Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
Instructor Manual
Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and
Constitutional Foundations of Business
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
Learning Objectives.......................................................................................................2
What's New in This Chapter........................................................................................2
Chapter Outline.............................................................................................................3
Discussion Questions..................................................................................................15
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
PURPOSE AND PERSPECTIVE OF THE CHAPTER
The purpose of this chapter is for students to learn how business law and the legal environment affect
business decisions. The laws may change, but the ability to analyze and evaluate the legal (and ethical)
ramifications of situations as they arise is an invaluable and lasting skill. Students will learn how to think
about the law and the legal environment and develop critical-thinking and legal reasoning skills.
LEARNING OBJECTIVES
The following objectives are addressed in this chapter:
1. Identify the four primary sources of law in the United States.
2. Define precedent and identify situations when a court might depart from precedent.
3. Describe the important differences between civil law and criminal law.
4. Identify the constitutional clause that gives the federal government the power to regulate
commercial activities among the states.
5. Explain the purpose of the Bill of Rights and the freedoms guaranteed by the First Amendment.
6. Identify where in the Constitution the due process clause can be found.
[return to top]
WHAT'S NEW IN THIS CHAPTER
The following elements are improvements in this chapter from the previous edition:
New chapter opening quote from U.S. Supreme Court Associate Justice Sonia Sotomayor.
New introductory example in the opening section.
New case problem 1-6 on stare decisis [Garcia v. Gateway Hotel, LP (2023)].
Should Gateway Hotels be awarded attorney’s fees after successfully defending itself against a
nonfrivolous lawsuit claiming that its website did not comply with the ADA?
New Sample Court Case, Miles v. Kirkland’s Stores Inc., decided in 2024.
New Building Analytical Skills feature introducing the IRAC method of legal
reasoning, using Miles v. Kirkland’s Stores Inc. as the example.
New briefed version of the new sample court case in Appendix to Chapter 1.
[return to top]
CHAPTER OUTLINE
I. 1-1 Sources of American Law (PPT Slides 4-9)
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
a. Constitutional Law
i. Deals with the fundamental principles by which the government exercises its
authority.
ii. Knowledge Check (1) PPT Slide 5: Test students’ knowledge of
the sources of American law.
b. Statutory Law
i. The body of law enacted by legislative bodies.
1. Local Ordinances
2. Applicability of Statutes
a) Example 1.1 Sanctuary Cities
3. Uniform Laws
4. The Uniform Commercial Code (UCC)
c.Administrative Law
i. Administrative law consists of the rules, orders, and decisions of
administrative agencies.
ii. An administrative agency is a federal, state, or local government agency
established to perform a specific function.
iii. Agency Creation
1. Example 1.2 Federal Trade Commission (FTC)
iv. Rulemaking
1. Example 1.3 The Occupational Safety and Health Act (OSHA)
2. Legislative Rules.
a) Notice of proposed rulemaking
b) A comment period
c) The final rule
3. Interpretive Rules.
a) Example 1.4 The Equal Employment Opportunity
Commission
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
v. Enforcement and Investigation
vi. Adjudication
d. Case Law and Common Law Doctrines
II. 1-2 The Common Law (PPT Slides 10-11)
a. Early English Courts
i. Common law-body of general rules that applied throughout the entire English
realm.
b. Stare Decisis
i. Latin phrase meaning “to stand on decided cases”
ii. Controlling Precedents
1. A binding authority is any source of law that a court must follow
when deciding a case.
iii. Departures from Precedent
1. Classic Case Example 1.5 Brown v. Board of Education of Topeka
iv. When There Is No Precedent
1. Persuasive authority – a legal authority the court may consult for
guidance but that is not binding on the court
c. Equitable Remedies and Courts of Equity
i. Example 1.6 Jewell
ii. Remedies in Equity
1. Seeks to supply a remedy when no adequate remedy at law is available.
iii. The Merging of Law and Equity
1. Courts of law and equity have merged, and, thus, the distinction between
the two courts has largely disappeared.
2. See Exhibit 1-1 – Procedural Differences between an Action at Law
and an Action in Equity
iv. Equitable Maxims
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
of Business
Instructor Manual
Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and
Constitutional Foundations of Business
TABLE OF CONTENTS
Purpose and Perspective of the Chapter......................................................................2
Learning Objectives.......................................................................................................2
What's New in This Chapter........................................................................................2
Chapter Outline.............................................................................................................3
Discussion Questions..................................................................................................15
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
PURPOSE AND PERSPECTIVE OF THE CHAPTER
The purpose of this chapter is for students to learn how business law and the legal environment affect
business decisions. The laws may change, but the ability to analyze and evaluate the legal (and ethical)
ramifications of situations as they arise is an invaluable and lasting skill. Students will learn how to think
about the law and the legal environment and develop critical-thinking and legal reasoning skills.
LEARNING OBJECTIVES
The following objectives are addressed in this chapter:
1. Identify the four primary sources of law in the United States.
2. Define precedent and identify situations when a court might depart from precedent.
3. Describe the important differences between civil law and criminal law.
4. Identify the constitutional clause that gives the federal government the power to regulate
commercial activities among the states.
5. Explain the purpose of the Bill of Rights and the freedoms guaranteed by the First Amendment.
6. Identify where in the Constitution the due process clause can be found.
[return to top]
WHAT'S NEW IN THIS CHAPTER
The following elements are improvements in this chapter from the previous edition:
New chapter opening quote from U.S. Supreme Court Associate Justice Sonia Sotomayor.
New introductory example in the opening section.
New case problem 1-6 on stare decisis [Garcia v. Gateway Hotel, LP (2023)].
Should Gateway Hotels be awarded attorney’s fees after successfully defending itself against a
nonfrivolous lawsuit claiming that its website did not comply with the ADA?
New Sample Court Case, Miles v. Kirkland’s Stores Inc., decided in 2024.
New Building Analytical Skills feature introducing the IRAC method of legal
reasoning, using Miles v. Kirkland’s Stores Inc. as the example.
New briefed version of the new sample court case in Appendix to Chapter 1.
[return to top]
CHAPTER OUTLINE
I. 1-1 Sources of American Law (PPT Slides 4-9)
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
a. Constitutional Law
i. Deals with the fundamental principles by which the government exercises its
authority.
ii. Knowledge Check (1) PPT Slide 5: Test students’ knowledge of
the sources of American law.
b. Statutory Law
i. The body of law enacted by legislative bodies.
1. Local Ordinances
2. Applicability of Statutes
a) Example 1.1 Sanctuary Cities
3. Uniform Laws
4. The Uniform Commercial Code (UCC)
c.Administrative Law
i. Administrative law consists of the rules, orders, and decisions of
administrative agencies.
ii. An administrative agency is a federal, state, or local government agency
established to perform a specific function.
iii. Agency Creation
1. Example 1.2 Federal Trade Commission (FTC)
iv. Rulemaking
1. Example 1.3 The Occupational Safety and Health Act (OSHA)
2. Legislative Rules.
a) Notice of proposed rulemaking
b) A comment period
c) The final rule
3. Interpretive Rules.
a) Example 1.4 The Equal Employment Opportunity
Commission
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Miller, Business Law Today, The Essentials, 14e, ©2026, 9798214045962; Chapter 1: Legal and Constitutional Foundations
of Business
v. Enforcement and Investigation
vi. Adjudication
d. Case Law and Common Law Doctrines
II. 1-2 The Common Law (PPT Slides 10-11)
a. Early English Courts
i. Common law-body of general rules that applied throughout the entire English
realm.
b. Stare Decisis
i. Latin phrase meaning “to stand on decided cases”
ii. Controlling Precedents
1. A binding authority is any source of law that a court must follow
when deciding a case.
iii. Departures from Precedent
1. Classic Case Example 1.5 Brown v. Board of Education of Topeka
iv. When There Is No Precedent
1. Persuasive authority – a legal authority the court may consult for
guidance but that is not binding on the court
c. Equitable Remedies and Courts of Equity
i. Example 1.6 Jewell
ii. Remedies in Equity
1. Seeks to supply a remedy when no adequate remedy at law is available.
iii. The Merging of Law and Equity
1. Courts of law and equity have merged, and, thus, the distinction between
the two courts has largely disappeared.
2. See Exhibit 1-1 – Procedural Differences between an Action at Law
and an Action in Equity
iv. Equitable Maxims
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.