Solution Manual
k k
Dynamic Business Law, 6th Edition
k k k k
By Nancy Kubasek
k k k
,Chapter 1 - An Introduction to Dynamic Business Law
k k k k k k k k
CHAPTERkOVERVIEW
ChapterkOneklayskthekfoundationkforkthektextbook.kMakeksurekyouklookkonkthekpublisher‘skwebksitekforkinformat
ionkaboutkhowkbusinessklawkintersectskwithktheksixkfunctionalkareaskofkbusiness.kThekauthorskencouragekstudents
ktok―connectktokthekcore,‖kandkrememberkthekwayskinkwhichklawkintersectskwithkotherkareaskofkstudy,kincludingkc
orporatekmanagement,kproductionkandktransportation,kmarketing,kresearchkandkdevelopment,kaccountingkandkfi
nance,kandkhumankresourcekmanagement.
Thisk manualk supportsk thek ―connectingk tok thek core‖k themek byk givingk ideask fork assignmentsk thatk encouragekstud
entsktokintegratektheirkbusinessklawkknowledgekwithkknowledgektheykarekacquiringkfromktheirkotherkbusinesskclas
ses.kThekmanualkalsokencourageskprofessorsktokimprovektheirkteachingkskills.kFinally,kthekmanualksuggestskteachi
ngkideaskforkbothkbeginningkandkexperiencedkteachers.
LEARNINGkOBJECTIVES
Afterkreadingkthiskchapter,kstudentskwillkbekablekto:
1-1 Definekbusinessklaw.
1-2 Relatekthekfunctionalkareaskofkbusinessktokthekrelevantkareaskofkbusinessklawk1-
3kRecallkthekpurposeskofklaw.
1-4 Distinguishkamongktypeskofklaw.
1-5 Differentiatekbetweenksourceskofktheklaw.
1-6 Identifykthekvariouskschoolskofkjurisprudence.
LECTUREkNOTESkWITHkDEFINITIONS
Inktheknews… Teachingktip:kForkeachkchapter,kconsiderkaskingkstudentsktokrelatekcurrentknewskite
msktokmaterialkfromkthekchapter.
Ink additionk tok ideask studentsk comek upk withk onk theirk own,k considerk weavingk inknew
skstorieskprovidedkbykthekMcGrawkHill.
ForkChapterkOne,kMcGrawkHillkofferskthekfollowingkstories:
―SmokingkBan:kTobaccokTyrants:kGonekTookFar?kManykStateskArekPuttingkStrongerk
RestrictionskonkWherekYoukCankSmoke‖
Havekstateskgonektookfarkinkbanningksmoking?
, Whosek interestsk arek statek legislaturesk lookingk outk fork ink banningksmoking
?
―CollegekOfficerkDealingskWithkLenderskScrutinized.‖
Shouldkregulatorsktakekakmorekcarefulklookkatkcollegekofficers?
Whykcreatedkchangeskinkthekwayskcollegekofficerskinteractkwithklenders?
1- Businessk lawk consistsk ofk thek enforceablek rulesk ofk conductk thatk governkcommerc
1k Definek businessklaw. ialkrelationships.
1- Businessklawkappliesktoktheksixkfunctionalkareaskofkbusiness:
2kRelatekthekfunctio Corporatekmanagement
nalkareaskofkbusines
sktokthekrelevantkare Productionkandktransportation
askofkbusinessklaw. Marketing
Researchkandkdevelopment
Accountingkandkfinance
Humankresourcekmanagement
1- Providingkorder
3kRecallkthekpurp Servingkaskankalternativektokfighting
oseskofklaw.
Facilitatingkaksensekthatkchangekiskpossible
Encouragingksocialkjustice
Guaranteeingkpersonalkfreedoms
Servingkaskakmoralkguide
1- Onekwayktokclassifyklaw:
4kDistinguishkamong Privateklawkinvolveskdisputeskbetweenkprivatekindividualskorkgroups.
ktypeskofklaw.
Publick lawk involvesk disputesk betweenk privatek individualsk ork groupsk andk theirkgove
rnment.
Aksecondkwayktokclassifyklaw:
Civilklawkinvolveskthekrightskandkresponsibilitieskinvolvedkinkrelationshipskbetweenkp
ersonskandkbetweenkpersonskandktheirkgovernment.
Criminalklawk involvesk incidentskink whichk someonek commitsk ank actk againstkthekpubli
ckaskakunit.
Teachingk tip:k Askk studentsk tok givek ank examplek ofk ak factk situationk thatk ledk tokboth
kcriminalkandkcivilklawsuits,k e.g.,kthekO.J.kSimpsonktrials.
1- Sourceskofkbusinessklawkare:
5kDifferentiatekbetw 1. Constitutions
eenksourceskofkthekla Constitutionalk lawk refersk tok thek generalk limitsk andk powersk ofk governmentsk askstate
w. dkinktheirkwrittenkconstitutions.
2. Statuteskorklegislativekactions
3. Cases
Casek lawk (ork commonk law)k isk thek collectionk ofk legalk interpretationsk madek bykjudg
es.
Starekdecisiskmeanskcourtskarekrelyingkonkprecedent.
Teachingk tip:k Thek firstk timek yourk studentsk encounterk ank appellatek casek ink the
, readings,kshowkthemkwhatkstarekdecisisklooksklikekinkthekcontextkofkakrealkcase.
4. Administrativeklaw
Administrativek lawk isk thek collectionk ofk rulesk andk decisionsk madek bykadministrat
ivekagencies.
5. Treaties
Ak treatyk isk ak bindingk agreementk betweenk twok statesk ork internationalkorganizatio
ns.
6.k Executivekorders
Ankexecutivekorderkiskakdirectivekthatkcomeskfromkthekpresidentk orkstatekgovernor.
1- Schoolskofkjurisprudencekarekcommonkguidesktoklegalkinterpretation.
6kIdentifykthekvario Naturalk law—certaink ethicalk lawsk andk principlesk arek morallyk rightk and
uskschoolskofkjurisp ―above‖ktheklawskdevisedkbykhumans.
rudence.
Legalk Positivism—
assumesk thek legitimatek politicalk authorityk deserveskourkobediencekwhenkitkis
sueskakrule.
IdentificationkwithkthekVulnerable—
emphasiskonkfairnessk andklookingkoutkforkthosekwithkthekleastkpower.
HistoricalkSchool/Tradition—emphasiskonkthekusekofkstarekdecisis.
LegalkRealism—judgeskconsiderksocialkandkeconomickconditions.
Cost-benefitkAnalysis—
makekcalculationsktokmaximizekthekratiokofkbenefitsktokcosts.
Teachingkktip:kkConsiderkkusingkk―ThekkCasekkofkkthekkSpelunceankkExplorerskk(linkkbelo
w)ktokmakekthekschoolskofkjurisprudencekcomekalive.
GlobalkandkComp Atkthiskpointkinkthektextbook,kstudentskshouldkmerelykhavekankawarenesskthatkglobali
arativekLaw zationkhaskaffectedkthekscopekofkbusinessklaw.kConsequently,k wekhighlightkthekdefin
itionsktokthekfollowingkkeyktermskthatkwillk comekupklaterkinkthekbook:
Trade,k i.e.k thek exchangek ofk goodsk ork services,k onk ak globalk scalek hask ledktokt
hekcreationkofktradekagreementskthatkservekaskdekfactokruleskgoverningkthekglo
balkbusinesskenvironment.
Comparativeklaw—
thekfieldkofklawkthatkstudieskandkcomparesklawskinkdifferentkcountries.
AppendixkonkCriticalk Criticalkthinkingkincludeskthekapplicationkofkevaluativekstandardsktokassesskthekqualit
ThinkingkandkBusines ykorkthekreasoningkbeingkofferedktoksupportkthekconclusion.kCriticalkthinkerskwillkfoll
s owkthiskpatternkofkcarefulkthinkingkwhenktheykreadk ankargument:
1. Findkthekfacts.
2. Lookkforkthekissue.
3. Identifykthekjudge‘skreasonskandkconclusion.
4. Locatekinkthekdecisionkthekruleskofklawkthatkgovernkthekjudge‘skreasoning.
5. Applykcriticalkthinkingktokthekreasoning.kEvaluatekthekreasoning.
Lookkforkpotentialkambiguity.
Considerkthekstrengthkofkanalogies.
k k
Dynamic Business Law, 6th Edition
k k k k
By Nancy Kubasek
k k k
,Chapter 1 - An Introduction to Dynamic Business Law
k k k k k k k k
CHAPTERkOVERVIEW
ChapterkOneklayskthekfoundationkforkthektextbook.kMakeksurekyouklookkonkthekpublisher‘skwebksitekforkinformat
ionkaboutkhowkbusinessklawkintersectskwithktheksixkfunctionalkareaskofkbusiness.kThekauthorskencouragekstudents
ktok―connectktokthekcore,‖kandkrememberkthekwayskinkwhichklawkintersectskwithkotherkareaskofkstudy,kincludingkc
orporatekmanagement,kproductionkandktransportation,kmarketing,kresearchkandkdevelopment,kaccountingkandkfi
nance,kandkhumankresourcekmanagement.
Thisk manualk supportsk thek ―connectingk tok thek core‖k themek byk givingk ideask fork assignmentsk thatk encouragekstud
entsktokintegratektheirkbusinessklawkknowledgekwithkknowledgektheykarekacquiringkfromktheirkotherkbusinesskclas
ses.kThekmanualkalsokencourageskprofessorsktokimprovektheirkteachingkskills.kFinally,kthekmanualksuggestskteachi
ngkideaskforkbothkbeginningkandkexperiencedkteachers.
LEARNINGkOBJECTIVES
Afterkreadingkthiskchapter,kstudentskwillkbekablekto:
1-1 Definekbusinessklaw.
1-2 Relatekthekfunctionalkareaskofkbusinessktokthekrelevantkareaskofkbusinessklawk1-
3kRecallkthekpurposeskofklaw.
1-4 Distinguishkamongktypeskofklaw.
1-5 Differentiatekbetweenksourceskofktheklaw.
1-6 Identifykthekvariouskschoolskofkjurisprudence.
LECTUREkNOTESkWITHkDEFINITIONS
Inktheknews… Teachingktip:kForkeachkchapter,kconsiderkaskingkstudentsktokrelatekcurrentknewskite
msktokmaterialkfromkthekchapter.
Ink additionk tok ideask studentsk comek upk withk onk theirk own,k considerk weavingk inknew
skstorieskprovidedkbykthekMcGrawkHill.
ForkChapterkOne,kMcGrawkHillkofferskthekfollowingkstories:
―SmokingkBan:kTobaccokTyrants:kGonekTookFar?kManykStateskArekPuttingkStrongerk
RestrictionskonkWherekYoukCankSmoke‖
Havekstateskgonektookfarkinkbanningksmoking?
, Whosek interestsk arek statek legislaturesk lookingk outk fork ink banningksmoking
?
―CollegekOfficerkDealingskWithkLenderskScrutinized.‖
Shouldkregulatorsktakekakmorekcarefulklookkatkcollegekofficers?
Whykcreatedkchangeskinkthekwayskcollegekofficerskinteractkwithklenders?
1- Businessk lawk consistsk ofk thek enforceablek rulesk ofk conductk thatk governkcommerc
1k Definek businessklaw. ialkrelationships.
1- Businessklawkappliesktoktheksixkfunctionalkareaskofkbusiness:
2kRelatekthekfunctio Corporatekmanagement
nalkareaskofkbusines
sktokthekrelevantkare Productionkandktransportation
askofkbusinessklaw. Marketing
Researchkandkdevelopment
Accountingkandkfinance
Humankresourcekmanagement
1- Providingkorder
3kRecallkthekpurp Servingkaskankalternativektokfighting
oseskofklaw.
Facilitatingkaksensekthatkchangekiskpossible
Encouragingksocialkjustice
Guaranteeingkpersonalkfreedoms
Servingkaskakmoralkguide
1- Onekwayktokclassifyklaw:
4kDistinguishkamong Privateklawkinvolveskdisputeskbetweenkprivatekindividualskorkgroups.
ktypeskofklaw.
Publick lawk involvesk disputesk betweenk privatek individualsk ork groupsk andk theirkgove
rnment.
Aksecondkwayktokclassifyklaw:
Civilklawkinvolveskthekrightskandkresponsibilitieskinvolvedkinkrelationshipskbetweenkp
ersonskandkbetweenkpersonskandktheirkgovernment.
Criminalklawk involvesk incidentskink whichk someonek commitsk ank actk againstkthekpubli
ckaskakunit.
Teachingk tip:k Askk studentsk tok givek ank examplek ofk ak factk situationk thatk ledk tokboth
kcriminalkandkcivilklawsuits,k e.g.,kthekO.J.kSimpsonktrials.
1- Sourceskofkbusinessklawkare:
5kDifferentiatekbetw 1. Constitutions
eenksourceskofkthekla Constitutionalk lawk refersk tok thek generalk limitsk andk powersk ofk governmentsk askstate
w. dkinktheirkwrittenkconstitutions.
2. Statuteskorklegislativekactions
3. Cases
Casek lawk (ork commonk law)k isk thek collectionk ofk legalk interpretationsk madek bykjudg
es.
Starekdecisiskmeanskcourtskarekrelyingkonkprecedent.
Teachingk tip:k Thek firstk timek yourk studentsk encounterk ank appellatek casek ink the
, readings,kshowkthemkwhatkstarekdecisisklooksklikekinkthekcontextkofkakrealkcase.
4. Administrativeklaw
Administrativek lawk isk thek collectionk ofk rulesk andk decisionsk madek bykadministrat
ivekagencies.
5. Treaties
Ak treatyk isk ak bindingk agreementk betweenk twok statesk ork internationalkorganizatio
ns.
6.k Executivekorders
Ankexecutivekorderkiskakdirectivekthatkcomeskfromkthekpresidentk orkstatekgovernor.
1- Schoolskofkjurisprudencekarekcommonkguidesktoklegalkinterpretation.
6kIdentifykthekvario Naturalk law—certaink ethicalk lawsk andk principlesk arek morallyk rightk and
uskschoolskofkjurisp ―above‖ktheklawskdevisedkbykhumans.
rudence.
Legalk Positivism—
assumesk thek legitimatek politicalk authorityk deserveskourkobediencekwhenkitkis
sueskakrule.
IdentificationkwithkthekVulnerable—
emphasiskonkfairnessk andklookingkoutkforkthosekwithkthekleastkpower.
HistoricalkSchool/Tradition—emphasiskonkthekusekofkstarekdecisis.
LegalkRealism—judgeskconsiderksocialkandkeconomickconditions.
Cost-benefitkAnalysis—
makekcalculationsktokmaximizekthekratiokofkbenefitsktokcosts.
Teachingkktip:kkConsiderkkusingkk―ThekkCasekkofkkthekkSpelunceankkExplorerskk(linkkbelo
w)ktokmakekthekschoolskofkjurisprudencekcomekalive.
GlobalkandkComp Atkthiskpointkinkthektextbook,kstudentskshouldkmerelykhavekankawarenesskthatkglobali
arativekLaw zationkhaskaffectedkthekscopekofkbusinessklaw.kConsequently,k wekhighlightkthekdefin
itionsktokthekfollowingkkeyktermskthatkwillk comekupklaterkinkthekbook:
Trade,k i.e.k thek exchangek ofk goodsk ork services,k onk ak globalk scalek hask ledktokt
hekcreationkofktradekagreementskthatkservekaskdekfactokruleskgoverningkthekglo
balkbusinesskenvironment.
Comparativeklaw—
thekfieldkofklawkthatkstudieskandkcomparesklawskinkdifferentkcountries.
AppendixkonkCriticalk Criticalkthinkingkincludeskthekapplicationkofkevaluativekstandardsktokassesskthekqualit
ThinkingkandkBusines ykorkthekreasoningkbeingkofferedktoksupportkthekconclusion.kCriticalkthinkerskwillkfoll
s owkthiskpatternkofkcarefulkthinkingkwhenktheykreadk ankargument:
1. Findkthekfacts.
2. Lookkforkthekissue.
3. Identifykthekjudge‘skreasonskandkconclusion.
4. Locatekinkthekdecisionkthekruleskofklawkthatkgovernkthekjudge‘skreasoning.
5. Applykcriticalkthinkingktokthekreasoning.kEvaluatekthekreasoning.
Lookkforkpotentialkambiguity.
Considerkthekstrengthkofkanalogies.
