Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek C
M M M M M M M M M
hapter 1-25M
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law an
M M M M M M M M M M M
dMBusinessMEthics
1. CHAPTERMOVERVIEW
ChapterM1MlaysMtheMfoundationMforMtheMtextbook.MTheMtextbookMemphasizesMwaysMinMwhichMbusi
nessMlawMintersectsMwithMtheMsixMfunctionalMareasMofMbusiness.MThroughoutMtheMtextbook,MtheMau
thorsMwillMencourageMstudentsMtoM―connectMtoMtheMcore,‖MandMrememberMtheMwaysMinMwhichMla
wMintersectsMwithMotherMareasMofMstudy,MincludingMcorporateMmanagement,MproductionMandMtrans
portation,Mmarketing,MresearchMandMdevelopment,MaccountingMandMfinance,MandMhumanMresource
Mmanagement.
ThisMmanualMsupportsMtheM―connectingMtoMtheMcore‖MthemeMbyMgivingMideasMforMassignmentsMth
atMencourageMstudentsMtoMintegrateMtheirMbusinessMlawMknowledgeMwithMknowledgeMtheyMareMacq
uiringMfromMtheirMotherMbusinessMclasses.MTheMmanualMalsoMencouragesMprofessorsMtoMimproveM t
heirMteachingMskills.MFinally,MtheMmanualMsuggestsMteachingMideasMforMbothMbeginningMandMexper
iencedMteachers.
2. LEARNINGMOBJECTIVES
AfterMreadingMthisMchapter,MstudentsMwillMbeMableMtoManswerMtheMfollowingMquestions:
1. WhatMisMbusinessMlaw?
2. HowMdoesMbusinessMlawMrelateMtoMbusinessMeducation?
3. WhatMareMtheMpurposesMofMlaw?
4. WhatMareMalternativeMwaysMtoMclassifyMlaw?
5. WhatMareMtheMsourcesMofMlaw?
6. WhatMareMtheMvariousMschoolsMofMjurisprudence?
3. LECTUREMNOTESMWITHMDEFINITIONS
a. InMtheMnews…
TeachingMtip:M ForMeachMchapter,MconsiderMaskingMstudentsMtoMrelateMcurrentMnewsMitemsMtoMm
aterialMfromMtheMchapter.
InMadditionMtoMideasMstudentsMcomeMupMwithMonMtheirMown,MconsiderMweavingMinMnewsM
storiesMprovidedMbyMtheMMcGraw-Hill.MStoriesMareMavailableMviaMaMMcGraw-
HillMDVD,MandMonMtheMpublisher‘sMwebMsite.
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©M2021MMcGraw-
HillMEducation.MAllMrightsMreserved.MNoMreproductionMorMdistributionMwithoutMtheMpriorMwrittenMconsentMofMMcGraw-
MHillMEducation.
,ForMChapterMOne,MMcGraw-HillMoffersMtheMfollowingMstories:
―SmokingMBan:M TobaccoMTyrants:MGoneMTooMFar?MManyMStatesMAreMPuttingMStrongerMRestrict
ionsMonMWhereMYouMCanMSmoke‖
HaveMstatesMgoneMtooMfarMinMbanningMsmoking?
WhoseMinterestsMareMstateMlegislaturesMlookingMoutMforMinMbanningMsmoking?
―CollegeMOfficerMDealingsMWithMLendersMScrutinized.‖
ShouldMregulatorsMtakeMaMmoreMcarefulMlookMatMcollegeMofficers?
WhyMcreatedMchangesMinMtheMwaysMcollegeMofficersMinteractMwithMlenders?
b. WhatMisMbusinessMlaw?
BusinessMlawMconsistsMofMtheMenforceableMrulesMofMconductMthatMgovernMtheMactionsMofMbuye
rsMandMsellersMinMmarketMexchanges.
c. HowMdoesMbusinessMlawMrelateMtoMbusinessMeducation?
BusinessMlawMappliesMtoMtheMsixMfunctionalMareasMofMbusiness:
Management
ProductionMandMtransportation
Marketing
ResearchMandMdevelopment
AccountingMandMfinance
HumanMresourceMmanagement
d. WhatMareMtheMpurposesMofMlaw?
ProvidingMorder
ServingMasManMalternativeMtoMfighting
FacilitatingMaMsenseMthatMchangeMisMpossible
EncouragingMsocialMjustice
GuaranteeingMpersonalMfreedoms
ServingMasMaMmoralMguide
e. WhatMareMalternativeMwaysMtoMclassifyMlaw?
OneMwayMtoMclassifyMlaw:
PrivateMlawMinvolvesMdisputesMbetweenMprivateMindividualsMorMgroups.
PublicMlawMinvolvesMdisputesMbetweenMprivateMindividualsMorMgroupsMandMtheirMgovernment.
AMsecondMwayMtoMclassifyMlaw:
CivilMlawMisMtheMbodyMofMlawsMthatMgovernMtheMrightsMandMresponsibilitiesMeitherMbetweenMpers
onsMorMbetweenMpersonsMandMtheirMgovernment.
CriminalMlawMisMtheMbodyMofMlawsMthatMinvolveMtheMrightsMandMresponsibilitiesManMindividualMh
asMwithMrespectMtoMtheMpublicMasMaMwhole.
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©M2021MMcGraw-
HillMEducation.MAllMrightsMreserved.MNoMreproductionMorMdistributionMwithoutMtheMpriorMwrittenMconsentMofMMcGraw-
MHillMEducation.
,TeachingMtip:MAskMstudentsMtoMgiveManMexampleMofMaMfactMsituationMthatMledMtoMbothMcriminalM
andMcivilMlawsuits,Me.g.,MtheMO.J.MSimpsonMtrials.
f. WhatMareMtheMsourcesMofMlaw?
SourcesMofMbusinessMlawMare:
1. Constitutions
ConstitutionalMlawMrefersMtoMtheMgeneralMlimitsMandMpowersMofMgovernmentsMasMstatedMin
MtheirMwrittenMconstitutions.
2. StatutesMorMlegislativeMactions
StatutesMorMlegislativeMactionsMreferMtoMtheMassortmentMofMrulesMandMregulationsMputMfor
thMbyMlegislatures.
3. Cases
CaseMlawM(orMcommonMlaw)MisMtheMcollectionMofMlegalMinterpretationsMmadeMbyMjudges.MPr
ecedentMisMaMtoolMusedMbyMjudgesMtoMmakeMrulingsMonMcasesMonMtheMbasisMofMkeyMsimilariti
esMtoMpreviousMcases.
StareMdecisisMisMaMprincipleMstatingMthatMrulingsMmadeMinMhigherMcourtsMareMbindingMprecede
ntMforMlowerMcourts.
TeachingMtip:MTheMfirstMtimeMyourMstudentsMencounterManMappellateMcaseMinMtheMreadings,Msh
owMthemMwhatMstareMdecisisMlooksMlikeMinMtheMcontextMofMaMrealMcase.
4. AdministrativeMlaw
AdministrativeMlawMisMtheMcollectionMofMrulesMandMdecisionsMmadeMbyMadministrativeMagenci
esMtoMfillMinMparticularMdetailsMmissingMfromMconstitutionsMandMstatutes.
5. Treaties
AMtreatyMisMaMbindingMagreementMbetweenMtwoMstatesMorMinternationalMorganizations.
6. ExecutiveMorders
AnMexecutiveMorderMisMaMdirectiveMthatMcomesMfromMtheMpresidentMorMstateMgovernor.
g. WhatMareMtheMvariousMschoolsMofMlegalMinterpretation?
SomeMschoolsMofMlegalMinterpretationMinclude:
IdentificationMwithMtheMVulnerable—
MemphasisMonMfairnessMandMlookingMoutMforMthoseMwithMtheMleastMpower.
HistoricalMSchool/MTradition—emphasisMonMtheMuseMofMtraditionsMandMstareMdecisis.
LegalMRealism—judgesMconsiderMcontextMsuchMasMsocialMandMeconomicMconditions.
Cost-benefitMAnalysis—
emphasisMisMonMassigningMmonetaryMvaluesMtoMcostsMandMbenefitsMofMtheMlawMinMorderM
toMmakeMcalculationsMtoMmaximizeMtheMratioMofMbenefitsMtoMcosts.
TeachingMtip:M ConsiderMusingM―TheMCaseMofMtheMSpelunceanMExplorersM(linkMbelow)MtoMmake
MtheM
schoolsMofMjurisprudenceMcomeMalive.
h. AppendixMonMCriticalMThinkingMandMBusinessMLaw
CriticalMthinkingMincludesMtheMapplicationMofMevaluativeMstandardsMtoMassessMtheMqualityMorMthe
MreasoningMbeingMofferedMtoMsupportMtheMconclusion.M CriticalMthinkersMwillMfollowMthisMpatternM
ofMcarefulMthinkingMwhenMtheyMreadManMargument:
1. FindMtheMfacts.
2. LookMforeMtheMissue.
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©M2021MMcGraw-
HillMEducation.MAllMrightsMreserved.MNoMreproductionMorMdistributionMwithoutMtheMpriorMwrittenMconsentMofMMcGraw-
MHillMEducation.
, 3. IdentifyMtheMjudge‘sMreasonsMandMconclusion.
4. LocateMinMtheMdecisionMtheMrulesMofMlawMthatMgovernMtheMjudge‘sMreasoning.
5. ApplyMcriticalMthinkingMtoMtheMreasoning.M EvaluateMtheMreasoning.
LookMforMpotentialMambiguity.
ConsiderMtheMstrengthMofManalogies.
CheckMtheMqualityMofMtheMjudge‘sMreasoning.
DecideMwhetherMimportantMinformationMisMmissing.
ConsiderMtheMpossibilityMofMrivalMcauses.
4. TEACHINGM SKILLS:M BLOOM’SM TAXONOMYM SETSM THEM STAGEM TOMT
HINKMABOUTMTHEMKINDSMOFMQUESTIONSMTOMASKMYOURMSTUDENTS
BenjaminMBloom,MinMhisMTaxonomyMofMEducationalMObjectives,*MdevelopedMaMhierarchyMofM
cognitiveMfunctions.MHisMworkMsetsMtheMstageMforMteachersMtoMunderstandMwhyMitMisMimportant
MtoM
thinkMcarefullyMaboutMtheMkindsMofMquestionsMtheyMaskMinMclass.
TheMObjective SampleMquestions
Knowledge WhatMisMbusinessMlaw?
LowestMlevelMofMlearningMandMisMmostlyMmemo WhatMareMtheMfourMelementsMofMaMneglige
ry.MTheMstudentMrecognizesMandMrecallsMinforma nceMclaim?
tion.
Comprehension WhatMisMyourMunderstandingMofMtheMconc
LowestMlevelMofMunderstanding.MTheMstude eptMofMstareMdecisis?
ntMparaphrasesMorMexplainsMsomething. WhatMdoesMyourMtextbookMmeanM
byMdeontology?
Application HowMwouldMaMnaturalMlawMthinkerMrespo
StudentMdemonstratesMherMunderstandingMofMa ndMtoMthisMparticularMfactMpattern?
bstractMrules,Mprinciples,MorMgeneralizationsMb UseMaMparticularMcaseMruleMtoMdetermine
yMusingMthemMtoMsolveMlife-likeMproblems. whetherMtheMplaintiffMwillMbeMsuccessful
MinMherMclaim.
Analysis ProvideMtheMreasoningMforMtheMfollowing
StudentMbreaksMdownMaMcommunicationM Mstatement:MAllMcontractsMdoMnotMneedMt
toMdiscoverMtheMhiddenMstructureMasMwell oMbeMinMwritingMtoMbeMenforceable.
MasMassumptions. BreakMdownMaMparticularMjudge‘sMopinionMt
o
understandMtheMassumptionsMtheMjudge
MisM
making.
Synthesis ExplainMhowMtwoMparticularMschoolsMofMle
StudentMcreativelyMcombinesMelementsMandMpa galMinterpretationMareMrelated.
rtsMtoMformMaMwholeMnewMstructure. MakeMaMconnectionMbetweenMduressMa
ndMinsanity.
Evaluation IdentifyMandMexplainMaMreasoningMflawMinM
HighestMlevelMofMlearning.MStudentMmakes theMjudge‘sMargument.
MaMcriticalMjudgmentMaboutMtheMvalueMofMt EvaluateMtheMfollowingMstatement:
he
* BENJAMINMBLOOM,MTAXONOMYMOFMEDUCATIONALMOBJECTIVES:MT
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©M2021MMcGraw-
HillMEducation.MAllMrightsMreserved.MNoMreproductionMorMdistributionMwithoutMtheMpriorMwrittenMconsentMofMMcGraw-
MHillMEducation.