# Sources and Hierarchy of the Legal System Business I · Business Law · https://tryals.app/learn/business-i/sources-and-hierarchy-of-the-legal-system ## The Pyramid of Norms A legal system is a **hierarchy**: rank decides collisions. Top to bottom: **Constitution** (supreme norm); **International treaties**; **Laws** (**organic laws** need absolute majority, **ordinary laws** simple); **Decree-laws** (urgent, ratified later) and **Legislative decrees** (delegated); **Regulations** (executive rules); **Custom** (fills gaps); **General principles** (good faith). | Rank | Norm | Maker | | --- | --- | --- | | 1 | Constitution | Constituent | | 2 | Treaties | Ratified | | 3 | Laws / Force of Law | Parliament / Govt | | 4 | Regulations | Executive | > **Key rules:** Higher rank beats lower. A norm changes only by equal or higher rank. > **Pitfall:** **Decree-laws** answer post-urgency; **legislative decrees** execute prior delegation. ## When Rules Collide Real legal work resolves conflicts via three criteria in strict order. Time never overrides hierarchy. | Criterion | Tag | Wins when |---- | Hierarchy | **lex superior** | Higher rank prevails | | Specialty | **lex specialis** | Same rank: specific beats general | | Time | **lex posterior** | Same rank/specificity: later prevails | > **Pitfall:** An older special law survives a newer general law. Repeal by general law is never presumed. **Business impact:** Ministerial orders exceeding tax laws are **void**. Consumer rules beat general contracts by specialty. ## Practice questions 9 of this lesson's 14 practice questions, with answers. The full set is in the app. ### 1. Order these norms from highest to lowest rank in the Spanish system. **Answer:** 1. The Constitution 2. An international treaty published in Spain 3. An ordinary law passed by Parliament 4. A royal decree issued by the government 5. Local custom, proved in court **Why:** Constitution → treaties → laws → regulations → custom: each level draws its validity from the one above and can be struck down for contradicting it. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/order-these-norms-from-highest-to-lowest-rank-in-the-spanish-system ### 2. Sort each conflict by the criterion that resolves it. **Answer:** - Hierarchy (lex superior): A regulation contradicts the statute it implements - Specialty (lex specialis): Commercial sale rules vs general civil sale rules, Consumer-contract regime vs general contract law - Time (lex posterior): Two successive ordinary laws on the same tax **Why:** Different rank → hierarchy. Same rank, different scope → specialty. Same rank and scope → the later norm governs. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/sort-each-conflict-by-the-criterion-that-resolves-it ### 3. Match each source of law to its defining feature. **Answer:** - Organic law → Requires an absolute parliamentary majority - Decree-law → Urgent government norm, later ratified by Parliament - Regulation → Executive rule that develops and details laws - General principles → Good faith and other values informing the whole system **Why:** Who makes the norm and under what conditions determines its rank, and its vulnerability to challenge. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/match-each-source-of-law-to-its-defining-feature ### 4. A municipal ordinance, a national statute and an EU regulation all address the same waste-disposal question and conflict. Which governs, and on what principle? A. The municipal ordinance, because it is closest to the situation being regulated B. Whichever was enacted most recently, since later rules displace earlier ones C. The EU regulation, which sits above national and local rules D. The national statute, since sovereignty rests with the national parliament **Answer:** C. The EU regulation, which sits above national and local rules **Why:** Rank decides first and date only breaks ties between equals, so *lex posterior* never lets a local rule beat a superior norm. A legal system is a pyramid rather than a heap precisely so that conflicts have a mechanical answer instead of a political one. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/a-municipal-ordinance-a-national-statute-and-an-eu-regulation-all ### 5. A 2015 _special_ law on franchise contracts conflicts with a 2023 _general_ law on contracts. Which governs a franchise dispute? A. The 2023 law, later always wins B. Neither; the Constitution applies directly C. The parties choose whichever they prefer D. The 2015 special law, since specialty survives **Answer:** D. The 2015 special law, since specialty survives **Why:** The classic trap: *lex posterior* only operates between equals. A tailored regime survives a newer general law unless expressly repealed, specialty outranks time. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/a-2015-special-law-on-franchise-contracts-conflicts-with-a-2023 ### 6. Complete the two working rules of the hierarchy. **Answer:** A norm of higher rank **defeats** one of lower rank, and a norm can only be modified by another of **equal** or higher rank. **Why:** Rank decides collisions and rank guards modification, the two rules that make the pyramid a system rather than a pile. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/complete-the-two-working-rules-of-the-hierarchy ### 7. An international treaty validly published in Spain prevails over a later ordinary Spanish law that contradicts it. **Answer:** True **Why:** Published treaties rank above ordinary laws; Parliament cannot legislate them away unilaterally, it must denounce the treaty through international channels. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/an-international-treaty-validly-published-in-spain-prevails-over-a ### 8. Order the reasoning a court follows when two norms collide. **Answer:** 1. Identify both norms and their ranks 2. If ranks differ, the higher norm wins, stop 3. If ranks match, ask which norm is more specific 4. If equally specific, ask which came later 5. Apply the surviving norm to the case **Why:** Hierarchy → specialty → time, applied as a strict cascade: each criterion only speaks when the previous one is silent. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/order-the-reasoning-a-court-follows-when-two-norms-collide ### 9. Lex superior, lex specialis and lex posterior can point to different rules in one dispute. Why does a legal system need all three rather than one? A. Because judges are free to select whichever principle they prefer B. Because they resolve different conflicts: rank, scope and time C. Because different countries adopted different principles historically D. Because the three always agree, so having three is a formality **Answer:** B. Because they resolve different conflicts: rank, scope and time **Why:** Each answers a different question about two conflicting norms. Applying lex posterior alone would let an ordinary statute silently override a constitution, which is why rank is checked first. Page: https://tryals.app/practice/business-i/sources-and-hierarchy-of-the-legal-system/lex-superior-lex-specialis-and-lex-posterior-can-point-to-different