TEST BANK
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For Dynamic Business Law, 6th Edition
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By Nancy Kubasek
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,Chapter 1 - An Introduction to Dynamic Business Law
ck ck ck ck ck ck ck ck
CHAPTERckOVERVIEW
ChapterckOnecklayscktheckfoundationckforckthecktextbook.ckMakecksureckyoucklookckoncktheckpublisher‘sckwebcksiteckforck
informationckaboutckhowckbusinesscklawckintersectsckwithckthecksixckfunctionalckareasckofckbusiness.ckTheckauthorscken
courageckstudentscktock―connectcktocktheckcore,‖ckandckremembercktheckwaysckinckwhichcklawckintersectsckwithckothercka
reasckofckstudy,ckincludingckcorporateckmanagement,ckproductionckandcktransportation,ckmarketing,ckresearchckandck
development,ckaccountingckandckfinance,ckandckhumanckresourceckmanagement.
Thisck manualc k supportsck thec k ―connectingck tock theck core‖c k themec k byc k givingck ideasck forc k assignmentsc k thatc k encou
rageckstudentscktockintegratecktheirckbusinesscklawckknowledgeckwithckknowledgecktheyckareckacquiringckfromcktheirckot
herckbusinessckclasses.ckTheckmanualckalsockencouragesckprofessorscktockimprovecktheirckteachingckskills.ckFinally,ckthec
kmanualcksuggestsckteachingckideasckforckbothckbeginningckandckexperiencedckteachers.
LEARNINGckOBJECTIVES
Afterckreadingckthisckchapter,ckstudentsckwillckbeckableckto:
1-1 Defineckbusinesscklaw.
1-2 Relatecktheckfunctionalckareasckofckbusinesscktocktheckrelevantckareasckofckbusinessckl
awc1k -3ckRecallcktheckpurposesckofcklaw.
1-4 Distinguishckamongcktypesckofcklaw.
1-5 Differentiateckbetweencksourcesckofckthecklaw.
1-6 Identifycktheckvariousckschoolsckofckjurisprudence.
LECTUREckNOTESckWITHckDEFINITIONS
Inckthecknews… Teachingcktip:ckForckeachckchapter,ckconsiderckaskingckstudentscktockrelateckcurrentckne
wsciktemscktockmaterialckfromcktheckchapter.
Inc k additionc k toc k ideasc k studentsc k comec k upc k withc k onc k theirc k own,c k considerc k weavin
gc k inn
ck ewsckstoriesckprovidedckbycktheckMcGrawckHill.
ForckChapterckOne,ckMcGrawckHillckofferscktheckfollowingckstories:
―SmokingckBan:ckTobaccockTyrants:ckGoneckToockFar?ckManyckStatesckAreckPuttingSck tro
ngerckRestrictionsckonckWhereckYouckCanckSmoke‖
• Haveckstatesckgonecktoockfarckinckbanningcksmoking?
, • Whosec k interestsc k arec k statec k legislaturesc k lookingc k outc k forc k inc k banningsck
moking?
―CollegeckOfficerckDealingsckWithckLendersckScrutinized.‖
• Shouldckregulatorscktakeckackmoreckcarefulcklookckatckcollegeckofficers?
• Whyckcreatedckchangesckincktheckwaysckcollegeckofficersckinteractckwithcklenders?
1- Businessc k lawc k consistsc k ofc k thec k enforceablec k rulesc k ofc k conductc k thatc k governck
1c k Definec k businesslckaw commercialckrelationships.
.
1- Businesscklawckappliescktockthecksixckfunctionalckareasckofckbusiness:
2ckRelatecktheckfunct • Corporateckmanagement
ionalckareasckofcb
k usi
nesscktocktheckreleva • Productionckandcktransportation
ntckareasckofckbusine • Marketing
sscklaw. • Researchckandckdevelopment
• Accountingckandckfinance
• Humanckresourceckmanagement
1- • Providingckorder
3ckRecallcktheckpur • Servingckasckanckalternativecktockfighting
posesckofcklaw.
• Facilitatingckacksenseckthatckchangeckisckpossible
• Encouragingcksocialckjustice
• Guaranteeingckpersonalckfreedoms
• Servingckasckackmoralckguide
1- Oneckwaycktockclassifycklaw:
4ckDistinguishckamon Privatecklawckinvolvesckdisputesckbetweenckprivateckindividualsckorckgroups.
gcktypesckofcklaw. Publicc k lawc k involvesc k disputesc k betweenc k privatec k individualsc k orc k groupsc k andc k t
heircgk overnment.
Acksecondckwaycktockclassifycklaw:
Civilcklawckinvolvescktheckrightsckandckresponsibilitiesckinvolvedckinckrelationshipsbck etwe
enckpersonsckandckbetweenckpersonsckandcktheirckgovernment.
Criminalcklawc k involvesck incidentsckinck whichcksomeoneck commitsck anck actck againstckt
hecp
k ublicckasckackunit.
Teachingc k tip:c k Askc k studentsc k toc k givec k anc k examplec k ofc k ac k factc k situationc k thatc k
ledc k tocb
k othckcriminalckandckcivilcklawsuits,ck e.g.,cktheckO.J.ckSimpsoncktrials.
1- Sourcesckofckbusinesscklawckare:
5ckDifferentiateckbet 1. Constitutions
weencksourcesckofctk h Constitutionalc k lawc k refersc k toc k thec k generalc k limitsc k andc k powersc k ofc k governments
ecklaw. c k ascs
k tatedckincktheirckwrittenckconstitutions.
2. Statutesckorcklegislativeckactions
3. Cases
Casec k lawc k (orc k commonc k law)c k isc k thec k collectionc k ofc k legalc k interpretationsc k mad
ec k bycjkudges.
Stareckdecisisckmeansckcourtsckareckrelyingckonckprecedent.
Teachingc k tip:c k Thec k firstc k timec k yourc k studentsc k encounterc k anc k appellatec k casec k i
nc k the
, readings,ckshowckthemckwhatckstareckdecisiscklookscklikeckincktheckcontextckofckackrealckcase.
4. Administrativecklaw
Administrativec k lawc k isc k thec k collectionc k ofc k rulesc k andc k decisionsc k madec k byck
administrativeckagencies.
5. Treaties
Ac k treatyc k isc k ac k bindingc k agreementc k betweenc k twoc k statesc k orc k internationalck
organizations.
6.c k Executiveckorders
Anckexecutiveckorderckisckackdirectiveckthatckcomesckfromcktheckpresidentck orckstatecgk ove
rnor.
1- Schoolsckofckjurisprudenceckareckcommonckguidescktocklegalckinterpretation.
6ckIdentifycktheckvar • Naturalc k law—
iousckschoolsckofcjkur certainc k ethicalc k lawsc k andc k principlesc k arec k morallyc k rightc k and
isprudence. ―above‖ckthecklawsckdevisedckbyckhumans.
• Legalc k Positivism—
assumesc k thec k legitimatec k politicalc k authorityc k deservesco k urckobedienceckwhe
nckitckissuesckackrule.
• IdentificationckwithcktheckVulnerable—
emphasisckonckfairnessck andcklookingco k utckforckthoseckwithcktheckleastckpower.
• HistoricalckSchool/Tradition—emphasisckoncktheckuseckofckstareckdecisis.
• LegalckRealism—judgesckconsidercksocialckandckeconomicckconditions.
• Cost-benefitckAnalysis—
makeckcalculationscktockmaximizecktheckratiockofcb k enefitscktockcosts.
Teachingckcktip:ckckConsiderckckusingckck―TheckckCaseckckofckcktheckckSpelunceanckckExplorersckck(li
nkckbelow)cktockmakecktheckschoolsckofckjurisprudenceckcomeckalive.
GlobalckandckCom Atckthisckpointckinckthecktextbook,ckstudentsckshouldckmerelyckhaveckanckawarenessckthatck
parativeckLaw globalizationckhasckaffectedcktheckscopeckofckbusinesscklaw.ckConsequently,c k weckhighli
ghtcktheckdefinitionscktocktheckfollowingckkeycktermsckthatckwillc k comeckupcklaterckincktheck
book:
• Trade,c k i.e.c k thec k exchangec k ofc k goodsc k orc k services,c k onc k ac k globalc k scalec k has
c k ledct
k ocktheckcreationckofcktradeckagreementsckthatckserveckasckdeckfactockrulesckgo
verningctk heckglobalckbusinessckenvironment.
• Comparativecklaw—
theckfieldckofcklawckthatckstudiesckandckcomparescklawsckinckdifferentckcountries.
AppendixckonckCriticalck Criticalckthinkingckincludescktheckapplicationckofckevaluativeckstandardscktockassesscktheck
ThinkingckandckBusine qualityckorcktheckreasoningckbeingckofferedcktocksupportcktheckconclusion.ckCriticalckthink
ss ersckwillckfollowckthisckpatternckofckcarefulckthinkingckwhencktheyckreadc k anckargument:
1. Findcktheckfacts.
2. Lookckforcktheckissue.
3. Identifycktheckjudge‘sckreasonsckandckconclusion.
4. Locateckincktheckdecisioncktheckrulesckofcklawckthatckgoverncktheckjudge‘sckreasoning.
5. Applyckcriticalckthinkingcktocktheckreasoning.ckEvaluatecktheckreasoning.
• Lookckforckpotentialckambiguity.
• Considercktheckstrengthckofckanalogies.
ck ck
For Dynamic Business Law, 6th Edition
ck ck ck ck ck
By Nancy Kubasek
ck ck ck
,Chapter 1 - An Introduction to Dynamic Business Law
ck ck ck ck ck ck ck ck
CHAPTERckOVERVIEW
ChapterckOnecklayscktheckfoundationckforckthecktextbook.ckMakecksureckyoucklookckoncktheckpublisher‘sckwebcksiteckforck
informationckaboutckhowckbusinesscklawckintersectsckwithckthecksixckfunctionalckareasckofckbusiness.ckTheckauthorscken
courageckstudentscktock―connectcktocktheckcore,‖ckandckremembercktheckwaysckinckwhichcklawckintersectsckwithckothercka
reasckofckstudy,ckincludingckcorporateckmanagement,ckproductionckandcktransportation,ckmarketing,ckresearchckandck
development,ckaccountingckandckfinance,ckandckhumanckresourceckmanagement.
Thisck manualc k supportsck thec k ―connectingck tock theck core‖c k themec k byc k givingck ideasck forc k assignmentsc k thatc k encou
rageckstudentscktockintegratecktheirckbusinesscklawckknowledgeckwithckknowledgecktheyckareckacquiringckfromcktheirckot
herckbusinessckclasses.ckTheckmanualckalsockencouragesckprofessorscktockimprovecktheirckteachingckskills.ckFinally,ckthec
kmanualcksuggestsckteachingckideasckforckbothckbeginningckandckexperiencedckteachers.
LEARNINGckOBJECTIVES
Afterckreadingckthisckchapter,ckstudentsckwillckbeckableckto:
1-1 Defineckbusinesscklaw.
1-2 Relatecktheckfunctionalckareasckofckbusinesscktocktheckrelevantckareasckofckbusinessckl
awc1k -3ckRecallcktheckpurposesckofcklaw.
1-4 Distinguishckamongcktypesckofcklaw.
1-5 Differentiateckbetweencksourcesckofckthecklaw.
1-6 Identifycktheckvariousckschoolsckofckjurisprudence.
LECTUREckNOTESckWITHckDEFINITIONS
Inckthecknews… Teachingcktip:ckForckeachckchapter,ckconsiderckaskingckstudentscktockrelateckcurrentckne
wsciktemscktockmaterialckfromcktheckchapter.
Inc k additionc k toc k ideasc k studentsc k comec k upc k withc k onc k theirc k own,c k considerc k weavin
gc k inn
ck ewsckstoriesckprovidedckbycktheckMcGrawckHill.
ForckChapterckOne,ckMcGrawckHillckofferscktheckfollowingckstories:
―SmokingckBan:ckTobaccockTyrants:ckGoneckToockFar?ckManyckStatesckAreckPuttingSck tro
ngerckRestrictionsckonckWhereckYouckCanckSmoke‖
• Haveckstatesckgonecktoockfarckinckbanningcksmoking?
, • Whosec k interestsc k arec k statec k legislaturesc k lookingc k outc k forc k inc k banningsck
moking?
―CollegeckOfficerckDealingsckWithckLendersckScrutinized.‖
• Shouldckregulatorscktakeckackmoreckcarefulcklookckatckcollegeckofficers?
• Whyckcreatedckchangesckincktheckwaysckcollegeckofficersckinteractckwithcklenders?
1- Businessc k lawc k consistsc k ofc k thec k enforceablec k rulesc k ofc k conductc k thatc k governck
1c k Definec k businesslckaw commercialckrelationships.
.
1- Businesscklawckappliescktockthecksixckfunctionalckareasckofckbusiness:
2ckRelatecktheckfunct • Corporateckmanagement
ionalckareasckofcb
k usi
nesscktocktheckreleva • Productionckandcktransportation
ntckareasckofckbusine • Marketing
sscklaw. • Researchckandckdevelopment
• Accountingckandckfinance
• Humanckresourceckmanagement
1- • Providingckorder
3ckRecallcktheckpur • Servingckasckanckalternativecktockfighting
posesckofcklaw.
• Facilitatingckacksenseckthatckchangeckisckpossible
• Encouragingcksocialckjustice
• Guaranteeingckpersonalckfreedoms
• Servingckasckackmoralckguide
1- Oneckwaycktockclassifycklaw:
4ckDistinguishckamon Privatecklawckinvolvesckdisputesckbetweenckprivateckindividualsckorckgroups.
gcktypesckofcklaw. Publicc k lawc k involvesc k disputesc k betweenc k privatec k individualsc k orc k groupsc k andc k t
heircgk overnment.
Acksecondckwaycktockclassifycklaw:
Civilcklawckinvolvescktheckrightsckandckresponsibilitiesckinvolvedckinckrelationshipsbck etwe
enckpersonsckandckbetweenckpersonsckandcktheirckgovernment.
Criminalcklawc k involvesck incidentsckinck whichcksomeoneck commitsck anck actck againstckt
hecp
k ublicckasckackunit.
Teachingc k tip:c k Askc k studentsc k toc k givec k anc k examplec k ofc k ac k factc k situationc k thatc k
ledc k tocb
k othckcriminalckandckcivilcklawsuits,ck e.g.,cktheckO.J.ckSimpsoncktrials.
1- Sourcesckofckbusinesscklawckare:
5ckDifferentiateckbet 1. Constitutions
weencksourcesckofctk h Constitutionalc k lawc k refersc k toc k thec k generalc k limitsc k andc k powersc k ofc k governments
ecklaw. c k ascs
k tatedckincktheirckwrittenckconstitutions.
2. Statutesckorcklegislativeckactions
3. Cases
Casec k lawc k (orc k commonc k law)c k isc k thec k collectionc k ofc k legalc k interpretationsc k mad
ec k bycjkudges.
Stareckdecisisckmeansckcourtsckareckrelyingckonckprecedent.
Teachingc k tip:c k Thec k firstc k timec k yourc k studentsc k encounterc k anc k appellatec k casec k i
nc k the
, readings,ckshowckthemckwhatckstareckdecisiscklookscklikeckincktheckcontextckofckackrealckcase.
4. Administrativecklaw
Administrativec k lawc k isc k thec k collectionc k ofc k rulesc k andc k decisionsc k madec k byck
administrativeckagencies.
5. Treaties
Ac k treatyc k isc k ac k bindingc k agreementc k betweenc k twoc k statesc k orc k internationalck
organizations.
6.c k Executiveckorders
Anckexecutiveckorderckisckackdirectiveckthatckcomesckfromcktheckpresidentck orckstatecgk ove
rnor.
1- Schoolsckofckjurisprudenceckareckcommonckguidescktocklegalckinterpretation.
6ckIdentifycktheckvar • Naturalc k law—
iousckschoolsckofcjkur certainc k ethicalc k lawsc k andc k principlesc k arec k morallyc k rightc k and
isprudence. ―above‖ckthecklawsckdevisedckbyckhumans.
• Legalc k Positivism—
assumesc k thec k legitimatec k politicalc k authorityc k deservesco k urckobedienceckwhe
nckitckissuesckackrule.
• IdentificationckwithcktheckVulnerable—
emphasisckonckfairnessck andcklookingco k utckforckthoseckwithcktheckleastckpower.
• HistoricalckSchool/Tradition—emphasisckoncktheckuseckofckstareckdecisis.
• LegalckRealism—judgesckconsidercksocialckandckeconomicckconditions.
• Cost-benefitckAnalysis—
makeckcalculationscktockmaximizecktheckratiockofcb k enefitscktockcosts.
Teachingckcktip:ckckConsiderckckusingckck―TheckckCaseckckofckcktheckckSpelunceanckckExplorersckck(li
nkckbelow)cktockmakecktheckschoolsckofckjurisprudenceckcomeckalive.
GlobalckandckCom Atckthisckpointckinckthecktextbook,ckstudentsckshouldckmerelyckhaveckanckawarenessckthatck
parativeckLaw globalizationckhasckaffectedcktheckscopeckofckbusinesscklaw.ckConsequently,c k weckhighli
ghtcktheckdefinitionscktocktheckfollowingckkeycktermsckthatckwillc k comeckupcklaterckincktheck
book:
• Trade,c k i.e.c k thec k exchangec k ofc k goodsc k orc k services,c k onc k ac k globalc k scalec k has
c k ledct
k ocktheckcreationckofcktradeckagreementsckthatckserveckasckdeckfactockrulesckgo
verningctk heckglobalckbusinessckenvironment.
• Comparativecklaw—
theckfieldckofcklawckthatckstudiesckandckcomparescklawsckinckdifferentckcountries.
AppendixckonckCriticalck Criticalckthinkingckincludescktheckapplicationckofckevaluativeckstandardscktockassesscktheck
ThinkingckandckBusine qualityckorcktheckreasoningckbeingckofferedcktocksupportcktheckconclusion.ckCriticalckthink
ss ersckwillckfollowckthisckpatternckofckcarefulckthinkingckwhencktheyckreadc k anckargument:
1. Findcktheckfacts.
2. Lookckforcktheckissue.
3. Identifycktheckjudge‘sckreasonsckandckconclusion.
4. Locateckincktheckdecisioncktheckrulesckofcklawckthatckgoverncktheckjudge‘sckreasoning.
5. Applyckcriticalckthinkingcktocktheckreasoning.ckEvaluatecktheckreasoning.
• Lookckforckpotentialckambiguity.
• Considercktheckstrengthckofckanalogies.
