SOLUTION MANUAL FOR
The Legal and Regulatory Environment of Business, 19th Edition By Marisa
Pagnattaro, Daniel Cahoy, Julie Manning Magid, Peter Shedd
Chapter 1-22
Chapter 1
Law as a Foundation for Business
Learning Objectives
The purpose of this chapter is to introduce the students to the subject of law
and to some
classifications of its subject matter. In addition, it is designed to instill in them
respect for the
role of the ―rule of law‖ in the society and that the judicial system is the most
important
stabilizing force in society. It should create an awareness that law is a
foundation for the private
market and ―property‖as a legal concept underpins that market and
contributes to the maximum
wealth of nations through productivity. This chapter also describes stare
decisis, basic sources of
the American law, and sanctions that can be imposed when the law is not
followed.
References
Bethell, Tom, The Noblest Triumph (1999).
Bernstein, William J., The First of Plenty. McGraw-Hill (2004).
Driegel, Blandine, The State and the Rule of Law. Princeton U. Press
(1995).
Friedman, Lawrence M., American Law, 2d ed. Norton (1998).
Harnett, Bertram, Law, Lawyers and Laymen: Making Sense of the
American Legal
System. San Diego: Harcourt Brace Jovanovich (1984).
Helpman, Elhanan, The Mystery of Economic Growth. Belknap Press
(2004).
Holmes, The Common Law. Little, Brown and Company (1922).
Kelman, M., A Guide to Critical Legal Studies. Harvard (1988).
, Pound, An Introduction to the Philosophy of Law. Yale University Press
(1922).
Reed, O. Lee, ―Law, the Rule of Law, and Property,‖American Business
LawJournal, Vol.
38 (2001).
Reed, O. Lee, ―Nationbuilding 101: Reductionism in Property, Liberty, and
Corporate
Governance,‖ 36 Vanderbilt Journal of Transitional Law 673 (2003).
The Spirit of the Common Law. Marshall Jones Co. (1921).
,Teaching Outline
I.Introduction
A.Why Law and Regulations Are Fundamental Foundations for Business (LO 1-1)
Emphasize:
That by studying the legal and regulatory environment of business,
students will gain an
understanding of basic legal vocabulary and gain the ability to identify
problematic
situations that could result in liability.
That because of the positive role lawyers can play, they are increasingly
being asked to
join corporate boards.
Sidebar 1.1 titled ‗Sustainability and Integrity: Cautionary Tales of Legal
Liability.‘
II.Law, the Rule of Law, and Property
A.Law
Emphasize:
The simple definition of law. It can be elaborated by observing that law is
a rule-based,
state-enforced formal ordering system with moral elements.
That adequate law and legal institutes promote the certainty and trust
necessary for
complex, long-term business arrangements. In an economic sense,
they lower the costs
of transacting business.
Additional Matters for Discussion:
Discuss that law formalizes values and traditions and that law is more
needed in a large,
heterogeneous modern nation than in a smaller, homogeneous nation.
Compare the U.S.
and Japan.
It is not too early in this chapter to ask students whether or not lack of
law and strict
regulation facilitated the economic crash and recession that began in
2008.
, Ask students to comment on how mistrust of law and lawmakers
precipitated the
―Occupy Wall Street‖ and other ―Occupy…‖ movements that arose in
2011.
Discuss how the law impacts the COVID 19 restrictions on businesses
opening in 2020.
B.The Rule of Law
Emphasize:
That under a rule of law, laws are generally and equally applicable.
That lack of the rule of law internationally has produced hundreds of
calls for it in the
The Legal and Regulatory Environment of Business, 19th Edition By Marisa
Pagnattaro, Daniel Cahoy, Julie Manning Magid, Peter Shedd
Chapter 1-22
Chapter 1
Law as a Foundation for Business
Learning Objectives
The purpose of this chapter is to introduce the students to the subject of law
and to some
classifications of its subject matter. In addition, it is designed to instill in them
respect for the
role of the ―rule of law‖ in the society and that the judicial system is the most
important
stabilizing force in society. It should create an awareness that law is a
foundation for the private
market and ―property‖as a legal concept underpins that market and
contributes to the maximum
wealth of nations through productivity. This chapter also describes stare
decisis, basic sources of
the American law, and sanctions that can be imposed when the law is not
followed.
References
Bethell, Tom, The Noblest Triumph (1999).
Bernstein, William J., The First of Plenty. McGraw-Hill (2004).
Driegel, Blandine, The State and the Rule of Law. Princeton U. Press
(1995).
Friedman, Lawrence M., American Law, 2d ed. Norton (1998).
Harnett, Bertram, Law, Lawyers and Laymen: Making Sense of the
American Legal
System. San Diego: Harcourt Brace Jovanovich (1984).
Helpman, Elhanan, The Mystery of Economic Growth. Belknap Press
(2004).
Holmes, The Common Law. Little, Brown and Company (1922).
Kelman, M., A Guide to Critical Legal Studies. Harvard (1988).
, Pound, An Introduction to the Philosophy of Law. Yale University Press
(1922).
Reed, O. Lee, ―Law, the Rule of Law, and Property,‖American Business
LawJournal, Vol.
38 (2001).
Reed, O. Lee, ―Nationbuilding 101: Reductionism in Property, Liberty, and
Corporate
Governance,‖ 36 Vanderbilt Journal of Transitional Law 673 (2003).
The Spirit of the Common Law. Marshall Jones Co. (1921).
,Teaching Outline
I.Introduction
A.Why Law and Regulations Are Fundamental Foundations for Business (LO 1-1)
Emphasize:
That by studying the legal and regulatory environment of business,
students will gain an
understanding of basic legal vocabulary and gain the ability to identify
problematic
situations that could result in liability.
That because of the positive role lawyers can play, they are increasingly
being asked to
join corporate boards.
Sidebar 1.1 titled ‗Sustainability and Integrity: Cautionary Tales of Legal
Liability.‘
II.Law, the Rule of Law, and Property
A.Law
Emphasize:
The simple definition of law. It can be elaborated by observing that law is
a rule-based,
state-enforced formal ordering system with moral elements.
That adequate law and legal institutes promote the certainty and trust
necessary for
complex, long-term business arrangements. In an economic sense,
they lower the costs
of transacting business.
Additional Matters for Discussion:
Discuss that law formalizes values and traditions and that law is more
needed in a large,
heterogeneous modern nation than in a smaller, homogeneous nation.
Compare the U.S.
and Japan.
It is not too early in this chapter to ask students whether or not lack of
law and strict
regulation facilitated the economic crash and recession that began in
2008.
, Ask students to comment on how mistrust of law and lawmakers
precipitated the
―Occupy Wall Street‖ and other ―Occupy…‖ movements that arose in
2011.
Discuss how the law impacts the COVID 19 restrictions on businesses
opening in 2020.
B.The Rule of Law
Emphasize:
That under a rule of law, laws are generally and equally applicable.
That lack of the rule of law internationally has produced hundreds of
calls for it in the
