Solution Manual
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,Chapterj1j-jAnjIntroductionjtojDynamicjBusinessjLaw
CHAPTERj OVERVIEW
Chapterj Onej laysj thej foundationj forj thej textbook.j Makej surej youj lookj onj thej publisher‘sj webj sitej f
orj informationjaboutjhowjbusinessjlawjintersectsjwithjthejsixjfunctionaljareasjofjbusiness.jThejjauthorsj enc
ouragejstudentsjtoj―connectjtojthejcore,‖jandjrememberjthejwaysjinjwhichjlawjintersectsjwithjotherjareas
j ofj study,j includingj corporatej management,j productionj andj transportation,j marketing,j researchj an
dj development,jaccountingjandjfinance,jandjhumanjresourcejmanagement.
Thisj manualj supportsj thej ―connectingj toj thej core‖j themej byj givingj ideasj forj assignmentsj thatj encour
agej studentsjtoj integratej theirj businessj lawj knowledgej withj knowledgej theyj arej acquiringj fromj th
eirj otherj businessj classes.j Thej manualj alsoj encouragesj professorsj toj improvej theirj teachingj skills.j Finall
y,j thej manualj suggestsjteachingjideasjforjbothjbeginningjandjexperiencedjteachers.
LEARNINGj OBJECTIVES
Afterjreadingjthisjchapter,jstudentsjwilljbejablejto:
1-1 Definejbusinessjlaw.
1-2 Relatejthejfunctionaljareasjofjbusinessjtojthejrelevantjareasjofjbusinessjla
w1-j 3jRecalljthejpurposesjofjlaw.
1-4 Distinguishjamongjtypesjofjlaw.
1-5 Differentiatejbetweenjsourcesjofjthejlaw.
1-6 Identifyjthejvariousjschoolsj ofjjurisprudence.
LECTUREj NOTESj WITHj DEFINITIONS
In the news… Teaching tip: For each chapter, consider asking students to relate current news
items to material from the chapter.
In addition to ideas students come up with on their own, consider weaving in
news stories provided by the McGraw Hill.
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?
, Whosej interestsj arej statej legislaturesj lookingj outj forj inj banni
ngj smoking?
―CollegejOfficerjDealingsjWithjLendersjScrutinized.‖
Shouldjregulatorsjtakejajmorejcarefuljlookjatjcollegejofficers?
Whyjcreatedjchangesjinjthejwaysjcollegejofficersjinteractjwithjlenders?
1- Businessj lawj consistsj ofj thej enforceablej rulesj ofj conductj thatj gove
1j Definej businessj l rnj commercialjrelationships.
aw.
1- Businessjlawjappliesjtojthejsixjfunctionaljareasjofjbusiness:
2jRelatejthej funct Corporatejmanagement
ionaljareasjofj bu Productionjandjtransportation
sinessjtojthej relev
antjareasjofj busi Marketing
nessjlaw. Researchjandjdevelopment
Accountingjandjfinance
Humanjresourcejmanagement
1- Providingjorder
3jRecalljthej pur Servingjasjanjalternativejtojfighting
posesjofjlaw. Facilitatingjajsensejthatjchangejisjpossible
Encouragingjsocialjjustice
Guaranteeingjpersonaljfreedoms
Servingjasjajmoraljguide
1- Onejwayjtojclassifyjlaw:
4jDistinguishj amon Privatejlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroups.
gjtypesjofjlaw. Publicj lawj involvesj disputesj betweenj privatej individualsj orj groupsj andj t
heirj government.
Ajsecondjwayjtojclassifyjlaw:
Civilj lawjinvolvesjthejrightsj andjresponsibilitiesjinvolvedjinjrelationshipsbetw
eenj personsjandjbetweenjpersonsjandjtheirjgovernment.
Criminalj lawj involvesjincidentsjinjwhichjsomeonejcommitsj anjactjagainstj th
ej publicjasjajunit.
Teachingj tip:j Askj studentsj toj givej anj examplej ofj aj factj situationj thatj ledj t
oj bothjcriminaljandjciviljlawsuits,je.g.,jthejO.J.jSimpsonjtrials.
1- Sourcesjofjbusinessjlawjare:
5jDifferentiatej b 1. Constitutions
etweenjsourcesjof Constitutionalj lawj refersj toj thej generalj limitsj andj powersj ofj governmentsj
j thejlaw.
asj statedjinjtheirjwrittenjconstitutions.
2. Statutesjorjlegislativejactions
3. Cases
Casej lawj (orj commonj law)j isj thej collectionj ofj legalj interpretationsj madej
byj judges.
Starejdecisisjmeansjcourtsjarejrelyingjonjprecedent.
Teachingj tip:j Thej firstj timej yourj studentsj encounterj anj appellatej casej inj the
, readings,jshowjthemjwhatjstarejdecisisjlooksjlikejinjthejcontextjofjajrealjcase.
4. Administrativejlaw
Administrativej lawj isj thej collectionj ofj rulesj andj decisionsj madej
byj administrativejagencies.
5. Treaties
Aj treatyj isj ajjbindingj agreementj betweenj twoj statesj orj internatio
nalj organizations.
6.jj Executivejorders
Anjexecutivej orderjisjajdirectivejthatjcomesj fromjthejpresidentjorjstategovernor
.
1- Schoolsjofjjurisprudencejarejcommonjguidesjtojlegaljinterpretation.
6jIdentifyjthej var Naturalj law—certainj ethicalj lawsj andj principlesj arej morallyj rightj and
iousjschoolsjofj jur ―above‖jthejlawsjdevisedjbyjhumans.
isprudence.
Legalj Positivism—
assumesj thej legitimatej politicalj authorityj deservesj ourjobediencej
whenjitjissuesjajrule.
IdentificationjwithjthejVulnerable—
emphasisj onjfairnessj andjlookingj outjforjthosejwithjthejleastjpower.
HistoricaljSchool/Tradition—emphasisjonjthejusejofjstarejdecisis.
LegaljRealism—judgesjconsiderjsocialjandjeconomicjconditions.
Cost-benefitjAnalysis—
makejcalculationsj tojmaximizejthejratiojofj benefitsjtojcosts.
Teachingj tip:j Considerj usingj ―Thej Casej ofj thej Spelunceanj Explorersj (lin
Globaljandj Co At j thisj point
kj below) j inj the
jtojmake j textbook,
jthe j students
jschoolsj of j should
jjurisprudence j merely
jcome j havej anj awarenessj th
jalive.
mparativejLaw atj globalizationj hasj affectedj thej scopej ofj businessj law.j Consequently,j wej hi
ghlightj thejdefinitionsjtojthejfollowingjkeyjtermsjthatjwilljjcomejupjlaterjinjthejbo
ok:
Trade,j i.e.j thej exchangej ofj goodsj orj services,j onj aj globalj scalej hasj le
dtoj thej creationj ofj tradej agreementsj thatj servej asj dej factoj rulesj gove
rningjthej globaljbusinessjenvironment.
Comparativejlaw—
thej fieldjofjlawjthatjstudiesj andjcomparesjlawsjinj differentjcountries.
AppendixjonjCritic Criticalj thinkingj includesj thej applicationj ofj evaluativej standardsj toj assessj
alj Thinkingjandj Busi thej qualityj orj thej reasoningj beingj offeredj toj supportj thej conclusion.j Criticalj th
ness inkersj willjfollowjthisjpatternjofjcarefuljthinkingjwhenjtheyjreadjjanjargument:
1. Findjthejfacts.
2. Lookjforjthejissue.
3. Identifyjthejjudge‘sjreasonsjandjconclusion.
4. Locatejinjthejdecisionjthejrulesjofjlawjthatjgovernjthejjudge‘sjreasoning.
5. Applyjcriticaljthinkingjtojthejreasoning.jEvaluatejthejreasoning.
Lookjforjpotentialjambiguity.
Considerjthejstrengthjofjanalogies.
Dynamic Business Law, 6th Edition
By Nancy Kubasek
,Chapterj1j-jAnjIntroductionjtojDynamicjBusinessjLaw
CHAPTERj OVERVIEW
Chapterj Onej laysj thej foundationj forj thej textbook.j Makej surej youj lookj onj thej publisher‘sj webj sitej f
orj informationjaboutjhowjbusinessjlawjintersectsjwithjthejsixjfunctionaljareasjofjbusiness.jThejjauthorsj enc
ouragejstudentsjtoj―connectjtojthejcore,‖jandjrememberjthejwaysjinjwhichjlawjintersectsjwithjotherjareas
j ofj study,j includingj corporatej management,j productionj andj transportation,j marketing,j researchj an
dj development,jaccountingjandjfinance,jandjhumanjresourcejmanagement.
Thisj manualj supportsj thej ―connectingj toj thej core‖j themej byj givingj ideasj forj assignmentsj thatj encour
agej studentsjtoj integratej theirj businessj lawj knowledgej withj knowledgej theyj arej acquiringj fromj th
eirj otherj businessj classes.j Thej manualj alsoj encouragesj professorsj toj improvej theirj teachingj skills.j Finall
y,j thej manualj suggestsjteachingjideasjforjbothjbeginningjandjexperiencedjteachers.
LEARNINGj OBJECTIVES
Afterjreadingjthisjchapter,jstudentsjwilljbejablejto:
1-1 Definejbusinessjlaw.
1-2 Relatejthejfunctionaljareasjofjbusinessjtojthejrelevantjareasjofjbusinessjla
w1-j 3jRecalljthejpurposesjofjlaw.
1-4 Distinguishjamongjtypesjofjlaw.
1-5 Differentiatejbetweenjsourcesjofjthejlaw.
1-6 Identifyjthejvariousjschoolsj ofjjurisprudence.
LECTUREj NOTESj WITHj DEFINITIONS
In the news… Teaching tip: For each chapter, consider asking students to relate current news
items to material from the chapter.
In addition to ideas students come up with on their own, consider weaving in
news stories provided by the McGraw Hill.
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?
, Whosej interestsj arej statej legislaturesj lookingj outj forj inj banni
ngj smoking?
―CollegejOfficerjDealingsjWithjLendersjScrutinized.‖
Shouldjregulatorsjtakejajmorejcarefuljlookjatjcollegejofficers?
Whyjcreatedjchangesjinjthejwaysjcollegejofficersjinteractjwithjlenders?
1- Businessj lawj consistsj ofj thej enforceablej rulesj ofj conductj thatj gove
1j Definej businessj l rnj commercialjrelationships.
aw.
1- Businessjlawjappliesjtojthejsixjfunctionaljareasjofjbusiness:
2jRelatejthej funct Corporatejmanagement
ionaljareasjofj bu Productionjandjtransportation
sinessjtojthej relev
antjareasjofj busi Marketing
nessjlaw. Researchjandjdevelopment
Accountingjandjfinance
Humanjresourcejmanagement
1- Providingjorder
3jRecalljthej pur Servingjasjanjalternativejtojfighting
posesjofjlaw. Facilitatingjajsensejthatjchangejisjpossible
Encouragingjsocialjjustice
Guaranteeingjpersonaljfreedoms
Servingjasjajmoraljguide
1- Onejwayjtojclassifyjlaw:
4jDistinguishj amon Privatejlawjinvolvesjdisputesjbetweenjprivatejindividualsjorjgroups.
gjtypesjofjlaw. Publicj lawj involvesj disputesj betweenj privatej individualsj orj groupsj andj t
heirj government.
Ajsecondjwayjtojclassifyjlaw:
Civilj lawjinvolvesjthejrightsj andjresponsibilitiesjinvolvedjinjrelationshipsbetw
eenj personsjandjbetweenjpersonsjandjtheirjgovernment.
Criminalj lawj involvesjincidentsjinjwhichjsomeonejcommitsj anjactjagainstj th
ej publicjasjajunit.
Teachingj tip:j Askj studentsj toj givej anj examplej ofj aj factj situationj thatj ledj t
oj bothjcriminaljandjciviljlawsuits,je.g.,jthejO.J.jSimpsonjtrials.
1- Sourcesjofjbusinessjlawjare:
5jDifferentiatej b 1. Constitutions
etweenjsourcesjof Constitutionalj lawj refersj toj thej generalj limitsj andj powersj ofj governmentsj
j thejlaw.
asj statedjinjtheirjwrittenjconstitutions.
2. Statutesjorjlegislativejactions
3. Cases
Casej lawj (orj commonj law)j isj thej collectionj ofj legalj interpretationsj madej
byj judges.
Starejdecisisjmeansjcourtsjarejrelyingjonjprecedent.
Teachingj tip:j Thej firstj timej yourj studentsj encounterj anj appellatej casej inj the
, readings,jshowjthemjwhatjstarejdecisisjlooksjlikejinjthejcontextjofjajrealjcase.
4. Administrativejlaw
Administrativej lawj isj thej collectionj ofj rulesj andj decisionsj madej
byj administrativejagencies.
5. Treaties
Aj treatyj isj ajjbindingj agreementj betweenj twoj statesj orj internatio
nalj organizations.
6.jj Executivejorders
Anjexecutivej orderjisjajdirectivejthatjcomesj fromjthejpresidentjorjstategovernor
.
1- Schoolsjofjjurisprudencejarejcommonjguidesjtojlegaljinterpretation.
6jIdentifyjthej var Naturalj law—certainj ethicalj lawsj andj principlesj arej morallyj rightj and
iousjschoolsjofj jur ―above‖jthejlawsjdevisedjbyjhumans.
isprudence.
Legalj Positivism—
assumesj thej legitimatej politicalj authorityj deservesj ourjobediencej
whenjitjissuesjajrule.
IdentificationjwithjthejVulnerable—
emphasisj onjfairnessj andjlookingj outjforjthosejwithjthejleastjpower.
HistoricaljSchool/Tradition—emphasisjonjthejusejofjstarejdecisis.
LegaljRealism—judgesjconsiderjsocialjandjeconomicjconditions.
Cost-benefitjAnalysis—
makejcalculationsj tojmaximizejthejratiojofj benefitsjtojcosts.
Teachingj tip:j Considerj usingj ―Thej Casej ofj thej Spelunceanj Explorersj (lin
Globaljandj Co At j thisj point
kj below) j inj the
jtojmake j textbook,
jthe j students
jschoolsj of j should
jjurisprudence j merely
jcome j havej anj awarenessj th
jalive.
mparativejLaw atj globalizationj hasj affectedj thej scopej ofj businessj law.j Consequently,j wej hi
ghlightj thejdefinitionsjtojthejfollowingjkeyjtermsjthatjwilljjcomejupjlaterjinjthejbo
ok:
Trade,j i.e.j thej exchangej ofj goodsj orj services,j onj aj globalj scalej hasj le
dtoj thej creationj ofj tradej agreementsj thatj servej asj dej factoj rulesj gove
rningjthej globaljbusinessjenvironment.
Comparativejlaw—
thej fieldjofjlawjthatjstudiesj andjcomparesjlawsjinj differentjcountries.
AppendixjonjCritic Criticalj thinkingj includesj thej applicationj ofj evaluativej standardsj toj assessj
alj Thinkingjandj Busi thej qualityj orj thej reasoningj beingj offeredj toj supportj thej conclusion.j Criticalj th
ness inkersj willjfollowjthisjpatternjofjcarefuljthinkingjwhenjtheyjreadjjanjargument:
1. Findjthejfacts.
2. Lookjforjthejissue.
3. Identifyjthejjudge‘sjreasonsjandjconclusion.
4. Locatejinjthejdecisionjthejrulesjofjlawjthatjgovernjthejjudge‘sjreasoning.
5. Applyjcriticaljthinkingjtojthejreasoning.jEvaluatejthejreasoning.
Lookjforjpotentialjambiguity.
Considerjthejstrengthjofjanalogies.
