INSTRUCTOR MANUAL FOR m m
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
m m m m m m m m
Chapter 1-25
m m
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law
m m m m m m m m m m
m and Business Ethics
m m
1. CHAPTER OVERVIEW m
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which
m m m m m m m m m m m m m
business law intersects with the six functional areas of business. Throughout the textbook,
m m m m m m m m m m m m m
the authors will encourage students to ―connect to the core,‖ and remember the ways in
m m m m m m m m m m m m m m m
which law intersects with other areas of study, including corporate management, production
m m m m m m m m m m m m
and transportation, marketing, research and development, accounting and finance, and human
m m m m m m m m m m m
resource management.
m m
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments
m m m m m m m m m m m m m
that encourage students to integrate their business law knowledge with knowledge they are
m m m m m m m m m m m m m
acquiring from their other business classes. The manual also encourages professors to
m m m m m m m m m m m m
improve their teaching skills. Finally, the manual suggests teaching ideas for both beginning
m m m m m m m m m m m m m
and experienced teachers.
m m m
2. LEARNING OBJECTIVES m
After reading this chapter, students will be able to answer the following questions:
m m m m m m m m m m m m
1. What is business law?
m m m
2. How does business law relate to business education?
m m m m m m m
3. What are the purposes of law?
m m m m m
4. What are alternative ways to classify law?
m m m m m m
5. What are the sources of law?
m m m m m
6. What are the various schools of jurisprudence?
m m m m m m
3. LECTURE NOTES WITH DEFINITIONS m m m
a. In the news… m m
Teaching tip: For each chapter, consider asking students to relate current news items to
m m m m m m m m m m m m m
material from the chapter.
m m m m
In addition to ideas students come up with on their own, consider weaving in news
m m m m m m m m m m m m m m
mstories provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD,
m m m m m m m m m m m
mand on the publisher‗s web site.
m m m m m
1-1
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
,For Chapter One, McGraw-Hill offers the following stories:
m m m m m m m
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting Stronger
m m m m m m m m m m m
Restrictions on Where You Can Smoke‖
m m m m m m
Have states gone too far in banning smoking?
m m m m m m m
Whose interests are state legislatures looking out for in banning smoking?
m m m m m m m m m m
―College Officer Dealings With Lenders Scrutinized.‖
m m m m m
Should regulators take a more careful look at college officers?
m m m m m m m m m
Why created changes in the ways college officers interact with lenders?
m m m m m m m m m m
b. What is business law? m m m
Business law consists of the enforceable rules of conduct that govern the actions of buyers
m m m m m m m m m m m m m m
and sellers in market exchanges.
m m m m m
c. How does business law relate to business education? m m m m m m m
Business law applies to the six functional areas of business:
m m m m m m m m m
Management
Production and transportation m m
Marketing
Research and development m m
Accounting and finance m m
Human resource management m m
d. What are the purposes of law? m m m m m
Providing order m
Serving as an alternative to fighting
m m m m m
Facilitating a sense that change is possible m m m m m m
Encouraging social justice m m
Guaranteeing personal freedoms m m
Serving as a moral guide m m m m
e. What are alternative ways to classify law? m m m m m m
One way to classify law:
m m m m
Private law involves disputes between private individuals or groups.
m m m m m m m m
Public law involves disputes between private individuals or groups and their government.
m m m m m m m m m m m
A second way to classify law:
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Civil law is the body of laws that govern the rights and responsibilities either between
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persons or between persons and their government.
m m m m m m m
Criminal law is the body of laws that involve the rights and responsibilities an individual
m m m m m m m m m m m m m m
has with respect to the public as a whole.
m m m m m m m m m
1-2
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
,Teaching tip: Ask students to give an example of a fact situation that led to both criminal
m m m m m m m m m m m m m m m m
and civil lawsuits, e.g., the O.J. Simpson trials.
m m m m m m m m
f. What are the sources of law? m m m m m
Sources of business law are:m m m m
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
m m m m m m m m m m m m m m
mwritten constitutions. m
2. Statutes or legislative actions m m m
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
m m m m m m m m m m m m m m
mlegislatures.
3. Cases
Case law (or common law) is the collection of legal interpretations made by judges.
m m m m m m m m m m m m m
mPrecedent is a tool used by judges to make rulings on cases on the basis of key
m m m m m m m m m m m m m m m m
msimilarities to previous cases. m m m
Stare decisis is a principle stating that rulings made in higher courts are binding precedent
m m m m m m m m m m m m m m
mfor lower courts.
m m
Teaching tip: The first time your students encounter an appellate case in the readings,
m m m m m m m m m m m m m
mshow them what stare decisis looks like in the context of a real case.
m m m m m m m m m m m m m
4. Administrative law m
Administrative law is the collection of rules and decisions made by administrative agencies
m m m m m m m m m m m m
mto fill in particular details missing from constitutions and statutes.
m m m m m m m m m
5. Treaties
A treaty is a binding agreement between two states or international organizations.
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6. Executive orders m
An executive order is a directive that comes from the president or state governor.
m m m m m m m m m m m m m
g. What are the various schools of legal interpretation? m m m m m m m
Some schools of legal interpretation include:
m m m m m
Identification with the Vulnerable— emphasis on fairness and looking out for m m m m m m m m m m
those with the least power.
m m m m m
Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
m m m m m m m m m m
Legal Realism—judges consider context such as social and economic conditions.
m m m m m m m m m
Cost-benefit Analysis—emphasis is on assigning monetary values to costs and m m m m m m m m m
benefits of the law in order to make calculations to maximize the ratio of benefits
m m m m m m m m m m m m m m m
to costs. m m
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make
m m m m m m m m m m m m m
the schools of jurisprudence come alive.
m m m m m m
h. Appendix on Critical Thinking and Business Law m m m m m m
Critical thinking includes the application of evaluative standards to assess the quality or the
m m m m m m m m m m m m m
mreasoning being offered to support the conclusion. Critical thinkers will follow this pattern
m m m m m m m m m m m m
mof careful thinking when they read an argument:
m m m m m m m
1. Find the facts. m m
2. Look fore the issue. m m m
1-3
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
, 3. Identify the judge‗s reasons and conclusion.
m m m m m
4. Locate in the decision the rules of law that govern the judge‗s reasoning.
m m m m m m m m m m m m
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
m m m m m m m m
Look for potential ambiguity. m m m
Consider the strength of analogies. m m m m
Check the quality of the judge‗s reasoning.
m m m m m m
Decide whether important information is missing.
m m m m m
Consider the possibility of rival causes. m m m m m
4. TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE m m m m m m
TO THINK ABOUT THE KINDS OF QUESTIONS TO ASK YOUR
m m m m m m m m m m
STUDENTS
m
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of
m m m m m m m m m m m
cognitive functions. His work sets the stage for teachers to understand why it is important
m m m m m m m m m m m m m m m
to think carefully about the kinds of questions they ask in class.
m m m m m m m m m m m m
The Objective
m Sample questions m
Knowledge What is business law? m m m
Lowest level of learning and is mostly
m m m m m m What are the four elements of a
m m m m m m
memory. The student recognizes and recalls
m m m m m m negligence claim?
m m
information.
m
Comprehension What is your understanding of the
m m m m m
Lowest level of understanding. The student
m m m m m mconcept of stare decisis? m m m
paraphrases or explains something.
m m m m What does your textbook mean
m m m m
mby deontology?
m
Application How would a natural law thinker
m m m m m
Student demonstrates her understanding of
m m m m
mrespond to this particular fact pattern?
m m m m m
abstract rules, principles, or generalizations by
m m m m m m Use a particular case rule to determine
m m m m m m
using them to solve life-like problems.
m m m m m m whether the plaintiff will be successful in
m m m m m m
mher claim. m
Analysis Provide the reasoning for the following
m m m m m
Student breaks down a communication to
m m m m m mstatement: All contracts do not need tom m m m m m
discover the hidden structure as well as
m m m m m m m mbe in writing to be enforceable.
m m m m m
assumptions.
m Break down a particular judge‗s opinion to
m m m m m m
understand the assumptions the judge is m m m m m
mmaking.
Synthesis Explain how two particular schools of
m m m m m
Student creatively combines elements and
m m m m
mlegal interpretation are related.
m m m
parts to form a whole new structure.
m m m m m m m Make a connection between duress
m m m m
mand insanity.
m
Evaluation Identify and explain a reasoning flaw in
m m m m m m
Highest level of learning. Student makes a
m m m m m m
mthe judge‗s argument.
m m
critical judgment about the value of the
m m m m m m m Evaluate the following statement:
m m m
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE
m m m m m m m
1-4
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek
m m m m m m m m
Chapter 1-25
m m
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law
m m m m m m m m m m
m and Business Ethics
m m
1. CHAPTER OVERVIEW m
Chapter 1 lays the foundation for the textbook. The textbook emphasizes ways in which
m m m m m m m m m m m m m
business law intersects with the six functional areas of business. Throughout the textbook,
m m m m m m m m m m m m m
the authors will encourage students to ―connect to the core,‖ and remember the ways in
m m m m m m m m m m m m m m m
which law intersects with other areas of study, including corporate management, production
m m m m m m m m m m m m
and transportation, marketing, research and development, accounting and finance, and human
m m m m m m m m m m m
resource management.
m m
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments
m m m m m m m m m m m m m
that encourage students to integrate their business law knowledge with knowledge they are
m m m m m m m m m m m m m
acquiring from their other business classes. The manual also encourages professors to
m m m m m m m m m m m m
improve their teaching skills. Finally, the manual suggests teaching ideas for both beginning
m m m m m m m m m m m m m
and experienced teachers.
m m m
2. LEARNING OBJECTIVES m
After reading this chapter, students will be able to answer the following questions:
m m m m m m m m m m m m
1. What is business law?
m m m
2. How does business law relate to business education?
m m m m m m m
3. What are the purposes of law?
m m m m m
4. What are alternative ways to classify law?
m m m m m m
5. What are the sources of law?
m m m m m
6. What are the various schools of jurisprudence?
m m m m m m
3. LECTURE NOTES WITH DEFINITIONS m m m
a. In the news… m m
Teaching tip: For each chapter, consider asking students to relate current news items to
m m m m m m m m m m m m m
material from the chapter.
m m m m
In addition to ideas students come up with on their own, consider weaving in news
m m m m m m m m m m m m m m
mstories provided by the McGraw-Hill. Stories are available via a McGraw-Hill DVD,
m m m m m m m m m m m
mand on the publisher‗s web site.
m m m m m
1-1
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
,For Chapter One, McGraw-Hill offers the following stories:
m m m m m m m
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting Stronger
m m m m m m m m m m m
Restrictions on Where You Can Smoke‖
m m m m m m
Have states gone too far in banning smoking?
m m m m m m m
Whose interests are state legislatures looking out for in banning smoking?
m m m m m m m m m m
―College Officer Dealings With Lenders Scrutinized.‖
m m m m m
Should regulators take a more careful look at college officers?
m m m m m m m m m
Why created changes in the ways college officers interact with lenders?
m m m m m m m m m m
b. What is business law? m m m
Business law consists of the enforceable rules of conduct that govern the actions of buyers
m m m m m m m m m m m m m m
and sellers in market exchanges.
m m m m m
c. How does business law relate to business education? m m m m m m m
Business law applies to the six functional areas of business:
m m m m m m m m m
Management
Production and transportation m m
Marketing
Research and development m m
Accounting and finance m m
Human resource management m m
d. What are the purposes of law? m m m m m
Providing order m
Serving as an alternative to fighting
m m m m m
Facilitating a sense that change is possible m m m m m m
Encouraging social justice m m
Guaranteeing personal freedoms m m
Serving as a moral guide m m m m
e. What are alternative ways to classify law? m m m m m m
One way to classify law:
m m m m
Private law involves disputes between private individuals or groups.
m m m m m m m m
Public law involves disputes between private individuals or groups and their government.
m m m m m m m m m m m
A second way to classify law:
m m m m m
Civil law is the body of laws that govern the rights and responsibilities either between
m m m m m m m m m m m m m m
persons or between persons and their government.
m m m m m m m
Criminal law is the body of laws that involve the rights and responsibilities an individual
m m m m m m m m m m m m m m
has with respect to the public as a whole.
m m m m m m m m m
1-2
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
,Teaching tip: Ask students to give an example of a fact situation that led to both criminal
m m m m m m m m m m m m m m m m
and civil lawsuits, e.g., the O.J. Simpson trials.
m m m m m m m m
f. What are the sources of law? m m m m m
Sources of business law are:m m m m
1. Constitutions
Constitutional law refers to the general limits and powers of governments as stated in their
m m m m m m m m m m m m m m
mwritten constitutions. m
2. Statutes or legislative actions m m m
Statutes or legislative actions refer to the assortment of rules and regulations put forth by
m m m m m m m m m m m m m m
mlegislatures.
3. Cases
Case law (or common law) is the collection of legal interpretations made by judges.
m m m m m m m m m m m m m
mPrecedent is a tool used by judges to make rulings on cases on the basis of key
m m m m m m m m m m m m m m m m
msimilarities to previous cases. m m m
Stare decisis is a principle stating that rulings made in higher courts are binding precedent
m m m m m m m m m m m m m m
mfor lower courts.
m m
Teaching tip: The first time your students encounter an appellate case in the readings,
m m m m m m m m m m m m m
mshow them what stare decisis looks like in the context of a real case.
m m m m m m m m m m m m m
4. Administrative law m
Administrative law is the collection of rules and decisions made by administrative agencies
m m m m m m m m m m m m
mto fill in particular details missing from constitutions and statutes.
m m m m m m m m m
5. Treaties
A treaty is a binding agreement between two states or international organizations.
m m m m m m m m m m m
6. Executive orders m
An executive order is a directive that comes from the president or state governor.
m m m m m m m m m m m m m
g. What are the various schools of legal interpretation? m m m m m m m
Some schools of legal interpretation include:
m m m m m
Identification with the Vulnerable— emphasis on fairness and looking out for m m m m m m m m m m
those with the least power.
m m m m m
Historical School/ Tradition—emphasis on the use of traditions and stare decisis.
m m m m m m m m m m
Legal Realism—judges consider context such as social and economic conditions.
m m m m m m m m m
Cost-benefit Analysis—emphasis is on assigning monetary values to costs and m m m m m m m m m
benefits of the law in order to make calculations to maximize the ratio of benefits
m m m m m m m m m m m m m m m
to costs. m m
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make
m m m m m m m m m m m m m
the schools of jurisprudence come alive.
m m m m m m
h. Appendix on Critical Thinking and Business Law m m m m m m
Critical thinking includes the application of evaluative standards to assess the quality or the
m m m m m m m m m m m m m
mreasoning being offered to support the conclusion. Critical thinkers will follow this pattern
m m m m m m m m m m m m
mof careful thinking when they read an argument:
m m m m m m m
1. Find the facts. m m
2. Look fore the issue. m m m
1-3
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
, 3. Identify the judge‗s reasons and conclusion.
m m m m m
4. Locate in the decision the rules of law that govern the judge‗s reasoning.
m m m m m m m m m m m m
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
m m m m m m m m
Look for potential ambiguity. m m m
Consider the strength of analogies. m m m m
Check the quality of the judge‗s reasoning.
m m m m m m
Decide whether important information is missing.
m m m m m
Consider the possibility of rival causes. m m m m m
4. TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE m m m m m m
TO THINK ABOUT THE KINDS OF QUESTIONS TO ASK YOUR
m m m m m m m m m m
STUDENTS
m
Benjamin Bloom, in his Taxonomy of Educational Objectives,* developed a hierarchy of
m m m m m m m m m m m
cognitive functions. His work sets the stage for teachers to understand why it is important
m m m m m m m m m m m m m m m
to think carefully about the kinds of questions they ask in class.
m m m m m m m m m m m m
The Objective
m Sample questions m
Knowledge What is business law? m m m
Lowest level of learning and is mostly
m m m m m m What are the four elements of a
m m m m m m
memory. The student recognizes and recalls
m m m m m m negligence claim?
m m
information.
m
Comprehension What is your understanding of the
m m m m m
Lowest level of understanding. The student
m m m m m mconcept of stare decisis? m m m
paraphrases or explains something.
m m m m What does your textbook mean
m m m m
mby deontology?
m
Application How would a natural law thinker
m m m m m
Student demonstrates her understanding of
m m m m
mrespond to this particular fact pattern?
m m m m m
abstract rules, principles, or generalizations by
m m m m m m Use a particular case rule to determine
m m m m m m
using them to solve life-like problems.
m m m m m m whether the plaintiff will be successful in
m m m m m m
mher claim. m
Analysis Provide the reasoning for the following
m m m m m
Student breaks down a communication to
m m m m m mstatement: All contracts do not need tom m m m m m
discover the hidden structure as well as
m m m m m m m mbe in writing to be enforceable.
m m m m m
assumptions.
m Break down a particular judge‗s opinion to
m m m m m m
understand the assumptions the judge is m m m m m
mmaking.
Synthesis Explain how two particular schools of
m m m m m
Student creatively combines elements and
m m m m
mlegal interpretation are related.
m m m
parts to form a whole new structure.
m m m m m m m Make a connection between duress
m m m m
mand insanity.
m
Evaluation Identify and explain a reasoning flaw in
m m m m m m
Highest level of learning. Student makes a
m m m m m m
mthe judge‗s argument.
m m
critical judgment about the value of the
m m m m m m m Evaluate the following statement:
m m m
* BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE
m m m m m m m
1-4
© m2021 mMcGraw-Hill mEducation. mAll mrights mreserved. mNo mreproduction mor mdistribution mwithout mthe mprior mwritten mconsent mof
mMcGraw- m Hill mEducation.
