Instructor Manual For
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25
M
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and
Business Ethics
ED
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,
C
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
O
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
N
teachers.
2. LEARNING OBJECTIVES
N
After reading this chapter, students will be able to answer the following questions:
O
1. What is business law?
2. How does business law relate to business education?
3. What are the purposes of law?
4. What are alternative ways to classify law?
IS
5. What are the sources of law?
6. What are the various schools of jurisprudence?
3. LECTURE NOTES WITH DEFINITIONS
SE
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
U
provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD, and on the
publisher‘s web site.
R
1-1
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, 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?
M
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?
ED
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
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
O
Management
Production and transportation
Marketing
N
Research and development
Accounting and finance
Human resource management
N
d. What are the purposes of law?
Providing order
O
Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
IS
Serving as a moral guide
e. What are alternative ways to classify law?
One way to classify law:
SE
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.
U
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
R
1-2
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, Teaching tip: Ask students to give an example of a fact situation that led to both criminal and
civil lawsuits, e.g., the O.J. Simpson trials.
f. What are the sources of law?
Sources of business law are:
M
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
written constitutions.
2. Statutes or legislative actions
ED
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
legislatures.
3. Cases
Case law (or common law) is the collection of legal interpretations made by judges.
Precedent is a tool used by judges to make rulings on cases on the basis of key similarities to
previous cases.
C
Stare decisis is a principle stating that rulings made in higher courts are binding precedent for
lower courts.
Teaching tip: The first time your students encounter an appellate case in the readings, show
O
them what stare decisis looks like in the context of a real case.
4. Administrative law
Administrative law is the collection of rules and decisions made by administrative agencies to
fill in particular details missing from constitutions and statutes.
N
5. Treaties
A treaty is a binding agreement between two states or international organizations.
6. Executive orders
N
An executive order is a directive that comes from the president or state governor.
g. What are the various schools of legal interpretation?
O
Some schools of legal interpretation include:
Identification with the Vulnerable— emphasis on fairness and looking out for those
with the least power.
Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
IS
Legal Realism—judges consider context such as social and economic conditions.
Cost-benefit Analysis—emphasis is on assigning monetary values to costs and benefits
of the law in order to make calculations to maximize the ratio of benefits to costs.
SE
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make the
schools of jurisprudence come alive.
h. Appendix on Critical Thinking and Business Law
Critical thinking includes the application of evaluative standards to assess the quality or the
U
reasoning being offered to support the conclusion. Critical thinkers will follow this pattern of
careful thinking when they read an argument:
1. Find the facts.
2. Look fore the issue.
R
1-3
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, 3. Identify the judge‘s reasons and conclusion.
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
Look for potential ambiguity.
Consider the strength of analogies.
M
Check the quality of the judge‘s reasoning.
Decide whether important information is missing.
Consider the possibility of rival causes.
ED
4. TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE TO
THINK ABOUT THE KINDS OF QUESTIONS TO ASK YOUR STUDENTS
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of
cognitive functions. His work sets the stage for teachers to understand why it is important to
C
think carefully about the kinds of questions they ask in class.
The Objective Sample questions
O
Knowledge What is business law?
Lowest level of learning and is mostly memory. What are the four elements of a negligence
The student recognizes and recalls information. claim?
N
Comprehension What is your understanding of the concept
Lowest level of understanding. The student of stare decisis?
paraphrases or explains something. What does your textbook mean by
N
deontology?
Application How would a natural law thinker respond
Student demonstrates her understanding of to this particular fact pattern?
O
abstract rules, principles, or generalizations by Use a particular case rule to determine
using them to solve life-like problems. whether the plaintiff will be successful in
her claim.
IS
Analysis Provide the reasoning for the following
Student breaks down a communication to statement: All contracts do not need to be
discover the hidden structure as well as in writing to be enforceable.
assumptions. Break down a particular judge‘s opinion to
SE
understand the assumptions the judge is
making.
Synthesis Explain how two particular schools of legal
Student creatively combines elements and parts interpretation are related.
to form a whole new structure. Make a connection between duress and
insanity.
U
Evaluation Identify and explain a reasoning flaw in the
Highest level of learning. Student makes a judge‘s argument.
Evaluate the following statement:
R
critical judgment about the value of the
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE
CLASSIFICATION OF EDUCATIONAL GOALS (1954).
1-4
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
Chapter 1-25
M
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and
Business Ethics
ED
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,
C
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
O
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
N
teachers.
2. LEARNING OBJECTIVES
N
After reading this chapter, students will be able to answer the following questions:
O
1. What is business law?
2. How does business law relate to business education?
3. What are the purposes of law?
4. What are alternative ways to classify law?
IS
5. What are the sources of law?
6. What are the various schools of jurisprudence?
3. LECTURE NOTES WITH DEFINITIONS
SE
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
U
provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD, and on the
publisher‘s web site.
R
1-1
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, 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?
M
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?
ED
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
c. How does business law relate to business education?
Business law applies to the six functional areas of business:
O
Management
Production and transportation
Marketing
N
Research and development
Accounting and finance
Human resource management
N
d. What are the purposes of law?
Providing order
O
Serving as an alternative to fighting
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
IS
Serving as a moral guide
e. What are alternative ways to classify law?
One way to classify law:
SE
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.
U
Criminal law is the body of laws that involve the rights and responsibilities an individual has
with respect to the public as a whole.
R
1-2
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, Teaching tip: Ask students to give an example of a fact situation that led to both criminal and
civil lawsuits, e.g., the O.J. Simpson trials.
f. What are the sources of law?
Sources of business law are:
M
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
written constitutions.
2. Statutes or legislative actions
ED
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
legislatures.
3. Cases
Case law (or common law) is the collection of legal interpretations made by judges.
Precedent is a tool used by judges to make rulings on cases on the basis of key similarities to
previous cases.
C
Stare decisis is a principle stating that rulings made in higher courts are binding precedent for
lower courts.
Teaching tip: The first time your students encounter an appellate case in the readings, show
O
them what stare decisis looks like in the context of a real case.
4. Administrative law
Administrative law is the collection of rules and decisions made by administrative agencies to
fill in particular details missing from constitutions and statutes.
N
5. Treaties
A treaty is a binding agreement between two states or international organizations.
6. Executive orders
N
An executive order is a directive that comes from the president or state governor.
g. What are the various schools of legal interpretation?
O
Some schools of legal interpretation include:
Identification with the Vulnerable— emphasis on fairness and looking out for those
with the least power.
Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
IS
Legal Realism—judges consider context such as social and economic conditions.
Cost-benefit Analysis—emphasis is on assigning monetary values to costs and benefits
of the law in order to make calculations to maximize the ratio of benefits to costs.
SE
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make the
schools of jurisprudence come alive.
h. Appendix on Critical Thinking and Business Law
Critical thinking includes the application of evaluative standards to assess the quality or the
U
reasoning being offered to support the conclusion. Critical thinkers will follow this pattern of
careful thinking when they read an argument:
1. Find the facts.
2. Look fore the issue.
R
1-3
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
, 3. Identify the judge‘s reasons and conclusion.
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
Look for potential ambiguity.
Consider the strength of analogies.
M
Check the quality of the judge‘s reasoning.
Decide whether important information is missing.
Consider the possibility of rival causes.
ED
4. TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE TO
THINK ABOUT THE KINDS OF QUESTIONS TO ASK YOUR STUDENTS
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of
cognitive functions. His work sets the stage for teachers to understand why it is important to
C
think carefully about the kinds of questions they ask in class.
The Objective Sample questions
O
Knowledge What is business law?
Lowest level of learning and is mostly memory. What are the four elements of a negligence
The student recognizes and recalls information. claim?
N
Comprehension What is your understanding of the concept
Lowest level of understanding. The student of stare decisis?
paraphrases or explains something. What does your textbook mean by
N
deontology?
Application How would a natural law thinker respond
Student demonstrates her understanding of to this particular fact pattern?
O
abstract rules, principles, or generalizations by Use a particular case rule to determine
using them to solve life-like problems. whether the plaintiff will be successful in
her claim.
IS
Analysis Provide the reasoning for the following
Student breaks down a communication to statement: All contracts do not need to be
discover the hidden structure as well as in writing to be enforceable.
assumptions. Break down a particular judge‘s opinion to
SE
understand the assumptions the judge is
making.
Synthesis Explain how two particular schools of legal
Student creatively combines elements and parts interpretation are related.
to form a whole new structure. Make a connection between duress and
insanity.
U
Evaluation Identify and explain a reasoning flaw in the
Highest level of learning. Student makes a judge‘s argument.
Evaluate the following statement:
R
critical judgment about the value of the
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE
CLASSIFICATION OF EDUCATIONAL GOALS (1954).
1-4
© 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
