SolutionManual
n
DynamicBusinessLaw,6thEdition ByNancyKubasek
n n n n n n n
,ChapterH1H-HAnHIntroductionHtoHDynamicHBusinessHLaw
CHAPTERH OVERVIEW
ChapterH OneH laysH theH foundationH forH theH textbook.H MakeH sureH youH lookH onH theH publish
er‘sH webH siteH forH informationHaboutHhowHbusinessHlawHintersectsHwithHtheHsixHfunctionalHar
easHofHbusiness.HTheHHauthorsH encourageHstudentsHtoH―connectHtoHtheHcore,‖HandHrememberH
theHwaysHinHwhichHlawHintersectsHwithHotherHareasH ofH study,H includingH corporateH managem
ent,H productionH andH transportation,H marketing,H researchH andH development,HaccountingHa
ndHfinance,HandHhumanHresourceHmanagement.
ThisH manualH supportsH theH ―connectingH toH theH core‖H themeH byH givingH ideasH forH assignme
ntsH thatH encourageH studentsHtoH integrateH theirH businessH lawH knowledgeH withH knowledgeH
theyH areH acquiringH fromH theirH otherH businessH classes.H TheH manualH alsoHencouragesH profess
orsH toH improveH theirH teachingH skills.H Finally,H theH manualH suggestsHteachingHideasHforHbothH
beginningHandHexperiencedHteachers.
LEARNINGH OBJECTIVES
AfterHreadingHthisHchapter,HstudentsHwillHbeHableHto:
1-1 DefineHbusinessHlaw.
1-2 RelateHtheHfunctionalHareasHofHbusinessHtoHtheHrelevantHareasHofH
businessHlaw1-H 3HRecallHtheHpurposesHofHlaw.
1-4 DistinguishHamongHtypesHofHlaw.
1-5 DifferentiateHbetweenHsourcesHofHtheHlaw.
1-6 IdentifyHtheHvariousHschoolsHofHjurisprudence.
LECTUREH NOTESH WITHH DEFINITIONS
InHtheHnews… TeachingH tip:H ForHeachHchapter,H considerH askingHstudentsH toHrelateHcurrentHne
wsH itemsHtoHmaterialHfromHtheHchapter.
InH additionH toH ideasH studentsH comeH upH withH onH theirH own,H considerH weaving
H inH newsHstoriesHprovidedHbyHtheHMcGrawHHill.
ForHChapterHOne,HMcGrawHHillHoffersHtheHfollowingHstories:
―SmokingHBan:HTobaccoHTyrants:HGoneHTooHFar?HManyHStatesHAreHPutti
ngH StrongerHRestrictionsHonHWhereHYouHCanHSmoke‖
• HaveHstatesHgoneHtooHfarHinHbanningHsmoking?
, • WhoseH interestsH areH stateH legislaturesH lookingH outH forH
inH banningH smoking?
―CollegeHOfficerHDealingsHWithHLendersHScrutinized.‖
• ShouldHregulatorsHtakeHaHmoreHcarefulHlookHatHcollegeHofficers?
• WhyHcreatedHchangesHinHtheHwaysHcollegeHofficersHinteractHwithHl
1- Business H lawH consistsH ofH theH enforceableH rulesH ofH conductH th
enders?
1H DefineH busines atH governH commercialHrelationships.
1-
sH law. BusinessHlawHappliesHtoHtheHsixHfunctionalHareasHofHbusiness:
2HRelateHtheH fu • CorporateHmanagement
nctionalHareasH • ProductionHandHtransportation
ofH businessHtoHt • Marketing
heH relevantHare
• ResearchHandHdevelopment
asHofH businessHl
aw. • AccountingHandHfinance
• HumanHresourceHmanagement
1- • ProvidingHorder
3HRecallHtheH • ServingHasHanHalternativeHtoHfighting
purposesHofHl • FacilitatingHaHsenseHthatHchangeHisHpossible
aw. • EncouragingHsocialHjustice
• GuaranteeingHpersonalHfreedoms
• ServingHasHaHmoralHguide
1- OneHwayHtoHclassifyHlaw:
4HDistinguishH a PrivateHlawHinvolvesHdisputesHbetweenHprivateHindividualsHorHgroups.
mongHtypesHofHla PublicH lawH involvesH disputesH betweenH privateH individualsH orH grou
w. psH andH theirH government.
AHsecondHwayHtoHclassifyHlaw:
CivilH lawHinvolvesHtheHrightsH andHresponsibilitiesHinvolvedHinHrelation
shipsbetweenH personsHandHbetweenHpersonsHandHtheirHgovernment.
CriminalH lawH involvesHincidentsHinHwhichHsomeoneHcommitsH anHact
HagainstH theH publicHasHaHunit.
TeachingH tip:H AskH studentsH toH giveH anH exampleH ofH aH factH situatio
1- n H thatH ledH toH bothHcriminalHandHcivilH lawsuits,He.g.,HtheHO.J.HSimp
Sources H ofHbusinessHlawHare:
5HDifferentiateH son Htrials.
1. Constitutions
betweenHsources ConstitutionalH lawH refersH toH theH generalH limitsH andH powersH ofH gove
HofH theHlaw.
rnmentsH asH statedHinHtheirHwrittenHconstitutions.
2. StatutesHorHlegislativeHactions
3. Cases
CaseH lawH (orH commonH law)H isH theH collectionH ofH legalH interpretatio
nsH madeH byH judges.
StareHdecisisHmeansHcourtsHareHrelyingHonHprecedent.
TeachingH tip:H TheH firstH timeH yourH studentsH encounterH anH appellateH c
aseH inH the
, readings,HshowHthemHwhatHstareHdecisisHlooksHlikeHinHtheHcontextHofHaHr
ealHcase.
4. AdministrativeHlaw
AdministrativeH lawH isH theH collectionH ofH rulesH andH decisionsH
madeH byH administrativeHagencies.
5. Treaties
AH treatyH isH aHHbindingH agreementH betweenH twoH statesH orH i
nternationalH organizations.
6.HH ExecutiveHorders
1- An Hexecutive
Schools H orderH isH aHdirective
H ofHjurisprudence HthatH
HareHcommon comesHHto
Hguides from Hthe
Hlegal H presidentH orH sta
Hinterpretation.
6HIdentifyHtheH tegovernor.
• NaturalH law—
variousHschools certainH ethicalH lawsH andH principlesH areH morallyH rightH and
HofH jurispruden ―above‖HtheHlawsHdevisedHbyHhumans.
ce. • LegalH Positivism—
assumesH theH legitimateH politicalH authorityH deservesH ourHob
edienceHwhenHitHissuesHaHrule.
• IdentificationHwithHtheHVulnerable—
emphasisH onHfairnessH andHlookingH outHforHthoseHwithHtheHleas
tHpower.
• HistoricalHSchool/Tradition—
emphasisHonHtheHuseHofHstareHdecisis.
• LegalHRealism—judgesHconsiderHsocialHandHeconomicHconditions.
GlobalHandH Co AtH•thisCost-benefit
H pointH inH theH textbook,H studentsH shouldH merelyH haveH anH a
H Analysis—
mparativeHLa wareness H thatH globalizationH hasH affectedH theH scopeH ofH businessH law.
makeHcalculationsH toHmaximizeHtheHratioHofH benefitsHtoHc
w H Consequently,H weH highlightH theHdefinitionsHtoHtheHfollowingHkeyHter
osts.
msHthatHwillHHcomeHupHlaterHinHtheHbook:
TeachingH tip:H ConsiderH usingH ―TheH CaseH ofH theH SpelunceanH Exp
• H Trade,
lorers H i.e.H theH exchangeH ofH goodsH orH services,H onH aH globalH sc
(linkH below) HtoHmakeHtheHschoolsH ofHjurisprudenceHcomeHaliv
e. ale H hasH ledto H theH creationH ofH tradeH agreementsH thatH serveH asH
deH factoH rulesH governingHtheH globalHbusinessHenvironment.
• ComparativeHlaw—
AppendixHonHCrit Criticalthe H fieldHofHlawHthatHstudiesH andHcomparesH lawsHinH differentHc
H thinkingH includesH theH applicationH ofH evaluativeH standards
icalH ThinkingHan ountries.
H toH assessH theH qualityH orH theH reasoningH beingH offeredH toH supportH th
dH Business eH conclusion.H CriticalH thinkersH willHfollowHthisHpatternHofHcarefulHthin
kingHwhenHtheyHreadHHanHargument:
1. FindHtheHfacts.
2. LookHforHtheHissue.
3. IdentifyHtheHjudge‘sHreasonsHandHconclusion.
4. LocateHinHtheHdecisionHtheHrulesHofHlawHthatHgovernHtheHjudge‘sHrea
soning.
5. ApplyHcriticalHthinkingHtoHtheHreasoning.HEvaluateHtheHreasoning.
• LookHforHpotentialHambiguity.
• ConsiderHtheHstrengthHofHanalogies.
n
DynamicBusinessLaw,6thEdition ByNancyKubasek
n n n n n n n
,ChapterH1H-HAnHIntroductionHtoHDynamicHBusinessHLaw
CHAPTERH OVERVIEW
ChapterH OneH laysH theH foundationH forH theH textbook.H MakeH sureH youH lookH onH theH publish
er‘sH webH siteH forH informationHaboutHhowHbusinessHlawHintersectsHwithHtheHsixHfunctionalHar
easHofHbusiness.HTheHHauthorsH encourageHstudentsHtoH―connectHtoHtheHcore,‖HandHrememberH
theHwaysHinHwhichHlawHintersectsHwithHotherHareasH ofH study,H includingH corporateH managem
ent,H productionH andH transportation,H marketing,H researchH andH development,HaccountingHa
ndHfinance,HandHhumanHresourceHmanagement.
ThisH manualH supportsH theH ―connectingH toH theH core‖H themeH byH givingH ideasH forH assignme
ntsH thatH encourageH studentsHtoH integrateH theirH businessH lawH knowledgeH withH knowledgeH
theyH areH acquiringH fromH theirH otherH businessH classes.H TheH manualH alsoHencouragesH profess
orsH toH improveH theirH teachingH skills.H Finally,H theH manualH suggestsHteachingHideasHforHbothH
beginningHandHexperiencedHteachers.
LEARNINGH OBJECTIVES
AfterHreadingHthisHchapter,HstudentsHwillHbeHableHto:
1-1 DefineHbusinessHlaw.
1-2 RelateHtheHfunctionalHareasHofHbusinessHtoHtheHrelevantHareasHofH
businessHlaw1-H 3HRecallHtheHpurposesHofHlaw.
1-4 DistinguishHamongHtypesHofHlaw.
1-5 DifferentiateHbetweenHsourcesHofHtheHlaw.
1-6 IdentifyHtheHvariousHschoolsHofHjurisprudence.
LECTUREH NOTESH WITHH DEFINITIONS
InHtheHnews… TeachingH tip:H ForHeachHchapter,H considerH askingHstudentsH toHrelateHcurrentHne
wsH itemsHtoHmaterialHfromHtheHchapter.
InH additionH toH ideasH studentsH comeH upH withH onH theirH own,H considerH weaving
H inH newsHstoriesHprovidedHbyHtheHMcGrawHHill.
ForHChapterHOne,HMcGrawHHillHoffersHtheHfollowingHstories:
―SmokingHBan:HTobaccoHTyrants:HGoneHTooHFar?HManyHStatesHAreHPutti
ngH StrongerHRestrictionsHonHWhereHYouHCanHSmoke‖
• HaveHstatesHgoneHtooHfarHinHbanningHsmoking?
, • WhoseH interestsH areH stateH legislaturesH lookingH outH forH
inH banningH smoking?
―CollegeHOfficerHDealingsHWithHLendersHScrutinized.‖
• ShouldHregulatorsHtakeHaHmoreHcarefulHlookHatHcollegeHofficers?
• WhyHcreatedHchangesHinHtheHwaysHcollegeHofficersHinteractHwithHl
1- Business H lawH consistsH ofH theH enforceableH rulesH ofH conductH th
enders?
1H DefineH busines atH governH commercialHrelationships.
1-
sH law. BusinessHlawHappliesHtoHtheHsixHfunctionalHareasHofHbusiness:
2HRelateHtheH fu • CorporateHmanagement
nctionalHareasH • ProductionHandHtransportation
ofH businessHtoHt • Marketing
heH relevantHare
• ResearchHandHdevelopment
asHofH businessHl
aw. • AccountingHandHfinance
• HumanHresourceHmanagement
1- • ProvidingHorder
3HRecallHtheH • ServingHasHanHalternativeHtoHfighting
purposesHofHl • FacilitatingHaHsenseHthatHchangeHisHpossible
aw. • EncouragingHsocialHjustice
• GuaranteeingHpersonalHfreedoms
• ServingHasHaHmoralHguide
1- OneHwayHtoHclassifyHlaw:
4HDistinguishH a PrivateHlawHinvolvesHdisputesHbetweenHprivateHindividualsHorHgroups.
mongHtypesHofHla PublicH lawH involvesH disputesH betweenH privateH individualsH orH grou
w. psH andH theirH government.
AHsecondHwayHtoHclassifyHlaw:
CivilH lawHinvolvesHtheHrightsH andHresponsibilitiesHinvolvedHinHrelation
shipsbetweenH personsHandHbetweenHpersonsHandHtheirHgovernment.
CriminalH lawH involvesHincidentsHinHwhichHsomeoneHcommitsH anHact
HagainstH theH publicHasHaHunit.
TeachingH tip:H AskH studentsH toH giveH anH exampleH ofH aH factH situatio
1- n H thatH ledH toH bothHcriminalHandHcivilH lawsuits,He.g.,HtheHO.J.HSimp
Sources H ofHbusinessHlawHare:
5HDifferentiateH son Htrials.
1. Constitutions
betweenHsources ConstitutionalH lawH refersH toH theH generalH limitsH andH powersH ofH gove
HofH theHlaw.
rnmentsH asH statedHinHtheirHwrittenHconstitutions.
2. StatutesHorHlegislativeHactions
3. Cases
CaseH lawH (orH commonH law)H isH theH collectionH ofH legalH interpretatio
nsH madeH byH judges.
StareHdecisisHmeansHcourtsHareHrelyingHonHprecedent.
TeachingH tip:H TheH firstH timeH yourH studentsH encounterH anH appellateH c
aseH inH the
, readings,HshowHthemHwhatHstareHdecisisHlooksHlikeHinHtheHcontextHofHaHr
ealHcase.
4. AdministrativeHlaw
AdministrativeH lawH isH theH collectionH ofH rulesH andH decisionsH
madeH byH administrativeHagencies.
5. Treaties
AH treatyH isH aHHbindingH agreementH betweenH twoH statesH orH i
nternationalH organizations.
6.HH ExecutiveHorders
1- An Hexecutive
Schools H orderH isH aHdirective
H ofHjurisprudence HthatH
HareHcommon comesHHto
Hguides from Hthe
Hlegal H presidentH orH sta
Hinterpretation.
6HIdentifyHtheH tegovernor.
• NaturalH law—
variousHschools certainH ethicalH lawsH andH principlesH areH morallyH rightH and
HofH jurispruden ―above‖HtheHlawsHdevisedHbyHhumans.
ce. • LegalH Positivism—
assumesH theH legitimateH politicalH authorityH deservesH ourHob
edienceHwhenHitHissuesHaHrule.
• IdentificationHwithHtheHVulnerable—
emphasisH onHfairnessH andHlookingH outHforHthoseHwithHtheHleas
tHpower.
• HistoricalHSchool/Tradition—
emphasisHonHtheHuseHofHstareHdecisis.
• LegalHRealism—judgesHconsiderHsocialHandHeconomicHconditions.
GlobalHandH Co AtH•thisCost-benefit
H pointH inH theH textbook,H studentsH shouldH merelyH haveH anH a
H Analysis—
mparativeHLa wareness H thatH globalizationH hasH affectedH theH scopeH ofH businessH law.
makeHcalculationsH toHmaximizeHtheHratioHofH benefitsHtoHc
w H Consequently,H weH highlightH theHdefinitionsHtoHtheHfollowingHkeyHter
osts.
msHthatHwillHHcomeHupHlaterHinHtheHbook:
TeachingH tip:H ConsiderH usingH ―TheH CaseH ofH theH SpelunceanH Exp
• H Trade,
lorers H i.e.H theH exchangeH ofH goodsH orH services,H onH aH globalH sc
(linkH below) HtoHmakeHtheHschoolsH ofHjurisprudenceHcomeHaliv
e. ale H hasH ledto H theH creationH ofH tradeH agreementsH thatH serveH asH
deH factoH rulesH governingHtheH globalHbusinessHenvironment.
• ComparativeHlaw—
AppendixHonHCrit Criticalthe H fieldHofHlawHthatHstudiesH andHcomparesH lawsHinH differentHc
H thinkingH includesH theH applicationH ofH evaluativeH standards
icalH ThinkingHan ountries.
H toH assessH theH qualityH orH theH reasoningH beingH offeredH toH supportH th
dH Business eH conclusion.H CriticalH thinkersH willHfollowHthisHpatternHofHcarefulHthin
kingHwhenHtheyHreadHHanHargument:
1. FindHtheHfacts.
2. LookHforHtheHissue.
3. IdentifyHtheHjudge‘sHreasonsHandHconclusion.
4. LocateHinHtheHdecisionHtheHrulesHofHlawHthatHgovernHtheHjudge‘sHrea
soning.
5. ApplyHcriticalHthinkingHtoHtheHreasoning.HEvaluateHtheHreasoning.
• LookHforHpotentialHambiguity.
• ConsiderHtheHstrengthHofHanalogies.
