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