Chapter 1: An Introduction to the Fundamentals of Dynamic
Business Law
1. CHAPTER OVERVIEW
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which
business law intersects with the six functional areas of business. Throughout the textbook,
the authors will encourage students to “connect to the core,” and remember the ways in
which law intersects with other areas of study, including corporate management,
production and transportation, marketing, research and development, accounting and
finance, and human resource management.
This manual supports the “connecting to the core” theme by giving ideas for assignments
that encourage students to integrate their business law knowledge with knowledge they are
acquiring from their other business classes. The manual also encourages professors to
improve their teaching skills. Finally, the manual suggests teaching ideas for both beginning
and experienced teachers.
2. LEARNING OBJECTIVES
After reading this chapter, students will be able to answer the following questions:
1. What is business law?
1. How does business law relate to business education?
2. What are the purposes of law?
3. What are alternative ways to classify law?
4. What are the sources of law?
5. What are the various schools of jurisprudence?
3. lecture notes with definitions
a. 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. Stories are available via a McGraw-Hill DVD, and on the
publisher’s web site.
,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?
Whose interests are state legislatures looking out for in banning smoking?
“College Officer Dealings With Lenders Scrutinized.”
Should regulators take a more careful look at college officers?
Why created changes in the ways college officers interact with lenders?
b. What is business law?
Business law consists of the enforceable rules of conduct that govern the actions of buyers and
sellers in market exchanges.
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
Management
Production and transportation
Marketing
Research and development
Accounting and finance
Human resource management
d. What are the purposes of law?
, Providing order
Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
Serving as a moral guide
e. What are alternative ways to classify law?
One way to classify law:
Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their government.
A second way to classify law:
Civil law is the body of laws that govern the rights and responsibilities either between persons or
between persons and their government.
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
Business Law
1. CHAPTER OVERVIEW
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which
business law intersects with the six functional areas of business. Throughout the textbook,
the authors will encourage students to “connect to the core,” and remember the ways in
which law intersects with other areas of study, including corporate management,
production and transportation, marketing, research and development, accounting and
finance, and human resource management.
This manual supports the “connecting to the core” theme by giving ideas for assignments
that encourage students to integrate their business law knowledge with knowledge they are
acquiring from their other business classes. The manual also encourages professors to
improve their teaching skills. Finally, the manual suggests teaching ideas for both beginning
and experienced teachers.
2. LEARNING OBJECTIVES
After reading this chapter, students will be able to answer the following questions:
1. What is business law?
1. How does business law relate to business education?
2. What are the purposes of law?
3. What are alternative ways to classify law?
4. What are the sources of law?
5. What are the various schools of jurisprudence?
3. lecture notes with definitions
a. 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. Stories are available via a McGraw-Hill DVD, and on the
publisher’s web site.
,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?
Whose interests are state legislatures looking out for in banning smoking?
“College Officer Dealings With Lenders Scrutinized.”
Should regulators take a more careful look at college officers?
Why created changes in the ways college officers interact with lenders?
b. What is business law?
Business law consists of the enforceable rules of conduct that govern the actions of buyers and
sellers in market exchanges.
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
Management
Production and transportation
Marketing
Research and development
Accounting and finance
Human resource management
d. What are the purposes of law?
, Providing order
Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
Serving as a moral guide
e. What are alternative ways to classify law?
One way to classify law:
Private law involves disputes between private individuals or groups.
Public law involves disputes between private individuals or groups and their government.
A second way to classify law:
Civil law is the body of laws that govern the rights and responsibilities either between persons or
between persons and their government.
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
