

4 The parties agree that neither shall contest the validity or provisions of any will, account, trust agreement, or other instrument

executed by the other that disposes of his or her separate property or that creates any interest therein in another To the extent that

such an action would create any right or interest in the separate property of the other, both parties hereby waive any right in the

property of the other The wife hereby waives any dower interest in the husband’s separate property, and the husband hereby waives

any curtesy interest in the wife’s separate property.

5 In the event of separation or divorce, the parties shall have no right against each other for division of property existing of this date.

6 Both parties acknowledge that they possess sufficient education and job skills to adequately provide for their own support, and hereby

waive any claim to spousal support (alimony) except in the event that:

i One of the parties suffers medical disability and the other remains both employed and physically able, or the other spouse retires

or becomes disabled from working;

ii The parties mutually agree that one of the parties shall reduce his or her work hours, or shall refrain from working, in order to

care for any children born during the course of the marriage.

7 In the event of separation or divorce, marital property acquired after marriage shall remain subject to division, either by agreement or

by judicial determination.

8 This agreement shall be binding and inure to the benefit of the parties, their successors, assigns, and legal representatives.

9 It is the desire of the parties that all provisions of this agreement be considered as evidence of their intentions by any court, arbitrator,

mediator, or other authority which seeks to divide their estate, and that their intentions be respected whatever the legal status of this

agreement or any of its terms.

Signed this day of _, 20 _

Fiancé

Fiancée

Signed in the presence of:

Witness

Witness

Premarital Agreement

A sample premarital agreement.

ILLUSTRATION BY GGS CREATIVE RESOURCES REPRODUCED BY PERMISSION OF GALE,

A PART OF CENGAGE LEARNING.

PREMARITAL AGREEMENT 73

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states have adopted the Uniform Premarital Agreement Act (UPAA), a set of laws on premarital agreements approved by the Commissioners on Uniform State Laws The UPAA provides a list of property-related items on which couples may agree It also includes a provision allowing couples

to agree on any matter, including their personal rights and obligations

Although all states recognize premarital agreements, courts tend to closely examine premarital agreements that one of the parties challenges In many states, the spouse seeking enforcement of a premarital agreement has the burden of proving its validity Few courts hesitate

to strike terms that are contrary to public policy

or unconscionably unfair to one of the parties A court may strike all or part of the agreement if one of the parties agreed to the terms as a result

ofFRAUDor duress Courts closely examine asset lists and income schedules to ensure that the parties are being forthright with each other

Couples drafting premarital agreements must be careful to explain in detail any provisions that a court might consider unfair

Courts may strike down all or part of a premarital agreement To be upheld, the agree-ment must have been procedurally and substan-tively fair at the time of execution, and it must be substantively fair at enforcement Procedural fairness refers to the manner in which the contract was made Both parties must give full and complete financial disclosure, and each party should have an opportunity to consult with his

or her own lawyer Although many jurisdictions allow one attorney to represent both parties to a premarital agreement, it is generally better for the parties to have separate counsel Doing so prevents a later argument that the attorney for both parties was biased in favor of one side It also gives a party who may be unsure about the agreement a chance to discuss it privately with a competent professional Courts tend to be more comfortable with premarital agreements made by parties with separate counsel

Substantive fairness means that the actual provisions in the agreement are fair to each party Because a premarital agreement may be enforced many years after it was created, what seemed fair at the time of execution of the agreement may have become unfair by the time

of its enforcement Such a situation might arise where a wealthy person and a person of limited means married with the agreement that, in the

event of a divorce, each would leave with what

he or she brought to the marriage If the marriage was brief, this arrangement may be upheld However, if the marriage lasted many years, and the spouse formerly of limited means invested substantial time and effort into ad-vancing the couple’s financial position, the agreement could later appear unfair

Courts tend to closely scrutinize premarital agreements’ provisions relating to children Children have a special status under the law that gives them greater protection than adults receive, and many states prohibit couples from making premarital agreements that adversely affect a child’s right to financial support A court will strike a provision that relates to any other important matter, such as a child’s

CUSTODY or education, if it is not in the best interests of the child

In some states, a premarital agreement will terminate once the couple has children unless the parties agree to renew the contract In some other states, a premarital agreement expires once

a couple has been married for a certain period of time Even where a state’s statute does not contain an explicitSUNSET PROVISION, the parties can agree that the contract will expire after a certain period of time or after some event

FURTHER READINGS Blomberg, Jill 2001 “Unconscionability: The Heart of the Uniform Premarital Agreement Act ” American Journal

of Family Law 15 (summer).

Graham, Laura P 1993 “The Uniform Premarital Agree-ment Act and Modern Social Policy ” Wake Forest Law Review 28 (winter).

Krause, Harry D., and David D Meyer 2009 Family Law 4th ed St Paul, Minn.: Thomson/West.

Lindey, Alexander, and Louis I Parley 1999 Lindey and Parley on Separation Agreements and Antenuptial Contracts 2d ed New York: M Bender.

Schlissel, Stephen W., et al 1997 Separation Agreements and Marital Contracts 2d ed Charlottesville, Va.: Michie Younger, Judith T 2001 “Antenuptial Agreements.” William Mitchell Law Review 28 (fall).

CROSS REFERENCES Family Law; Husband and Wife; Postmarital Agreement; Self-Help.

PREMEDITATE

To think of an act beforehand; to contrive and design; to plot or lay plans for the execution of a purpose

Premeditation refers to the deliberate deci-sion to plan to commit a crime (often, but not

74 PREMEDITATE

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exclusively, in the context of a HOMICIDE) A

premeditatedMURDERis plotted beforehand, but

no specific length of time is needed for

premeditation It is an especially pertinent

consideration when the DEFENDANT argues that

a homicide was an accident or occurred inSELF

-DEFENSE, as it evidences the intent to kill It can

be shown, for example, by acts consistent with

the plot, such as the purchase of a weapon or

the means to make one In the case of felony

murder, however, a defendant can be found

criminally liable for the death of a person killed

during the commission of a felony, even though

the intent and plan to kill may not have been

present

PREMIUM

A reward for an act done

The sum paid or agreed to be paid by an

insured to the underwriter (insurer) as the

consideration for the insurance; a bounty or

bonus; a consideration given to invite a loan or a

bargain, as the consideration paid to the assignor

by the assignee of a lease, or to the transferer by

the transferee of shares of stock, etc

In granting a lease, part of the rent is

sometimes capitalized and paid in a lump sum

at the time the lease is granted, which is refered

to as a premium

PREPONDERANCE OF EVIDENCE

A standard of proof that must be met by a plaintiff

if he or she is to win a civil action

In a civil case, the plaintiff has the burden of

proving the facts and claims asserted in the

complaint If the respondent, or defendant, files

a counterclaim, the respondent will have the

burden of proving that claim When a party has

the BURDEN OF PROOF, the party must present,

through testimony and exhibits, enough evidence

to support the claim The amount of evidence

required varies from claim to claim For most

civil claims, there are two different evidentiary

standards: preponderance of the evidence, and

clear and convincing evidence A third standard,

proof BEYOND A REASONABLE DOUBT, is used in

criminal cases and very few civil cases

The quantum of evidence that constitutes a

preponderance cannot be reduced to a simple

formula A preponderance of evidence has been

described as just enough evidence to make it

more likely than not that the fact the claimant

seeks to prove is true It is difficult to translate this definition and apply it to evidence in a case, but the definition serves as a helpful guide to judges and juries in determining whether a claimant has carried his or her burden of proof

The majority of civil claims are subjected

to a preponderance of evidence standard If a court or legislature seeks to make a civil claim more difficult to prove, it may raise the evidentiary standard to one of clear and convincing evidence

Under some circumstances use of the low preponderance of evidence standard may be a violation of constitutional rights For example,

if a state seeks to deprive natural parents of custody of their children, requiring only proof

by a preponderance of evidence is a violation of the parents’ DUE PROCESS rights (Santosky v

Kramer, 455 U.S 745, 102 S Ct 1388, 71 L Ed

2d 599 [1982]) Freedom in matters of family life is a fundamental liberty interest, and the government cannot take it away with only a modest evidentiary standard However, a court may use a preponderance of evidence standard when a mother seeks to establish that a certain man is the father of her child (Rivera v

Minnich, 483 U.S 574, 107 S Ct 3001, 97 L

Ed 2d 473 [1987]) Most states use the preponderance of evidence standard in these cases because they have an interest in ensuring that fathers support their children

FURTHER READINGS Orloff, Neil, and Jery Stedinger 1983 “A Framework for Evaluating the Preponderance-of-the-Evidence Standard ” Univ of Pennsylvania Law Review 131 (April).

Rothstein, Paul F., and Myrna S Raeder 2007 Evidence in a Nutshell 5th ed St Paul, MN: West.

CROSS REFERENCE Clear and Convincing Proof.

PREROGATIVE

An exclusive privilege The special power or peculiar right possessed by an official by virtue of his or her office In ENGLISH LAW, a discretionary power that exceeds and is unaffected by any other power; the special preeminence that the monarch has over and above all others, as a consequence of his or her sovereignty

The term prerogative is occasionally used

by writers of law to refer to the object over which royal powers are exercised, such as fiscal

PREROGATIVE 75

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prerogatives, which are the revenues of the king

or queen

PREROGATIVE WRIT Formerly a court order issued under certain circumstances on the authority of the extraordi-nary powers of the monarch

The prerogative writs were procedendo,

MANDAMUS, prohibition, QUO WARRANTO, HABEAS CORPUS, and certiorari Today these forms of relief are also called extraordinary remedies and are issued on the strength of the inherent powers of the court to enforce its orders and to

do justice The paper granting a petition for an extraordinary remedy is still called a writ For example, a writ of certiorari grants the petitioner

an opportunity to appeal the decision of a lower court in a case where he or she does not have a right to appeal

PRESCRIPTION

A method of acquiring a nonpossessory interest in land through the long, continuous use of the land

Prescription refers to a type of easement—

the right to use the property of another It requires the use of the land to have been open, continuous, exclusive, and under claim of right for the appropriate statutory period It differs fromADVERSE POSSESSION in that adverse posses-sion entails the acquisition of title to the property, whereas prescription relates to a right

to use the property of another that is consistent with the rights of the owner

CROSS REFERENCE Statute of Limitations.

PRESENT

To submit for consideration or action Immediate, not in the future

Present ability refers to a person’s immediate capacity to do an act A present conveyance is made with the intention that it take effect

at once

InCOMMERCIAL PAPERlaw, to present a check means to submit it to the drawee for acceptance

or payment.CLEAR AND PRESENT DANGERapplies to

FREEDOM OF SPEECHcases, wherein speech used to provoke a sense of clear and present danger is not protected by theFIRST AMENDMENT

PRESENTENCE INVESTIGATION Research that is conducted by court services or a

PROBATION officer relating to the prior criminal record, education, employment, and other infor-mation about a person convicted of a crime, for the purpose of assisting the court in passing sentence

A presentence investigation (PSI), also sometimes referred to as a presentence investi-gation report (PSR), is prepared for persons convicted of serious crimes In misdemeanor and gross misdemeanor offenses, the court may order a PSI, whereas in felony cases a PSI is mandatory State and federal statutes (18 U.S.C.A § 3553(b)[1984]) set PSI requirements and are supplemented by federal and state rules

ofCRIMINAL PROCEDURE The presentence investigation generally consists of an interview with the DEFENDANT, a review of his or her criminal record, and a review of the specific facts of the crime The

PROBATIONor court services department prepares

a report that contains all of this information and makes a recommendation to the court about the type and severity of the sentence The court always makes the final decision about the sentence, but it may be limited by federal and state sentencing guidelines, which set standard sentences based on the seriousness of the present crime and the previous criminal history

of the convicted person A sentencing guidelines worksheet is often included in the PSI to assist the court in determining whether to depart from the guidelines and enhance or reduce the severity of the standard sentence

If the court desires more information than is otherwise available to it as a basis for determin-ing the mental condition of the defendant, it may order the defendant to undergo a psychi-atric or psychological examination

Since the 1980s many states have allowed the victims of a crime to participate in the presentencing stage Some states have victim loss or victim impact forms that give crime victims an opportunity to make people in the criminal justice system aware of the impact a crime has had on their lives Victims are also encouraged to contact the probation office and provide other relevant information for the PSI

A PSI often contains a mix of public and confidential information Information about juveniles and crime victims, as well as psycho-logical reports, are confidential and must be kept out of the public record

76 PREROGATIVE WRIT

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Although the PSI report is important in

determining the sentence, courts may be

required to go beyond the PSI, particularly

when the case involves the death penalty or a

potentially long prison sentence The SUPREME

COURT, in the 2003 case of Wiggins vs Smith, 539

U.S 510, 123 S.Ct 2527, 156 L.Ed.2d 471, ruled

that the decisionOF COUNSELnot to expand their

investigation of a man later sentenced to death

beyond the PSI fell short of prevailing

profes-sional standards

FURTHER READING

Green, Celillanne 1983 “Presentence Investigation,

Sen-tencing and Multiple Sentences ” Howard Law Journal

27 (summer).

CROSS REFERENCE

Sentencing.

PRESENTMENT

To present before a court a formal statment about

a legal matter In relation to COMMERCIAL PAPER,

presentment is a demand for the payment or

acceptance of a negotiable instrument, such as a

check The holder of a negotiable instrument

generally makes a presentment to the maker,

acceptor, drawer, or drawee

RegardingGRAND JURYpresentment, the term

is defined by statute as a written final

recom-mendation by an investigating grand jury that

specific persons be charged with specific crimes

Should the investigating grand jury determine

that upon the basis of evidence presented to it a

presentment should be returned against an

individual, the grand jury will direct the

attorney for the government to prepare a

presentment, which will be submitted to the

investigating grand jury for a vote Should a

majority of the full grand jury vote approval for

the presentment, it must then be submitted to

the supervising judge, who will examine the

presentment, and if it is within the authority of

the investigating grand jury and is otherwise in

accordance with the applicable provisions, will

issue an order accepting the presentment

Otherwise, the supervising judge must refuse

to accept the presentment and will order that

the investigating grand jury take further

appro-priate action

The supervising judge to whom a

present-ment is submitted may, on his or her own

motion or at the request of the commonwealth,

direct that the presentment be kept secret until

theDEFENDANTis in custody or has been released pending trial In directing that the presentment

be kept secret, the supervising judge will enter

an order requiring that the presentment be sealed and that no person may disclose a return

of the presentment except when necessary for issuance and execution of process

PRESENTS The present instrument The phrase these pre-sents is used in any legal document to designate the instrument in which the phrase itself occurs

PRESIDENT OF THE UNITED STATES The head of the executive branch, one of the three branches of the federal government

The U.S Constitution sets relatively strict requirements about who may serve as president and for how long Under Article II, only a natural-born citizen of the United States is eligible to serve as president; a person born outside the United States, even if he later becomes a citizen, may not serve In addition, a person must be at least 35 years old to become president and must have resided in the United States for at least 14 years Under the TWENTY

Constitution in 1951, no person may serve as president for more than two four-year terms

The amendment further provides that a person who succeeds to the office for more than two years of an unexpired term (for instance, because

a sitting president dies or resigns) may serve for only one additional four-year term

Article II also sets limits on the president’s authority The article provides that the president

is the commander in chief of theARMED SERVICES

As commander in chief, the president has the power to preserve the peace by governing a captured territory until Congress establishes civil authority over it; the president also may declare

MARTIAL LAW, which provides for the imposition

of military authority over civilians in the event of

an invasion, insurrection, disaster, or similar occurrence In addition, the president can end a war through a treaty or a presidential proclama-tion The power to declare war, however, is vested exclusively in Congress and not the president In a situation of an undeclared war, under the War Powers Resolution of 1973 (50 U.S.C.A §§ 1541 et seq.) the president must consult with Congress before introducing armed

PRESIDENT OF THE UNITED STATES 77

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