Solution Manual
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,Chapter 1 - An Introduction to Dynamic Business Law
BG BG BG BG BG BG BG BG
CHAPTER OVERVIEW BG
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for inform
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ation about how business law intersects with the six functional areas of business. The authors encourage stud
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ents to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study, inclu
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ding corporate management, production and transportation, marketing, research and development, accountin
BG BG BG BG BG BG BG BG BG BG
g and finance, and human resource management.
BG BG BG BG BG BG
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage st
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
udents to integrate their business law knowledge with knowledge they are acquiring from their other business
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests t
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
eaching ideas for both beginning and experienced teachers.
BG BG BG BG BG BG BG
LEARNING OBJECTIVES BG
After reading this chapter, students will be able to:
BG BG BG BG BG BG BG BG
1-1 Define business law. BG BG
1-2 Relate the functional areas of business to the relevant areas of business law1-
BG BG BG BG BG BG BG BG BG BG BG BG B
G
3 Recall the purposes of law.
BG BG BG BG BG
1-4 Distinguish among types of law. BG BG BG BG
1-5 Differentiate between sources of the law. BG BG BG BG BG
1-6 Identify the various schools of jurisprudence.
BG BG BG BG BG
LECTURE NOTES WITH DEFINITIONS BG BG BG
In the news…
BG BG Teaching tip: For each chapter, consider asking students to relate current newsite
BG BG BG BG BG BG BG BG BG BG BG B
G
ms to material from the chapter.
BG BG BG BG BG
In addition to ideas students come up with on their own, consider weaving in
B G B G B G BG B G B G B G B G BG B G B G B G B G B
G
news stories provided by the McGraw Hill.
BG BG BG BG BG BG
For Chapter One, McGraw Hill offers the following stories:
BG BG BG BG BG BG BG BG
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronge
BG BG BG BG BG BG BG BG BG BG B
G
r Restrictions on Where You Can Smoke‖
BG BG BG BG BG BG
• Have states gone too far in banning smoking? BG BG BG BG BG BG BG
, • Whose interests are state legislatures looking out for in banningsmo
B G B G B G B G B G B G B G B G B G B
G
king?
―College Officer Dealings With Lenders Scrutinized.‖
BG BG BG BG BG
• Should regulators take a more careful look at college officers? BG BG BG BG BG BG BG BG BG
• Why created changes in the ways college officers interact with lenders?
BG BG BG BG BG BG BG BG BG BG
1- Business law consists of the enforceable rules of conduct that governcom
B G B G B G B G B G B G B G B G B G B G B
G
1 Define businesslaw.
B G B G B
G mercial relationships. BG
1- Business law applies to the six functional areas of business:
BG BG BG BG BG BG BG BG BG
2 Relate the functi
BG BG BG
• Corporate management BG
onal areas ofbusine
• Production and transportation
BG BG B
G
ss to the relevant a
BG BG BG BG
BG BG
reas of business la
BG BG BG
• Marketing
w. • Research and development BG BG
• Accounting and finance BG BG
• Human resource management BG BG
1- • Providing order BG
3 Recall the purp
BG BG BG
• Serving as an alternative to fighting BG BG BG BG BG
oses of law.
• Facilitating a sense that change is possible
BG BG
BG BG BG BG BG BG
• Encouraging social justice BG BG
• Guaranteeing personal freedoms BG BG
• Serving as a moral guide BG BG BG BG
1- One way to classify law:
BG BG BG BG
4 Distinguish among
BG BG
Private law involves disputes between private individuals or groups.
BG BG BG BG BG BG BG BG
types of law.
BG BG BG
Public law involves disputes between private individuals or groups and theirg
B G B G B G B G B G B G B G B G B G B G B
G
overnment.
A second way to classify law:
BG BG BG BG BG
Civil law involves the rights and responsibilities involved in relationshipsbetween
BG BG BG BG BG BG BG BG BG B
G BG
persons and between persons and their government.
BG BG BG BG BG BG
Criminal law involves incidents in which someone commits an act against thepu
BG BG BG BG BG BG BG BG BG BG BG B
G
blic as a unit.
BG BG BG
Teaching tip: Ask students to give an example of a fact situation that led t
B G B G B G B G B G B G B G B G B G B G B G B G B G B G
oboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
B
G BG BG BG BG BG BG BG BG BG
1- Sources of business law are: BG BG BG BG
5 Differentiate bet
BG BG
1. Constitutions
ween sources ofthe BG BG B
G BG
Constitutional law refers to the general limits and powers of governments ass
law.
B G B G BG B G BG B G BG B G BG BG BG B
G
tated in their written constitutions.
BG BG BG BG
2. Statutes or legislative actions BG BG BG
3. Cases
Case law (or common law) is the collection of legal interpretations made byj
B G B G B G B G B G B G B G B G B G B G B G B G B
G
udges.
Stare decisis means courts are relying on precedent.
BG BG BG BG BG BG BG
Teaching tip: The first time your students encounter an appellate case in the
B G B G B G B G B G B G B G B G B G B G B G B G
, readings, show them what stare decisis looks like in the context of a real case.
BG BG BG BG BG BG BG BG BG BG BG BG BG BG
4. Administrative law BG
Administrative law is the collection of rules and decisions made byadmi B G B G B G B G B G B G B G B G B G B G B
G
nistrative agencies. BG
5. Treaties
A treaty is a binding agreement between two states or internationalorg
B G B G B G B G B G B G B G B G B G B G B
G
anizations.
6. Executive orders
B G BG
An executive order is a directive that comes from the president or stategovernor.
BG BG BG BG BG BG BG BG BG BG BG BG B
G
1- Schools of jurisprudence are common guides to legal interpretation.
BG BG BG BG BG BG BG BG
6 Identify the vari
BG BG BG
• Natural law—certain ethical laws and principles are morally right and BG BG BG BG BG BG BG BG BG
ous schools ofjuris
BG BG B
G
―above‖ the laws devised by humans. BG BG BG BG BG
prudence.
• Legal Positivism— B G
assumes the legitimate political authority deservesour obedience when i B G B G B G B G B G B
G BG BG BG
t issues a rule. BG BG BG
• Identification with the Vulnerable— BG BG BG
emphasis on fairness and lookingout for those with the least power. BG BG BG BG B
G BG BG BG BG BG BG
• Historical School/Tradition—emphasis on the use of stare decisis. BG BG BG BG BG BG BG
• Legal Realism—judges consider social and economic conditions. BG BG BG BG BG BG
• Cost-benefit Analysis— BG
make calculations to maximize the ratio ofbenefits to costs.
BG BG BG BG BG BG B
G BG BG
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link belo
BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BG
w) to make the schools of jurisprudence come alive.
BG BG BG BG BG BG BG BG
Global and Comp
BG BG At this point in the textbook, students should merely have an awareness that globa
BG BG BG BG BG BG BG BG BG BG BG BG BG
arative LawBG lization has affected the scope of business law. Consequently, we highlight the de
BG BG BG BG BG BG BG BG B G BG BG BG
finitions to the following key terms that will come up later in the book:
BG BG BG BG BG BG BG B G BG BG BG BG BG
• Trade, i.e. the exchange of goods or services, on a global scale has ledt
BG BG BG BG BG BG BG BG BG BG BG BG BG B
G
o the creation of trade agreements that serve as de facto rules governingthe
BG BG BG BG BG BG BG BG BG BG BG BG B
G
global business environment.
BG BG BG
• Comparative law— BG
the field of law that studies and compares laws in different countries.
BG BG BG BG BG BG BG BG BG BG BG
Appendix on Critical BG BG B
G Critical thinking includes the application of evaluative standards to assess the quali
BG BG BG BG BG BG BG BG BG BG BG
Thinking and Busines
BG BG ty or the reasoning being offered to support the conclusion. Critical thinkers will f
BG BG BG BG BG BG BG BG BG BG BG BG BG
s ollow this pattern of careful thinking when they read an argument:
BG BG BG BG BG BG BG BG B G BG
1. Find the facts. BG BG
2. Look for the issue. BG BG BG
3. Identify the judge‘s reasons and conclusion. BG BG BG BG BG
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
BG BG BG BG BG BG BG BG BG BG BG BG
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
BG BG BG BG BG BG BG BG
• Look for potential ambiguity. BG BG BG
• Consider the strength of analogies. BG BG BG BG
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,Chapter 1 - An Introduction to Dynamic Business Law
BG BG BG BG BG BG BG BG
CHAPTER OVERVIEW BG
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for inform
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ation about how business law intersects with the six functional areas of business. The authors encourage stud
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ents to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study, inclu
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
ding corporate management, production and transportation, marketing, research and development, accountin
BG BG BG BG BG BG BG BG BG BG
g and finance, and human resource management.
BG BG BG BG BG BG
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage st
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
udents to integrate their business law knowledge with knowledge they are acquiring from their other business
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests t
BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG
eaching ideas for both beginning and experienced teachers.
BG BG BG BG BG BG BG
LEARNING OBJECTIVES BG
After reading this chapter, students will be able to:
BG BG BG BG BG BG BG BG
1-1 Define business law. BG BG
1-2 Relate the functional areas of business to the relevant areas of business law1-
BG BG BG BG BG BG BG BG BG BG BG BG B
G
3 Recall the purposes of law.
BG BG BG BG BG
1-4 Distinguish among types of law. BG BG BG BG
1-5 Differentiate between sources of the law. BG BG BG BG BG
1-6 Identify the various schools of jurisprudence.
BG BG BG BG BG
LECTURE NOTES WITH DEFINITIONS BG BG BG
In the news…
BG BG Teaching tip: For each chapter, consider asking students to relate current newsite
BG BG BG BG BG BG BG BG BG BG BG B
G
ms to material from the chapter.
BG BG BG BG BG
In addition to ideas students come up with on their own, consider weaving in
B G B G B G BG B G B G B G B G BG B G B G B G B G B
G
news stories provided by the McGraw Hill.
BG BG BG BG BG BG
For Chapter One, McGraw Hill offers the following stories:
BG BG BG BG BG BG BG BG
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronge
BG BG BG BG BG BG BG BG BG BG B
G
r Restrictions on Where You Can Smoke‖
BG BG BG BG BG BG
• Have states gone too far in banning smoking? BG BG BG BG BG BG BG
, • Whose interests are state legislatures looking out for in banningsmo
B G B G B G B G B G B G B G B G B G B
G
king?
―College Officer Dealings With Lenders Scrutinized.‖
BG BG BG BG BG
• Should regulators take a more careful look at college officers? BG BG BG BG BG BG BG BG BG
• Why created changes in the ways college officers interact with lenders?
BG BG BG BG BG BG BG BG BG BG
1- Business law consists of the enforceable rules of conduct that governcom
B G B G B G B G B G B G B G B G B G B G B
G
1 Define businesslaw.
B G B G B
G mercial relationships. BG
1- Business law applies to the six functional areas of business:
BG BG BG BG BG BG BG BG BG
2 Relate the functi
BG BG BG
• Corporate management BG
onal areas ofbusine
• Production and transportation
BG BG B
G
ss to the relevant a
BG BG BG BG
BG BG
reas of business la
BG BG BG
• Marketing
w. • Research and development BG BG
• Accounting and finance BG BG
• Human resource management BG BG
1- • Providing order BG
3 Recall the purp
BG BG BG
• Serving as an alternative to fighting BG BG BG BG BG
oses of law.
• Facilitating a sense that change is possible
BG BG
BG BG BG BG BG BG
• Encouraging social justice BG BG
• Guaranteeing personal freedoms BG BG
• Serving as a moral guide BG BG BG BG
1- One way to classify law:
BG BG BG BG
4 Distinguish among
BG BG
Private law involves disputes between private individuals or groups.
BG BG BG BG BG BG BG BG
types of law.
BG BG BG
Public law involves disputes between private individuals or groups and theirg
B G B G B G B G B G B G B G B G B G B G B
G
overnment.
A second way to classify law:
BG BG BG BG BG
Civil law involves the rights and responsibilities involved in relationshipsbetween
BG BG BG BG BG BG BG BG BG B
G BG
persons and between persons and their government.
BG BG BG BG BG BG
Criminal law involves incidents in which someone commits an act against thepu
BG BG BG BG BG BG BG BG BG BG BG B
G
blic as a unit.
BG BG BG
Teaching tip: Ask students to give an example of a fact situation that led t
B G B G B G B G B G B G B G B G B G B G B G B G B G B G
oboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
B
G BG BG BG BG BG BG BG BG BG
1- Sources of business law are: BG BG BG BG
5 Differentiate bet
BG BG
1. Constitutions
ween sources ofthe BG BG B
G BG
Constitutional law refers to the general limits and powers of governments ass
law.
B G B G BG B G BG B G BG B G BG BG BG B
G
tated in their written constitutions.
BG BG BG BG
2. Statutes or legislative actions BG BG BG
3. Cases
Case law (or common law) is the collection of legal interpretations made byj
B G B G B G B G B G B G B G B G B G B G B G B G B
G
udges.
Stare decisis means courts are relying on precedent.
BG BG BG BG BG BG BG
Teaching tip: The first time your students encounter an appellate case in the
B G B G B G B G B G B G B G B G B G B G B G B G
, readings, show them what stare decisis looks like in the context of a real case.
BG BG BG BG BG BG BG BG BG BG BG BG BG BG
4. Administrative law BG
Administrative law is the collection of rules and decisions made byadmi B G B G B G B G B G B G B G B G B G B G B
G
nistrative agencies. BG
5. Treaties
A treaty is a binding agreement between two states or internationalorg
B G B G B G B G B G B G B G B G B G B G B
G
anizations.
6. Executive orders
B G BG
An executive order is a directive that comes from the president or stategovernor.
BG BG BG BG BG BG BG BG BG BG BG BG B
G
1- Schools of jurisprudence are common guides to legal interpretation.
BG BG BG BG BG BG BG BG
6 Identify the vari
BG BG BG
• Natural law—certain ethical laws and principles are morally right and BG BG BG BG BG BG BG BG BG
ous schools ofjuris
BG BG B
G
―above‖ the laws devised by humans. BG BG BG BG BG
prudence.
• Legal Positivism— B G
assumes the legitimate political authority deservesour obedience when i B G B G B G B G B G B
G BG BG BG
t issues a rule. BG BG BG
• Identification with the Vulnerable— BG BG BG
emphasis on fairness and lookingout for those with the least power. BG BG BG BG B
G BG BG BG BG BG BG
• Historical School/Tradition—emphasis on the use of stare decisis. BG BG BG BG BG BG BG
• Legal Realism—judges consider social and economic conditions. BG BG BG BG BG BG
• Cost-benefit Analysis— BG
make calculations to maximize the ratio ofbenefits to costs.
BG BG BG BG BG BG B
G BG BG
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link belo
BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BGBG BG
w) to make the schools of jurisprudence come alive.
BG BG BG BG BG BG BG BG
Global and Comp
BG BG At this point in the textbook, students should merely have an awareness that globa
BG BG BG BG BG BG BG BG BG BG BG BG BG
arative LawBG lization has affected the scope of business law. Consequently, we highlight the de
BG BG BG BG BG BG BG BG B G BG BG BG
finitions to the following key terms that will come up later in the book:
BG BG BG BG BG BG BG B G BG BG BG BG BG
• Trade, i.e. the exchange of goods or services, on a global scale has ledt
BG BG BG BG BG BG BG BG BG BG BG BG BG B
G
o the creation of trade agreements that serve as de facto rules governingthe
BG BG BG BG BG BG BG BG BG BG BG BG B
G
global business environment.
BG BG BG
• Comparative law— BG
the field of law that studies and compares laws in different countries.
BG BG BG BG BG BG BG BG BG BG BG
Appendix on Critical BG BG B
G Critical thinking includes the application of evaluative standards to assess the quali
BG BG BG BG BG BG BG BG BG BG BG
Thinking and Busines
BG BG ty or the reasoning being offered to support the conclusion. Critical thinkers will f
BG BG BG BG BG BG BG BG BG BG BG BG BG
s ollow this pattern of careful thinking when they read an argument:
BG BG BG BG BG BG BG BG B G BG
1. Find the facts. BG BG
2. Look for the issue. BG BG BG
3. Identify the judge‘s reasons and conclusion. BG BG BG BG BG
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
BG BG BG BG BG BG BG BG BG BG BG BG
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
BG BG BG BG BG BG BG BG
• Look for potential ambiguity. BG BG BG
• Consider the strength of analogies. BG BG BG BG
