Solution Manual
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,ChapterL1L-LAnLIntroductionLtoLDynamicLBusinessLLaw
CHAPTERLOVERVIEW
ChapterL OneL laysL theL foundationL forL theL textbook.L MakeL sureL youL lookL onL theL publisher‘s
L webL siteL forL informationLaboutLhowLbusinessLlawLintersectsLwithLtheLsixLfunctionalLareasLofLb
usiness.LTheLLauthorsL encourageLstudentsLtoL―connectLtoLtheLcore,‖LandLrememberLtheLwaysLin
LwhichLlawLintersectsLwithLotherLareasL ofL study,L includingL corporateL management,L production
L andL transportation,L marketing,L researchL andL development,LaccountingLandLfinance,LandLhum
anLresourceLmanagement.
ThisL manualL supportsL theL ―connectingL toL theL core‖L themeL byL givingL ideasL forL assignmentsL t
hatL encourageL studentsLtoL integrateL theirL businessL lawL knowledgeL withL knowledgeL theyL ar
eL acquiringL fromL theirL otherL businessLclasses.LTheLmanualLalsoLencouragesLprofessorsLtoLimpr
oveLtheirLteachingLskills.LFinally,LtheL manualL suggestsLteachingLideasLforLbothLbeginningLandLe
xperiencedLteachers.
LEARNINGLOBJECTIVES
AfterLreadingLthisLchapter,LstudentsLwillLbeLableLto:
1-1 DefineLbusinessLlaw.
1-2 RelateLtheLfunctionalLareasLofLbusinessLtoLtheLrelevantLareasLofLbu
sinessLlaw1-L 3LRecallLtheLpurposesLofLlaw.
1-4 DistinguishLamongLtypesLofLlaw.
1-5 DifferentiateLbetweenLsourcesLofLtheLlaw.
1-6 IdentifyLtheLvariousLschoolsLofLjurisprudence.
LECTURELNOTESLWITHLDEFINITIONS
InLtheLnews… TeachingL tip:LForLeachLchapter,LconsiderLaskingLstudentsLtoLrelateLcur
rentLnewsL itemsLtoLmaterialLfromLtheLchapter.
InL additionL toL ideasL studentsL comeL upL withL onL theirL own,L consider
L weavingL inL newsLstoriesLprovidedLbyLtheLMcGrawLHill.
ForLChapterLOne,LMcGrawLHillLoffersLtheLfollowingLstories:
―SmokingLBan:LTobaccoLTyrants:LGoneLTooLFar?LManyLStatesLAre
LPuttingL StrongerLRestrictionsLonLWhereLYouLCanLSmoke‖
• HaveLstatesLgoneLtooLfarLinLbanningLsmoking?
, • WhoseL interestsL areL stateL legislaturesL lookingL outL forL in
L banningL smoking?
―CollegeLOfficerLDealingsLWithLLendersLScrutinized.‖
• ShouldLregulatorsLtakeLaLmoreLcarefulLlookLatLcollegeLofficers?
• WhyLcreatedLchangesLinLtheLwaysLcollegeLofficersLinteractLwithLle
1- nders?
BusinessL lawL consistsL ofL theL enforceableL rulesL ofL conductL tha
1L DefineL business tL governLcommercialLrelationships.
Llaw.
1- BusinessLlawLappliesLtoLtheLsixLfunctionalLareasLofLbusiness:
2LRelateLtheLfu • CorporateLmanagement
nctionalLareasLo • ProductionLandLtransportation
fL businessLtoLth
eL relevantLarea • Marketing
sLofLbusinessLla • ResearchLandLdevelopment
w. • AccountingLandLfinance
• HumanLresourceLmanagement
1- • ProvidingLorder
3LRecallLtheL • ServingLasLanLalternativeLtoLfighting
purposesLofLla • FacilitatingLaLsenseLthatLchangeLisLpossible
w.
• EncouragingLsocialLjustice
• GuaranteeingLpersonalLfreedoms
• ServingLasLaLmoralLguide
1- OneLwayLtoLclassifyLlaw:
4LDistinguishLam PrivateLlawLinvolvesLdisputesLbetweenLprivateLindividualsLorLgroups.
ongLtypesLofLlaw PublicL lawL involvesL disputesL betweenLprivateL individualsL orLgroups
. LandLtheirLgovernment.
ALsecondLwayLtoLclassifyLlaw:
CivilLlawLinvolvesLtheLrightsLandLresponsibilitiesLinvolvedLinLrelationshi
psbetweenL personsLandLbetweenLpersonsLandLtheirLgovernment.
CriminalLlawLinvolvesLincidentsLinLwhichLsomeoneLcommitsLanLactLag
ainstLtheL publicLasLaLunit.
TeachingL tip:L AskLstudentsL toLgiveL anLexampleL ofL aLfactLsituationLt
hatLledL toL bothLcriminalLandLcivilLlawsuits,Le.g.,LtheLO.J.LSimpsonLtrial
1- s.
SourcesLofLbusinessLlawLare:
5LDifferentiateL 1. Constitutions
betweenLsources ConstitutionalL lawL refersLtoLtheLgeneralLlimitsLandLpowersLofLgove
LofLtheLlaw. rnmentsL asL statedLinLtheirLwrittenLconstitutions.
2. StatutesLorLlegislativeLactions
3. Cases
CaseL lawL (orLcommonLlaw)LisLtheLcollectionLofLlegalLinterpretations
L madeL byL judges.
StareLdecisisLmeansLcourtsLareLrelyingLonLprecedent.
TeachingL tip:L TheLfirstLtimeL yourLstudentsL encounterLanLappellateLcase
LinLthe
, readings,LshowLthemLwhatLstareLdecisisLlooksLlikeLinLtheLcontextLofLaLreal
Lcase.
4. AdministrativeLlaw
AdministrativeL lawL isL theL collectionL ofL rulesL andL decisionsL
madeL byL administrativeLagencies.
5. Treaties
AL treatyL isL aLLbindingL agreementL betweenL twoL statesL orL in
ternationalLorganizations.
6.LL ExecutiveLorders
AnLexecutiveLorderLisLaLdirectiveLthatLcomesLfromLtheLpresidentLorLstate
1- governor.
SchoolsLofLjurisprudenceLareLcommonLguidesLtoLlegalLinterpretation.
6LIdentifyLtheLv • NaturalLlaw—
ariousLschoolsLo certainLethicalLlawsLandLprinciplesLareLmorallyLrightLand
fLjurisprudence. ―above‖LtheLlawsLdevisedLbyLhumans.
• LegalL Positivism—
assumesL theL legitimateL politicalL authorityL deservesL ourLobedi
enceLwhenLitLissuesLaLrule.
• IdentificationLwithLtheLVulnerable—
emphasisLonLfairnessLandLlookingLoutLforLthoseLwithLtheLleastLp
ower.
• HistoricalLSchool/Tradition—emphasisLonLtheLuseLofLstareLdecisis.
• LegalLRealism—judgesLconsiderLsocialLandLeconomicLconditions.
• Cost-benefitLAnalysis—
makeLcalculationsLtoLmaximizeLtheLratioLofL benefitsLtoLcost
GlobalLandLC AtL thisLs.pointL inL theL textbook,L studentsL shouldL merelyL haveL anL awar
omparativeLLa enessL thatL globalizationLhasLaffectedLtheLscopeLofLbusinessLlaw.LCons
w equently,LweLhighlightL
TeachingL tip:L ConsiderLtheLdefinitionsLtoLtheLfollowingLkeyLtermsLthatLw
usingL ―TheL CaseL ofL theL SpelunceanL Explor
illLLcomeLupLlaterLinLtheLbook:
ersL (linkL below)LtoLmakeLtheLschoolsLofLjurisprudenceLcomeLalive.
• Trade,Li.e.LtheLexchangeL ofLgoodsL orLservices,L onLaLglobalLsca
leL hasLledtoL theLcreationLofLtradeLagreementsLthatLserveLasLde
LfactoLrulesLgoverningLtheL globalLbusinessLenvironment.
• ComparativeLlaw—
theL fieldLofLlawLthatLstudiesL andLcomparesLlawsLinL differentLco
AppendixLonLCriti CriticalLuntries.
thinkingL includesL theL applicationL ofL evaluativeL standardsL toL
calL ThinkingLandL assessL theL qualityLorLtheLreasoningLbeingLofferedLtoLsupportLtheLconcl
Business usion.LCriticalLthinkersL willLfollowLthisLpatternLofLcarefulLthinkingLwhenLt
heyLreadLLanLargument:
1. FindLtheLfacts.
2. LookLforLtheLissue.
3. IdentifyLtheLjudge‘sLreasonsLandLconclusion.
4. LocateLinLtheLdecisionLtheLrulesLofLlawLthatLgovernLtheLjudge‘sLreason
ing.
5. ApplyLcriticalLthinkingLtoLtheLreasoning.LEvaluateLtheLreasoning.
• LookLforLpotentialLambiguity.
• ConsiderLtheLstrengthLofLanalogies.
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,ChapterL1L-LAnLIntroductionLtoLDynamicLBusinessLLaw
CHAPTERLOVERVIEW
ChapterL OneL laysL theL foundationL forL theL textbook.L MakeL sureL youL lookL onL theL publisher‘s
L webL siteL forL informationLaboutLhowLbusinessLlawLintersectsLwithLtheLsixLfunctionalLareasLofLb
usiness.LTheLLauthorsL encourageLstudentsLtoL―connectLtoLtheLcore,‖LandLrememberLtheLwaysLin
LwhichLlawLintersectsLwithLotherLareasL ofL study,L includingL corporateL management,L production
L andL transportation,L marketing,L researchL andL development,LaccountingLandLfinance,LandLhum
anLresourceLmanagement.
ThisL manualL supportsL theL ―connectingL toL theL core‖L themeL byL givingL ideasL forL assignmentsL t
hatL encourageL studentsLtoL integrateL theirL businessL lawL knowledgeL withL knowledgeL theyL ar
eL acquiringL fromL theirL otherL businessLclasses.LTheLmanualLalsoLencouragesLprofessorsLtoLimpr
oveLtheirLteachingLskills.LFinally,LtheL manualL suggestsLteachingLideasLforLbothLbeginningLandLe
xperiencedLteachers.
LEARNINGLOBJECTIVES
AfterLreadingLthisLchapter,LstudentsLwillLbeLableLto:
1-1 DefineLbusinessLlaw.
1-2 RelateLtheLfunctionalLareasLofLbusinessLtoLtheLrelevantLareasLofLbu
sinessLlaw1-L 3LRecallLtheLpurposesLofLlaw.
1-4 DistinguishLamongLtypesLofLlaw.
1-5 DifferentiateLbetweenLsourcesLofLtheLlaw.
1-6 IdentifyLtheLvariousLschoolsLofLjurisprudence.
LECTURELNOTESLWITHLDEFINITIONS
InLtheLnews… TeachingL tip:LForLeachLchapter,LconsiderLaskingLstudentsLtoLrelateLcur
rentLnewsL itemsLtoLmaterialLfromLtheLchapter.
InL additionL toL ideasL studentsL comeL upL withL onL theirL own,L consider
L weavingL inL newsLstoriesLprovidedLbyLtheLMcGrawLHill.
ForLChapterLOne,LMcGrawLHillLoffersLtheLfollowingLstories:
―SmokingLBan:LTobaccoLTyrants:LGoneLTooLFar?LManyLStatesLAre
LPuttingL StrongerLRestrictionsLonLWhereLYouLCanLSmoke‖
• HaveLstatesLgoneLtooLfarLinLbanningLsmoking?
, • WhoseL interestsL areL stateL legislaturesL lookingL outL forL in
L banningL smoking?
―CollegeLOfficerLDealingsLWithLLendersLScrutinized.‖
• ShouldLregulatorsLtakeLaLmoreLcarefulLlookLatLcollegeLofficers?
• WhyLcreatedLchangesLinLtheLwaysLcollegeLofficersLinteractLwithLle
1- nders?
BusinessL lawL consistsL ofL theL enforceableL rulesL ofL conductL tha
1L DefineL business tL governLcommercialLrelationships.
Llaw.
1- BusinessLlawLappliesLtoLtheLsixLfunctionalLareasLofLbusiness:
2LRelateLtheLfu • CorporateLmanagement
nctionalLareasLo • ProductionLandLtransportation
fL businessLtoLth
eL relevantLarea • Marketing
sLofLbusinessLla • ResearchLandLdevelopment
w. • AccountingLandLfinance
• HumanLresourceLmanagement
1- • ProvidingLorder
3LRecallLtheL • ServingLasLanLalternativeLtoLfighting
purposesLofLla • FacilitatingLaLsenseLthatLchangeLisLpossible
w.
• EncouragingLsocialLjustice
• GuaranteeingLpersonalLfreedoms
• ServingLasLaLmoralLguide
1- OneLwayLtoLclassifyLlaw:
4LDistinguishLam PrivateLlawLinvolvesLdisputesLbetweenLprivateLindividualsLorLgroups.
ongLtypesLofLlaw PublicL lawL involvesL disputesL betweenLprivateL individualsL orLgroups
. LandLtheirLgovernment.
ALsecondLwayLtoLclassifyLlaw:
CivilLlawLinvolvesLtheLrightsLandLresponsibilitiesLinvolvedLinLrelationshi
psbetweenL personsLandLbetweenLpersonsLandLtheirLgovernment.
CriminalLlawLinvolvesLincidentsLinLwhichLsomeoneLcommitsLanLactLag
ainstLtheL publicLasLaLunit.
TeachingL tip:L AskLstudentsL toLgiveL anLexampleL ofL aLfactLsituationLt
hatLledL toL bothLcriminalLandLcivilLlawsuits,Le.g.,LtheLO.J.LSimpsonLtrial
1- s.
SourcesLofLbusinessLlawLare:
5LDifferentiateL 1. Constitutions
betweenLsources ConstitutionalL lawL refersLtoLtheLgeneralLlimitsLandLpowersLofLgove
LofLtheLlaw. rnmentsL asL statedLinLtheirLwrittenLconstitutions.
2. StatutesLorLlegislativeLactions
3. Cases
CaseL lawL (orLcommonLlaw)LisLtheLcollectionLofLlegalLinterpretations
L madeL byL judges.
StareLdecisisLmeansLcourtsLareLrelyingLonLprecedent.
TeachingL tip:L TheLfirstLtimeL yourLstudentsL encounterLanLappellateLcase
LinLthe
, readings,LshowLthemLwhatLstareLdecisisLlooksLlikeLinLtheLcontextLofLaLreal
Lcase.
4. AdministrativeLlaw
AdministrativeL lawL isL theL collectionL ofL rulesL andL decisionsL
madeL byL administrativeLagencies.
5. Treaties
AL treatyL isL aLLbindingL agreementL betweenL twoL statesL orL in
ternationalLorganizations.
6.LL ExecutiveLorders
AnLexecutiveLorderLisLaLdirectiveLthatLcomesLfromLtheLpresidentLorLstate
1- governor.
SchoolsLofLjurisprudenceLareLcommonLguidesLtoLlegalLinterpretation.
6LIdentifyLtheLv • NaturalLlaw—
ariousLschoolsLo certainLethicalLlawsLandLprinciplesLareLmorallyLrightLand
fLjurisprudence. ―above‖LtheLlawsLdevisedLbyLhumans.
• LegalL Positivism—
assumesL theL legitimateL politicalL authorityL deservesL ourLobedi
enceLwhenLitLissuesLaLrule.
• IdentificationLwithLtheLVulnerable—
emphasisLonLfairnessLandLlookingLoutLforLthoseLwithLtheLleastLp
ower.
• HistoricalLSchool/Tradition—emphasisLonLtheLuseLofLstareLdecisis.
• LegalLRealism—judgesLconsiderLsocialLandLeconomicLconditions.
• Cost-benefitLAnalysis—
makeLcalculationsLtoLmaximizeLtheLratioLofL benefitsLtoLcost
GlobalLandLC AtL thisLs.pointL inL theL textbook,L studentsL shouldL merelyL haveL anL awar
omparativeLLa enessL thatL globalizationLhasLaffectedLtheLscopeLofLbusinessLlaw.LCons
w equently,LweLhighlightL
TeachingL tip:L ConsiderLtheLdefinitionsLtoLtheLfollowingLkeyLtermsLthatLw
usingL ―TheL CaseL ofL theL SpelunceanL Explor
illLLcomeLupLlaterLinLtheLbook:
ersL (linkL below)LtoLmakeLtheLschoolsLofLjurisprudenceLcomeLalive.
• Trade,Li.e.LtheLexchangeL ofLgoodsL orLservices,L onLaLglobalLsca
leL hasLledtoL theLcreationLofLtradeLagreementsLthatLserveLasLde
LfactoLrulesLgoverningLtheL globalLbusinessLenvironment.
• ComparativeLlaw—
theL fieldLofLlawLthatLstudiesL andLcomparesLlawsLinL differentLco
AppendixLonLCriti CriticalLuntries.
thinkingL includesL theL applicationL ofL evaluativeL standardsL toL
calL ThinkingLandL assessL theL qualityLorLtheLreasoningLbeingLofferedLtoLsupportLtheLconcl
Business usion.LCriticalLthinkersL willLfollowLthisLpatternLofLcarefulLthinkingLwhenLt
heyLreadLLanLargument:
1. FindLtheLfacts.
2. LookLforLtheLissue.
3. IdentifyLtheLjudge‘sLreasonsLandLconclusion.
4. LocateLinLtheLdecisionLtheLrulesLofLlawLthatLgovernLtheLjudge‘sLreason
ing.
5. ApplyLcriticalLthinkingLtoLtheLreasoning.LEvaluateLtheLreasoning.
• LookLforLpotentialLambiguity.
• ConsiderLtheLstrengthLofLanalogies.
