SolutionManualt
Dynamic Business Law, 6th Edition
t t t t
ByNancyKubasek
t t
,Chapter t1 t- tAn tIntroduction tto tDynamic tBusiness tLaw
CHAPTER tOVERVIEW
Chapter t One t lays t the t foundation t for t the t textbook. t Make t sure t you t look t on t the
t publisher‘s t web t site t for t information tabout t how tbusiness tlaw tintersects t with tthe t six
t functional tareas t of tbusiness. t The t tauthors t encourage tstudents tto t―connect tto tthe tcore,‖ tand
tremember tthe tways t in twhich tlaw t intersects t with tother tareas t of t study, t including t corporate
t management, t production t and t transportation, t marketing, t research t and t development,
t accounting tand tfinance, tand thuman tresource tmanagement.
This t manual t supports t the t ―connecting t to t the t core‖ t theme t by t giving t ideas t for
t assignments t that t encourage t students tto t integrate t their t business t law t knowledge t with
t knowledge t they t are t acquiring t from t their t other t business t classes. t The t manual t also
t encourages t professors t to t improve t their t teaching t skills. t Finally, t the t manual t suggests
tteaching tideas tfor tboth tbeginning tand texperienced tteachers.
LEARNING t OBJECTIVES
After treading tthis tchapter, tstudents twill tbe table tto:
1-1 Define tbusiness tlaw.
1-2 Relate tthe tfunctional tareas tof tbusiness tto tthe trelevant tareas tof
t business tlaw1- t 3 tRecall tthe tpurposes tof tlaw.
1-4 Distinguish tamong ttypes tof tlaw.
1-5 Differentiate tbetween tsources tof tthe tlaw.
1-6 Identify tthe tvarious tschools tof tjurisprudence.
LECTURE t NOTES t WITH t DEFINITIONS
In tthe tnews… Teaching t tip: tFor teach tchapter, tconsider tasking tstudents t to trelate tcurrent
t news t items t to tmaterial tfrom tthe tchapter.
In t addition t to t ideas t students t come t up t with t on t their t own, t consider
t weaving t in t news t stories tprovided tby tthe tMcGraw t Hill.
For tChapter tOne, tMcGraw tHill toffers tthe tfollowing tstories:
―Smoking tBan: tTobacco tTyrants: tGone tToo tFar? tMany tStates tAre
tPutting t Stronger tRestrictions ton tWhere tYou tCan tSmoke‖
• Have tstates tgone ttoo tfar tin tbanning tsmoking?
, • Whose t interests t are t state t legislatures t looking t out
t for t in t banning t smoking?
―College tOfficer tDealings tWith tLenders tScrutinized.‖
• Should tregulators ttake ta tmore tcareful tlook tat tcollege tofficers?
• Why tcreated tchanges tin tthe tways tcollege tofficers tinteract twith
1-1 t Define tlenders?
Business t law t consists t of t the t enforceable t rules t of
t business t law. t conduct t that t govern t commercial trelationships.
1-2 tRelate tthe Business tlaw tapplies tto tthe tsix tfunctional tareas tof tbusiness:
t functional tareas
• Corporate tmanagement
t of t business tto
• Production tand ttransportation
tthe t relevant
tareas tof
• Marketing
t business tlaw. • Research tand tdevelopment
• Accounting tand tfinance
• Human tresource tmanagement
1-3 tRecall tthe • Providing torder
t purposes tof • Serving tas tan talternative tto tfighting
tlaw.
• Facilitating ta tsense tthat tchange tis tpossible
• Encouraging tsocial tjustice
• Guaranteeing tpersonal tfreedoms
• Serving tas ta tmoral tguide
1-4 tDistinguish One tway tto tclassify tlaw:
t among ttypes tof Private tlaw tinvolves tdisputes tbetween tprivate tindividuals tor tgroups.
tlaw.
Public t law t involves t disputes t between t private t individuals t or
t groups t and t their t government.
A tsecond tway tto tclassify tlaw:
Civil tlaw tinvolves tthe trights tand tresponsibilities tinvolved tin
trelationshipsbetween t persons t and tbetween tpersons tand ttheir
tgovernment.
Criminal t law t involves t incidents tin twhich tsomeone tcommits t an tact
tagainst t the t public tas ta tunit.
Teaching t tip: t Ask t students t to t give t an t example t of t a t fact
1-5 tDifferentiate situationtoft that
tSources t led tlaw
tbusiness t to ttare:
both tcriminal tand tcivil tlawsuits, te.g., tthe tO.J.
t between tsources tSimpson ttrials.
1. Constitutions
t of t the tlaw.
Constitutional t law t refers t to t the t general t limits t and t powers t of
t governments t as t stated tin ttheir twritten tconstitutions.
2. Statutes tor tlegislative tactions
3. Cases
Case t law t (or t common t law) t is t the t collection t of t legal
t interpretations t made t by t judges.
Stare tdecisis tmeans tcourts tare trelying ton tprecedent.
Teaching t tip: t The t first t time t your t students t encounter t an t appellate
t case t in t the
, readings, tshow tthem twhat tstare tdecisis tlooks tlike tin tthe tcontext tof ta treal
tcase.
4. Administrative tlaw
Administrative t law t is t the t collection t of t rules t and
t decisions t made t by t administrative tagencies.
5. Treaties
A t treaty t is t a t tbinding t agreement t between t two t states
t or t international t organizations.
6. t t Executive torders
An texecutive t order tis ta tdirective tthat tcomes t from tthe tpresident tor
1-6 tIdentify tthe tSchools
stategovernor.
t of tjurisprudence tare tcommon tguides tto tlegal tinterpretation.
t various tschools • Natural t law—certain t ethical t laws t and t principles t are t morally
tof
t right t and
t jurisprudence.
―above‖ tthe tlaws tdevised tby thumans.
• Legal t Positivism—assumes t the t legitimate t political
t authority t deserves t our tobedience twhen tit tissues ta trule.
• Identification twith tthe tVulnerable—emphasis t on tfairness tand
t looking t out tfor tthose twith tthe tleast tpower.
• Historical tSchool/Tradition—emphasis ton tthe tuse tof tstare tdecisis.
• Legal tRealism—judges tconsider tsocial tand teconomic tconditions.
• Cost-benefit tAnalysis—make tcalculations t to tmaximize tthe
t ratio t of t benefits tto tcosts.
Teaching t tip: t Consider t using t ―The t Case t of t the t Speluncean
Global tand At t this
t Explorers t point in t thetto ttmake
t (link t t below) textbook, t students
tthe t schools t should t merely
t of tjurisprudence tcome t have
t Comparative an t awareness t that t globalization t has t affected t the t scope t of
ttalive.
tLaw t business t law. t Consequently, t we t highlight t the tdefinitions tto tthe
tfollowing t key tterms tthat twill t t come tup tlater tin tthe tbook:
• Trade, t i.e. t the t exchange t of t goods t or t services, t on t a t global
t scale t has t ledto t the t creation t of t trade t agreements t that t serve
t as t de t facto t rules t governingtthe t global tbusiness t environment.
• Comparative tlaw—the t field tof tlaw tthat tstudies t and tcompares
t laws tin t different tcountries.
Appendix ton Critical t thinking t includes t the t application t of t evaluative
tCritical t Thinking t standards t to t assess t the t quality t or t the t reasoning t being t offered
tand t Business t to t support t the t conclusion. t Critical t thinkers t will tfollow tthis tpattern tof
t careful tthinking twhen tthey tread t tan targument:
1. Find tthe tfacts.
2. Look tfor tthe tissue.
3. Identify tthe tjudge‘s treasons tand tconclusion.
4. Locate tin tthe tdecision tthe trules tof tlaw tthat tgovern tthe tjudge‘s
t reasoning.
5. Apply tcritical tthinking tto tthe treasoning. tEvaluate tthe treasoning.
• Look tfor tpotential tambiguity.
• Consider tthe tstrength tof tanalogies.
Dynamic Business Law, 6th Edition
t t t t
ByNancyKubasek
t t
,Chapter t1 t- tAn tIntroduction tto tDynamic tBusiness tLaw
CHAPTER tOVERVIEW
Chapter t One t lays t the t foundation t for t the t textbook. t Make t sure t you t look t on t the
t publisher‘s t web t site t for t information tabout t how tbusiness tlaw tintersects t with tthe t six
t functional tareas t of tbusiness. t The t tauthors t encourage tstudents tto t―connect tto tthe tcore,‖ tand
tremember tthe tways t in twhich tlaw t intersects t with tother tareas t of t study, t including t corporate
t management, t production t and t transportation, t marketing, t research t and t development,
t accounting tand tfinance, tand thuman tresource tmanagement.
This t manual t supports t the t ―connecting t to t the t core‖ t theme t by t giving t ideas t for
t assignments t that t encourage t students tto t integrate t their t business t law t knowledge t with
t knowledge t they t are t acquiring t from t their t other t business t classes. t The t manual t also
t encourages t professors t to t improve t their t teaching t skills. t Finally, t the t manual t suggests
tteaching tideas tfor tboth tbeginning tand texperienced tteachers.
LEARNING t OBJECTIVES
After treading tthis tchapter, tstudents twill tbe table tto:
1-1 Define tbusiness tlaw.
1-2 Relate tthe tfunctional tareas tof tbusiness tto tthe trelevant tareas tof
t business tlaw1- t 3 tRecall tthe tpurposes tof tlaw.
1-4 Distinguish tamong ttypes tof tlaw.
1-5 Differentiate tbetween tsources tof tthe tlaw.
1-6 Identify tthe tvarious tschools tof tjurisprudence.
LECTURE t NOTES t WITH t DEFINITIONS
In tthe tnews… Teaching t tip: tFor teach tchapter, tconsider tasking tstudents t to trelate tcurrent
t news t items t to tmaterial tfrom tthe tchapter.
In t addition t to t ideas t students t come t up t with t on t their t own, t consider
t weaving t in t news t stories tprovided tby tthe tMcGraw t Hill.
For tChapter tOne, tMcGraw tHill toffers tthe tfollowing tstories:
―Smoking tBan: tTobacco tTyrants: tGone tToo tFar? tMany tStates tAre
tPutting t Stronger tRestrictions ton tWhere tYou tCan tSmoke‖
• Have tstates tgone ttoo tfar tin tbanning tsmoking?
, • Whose t interests t are t state t legislatures t looking t out
t for t in t banning t smoking?
―College tOfficer tDealings tWith tLenders tScrutinized.‖
• Should tregulators ttake ta tmore tcareful tlook tat tcollege tofficers?
• Why tcreated tchanges tin tthe tways tcollege tofficers tinteract twith
1-1 t Define tlenders?
Business t law t consists t of t the t enforceable t rules t of
t business t law. t conduct t that t govern t commercial trelationships.
1-2 tRelate tthe Business tlaw tapplies tto tthe tsix tfunctional tareas tof tbusiness:
t functional tareas
• Corporate tmanagement
t of t business tto
• Production tand ttransportation
tthe t relevant
tareas tof
• Marketing
t business tlaw. • Research tand tdevelopment
• Accounting tand tfinance
• Human tresource tmanagement
1-3 tRecall tthe • Providing torder
t purposes tof • Serving tas tan talternative tto tfighting
tlaw.
• Facilitating ta tsense tthat tchange tis tpossible
• Encouraging tsocial tjustice
• Guaranteeing tpersonal tfreedoms
• Serving tas ta tmoral tguide
1-4 tDistinguish One tway tto tclassify tlaw:
t among ttypes tof Private tlaw tinvolves tdisputes tbetween tprivate tindividuals tor tgroups.
tlaw.
Public t law t involves t disputes t between t private t individuals t or
t groups t and t their t government.
A tsecond tway tto tclassify tlaw:
Civil tlaw tinvolves tthe trights tand tresponsibilities tinvolved tin
trelationshipsbetween t persons t and tbetween tpersons tand ttheir
tgovernment.
Criminal t law t involves t incidents tin twhich tsomeone tcommits t an tact
tagainst t the t public tas ta tunit.
Teaching t tip: t Ask t students t to t give t an t example t of t a t fact
1-5 tDifferentiate situationtoft that
tSources t led tlaw
tbusiness t to ttare:
both tcriminal tand tcivil tlawsuits, te.g., tthe tO.J.
t between tsources tSimpson ttrials.
1. Constitutions
t of t the tlaw.
Constitutional t law t refers t to t the t general t limits t and t powers t of
t governments t as t stated tin ttheir twritten tconstitutions.
2. Statutes tor tlegislative tactions
3. Cases
Case t law t (or t common t law) t is t the t collection t of t legal
t interpretations t made t by t judges.
Stare tdecisis tmeans tcourts tare trelying ton tprecedent.
Teaching t tip: t The t first t time t your t students t encounter t an t appellate
t case t in t the
, readings, tshow tthem twhat tstare tdecisis tlooks tlike tin tthe tcontext tof ta treal
tcase.
4. Administrative tlaw
Administrative t law t is t the t collection t of t rules t and
t decisions t made t by t administrative tagencies.
5. Treaties
A t treaty t is t a t tbinding t agreement t between t two t states
t or t international t organizations.
6. t t Executive torders
An texecutive t order tis ta tdirective tthat tcomes t from tthe tpresident tor
1-6 tIdentify tthe tSchools
stategovernor.
t of tjurisprudence tare tcommon tguides tto tlegal tinterpretation.
t various tschools • Natural t law—certain t ethical t laws t and t principles t are t morally
tof
t right t and
t jurisprudence.
―above‖ tthe tlaws tdevised tby thumans.
• Legal t Positivism—assumes t the t legitimate t political
t authority t deserves t our tobedience twhen tit tissues ta trule.
• Identification twith tthe tVulnerable—emphasis t on tfairness tand
t looking t out tfor tthose twith tthe tleast tpower.
• Historical tSchool/Tradition—emphasis ton tthe tuse tof tstare tdecisis.
• Legal tRealism—judges tconsider tsocial tand teconomic tconditions.
• Cost-benefit tAnalysis—make tcalculations t to tmaximize tthe
t ratio t of t benefits tto tcosts.
Teaching t tip: t Consider t using t ―The t Case t of t the t Speluncean
Global tand At t this
t Explorers t point in t thetto ttmake
t (link t t below) textbook, t students
tthe t schools t should t merely
t of tjurisprudence tcome t have
t Comparative an t awareness t that t globalization t has t affected t the t scope t of
ttalive.
tLaw t business t law. t Consequently, t we t highlight t the tdefinitions tto tthe
tfollowing t key tterms tthat twill t t come tup tlater tin tthe tbook:
• Trade, t i.e. t the t exchange t of t goods t or t services, t on t a t global
t scale t has t ledto t the t creation t of t trade t agreements t that t serve
t as t de t facto t rules t governingtthe t global tbusiness t environment.
• Comparative tlaw—the t field tof tlaw tthat tstudies t and tcompares
t laws tin t different tcountries.
Appendix ton Critical t thinking t includes t the t application t of t evaluative
tCritical t Thinking t standards t to t assess t the t quality t or t the t reasoning t being t offered
tand t Business t to t support t the t conclusion. t Critical t thinkers t will tfollow tthis tpattern tof
t careful tthinking twhen tthey tread t tan targument:
1. Find tthe tfacts.
2. Look tfor tthe tissue.
3. Identify tthe tjudge‘s treasons tand tconclusion.
4. Locate tin tthe tdecision tthe trules tof tlaw tthat tgovern tthe tjudge‘s
t reasoning.
5. Apply tcritical tthinking tto tthe treasoning. tEvaluate tthe treasoning.
• Look tfor tpotential tambiguity.
• Consider tthe tstrength tof tanalogies.
