Solutions Manual for Business Law and Strategy, 2nd Edition by Sean Melvin and David Orozco All Chapters 1-50

Solutions Manual
Business Law and Strategy, 2nd Edition

by Sean Melvin and David Orozco All Chapters 1-50

, Chapteru1
LegaluFoundationsuanduThinkinguStrategically

CHAPTERuOVERVIEW
Thisuchapterudiscussesuimportantutouchstonesuforuunderstandingutheulegaluprocessuanduide
ntifyingulegaluissuesuthatuariseuinutheubusinessuenvironment.

KEYuLEARNINGuOUTCOMES
Outcome Accreditatio
nu Categories
Articulateuauworkingudefinitionuofulawuanduexplainuitsuorigins. Knowledge
Categorizeuvariousulawsuanduarticulateutheufunctionsuofulawuandulegalusyste Application
ms.
Explain utheuimportanceuandubenefitsuofulegaluawarenessuforubusinessuow Application
nersuandumanagersuinucreatingustrategyuanduaddinguvalueutouaucompanyua
ndutheuroleu ofucounseluinudecisionumaking.
Differentiateubetweenuanduprovideuexamplesuofuprimaryuandusecon Analytica
daryu sourcesuofuAmericanulaw. lu Thinking
Applyutheulegaludoctrineuofustareudecisisuinuaubusinessucontext. Application


TeachinguTip:uManageableuMaterial

Studentsuareuoftenuoverwhelmeduwithutheirufirstuintroductionutoulaw.uItuisuimportantutoucoverutheu
materialuinumanageableuamountsuanduuseulotsuofuexamples,ubothurealuanduhypothetical.

I. INTRODUCTIONuTOuLAWu[p.u3]
Pointsutouemphasize:

• Lawuisuaubodyuofurulesuofuactionuoruconductuprescribedubyucontrollinguauthorit
yuanduhavingulegalubindinguforce.u(Black’suLawuDictionary)
• Lawumayubeusetudownuinuwrittenucodeuorutakeutheuformuofujudicialudecisionsuanduactio
nsuofu governmentuagencies.
• Theucommonucharacteristicuofustateulawuisuthatuitucreatesuduties,uobligations,uan
durightsu thatureflectuaccepteduviewsuofuaugivenusociety.
• Importantutoubusiness,utheulawuprovidesuaumechanismutouresolveudisputesuarisin
gufromudutiesuandurightsuanduallowsupartiesutouenforceupromisesuinuaucourtuofulaw
.

II. CATEGORIESuOFuLAWu[p.u3]
Pointsutouemphasize:

• Ituisuhelpfulutoubreakdownulawuintoubroaducategoriesubaseduonuclassification
sutouauparticularufunctionuoruaurightuaffordedubyulaw.




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, • Tableu1.1usetsuoututheuvariousucategoriesuofulawuanduprovidesuexamples.




• Theseucategoriesuareunotumutuallyuexclusive.uForuexample,uaupersonuwhoupunchesua
notheru personuinutheufaceuhasucommittedubothuaucriminaluactu(theucrimeuofuassaultua
ndubattery)uanduauciviluwrongu(theutortuofuassaultuandubattery).


A. LanguageuofutheuLawu[p.u4]
Pointsutouemphasize:

• Ituisuvitaluthatubusinessustudentsuhaveuaubasicuunderstandinguofulegaluterminolog
yuthatu mightubeuuseduinuaubusinessucontextuinutheirufutureucareers.
• Black’suLawuDictionaryuisutheuauthoritativeusourceuforulegaluterms.


B. FunctionsuofuLawu[p.u4]
Pointsutouemphasize:

• Lawuprovidesuforuausystemuofuorderuthatudefinesurulesuofuconductuanduleviesupunis
hmentu foruviolationuofuthoseurules.
• Oneupurposeuofulawuisutouensureuconsistencyuandufairnessuandutoupromoteuequal
ityuandu justiceuinusociety.
• Anotherupurposeuofulawuisutoucreateuausystemuforuresolvingudisputesubyuprovidinguau
basisu forudecidingutheulegaluinterestuandurightsuofutheuparties.
• Inubusiness,ulawuservesuasuanuimportantucatalystuforucommerceubyupromotingugoo
dufaithu dealinguamountumerchantsuanduconsumersuandugivingusomeudegreeuofureli
abilityuforu businessuplanninguanducommercialutransactions.


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, III. LAWuINuCONTEXT:uBUSINESSuANDuSTRATEGYu[p.u5]
Pointsutouemphasize:

• Theufirstusteputoulearninguhowulegaludecisionsushouldubeumadeuinuaubusinessuconte
xtuisutou developulegaluinsightubyuunderstandingutheufundamentalsuofulegalutheoryuan
duhowutheyumayuimpactubusiness.
• Theusecondustepuisulearningutouapplyulegalutheoriesuinupracticeuandurecognizinguthatu
havingu legaluawarenessumayupresentuopportunitiesuforuproactiveubusinessuplanning.
uThisuawarenessumayuempowerubusinessuownersuandumanagersutoulimituliability,ugai


nuaucompetitiveuedge,uanduadduvalueutoutheubusiness.
• Managersuwhouworkucooperativelyuwithuattorneysumakeubetterubusinessudecisions.

A. BusinessuSwimminguinuauSeauofuLaw:uDefininguStrategyu[p.u5]
Pointsutouemphasize:
AccordingutouHarvarduBusinessuprofessoruConstanceuBagley,u“businessuisuswimminguisuau
seauofu law.”uConsiderutheufollowingucurrenturegulatoryutrends:

• NavigatinguincreaseduU.S.uanduforeignuregulationu(e.g.,uregulationuofufinancialumark
ets,u EuropeanuUnionu(EU)uregulationuofuantitrustuanduconsumeruprivacy).
• Varyinguinternationaluregimesuinutradeuanduintellectualupropertyu(e.g.,uWorlduIntellec
tualu PropertyuOrganizationuversusudevelopingunations).
• Stifferupenaltiesuforunoncomplianceu(e.g.uAmazonuwasurecentlyufineduUS$887umillio
nubyu anuEUuprivacyuregulatoruforuviolationsurelatedutouitsuadvertisingupolicies).
• Increaseduofficeruandudirectoruliabilityu(e.g.,uliabilityuforudataubreachesuanduransom
wareuattacks).
• Substantialuincreaseuinuattorney-directorsuforuU.S.-baseducorporateuboards.
• Changingulegalulandscapeu(e.g.,uuncertaintyusurroundinguuseuofuCovid-
19urelateduwaiversu anduworkplaceurules).

B. UsinguStrategyuinuLegaluDecisionsu[p.u6]
Pointsutouemphasize:

• Austrategyurefersutouausetuofuguideupostsucreatedutouachieveuanuoveralluobjective.
• Theulegaluenvironmentuisufulluofuuncertaintyuregardingutheuleveluofucomplianceuan
dutheuleveluofuenforcement.
• Businessuleadersuoftenupursueulegalustrategiesusuchuasu(1)unoncompliance,u(2)uavoida
nce,
(3)uprevention,uandu(4)uvalueucreationuorulegalucompetitiveuadvantage.
• Businessuownersuanduexecutivesudeployutacticsutouachieveutheuobjectivesuasupar
tuofutheustrategy.




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