SOLUTION MANUAL
Dynamic Business Law: The Essentials,
5th Edition Kubasek, Browne, All Chapters 1-25),
,TABLE OF CONTENTS
t t t
PARTt1:tThetLegaltEnvironmenttoftBusinesst
Cth.t1tAntIntroductionttotthetFundamentalstoftDynamictBusinesstLawt
Ch.t2tBusinesstEthicstandtSocialtResponsibilityt
Ch.t3tThetU.S.tLegaltSystemtandtAlternativetDisputetResolutiont
Ch.t4tAdministrativetLawt
Ch.t5tConstitutionaltLawt
Ch.t6tCriminaltLawtandtBusinesst
Ch.t7tTorttLawt
Ch.t8tReal,tPersonal,tandtIntellectualtPropertyt
PARTt2:tContracttLawt
Ch.t9tIntroductionttotContractstandtAgreementt
Ch.t10tConsiderationt
Ch.t11tCapacitytandtLegalityt
Ch.t12tRealitytoftAssentt
Ch.t13tContractstintWritingtandtThird-PartytContractst
Ch.t14tDischargetandtRemediest
Partt3:tDomestictandtInternationaltSalestLawt
Ch.t15tFormationtandtPerformancetoftSalestandtLeasetContractst
Ch.t16tSalestandtLeasetContracts:tPerformance,tWarranties,tandtRemediest
PARTt4:tNegotiabletInstrumentstandtBankingt
Ch.t17tNegotiabletInstruments:tNegotiabilitytandtTransferabilityt
Ch.t18tHoldertintDuetCourse,tLiability,tandtDefensest
PARTt5:tCreditors'tRightstandtBankruptcyt
,Ch.t19tSecuredtTransactionstandtBankruptcyt
PARTt6:tAgencyt
Ch.t20tAgencytandtLiabilityttotThirdtPartiest
PARTt7:tBusinesstOrganizationst
Ch.t21tFormstoftBusinesstOrganizationt
Ch.t22tCorporations:tFormationtandtOrganizationt
Ch.t23tSecuritiestRegulationt
PARTt8:tGovernmenttRegulationt
Ch.t24tEmploymenttandtDiscriminationtLawt
Ch.t25tConsumertLawt
,Chapter 1 - An Introduction to Dynamic Business Law
t t t t t t t t
CHAPTERtOVERVIEW
ChaptertOnetlaystthetfoundationtfortthettextbook.tMaketsuretyoutlooktontthetpublisher‘stwebtsitetfortinformatio
ntaboutthowtbusinesstlawtintersectstwithtthetsixtfunctionaltareastoftbusiness.tThetauthorstencouragetstudentsttot
―connectttotthetcore,‖tandtremembertthetwaystintwhichtlawtintersectstwithtothertareastoftstudy,tincludingtcorpor
atetmanagement,tproductiontandttransportation,tmarketing,tresearchtandtdevelopment,taccountingtandtfinance,t
andthumantresourcetmanagement.
Thist manualt supportst thet ―connectingt tot thet core‖t themet byt givingt ideast fort assignmentst thatt encouragetstudent
sttotintegratettheirtbusinesstlawtknowledgetwithtknowledgettheytaretacquiringtfromttheirtothertbusinesstclasses.tT
hetmanualtalsotencouragestprofessorsttotimprovettheirtteachingtskills.tFinally,tthetmanualtsuggeststteachingtideast
fortbothtbeginningtandtexperiencedtteachers.
LEARNINGtOBJECTIVES
Aftertreadingtthistchapter,tstudentstwilltbetabletto:
1-1 Definetbusinesstlaw.
1-2 Relatetthetfunctionaltareastoftbusinessttotthetrelevanttareastoftbusinesstlawt1-
3tRecalltthetpurposestoftlaw.
1-4 Distinguishtamongttypestoftlaw.
1-5 Differentiatetbetweentsourcestoftthetlaw.
1-6 Identifytthetvarioustschoolstoftjurisprudence.
LECTUREtNOTEStWITHtDEFINITIONS
Intthetnews… Teachingttip:tForteachtchapter,tconsidertaskingtstudentsttotrelatetcurrenttnewstitemst
totmaterialtfromtthetchapter.
Int additiont tot ideast studentst comet upt witht ont theirt own,t considert weavingt intnewsts
toriestprovidedtbytthetMcGrawtHill.
FortChaptertOne,tMcGrawtHilltofferstthetfollowingtstories:
―SmokingtBan:tTobaccotTyrants:tGonetTootFar?tManytStatestAretPuttingtStrongertR
estrictionstontWheretYoutCantSmoke‖
Havetstatestgonettootfartintbanningtsmoking?
, Whoset interestst aret statet legislaturest lookingt outt fort int banningtsmoking?
―CollegetOfficertDealingstWithtLenderstScrutinized.‖
Shouldtregulatorsttaketatmoretcarefultlooktattcollegetofficers?
Whytcreatedtchangestintthetwaystcollegetofficerstinteracttwithtlenders?
1- Businesst lawt consistst oft thet enforceablet rulest oft conductt thatt governtcommercia
1t Definet businesstlaw. ltrelationships.
1- Businesstlawtappliesttotthetsixtfunctionaltareastoftbusiness:
2tRelatetthetfunctio Corporatetmanagement
naltareastoftbusiness
ttotthetrelevanttarea
Productiontandttransportation
stoftbusinesstlaw. Marketing
Researchtandtdevelopment
Accountingtandtfinance
Humantresourcetmanagement
1- Providingtorder
3tRecalltthetpurp Servingtastantalternativettotfighting
osestoftlaw.
Facilitatingtatsensetthattchangetistpossible
Encouragingtsocialtjustice
Guaranteeingtpersonaltfreedoms
Servingtastatmoraltguide
1- Onetwayttotclassifytlaw:
4tDistinguishtamongt Privatetlawtinvolvestdisputestbetweentprivatetindividualstortgroups.
typestoftlaw. Publict lawt involvest disputest betweent privatet individualst ort groupst andt theirtgover
nment.
Atsecondtwayttotclassifytlaw:
Civiltlawtinvolvestthetrightstandtresponsibilitiestinvolvedtintrelationshipstbetweentper
sonstandtbetweentpersonstandttheirtgovernment.
Criminalt lawt involvest incidentstint whicht someonet commitst ant actt againstt thetpublict
astatunit.
Teachingt tip:t Askt studentst tot givet ant examplet oft at factt situationt thatt ledt totbothtc
riminaltandtciviltlawsuits,te.g.,tthetO.J.tSimpsonttrials.
1- Sourcestoftbusinesstlawtare:
5tDifferentiatetbetw 1. Constitutions
eentsourcestoftthetla Constitutionalt lawt referst tot thet generalt limitst andt powerst oft governmentst aststated
w. tinttheirtwrittentconstitutions.
2. Statutestortlegislativetactions
3. Cases
Caset lawt (ort commont law)t ist thet collectiont oft legalt interpretationst madet bytjudges.
Staretdecisistmeanstcourtstaretrelyingtontprecedent.
Teachingt tip:t Thet firstt timet yourt studentst encountert ant appellatet caset int the
, readings,tshowtthemtwhattstaretdecisistlookstliketintthetcontexttoftatrealtcase.
4. Administrativetlaw
Administrativet lawt ist thet collectiont oft rulest andt decisionst madet bytadministrati
vetagencies.
5. Treaties
At treatyt ist at bindingt agreementt betweent twot statest ort internationaltorganization
s.
6.t Executivetorders
Antexecutivetordertistatdirectivetthattcomestfromtthetpresidentt ortstatetgovernor.
1- Schoolstoftjurisprudencetaretcommontguidesttotlegaltinterpretation.
6tIdentifytthetvario Naturalt law—certaint ethicalt lawst andt principlest aret morallyt rightt and
ustschoolstoftjurisp ―above‖tthetlawstdevisedtbythumans.
rudence.
Legalt Positivism—
assumest thet legitimatet politicalt authorityt deservestourtobediencetwhentittiss
uestatrule.
IdentificationtwithtthetVulnerable—
emphasistontfairnesst andtlookingtouttfortthosetwithtthetleasttpower.
HistoricaltSchool/Tradition—emphasistontthetusetoftstaretdecisis.
LegaltRealism—judgestconsidertsocialtandteconomictconditions.
Cost-benefittAnalysis—
maketcalculationsttotmaximizetthetratiotoftbenefitsttotcosts.
Teachingtttip:ttConsiderttusingtt―ThettCasettofttthettSpelunceanttExplorerstt(linktbelow)tt
otmaketthetschoolstoftjurisprudencetcometalive.
GlobaltandtCompa Attthistpointtintthettextbook,tstudentstshouldtmerelythavetantawarenesstthattglobaliz
rativetLaw ationthastaffectedtthetscopetoftbusinesstlaw.tConsequently,t wethighlighttthetdefinitio
nsttotthetfollowingtkeyttermstthattwillt cometuptlatertintthetbook:
Trade,t i.e.t thet exchanget oft goodst ort services,t ont at globalt scalet hast ledttotthet
creationtofttradetagreementstthattservetastdetfactotrulestgoverningtthetglobaltb
usinesstenvironment.
Comparativetlaw—
thetfieldtoftlawtthattstudiestandtcomparestlawstintdifferenttcountries.
AppendixtontCriticaltT Criticaltthinkingtincludestthetapplicationtoftevaluativetstandardsttotassesstthetqualityt
hinkingtandtBusiness ortthetreasoningtbeingtofferedttotsupporttthetconclusion.tCriticaltthinkerstwilltfollowt
thistpatterntoftcarefultthinkingtwhenttheytreadt antargument:
1. Findtthetfacts.
2. Looktfortthetissue.
3. Identifytthetjudge‘streasonstandtconclusion.
4. Locatetintthetdecisiontthetrulestoftlawtthattgoverntthetjudge‘streasoning.
5. Applytcriticaltthinkingttotthetreasoning.tEvaluatetthetreasoning.
Looktfortpotentialtambiguity.
Considertthetstrengthtoftanalogies.
, Checktthetqualitytoftthetjudge‘streasoning.
Decidetwhethertimportanttinformationtistmissing.
Considertthetpossibilitytoftrivaltcauses.
TEACHINGtSKILLS:tBLOOM’StTAXONOMYtSETStTHEtSTAGEtTOtTHINKtABOUTt
THEtKINDStOFtQUESTIONStTOtASKtYOURtSTUDENTS
BenjamintBloom,tinthistTaxonomytoftEducationaltObjectives,*tdevelopedtathierarchytoftcognitivetfunctions.tHi
stworktsetstthetstagetfortteachersttotunderstandtwhytittistimportantttotthinktcarefullytabouttthetkindstoftquestionst
theytasktintclass.
ThetObjective Sampletquestions
Knowledge Whattistbusinesstlaw?
Lowestt levelt oft learningt andt ist mostlyt memory.tThe Whatt aretthetfourtelementstoftat negligencetclaim?
tstudenttrecognizestandtrecallstinformation.
Comprehension Whatt ist yourt understandingt oft thet conceptt of
Lowest level of understanding. The staretdecisis?
studenttparaphrasestortexplainstsomething. Whattdoestyourttextbooktmeantbytdeontology?
Application Howt wouldt at naturalt lawt thinkert respondt totthi
Studenttdemonstratesthertunderstandingtoftabstracttrul stparticulartfacttpattern?
es,tprinciples,tort generalizationstbytusingtthemttotsolve Uset at particulart casetrulettot determinet whethertthet
tlife-liketproblems. plaintifftwilltbetsuccessfultinthertclaim.
Analysis Providetthetreasoningtfortthetfollowingtstatement:t
Studentt breakst downt at communicationt tot discovertth Alltcontractstdotnottneedttotbetintwritingttotbetenf
ethiddentstructuretastwelltastassumptions. orceable.
Breaktdowntatparticulartjudge‘stopinionttotunderst
andtthetassumptionstthetjudgetistmaking.
Synthesis Explain how two particular schools
Studentt creativelyt combinest elementst andt partst totfor oftjurisprudencetaretrelated.
mtatwholetnewtstructure. Make a connection between duress
andtinsanity.
Evaluation Identifyt andttexplaint attreasoningt flawt int thetjud
Highestt levelt oft learning.t Studentt makest at critical ge‘stargument.
*t BENJAMINt BLOOM,t TAXONOMYt OFt EDUCATIONALt OBJECTIVES:t THEt CLASSIFICATIONtO
FtEDUCATIONALtGOALSt(1954).
,ThetObjective Sampletquestions
judgmenttabouttthetvaluetoftthetcommunication. Evaluatetthetfollowingtstatement:tArbitrationtandt
mediationtaretbettertformstoftdisputetresolutiontth
antlitigation.
TEACHINGtIDEAS
ConnectingttotthetCore Considertaskingtstudentsttotkeeptat―ConnectingttotthetCore‖tjournal.tThro
ughouttthetsemester,tstudentstcantrelatetconceptsttheytaretlearningtinttheirt
businesstlawtclassttotmaterialttheytaretlearningtinttheirtothertbusinesstcours
es.
Asktstudentsttottaketonetparticulartareatoftlawt(UsetExhibitt1-
1tastthetbasistforttopictchoices)tandtwritetatpapertthattexplainstintersectionst
betweentatparticulartareatoftlawtandtattleasttonetfunctionaltareatoftbusiness.
t Fort example,t at studentt couldt chooset consumert lawt andtwritetatpapert
thattlinkstatspecifictconsumertlawtissuettotcontenttfromttheirtmarketingtclas
s.
TeachingtBasics Exploretwebtsitestthattoffertinformationtabouttteachingtattthetcollegetlevel.
Harvardthastatgreattcenter.tTheirtcentertlinkstyouttotothertcenters.tIftyoutaretatnew
tteacher,tmaketsuretyoutlooktattthistsite‘stsampletsyllabi.
http://bokcenter.fas.harvard.edu/icb/icb.do
ThistsyllabusttutorialtattthetUniversitytoftMinnesotatistgreat—
ittprovidestsampletlanguagetyoutcantuse.
http://www1.umn.edu/ohr/teachlearn/
AdvancedtTeaching UsetthetCasetoftthetSpelunceantExplorersttotexploretthetschoolstoftjurisprudence.t
Thisthypotheticaltcasetexplorestthetdilemmatattrappedtteamtoftfivetspelunkerstfacest
whenttheythavettotdecidetwhetherttoteattonetofttheirtpartytintatquestttotsurvive.tOnc
etrescued,tthetcasetconsiderstwhethertthetsurvivingtspelunkerstaretguiltytoftmurder.
YoutcantgettatcopytoftthetcasetoftthetSpelunceantExplorerstthroughtthistwebtsite:
http://en.wikipedia.org/wiki/The_Case_of_the_Speluncean_Explorers
Oncetyoutgettatsensetoftthetcasetitself,texploretfurtherttotseetwhattkindstoftquestionst
youtcantasktintclass.
http://www.earlham.edu/~peters/writing/cse.htm#assignments
AtBESTtPRACTICEStTEACHINGtTIP
Peer-to-peertteaching. Thistteachingttechniquetcanthelptstudentstengagetmoretfullytwithtnewtconcepts
tthattaretreferencedtintthisttextbook.tWilberttJ.tMcKeachietstates
thatttheretarettwotfavorabletoutcomestfromthavingtstudentstplaytthetrole
,oftatteacher:
1.)tPeer-to-
peertteachingtcantstimulatetadditionaltlearningtbytthetstudenttwhot
istteaching,tsincetteachingtwilltrequiretgreatertpreparationtfortclass
.
2.)tPeertteachingtfacilitatestthetlearningtoftthosetbeingttaughttbythearin
gtinformationtfromtantindividualtothertthantthetregulartteacher.
McKeachietnotestthattittistessentialtthattfacultytmemberstsupervisetthetstude
nt-
ledtteachingtsession,tastthistmethodtoftteachingtmaytnottbetusefultiftstudentst
dotnotttaketthettasktseriously.tAtsubstantialtamounttofteducationtresearchtsu
pportstthetvaluetoftthistteachingtpractice.tIntatlegalteducationtarticle,tJ.B.tBigg
stalludesttotpeer-to-
peertteachingtastamongtthetmostteffectivetteachingtstrategiestfortengagingtstu
denttlearning:
―Thetbesttanswerttotthetquestion,t'Whattistthetmostteffectivetmethodt
oftteaching?",tistthattittdependstontthetgoal,tthetstudent,tthetcontent,ta
ndtthetteacher.tButtthetnexttbesttanswertis,t"Studentstteachingtothert
students."tTheretistatwealthtoftevidencetthattpeertteachingtistextremelyt
effectivetfortatwidetrangetoftgoals,tcontent,tandtstudentstoftdifferenttle
velstandtpersonalities‖t(144).
Totreadtmoretabouttpeer-to-peertteaching,tseetWilberttJ.tMcKeachie‘s
―TeachingtTips:tAtGuidebooktfortthetBeginningtCollegetTeacher‖tor
J.B.tBiggs‘t―TeachingtfortBettertLearning.‖
References:
WilberttJ.tMcKeachie,tTeachingtTips:tAtGuidebooktfortthetBeginningtColle
getTeacher,t7thted.,t1978.
J.B.tBiggs,tTeachingtfortBettertLearning,t2tLegaltEduc.tRev.t133t(1990-t1991).
, Chaptert2t-tBusinesstEthics
CHAPTERtOVERVIEW
ChaptertTwotexplainstthetfundamentalstoftbusinesstethicstandtsocialtresponsibility.tIttalsotprovidestatframeworkt
thattallowststudentsttotengagetwithtethicstandtsocialtresponsibilitytmaterial.t Thistframeworktistimportanttbecaus
etitttakestawaytstudents‘ttendencyttotbelievetquestionstoftethicstaretsimplytmatterstoftopinion.t Considertaskingtyo
urtstudentsttotusetthet―WPHtframework‖tthroughouttthetcourse.
LEARNINGtOBJECTIVES
Aftertreadingtthistchapter,tstudentstwilltbetabletto:
2-1tDistinguishtbetweentbusinesstethicstandtthetsocialtresponsibilitytoftbusiness.st2-
2tRecognizetthetrelationshiptbetweentbusinesstlawtandtbusinesstethics.
2-3tAnalyzetbusinesstdecisionstusingtthetWHtframework.t2-
4tAppendixt2A:tExplaintthettheoriestoftbusinesstethics.
LECTUREtNOTEStWITHtDEFINITIONS
Intthetnews… Teachingttip:tForteachtchapter,tconsidertaskingtstudentsttotrelatetcurrenttnews
titemsttotmaterialtfromtthetchapter.
Intadditionttotideaststudentstcometuptwithtonttheirtown,tconsidertweavingtintne
wststoriestprovidedtbytthettextbooktpublisher.
FortChaptertTwo,tMcGrawtHilltofferstthetfollowingtstory:
―Smoket&tMirrors:tTobaccotCompaniestHavetBeentSteadilytAddingtMoretNicot
inettotCigarettesttotMaketThemtMoretAddictive,tEspeciallyttotTeenagers.‖
ApplytthetWPHtframeworkttotthetdecisionsttobaccotcompaniestaretma
king.
Istitt―sociallytresponsible‖tforttobaccotcompaniesttotaddtnicotinettotcigar
ettes?
Shouldtlegaltrulestprovidetadditionaltprotectionsttotvulnerabletcon
sumers,tsuchtastteenagers?
2- Ethicstistthetstudytandtpracticetoftdecisionstabouttwhattistgoodtortright.
1tDistinguishtbetweentbus
Businesstethicstistthetapplicationtoftethicsttotspecialtproblemstandtopp
inesstethicstandtthetsocialt
ortunitiestexperiencedtbytbusinesspeople.tAntexampletoftatbusinesstethi
responsibilitytoftbusiness.
cstquestion:tIstthetcompanytintthetCasetOpenertdoingtthetrighttthingtwh
entittattemptsttotreducetthetcoststoftadvertisingtbytnottlistingtalltpossiblet
complicationstoftthetmedicinetfortthetconsumer?tAstexplainedtlatertintth
istchapterttheretaretseveraltwaystoftevaluatingtantethicaltdecision,tfortexa
mple,tthetGoldentRule,tthetPublictDisclosurettest,tortthetUniversalizatio
ntTest.tOnetreasonable
answer,tthus,tistcantbetprovidedtbytthetGoldentRule.tPresumably,tiftonet
weretthetconsumertoftatmedicine,tonetwouldtwantttotbe
Dynamic Business Law: The Essentials,
5th Edition Kubasek, Browne, All Chapters 1-25),
,TABLE OF CONTENTS
t t t
PARTt1:tThetLegaltEnvironmenttoftBusinesst
Cth.t1tAntIntroductionttotthetFundamentalstoftDynamictBusinesstLawt
Ch.t2tBusinesstEthicstandtSocialtResponsibilityt
Ch.t3tThetU.S.tLegaltSystemtandtAlternativetDisputetResolutiont
Ch.t4tAdministrativetLawt
Ch.t5tConstitutionaltLawt
Ch.t6tCriminaltLawtandtBusinesst
Ch.t7tTorttLawt
Ch.t8tReal,tPersonal,tandtIntellectualtPropertyt
PARTt2:tContracttLawt
Ch.t9tIntroductionttotContractstandtAgreementt
Ch.t10tConsiderationt
Ch.t11tCapacitytandtLegalityt
Ch.t12tRealitytoftAssentt
Ch.t13tContractstintWritingtandtThird-PartytContractst
Ch.t14tDischargetandtRemediest
Partt3:tDomestictandtInternationaltSalestLawt
Ch.t15tFormationtandtPerformancetoftSalestandtLeasetContractst
Ch.t16tSalestandtLeasetContracts:tPerformance,tWarranties,tandtRemediest
PARTt4:tNegotiabletInstrumentstandtBankingt
Ch.t17tNegotiabletInstruments:tNegotiabilitytandtTransferabilityt
Ch.t18tHoldertintDuetCourse,tLiability,tandtDefensest
PARTt5:tCreditors'tRightstandtBankruptcyt
,Ch.t19tSecuredtTransactionstandtBankruptcyt
PARTt6:tAgencyt
Ch.t20tAgencytandtLiabilityttotThirdtPartiest
PARTt7:tBusinesstOrganizationst
Ch.t21tFormstoftBusinesstOrganizationt
Ch.t22tCorporations:tFormationtandtOrganizationt
Ch.t23tSecuritiestRegulationt
PARTt8:tGovernmenttRegulationt
Ch.t24tEmploymenttandtDiscriminationtLawt
Ch.t25tConsumertLawt
,Chapter 1 - An Introduction to Dynamic Business Law
t t t t t t t t
CHAPTERtOVERVIEW
ChaptertOnetlaystthetfoundationtfortthettextbook.tMaketsuretyoutlooktontthetpublisher‘stwebtsitetfortinformatio
ntaboutthowtbusinesstlawtintersectstwithtthetsixtfunctionaltareastoftbusiness.tThetauthorstencouragetstudentsttot
―connectttotthetcore,‖tandtremembertthetwaystintwhichtlawtintersectstwithtothertareastoftstudy,tincludingtcorpor
atetmanagement,tproductiontandttransportation,tmarketing,tresearchtandtdevelopment,taccountingtandtfinance,t
andthumantresourcetmanagement.
Thist manualt supportst thet ―connectingt tot thet core‖t themet byt givingt ideast fort assignmentst thatt encouragetstudent
sttotintegratettheirtbusinesstlawtknowledgetwithtknowledgettheytaretacquiringtfromttheirtothertbusinesstclasses.tT
hetmanualtalsotencouragestprofessorsttotimprovettheirtteachingtskills.tFinally,tthetmanualtsuggeststteachingtideast
fortbothtbeginningtandtexperiencedtteachers.
LEARNINGtOBJECTIVES
Aftertreadingtthistchapter,tstudentstwilltbetabletto:
1-1 Definetbusinesstlaw.
1-2 Relatetthetfunctionaltareastoftbusinessttotthetrelevanttareastoftbusinesstlawt1-
3tRecalltthetpurposestoftlaw.
1-4 Distinguishtamongttypestoftlaw.
1-5 Differentiatetbetweentsourcestoftthetlaw.
1-6 Identifytthetvarioustschoolstoftjurisprudence.
LECTUREtNOTEStWITHtDEFINITIONS
Intthetnews… Teachingttip:tForteachtchapter,tconsidertaskingtstudentsttotrelatetcurrenttnewstitemst
totmaterialtfromtthetchapter.
Int additiont tot ideast studentst comet upt witht ont theirt own,t considert weavingt intnewsts
toriestprovidedtbytthetMcGrawtHill.
FortChaptertOne,tMcGrawtHilltofferstthetfollowingtstories:
―SmokingtBan:tTobaccotTyrants:tGonetTootFar?tManytStatestAretPuttingtStrongertR
estrictionstontWheretYoutCantSmoke‖
Havetstatestgonettootfartintbanningtsmoking?
, Whoset interestst aret statet legislaturest lookingt outt fort int banningtsmoking?
―CollegetOfficertDealingstWithtLenderstScrutinized.‖
Shouldtregulatorsttaketatmoretcarefultlooktattcollegetofficers?
Whytcreatedtchangestintthetwaystcollegetofficerstinteracttwithtlenders?
1- Businesst lawt consistst oft thet enforceablet rulest oft conductt thatt governtcommercia
1t Definet businesstlaw. ltrelationships.
1- Businesstlawtappliesttotthetsixtfunctionaltareastoftbusiness:
2tRelatetthetfunctio Corporatetmanagement
naltareastoftbusiness
ttotthetrelevanttarea
Productiontandttransportation
stoftbusinesstlaw. Marketing
Researchtandtdevelopment
Accountingtandtfinance
Humantresourcetmanagement
1- Providingtorder
3tRecalltthetpurp Servingtastantalternativettotfighting
osestoftlaw.
Facilitatingtatsensetthattchangetistpossible
Encouragingtsocialtjustice
Guaranteeingtpersonaltfreedoms
Servingtastatmoraltguide
1- Onetwayttotclassifytlaw:
4tDistinguishtamongt Privatetlawtinvolvestdisputestbetweentprivatetindividualstortgroups.
typestoftlaw. Publict lawt involvest disputest betweent privatet individualst ort groupst andt theirtgover
nment.
Atsecondtwayttotclassifytlaw:
Civiltlawtinvolvestthetrightstandtresponsibilitiestinvolvedtintrelationshipstbetweentper
sonstandtbetweentpersonstandttheirtgovernment.
Criminalt lawt involvest incidentstint whicht someonet commitst ant actt againstt thetpublict
astatunit.
Teachingt tip:t Askt studentst tot givet ant examplet oft at factt situationt thatt ledt totbothtc
riminaltandtciviltlawsuits,te.g.,tthetO.J.tSimpsonttrials.
1- Sourcestoftbusinesstlawtare:
5tDifferentiatetbetw 1. Constitutions
eentsourcestoftthetla Constitutionalt lawt referst tot thet generalt limitst andt powerst oft governmentst aststated
w. tinttheirtwrittentconstitutions.
2. Statutestortlegislativetactions
3. Cases
Caset lawt (ort commont law)t ist thet collectiont oft legalt interpretationst madet bytjudges.
Staretdecisistmeanstcourtstaretrelyingtontprecedent.
Teachingt tip:t Thet firstt timet yourt studentst encountert ant appellatet caset int the
, readings,tshowtthemtwhattstaretdecisistlookstliketintthetcontexttoftatrealtcase.
4. Administrativetlaw
Administrativet lawt ist thet collectiont oft rulest andt decisionst madet bytadministrati
vetagencies.
5. Treaties
At treatyt ist at bindingt agreementt betweent twot statest ort internationaltorganization
s.
6.t Executivetorders
Antexecutivetordertistatdirectivetthattcomestfromtthetpresidentt ortstatetgovernor.
1- Schoolstoftjurisprudencetaretcommontguidesttotlegaltinterpretation.
6tIdentifytthetvario Naturalt law—certaint ethicalt lawst andt principlest aret morallyt rightt and
ustschoolstoftjurisp ―above‖tthetlawstdevisedtbythumans.
rudence.
Legalt Positivism—
assumest thet legitimatet politicalt authorityt deservestourtobediencetwhentittiss
uestatrule.
IdentificationtwithtthetVulnerable—
emphasistontfairnesst andtlookingtouttfortthosetwithtthetleasttpower.
HistoricaltSchool/Tradition—emphasistontthetusetoftstaretdecisis.
LegaltRealism—judgestconsidertsocialtandteconomictconditions.
Cost-benefittAnalysis—
maketcalculationsttotmaximizetthetratiotoftbenefitsttotcosts.
Teachingtttip:ttConsiderttusingtt―ThettCasettofttthettSpelunceanttExplorerstt(linktbelow)tt
otmaketthetschoolstoftjurisprudencetcometalive.
GlobaltandtCompa Attthistpointtintthettextbook,tstudentstshouldtmerelythavetantawarenesstthattglobaliz
rativetLaw ationthastaffectedtthetscopetoftbusinesstlaw.tConsequently,t wethighlighttthetdefinitio
nsttotthetfollowingtkeyttermstthattwillt cometuptlatertintthetbook:
Trade,t i.e.t thet exchanget oft goodst ort services,t ont at globalt scalet hast ledttotthet
creationtofttradetagreementstthattservetastdetfactotrulestgoverningtthetglobaltb
usinesstenvironment.
Comparativetlaw—
thetfieldtoftlawtthattstudiestandtcomparestlawstintdifferenttcountries.
AppendixtontCriticaltT Criticaltthinkingtincludestthetapplicationtoftevaluativetstandardsttotassesstthetqualityt
hinkingtandtBusiness ortthetreasoningtbeingtofferedttotsupporttthetconclusion.tCriticaltthinkerstwilltfollowt
thistpatterntoftcarefultthinkingtwhenttheytreadt antargument:
1. Findtthetfacts.
2. Looktfortthetissue.
3. Identifytthetjudge‘streasonstandtconclusion.
4. Locatetintthetdecisiontthetrulestoftlawtthattgoverntthetjudge‘streasoning.
5. Applytcriticaltthinkingttotthetreasoning.tEvaluatetthetreasoning.
Looktfortpotentialtambiguity.
Considertthetstrengthtoftanalogies.
, Checktthetqualitytoftthetjudge‘streasoning.
Decidetwhethertimportanttinformationtistmissing.
Considertthetpossibilitytoftrivaltcauses.
TEACHINGtSKILLS:tBLOOM’StTAXONOMYtSETStTHEtSTAGEtTOtTHINKtABOUTt
THEtKINDStOFtQUESTIONStTOtASKtYOURtSTUDENTS
BenjamintBloom,tinthistTaxonomytoftEducationaltObjectives,*tdevelopedtathierarchytoftcognitivetfunctions.tHi
stworktsetstthetstagetfortteachersttotunderstandtwhytittistimportantttotthinktcarefullytabouttthetkindstoftquestionst
theytasktintclass.
ThetObjective Sampletquestions
Knowledge Whattistbusinesstlaw?
Lowestt levelt oft learningt andt ist mostlyt memory.tThe Whatt aretthetfourtelementstoftat negligencetclaim?
tstudenttrecognizestandtrecallstinformation.
Comprehension Whatt ist yourt understandingt oft thet conceptt of
Lowest level of understanding. The staretdecisis?
studenttparaphrasestortexplainstsomething. Whattdoestyourttextbooktmeantbytdeontology?
Application Howt wouldt at naturalt lawt thinkert respondt totthi
Studenttdemonstratesthertunderstandingtoftabstracttrul stparticulartfacttpattern?
es,tprinciples,tort generalizationstbytusingtthemttotsolve Uset at particulart casetrulettot determinet whethertthet
tlife-liketproblems. plaintifftwilltbetsuccessfultinthertclaim.
Analysis Providetthetreasoningtfortthetfollowingtstatement:t
Studentt breakst downt at communicationt tot discovertth Alltcontractstdotnottneedttotbetintwritingttotbetenf
ethiddentstructuretastwelltastassumptions. orceable.
Breaktdowntatparticulartjudge‘stopinionttotunderst
andtthetassumptionstthetjudgetistmaking.
Synthesis Explain how two particular schools
Studentt creativelyt combinest elementst andt partst totfor oftjurisprudencetaretrelated.
mtatwholetnewtstructure. Make a connection between duress
andtinsanity.
Evaluation Identifyt andttexplaint attreasoningt flawt int thetjud
Highestt levelt oft learning.t Studentt makest at critical ge‘stargument.
*t BENJAMINt BLOOM,t TAXONOMYt OFt EDUCATIONALt OBJECTIVES:t THEt CLASSIFICATIONtO
FtEDUCATIONALtGOALSt(1954).
,ThetObjective Sampletquestions
judgmenttabouttthetvaluetoftthetcommunication. Evaluatetthetfollowingtstatement:tArbitrationtandt
mediationtaretbettertformstoftdisputetresolutiontth
antlitigation.
TEACHINGtIDEAS
ConnectingttotthetCore Considertaskingtstudentsttotkeeptat―ConnectingttotthetCore‖tjournal.tThro
ughouttthetsemester,tstudentstcantrelatetconceptsttheytaretlearningtinttheirt
businesstlawtclassttotmaterialttheytaretlearningtinttheirtothertbusinesstcours
es.
Asktstudentsttottaketonetparticulartareatoftlawt(UsetExhibitt1-
1tastthetbasistforttopictchoices)tandtwritetatpapertthattexplainstintersectionst
betweentatparticulartareatoftlawtandtattleasttonetfunctionaltareatoftbusiness.
t Fort example,t at studentt couldt chooset consumert lawt andtwritetatpapert
thattlinkstatspecifictconsumertlawtissuettotcontenttfromttheirtmarketingtclas
s.
TeachingtBasics Exploretwebtsitestthattoffertinformationtabouttteachingtattthetcollegetlevel.
Harvardthastatgreattcenter.tTheirtcentertlinkstyouttotothertcenters.tIftyoutaretatnew
tteacher,tmaketsuretyoutlooktattthistsite‘stsampletsyllabi.
http://bokcenter.fas.harvard.edu/icb/icb.do
ThistsyllabusttutorialtattthetUniversitytoftMinnesotatistgreat—
ittprovidestsampletlanguagetyoutcantuse.
http://www1.umn.edu/ohr/teachlearn/
AdvancedtTeaching UsetthetCasetoftthetSpelunceantExplorersttotexploretthetschoolstoftjurisprudence.t
Thisthypotheticaltcasetexplorestthetdilemmatattrappedtteamtoftfivetspelunkerstfacest
whenttheythavettotdecidetwhetherttoteattonetofttheirtpartytintatquestttotsurvive.tOnc
etrescued,tthetcasetconsiderstwhethertthetsurvivingtspelunkerstaretguiltytoftmurder.
YoutcantgettatcopytoftthetcasetoftthetSpelunceantExplorerstthroughtthistwebtsite:
http://en.wikipedia.org/wiki/The_Case_of_the_Speluncean_Explorers
Oncetyoutgettatsensetoftthetcasetitself,texploretfurtherttotseetwhattkindstoftquestionst
youtcantasktintclass.
http://www.earlham.edu/~peters/writing/cse.htm#assignments
AtBESTtPRACTICEStTEACHINGtTIP
Peer-to-peertteaching. Thistteachingttechniquetcanthelptstudentstengagetmoretfullytwithtnewtconcepts
tthattaretreferencedtintthisttextbook.tWilberttJ.tMcKeachietstates
thatttheretarettwotfavorabletoutcomestfromthavingtstudentstplaytthetrole
,oftatteacher:
1.)tPeer-to-
peertteachingtcantstimulatetadditionaltlearningtbytthetstudenttwhot
istteaching,tsincetteachingtwilltrequiretgreatertpreparationtfortclass
.
2.)tPeertteachingtfacilitatestthetlearningtoftthosetbeingttaughttbythearin
gtinformationtfromtantindividualtothertthantthetregulartteacher.
McKeachietnotestthattittistessentialtthattfacultytmemberstsupervisetthetstude
nt-
ledtteachingtsession,tastthistmethodtoftteachingtmaytnottbetusefultiftstudentst
dotnotttaketthettasktseriously.tAtsubstantialtamounttofteducationtresearchtsu
pportstthetvaluetoftthistteachingtpractice.tIntatlegalteducationtarticle,tJ.B.tBigg
stalludesttotpeer-to-
peertteachingtastamongtthetmostteffectivetteachingtstrategiestfortengagingtstu
denttlearning:
―Thetbesttanswerttotthetquestion,t'Whattistthetmostteffectivetmethodt
oftteaching?",tistthattittdependstontthetgoal,tthetstudent,tthetcontent,ta
ndtthetteacher.tButtthetnexttbesttanswertis,t"Studentstteachingtothert
students."tTheretistatwealthtoftevidencetthattpeertteachingtistextremelyt
effectivetfortatwidetrangetoftgoals,tcontent,tandtstudentstoftdifferenttle
velstandtpersonalities‖t(144).
Totreadtmoretabouttpeer-to-peertteaching,tseetWilberttJ.tMcKeachie‘s
―TeachingtTips:tAtGuidebooktfortthetBeginningtCollegetTeacher‖tor
J.B.tBiggs‘t―TeachingtfortBettertLearning.‖
References:
WilberttJ.tMcKeachie,tTeachingtTips:tAtGuidebooktfortthetBeginningtColle
getTeacher,t7thted.,t1978.
J.B.tBiggs,tTeachingtfortBettertLearning,t2tLegaltEduc.tRev.t133t(1990-t1991).
, Chaptert2t-tBusinesstEthics
CHAPTERtOVERVIEW
ChaptertTwotexplainstthetfundamentalstoftbusinesstethicstandtsocialtresponsibility.tIttalsotprovidestatframeworkt
thattallowststudentsttotengagetwithtethicstandtsocialtresponsibilitytmaterial.t Thistframeworktistimportanttbecaus
etitttakestawaytstudents‘ttendencyttotbelievetquestionstoftethicstaretsimplytmatterstoftopinion.t Considertaskingtyo
urtstudentsttotusetthet―WPHtframework‖tthroughouttthetcourse.
LEARNINGtOBJECTIVES
Aftertreadingtthistchapter,tstudentstwilltbetabletto:
2-1tDistinguishtbetweentbusinesstethicstandtthetsocialtresponsibilitytoftbusiness.st2-
2tRecognizetthetrelationshiptbetweentbusinesstlawtandtbusinesstethics.
2-3tAnalyzetbusinesstdecisionstusingtthetWHtframework.t2-
4tAppendixt2A:tExplaintthettheoriestoftbusinesstethics.
LECTUREtNOTEStWITHtDEFINITIONS
Intthetnews… Teachingttip:tForteachtchapter,tconsidertaskingtstudentsttotrelatetcurrenttnews
titemsttotmaterialtfromtthetchapter.
Intadditionttotideaststudentstcometuptwithtonttheirtown,tconsidertweavingtintne
wststoriestprovidedtbytthettextbooktpublisher.
FortChaptertTwo,tMcGrawtHilltofferstthetfollowingtstory:
―Smoket&tMirrors:tTobaccotCompaniestHavetBeentSteadilytAddingtMoretNicot
inettotCigarettesttotMaketThemtMoretAddictive,tEspeciallyttotTeenagers.‖
ApplytthetWPHtframeworkttotthetdecisionsttobaccotcompaniestaretma
king.
Istitt―sociallytresponsible‖tforttobaccotcompaniesttotaddtnicotinettotcigar
ettes?
Shouldtlegaltrulestprovidetadditionaltprotectionsttotvulnerabletcon
sumers,tsuchtastteenagers?
2- Ethicstistthetstudytandtpracticetoftdecisionstabouttwhattistgoodtortright.
1tDistinguishtbetweentbus
Businesstethicstistthetapplicationtoftethicsttotspecialtproblemstandtopp
inesstethicstandtthetsocialt
ortunitiestexperiencedtbytbusinesspeople.tAntexampletoftatbusinesstethi
responsibilitytoftbusiness.
cstquestion:tIstthetcompanytintthetCasetOpenertdoingtthetrighttthingtwh
entittattemptsttotreducetthetcoststoftadvertisingtbytnottlistingtalltpossiblet
complicationstoftthetmedicinetfortthetconsumer?tAstexplainedtlatertintth
istchapterttheretaretseveraltwaystoftevaluatingtantethicaltdecision,tfortexa
mple,tthetGoldentRule,tthetPublictDisclosurettest,tortthetUniversalizatio
ntTest.tOnetreasonable
answer,tthus,tistcantbetprovidedtbytthetGoldentRule.tPresumably,tiftonet
weretthetconsumertoftatmedicine,tonetwouldtwantttotbe
