TEST BANK
Test Bank for Dynamic Business Law The Essentials,
5th Edition
U
pJg
Nra
Ud
Res
StE
uv
ia
TEST BANK
,Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and
Business Ethics
1. CHAPTER OVERVIEW
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which business
law intersects with the six functional areas of business. Throughout the textbook, the authors will
encourage students to ―connect to the core,‖ and remember the ways in which law intersects with
U
other areas of study, including corporate management, production and transportation, marketing,
research and development, accounting and finance, and human resource management.
pJg
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that
encourage students to integrate their business law knowledge with knowledge they are acquiring
from their other business classes. The manual also encourages professors to improve their
teaching skills. Finally, the manual suggests teaching ideas for both beginning and experienced
Nra
teachers.
2. LEARNING OBJECTIVES
Ud
After reading this chapter, students will be able to answer the following questions:
Res
1. What is business law?
2. How does business law relate to business education?
3. What are the purposes of law?
4. What are alternative ways to classify law?
StE
5. What are the sources of law?
6. What are the various schools of jurisprudence?
uv
3. LECTURE NOTES WITH DEFINITIONS
a. In the news…
Teaching tip: For each chapter, consider asking students to relate current news items to material
ia
from the chapter.
In addition to ideas students come up with on their own, consider weaving in news stories
provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD, and on the
publisher‘s web site.
,For Chapter One, McGraw-Hill offers the following stories:
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting Stronger Restrictions
on Where You Can Smoke‖
• Have states gone too far in banning smoking?
• Whose interests are state legislatures looking out for in banning smoking?
―College Officer Dealings With Lenders Scrutinized.‖
• Should regulators take a more careful look at college officers?
• Why created changes in the ways college officers interact with lenders?
U
b. What is business law?
Business law consists of the enforceable rules of conduct that govern the actions of buyers and
sellers in market exchanges.
pJg
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
• Management
• Production and transportation
Nra
• Marketing
• Research and development
• Accounting and finance
Ud
• Human resource management
d. What are the purposes of law?
Res
• Providing order
• Serving as an alternative to fighting
• Facilitating a sense that change is possible
StE
• Encouraging social justice
• Guaranteeing personal freedoms
• Serving as a moral guide
uv
e. What are alternative ways to classify law?
One way to classify law:
Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their government.
ia
A second way to classify law:
Civil law is the body of laws that govern the rights and responsibilities either between persons or
between persons and their government.
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
, Teaching tip: Ask students to give an example of a fact situation that led to both criminal and
civil lawsuits, e.g., the O.J. Simpson trials.
f. What are the sources of law?
Sources of business law are:
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
written constitutions.
2. Statutes or legislative actions
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
legislatures.
3. Cases
U
Case law (or common law) is the collection of legal interpretations made by judges.
Precedent is a tool used by judges to make rulings on cases on the basis of key similarities to
previous cases.
pJg
Stare decisis is a principle stating that rulings made in higher courts are binding precedent for
lower courts.
Teaching tip: The first time your students encounter an appellate case in the readings, show
them what stare decisis looks like in the context of a real case.
4. Administrative law
Nra
Administrative law is the collection of rules and decisions made by administrative agencies to
fill in particular details missing from constitutions and statutes.
5. Treaties
Ud
A treaty is a binding agreement between two states or international organizations.
6. Executive orders
An executive order is a directive that comes from the president or state governor.
Res
g. What are the various schools of legal interpretation?
Some schools of legal interpretation include:
• Identification with the Vulnerable— emphasis on fairness and looking out for those
StE
with the least power.
• Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
• Legal Realism—judges consider context such as social and economic conditions.
uv
• Cost-benefit Analysis—emphasis is on assigning monetary values to costs and benefits
of the law in order to make calculations to maximize the ratio of benefits to costs.
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make the
ia
schools of jurisprudence come alive.
h. Appendix on Critical Thinking and Business Law
Critical thinking includes the application of evaluative standards to assess the quality or the
reasoning being offered to support the conclusion. Critical thinkers will follow this pattern of
careful thinking when they read an argument:
1. Find the facts.
2. Look fore the issue.
Test Bank for Dynamic Business Law The Essentials,
5th Edition
U
pJg
Nra
Ud
Res
StE
uv
ia
TEST BANK
,Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and
Business Ethics
1. CHAPTER OVERVIEW
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which business
law intersects with the six functional areas of business. Throughout the textbook, the authors will
encourage students to ―connect to the core,‖ and remember the ways in which law intersects with
U
other areas of study, including corporate management, production and transportation, marketing,
research and development, accounting and finance, and human resource management.
pJg
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that
encourage students to integrate their business law knowledge with knowledge they are acquiring
from their other business classes. The manual also encourages professors to improve their
teaching skills. Finally, the manual suggests teaching ideas for both beginning and experienced
Nra
teachers.
2. LEARNING OBJECTIVES
Ud
After reading this chapter, students will be able to answer the following questions:
Res
1. What is business law?
2. How does business law relate to business education?
3. What are the purposes of law?
4. What are alternative ways to classify law?
StE
5. What are the sources of law?
6. What are the various schools of jurisprudence?
uv
3. LECTURE NOTES WITH DEFINITIONS
a. In the news…
Teaching tip: For each chapter, consider asking students to relate current news items to material
ia
from the chapter.
In addition to ideas students come up with on their own, consider weaving in news stories
provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD, and on the
publisher‘s web site.
,For Chapter One, McGraw-Hill offers the following stories:
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting Stronger Restrictions
on Where You Can Smoke‖
• Have states gone too far in banning smoking?
• Whose interests are state legislatures looking out for in banning smoking?
―College Officer Dealings With Lenders Scrutinized.‖
• Should regulators take a more careful look at college officers?
• Why created changes in the ways college officers interact with lenders?
U
b. What is business law?
Business law consists of the enforceable rules of conduct that govern the actions of buyers and
sellers in market exchanges.
pJg
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
• Management
• Production and transportation
Nra
• Marketing
• Research and development
• Accounting and finance
Ud
• Human resource management
d. What are the purposes of law?
Res
• Providing order
• Serving as an alternative to fighting
• Facilitating a sense that change is possible
StE
• Encouraging social justice
• Guaranteeing personal freedoms
• Serving as a moral guide
uv
e. What are alternative ways to classify law?
One way to classify law:
Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their government.
ia
A second way to classify law:
Civil law is the body of laws that govern the rights and responsibilities either between persons or
between persons and their government.
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
, Teaching tip: Ask students to give an example of a fact situation that led to both criminal and
civil lawsuits, e.g., the O.J. Simpson trials.
f. What are the sources of law?
Sources of business law are:
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
written constitutions.
2. Statutes or legislative actions
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
legislatures.
3. Cases
U
Case law (or common law) is the collection of legal interpretations made by judges.
Precedent is a tool used by judges to make rulings on cases on the basis of key similarities to
previous cases.
pJg
Stare decisis is a principle stating that rulings made in higher courts are binding precedent for
lower courts.
Teaching tip: The first time your students encounter an appellate case in the readings, show
them what stare decisis looks like in the context of a real case.
4. Administrative law
Nra
Administrative law is the collection of rules and decisions made by administrative agencies to
fill in particular details missing from constitutions and statutes.
5. Treaties
Ud
A treaty is a binding agreement between two states or international organizations.
6. Executive orders
An executive order is a directive that comes from the president or state governor.
Res
g. What are the various schools of legal interpretation?
Some schools of legal interpretation include:
• Identification with the Vulnerable— emphasis on fairness and looking out for those
StE
with the least power.
• Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
• Legal Realism—judges consider context such as social and economic conditions.
uv
• Cost-benefit Analysis—emphasis is on assigning monetary values to costs and benefits
of the law in order to make calculations to maximize the ratio of benefits to costs.
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make the
ia
schools of jurisprudence come alive.
h. Appendix on Critical Thinking and Business Law
Critical thinking includes the application of evaluative standards to assess the quality or the
reasoning being offered to support the conclusion. Critical thinkers will follow this pattern of
careful thinking when they read an argument:
1. Find the facts.
2. Look fore the issue.
