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Simple English definitions for legal terms
Rules
Read a random definition: holder in due course
A quick definition of Rules:
Rules: These are like instructions made by a group of people who are in charge of making sure everyone follows the law. For example, a big group called Congress made a law about how companies should behave when they sell stocks. Another group called the Securities Exchange Commission made rules to help make sure companies follow that law.
A more thorough explanation:
The term "Rules" refers to regulations created by an administrative agency to carry out the purposes of laws passed by Congress or another legislative body. For example, the Securities Exchange Act of 1934 was passed by Congress, which created the Securities Exchange Commission. The SEC then created rules to enforce the provisions of the Act.
Another example of rules can be found in the Environmental Protection Agency, which creates rules to enforce laws related to protecting the environment.
These examples illustrate how rules are created by administrative agencies to carry out the purposes of laws passed by Congress or another legislative body.