,Chapter 1 - An Introduction to Dynamic Business Law FL FL FL FL FL FL FL FL
CHAPTER OVERVIEW FL
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for info
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
rmation about how business law intersects with the six functional areas of business. The authors encourage
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students to ―connect to the core,‖ and remember the ways in which law intersects with other areas of stud
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y, including corporate management, production and transportation, marketing, research and development, a
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ccounting and finance, and human resource management.
FL FL FL FL FL FL
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
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students to integrate their business law knowledge with knowledge they are acquiring from their other busi
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
ness classes. The manual also encourages professors to improve their teaching skills. Finally, the manual su
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
ggests teaching ideas for both beginning and experienced teachers.
FL FL FL FL FL FL FL FL
LEARNING OBJECTIVES FL
After reading this chapter, students will be able to:
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1-1 Define business law. FL FL
1-2 Relate the functional areas of business to the relevant areas of business law
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F
1-3 Recall the purposes of law.
FL FL FL FL FL
1-4 Distinguish among types of law. FL FL FL FL
1-5 Differentiate between sources of the law. FL FL FL FL FL
1-6 Identify the various schools of jurisprudence. FL FL FL FL FL
LECTURE NOTES WITH DEFINITIONS FL FL FL
In the news…
FL FL Teaching tip: For each chapter, consider asking students to relate current newsi
FL FL FL FL FL FL FL FL FL FL FL L
F
tems to material from the chapter.
FL FL FL FL FL
In addition to ideas students come up with on their own, consider weaving i
FL FL FL FL FL FL FL FL FL FL FL FL FL
nnews stories provided by the McGraw Hill.
L
F FL FL FL FL FL FL
For Chapter One, McGraw Hill offers the following stories:
FL FL FL FL FL FL FL FL
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStrong
FL FL FL FL FL FL FL FL FL FL L
F
er Restrictions on Where You Can Smoke‖
FL FL FL FL FL FL
Have states gone too far in banning smoking? FL FL FL FL FL FL FL
, Whose interests are state legislatures looking out for in banningsm
F L F L F L F L F L F L F L F L F L L
F
oking?
―College Officer Dealings With Lenders Scrutinized.‖ FL FL FL FL FL
Should regulators take a more careful look at college officers? FL FL FL FL FL FL FL FL FL
Why created changes in the ways college officers interact with lenders? FL FL FL FL FL FL FL FL FL FL
1- Business law consists of the enforceable rules of conduct that governco F L F L F L F L F L F L F L F L F L F L L
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1 Define businesslaw. mmercial relationships.
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1- Business law applies to the six functional areas of business: FL FL FL FL FL FL FL FL FL
2 Relate the functi
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Corporate management
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FL
onal areas ofbusin
Production and transportation
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F
ess to the relevant
FL FL FL FL
FL FL
areas of business l
FL
Marketing
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aw. Research and development FL FL
Accounting and finance FL FL
Human resource management FL FL
1- Providing order FL
3 Recall the pur
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Serving as an alternative to fighting
FL FL
FL FL FL FL FL
poses of law.
Facilitating a sense that change is possible
FL FL
FL FL FL FL FL FL
Encouraging social justice FL FL
Guaranteeing personal freedoms FL FL
Serving as a moral guide FL FL FL FL
1- One way to classify law: FL FL FL FL
4 Distinguish amon
FL
Private law involves disputes between private individuals or groups.
FL
FL FL FL FL FL FL FL FL
g types of law.
FL
Public law involves disputes between private individuals or groups and thei
FL FL
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rgovernment. L
F
A second way to classify law:
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Civil law involves the rights and responsibilities involved in relationshipsbetween
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F
persons and between persons and their government.
FL FL FL FL FL FL FL
Criminal law involves incidents in which someone commits an act against thep
FL FL FL FL FL FL FL FL FL FL FL L
F
ublic as a unit. FL FL FL
Teaching tip: Ask students to give an example of a fact situation that led
FL FL FL FL FL FL FL FL F L FL FL FL FL
toboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
FL L
F FL FL FL FL FL FL FL FL FL
1- Sources of business law are: FL FL FL FL
5 Differentiate bet
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1. Constitutions
ween sources ofthe FL FL L
F F
Constitutional law refers to the general limits and powers of governments a
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law.
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sstated in their written constitutions.
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F FL FL FL FL
2. Statutes or legislative actions FL FL FL
3. Cases
Case law (or common law) is the collection of legal interpretations made
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byjudges. L
F
Stare decisis means courts are relying on precedent.
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Teaching tip: The first time your students encounter an appellate case in t
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he
, readings, show them what stare decisis looks like in the context of a real case.
FL FL FL FL FL FL FL FL FL FL FL FL FL FL
4. Administrative law FL
Administrative law is the collection of rules and decisions made byad
F L F L F L F L F L F L F L F L F L F L L
F
ministrative agencies. FL
5. Treaties
A treaty is a binding agreement between two states or internationalor
F L F L F L F L F L F L F L F L F L F L L
F
ganizations.
6. Executive orders
F L FL
An executive order is a directive that comes from the president or stategovern
FL FL FL FL FL FL FL FL FL FL FL FL L
F
or.
1- Schools of jurisprudence are common guides to legal interpretation.
FL FL FL FL FL FL FL FL
6 Identify the vari
FL FL FL
Natural law—certain ethical laws and principles are morally right and
FL FL FL FL FL FL FL FL FL
ous schools ofjuri
FL FL L
F
―above‖ the laws devised by humans. FL FL FL FL FL
sprudence.
Legal Positivism— F L
assumes the legitimate political authority deservesour obedience when
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F FL FL F
it issues a rule.
L FL FL FL
Identification with the Vulnerable— FL FL FL
emphasis on fairness and lookingout for those with the least power.
FL FL FL FL L
F FL FL FL FL FL FL
Historical School/Tradition—emphasis on the use of stare decisis. FL FL FL FL FL FL FL
Legal Realism—judges consider social and economic conditions.
FL FL FL FL FL FL
Cost-benefit Analysis— FL
make calculations to maximize the ratio ofbenefits to costs.
FL FL FL FL FL FL L
F FL FL
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link b
FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FL
elow) to make the schools of jurisprudence come alive.
FL FL FL FL FL FL FL FL
Global and Comp
FL FL At this point in the textbook, students should merely have an awareness that glo
FL FL FL FL FL FL FL FL FL FL FL FL FL
arative LawFL balization has affected the scope of business law. Consequently, we highlight th
FL FL FL FL FL FL FL FL F L FL FL
e definitions to the following key terms that will come up later in the book:
FL FL FL FL FL FL FL FL F L FL FL FL FL FL
Trade, i.e. the exchange of goods or services, on a global scale has le
FL FL FL FL FL FL FL FL FL FL FL FL FL
dto the creation of trade agreements that serve as de facto rules governin
L
F FL FL FL FL FL FL FL FL FL FL FL FL
gthe global business environment.
L
F FL FL FL
Comparative law— FL
the field of law that studies and compares laws in different countries.
FL FL FL FL FL FL FL FL FL FL FL
Appendix on Critical
FL FL L
F Critical thinking includes the application of evaluative standards to assess the qua
FL FL FL FL FL FL FL FL FL FL FL
Thinking and Busine
FL FL lity or the reasoning being offered to support the conclusion. Critical thinkers wi
FL FL FL FL FL FL FL FL FL FL FL FL
ss ll follow this pattern of careful thinking when they read an argument:
FL FL FL FL FL FL FL FL FL F L FL
1. Find the facts. FL FL
2. Look for the issue. FL FL FL
3. Identify the judge‘s reasons and conclusion.FL FL FL FL FL
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
FL FL FL FL FL FL FL FL FL FL FL FL
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
FL FL FL FL FL FL FL FL
Look for potential ambiguity. FL FL FL
Consider the strength of analogies. FL FL FL FL
CHAPTER OVERVIEW FL
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for info
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
rmation about how business law intersects with the six functional areas of business. The authors encourage
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL F
students to ―connect to the core,‖ and remember the ways in which law intersects with other areas of stud
L FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
y, including corporate management, production and transportation, marketing, research and development, a
FL FL FL FL FL FL FL FL FL FL FL
ccounting and finance, and human resource management.
FL FL FL FL FL FL
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
students to integrate their business law knowledge with knowledge they are acquiring from their other busi
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
ness classes. The manual also encourages professors to improve their teaching skills. Finally, the manual su
FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL
ggests teaching ideas for both beginning and experienced teachers.
FL FL FL FL FL FL FL FL
LEARNING OBJECTIVES FL
After reading this chapter, students will be able to:
FL FL FL FL FL FL FL FL
1-1 Define business law. FL FL
1-2 Relate the functional areas of business to the relevant areas of business law
FL FL FL FL FL FL FL FL FL FL FL FL L
F
1-3 Recall the purposes of law.
FL FL FL FL FL
1-4 Distinguish among types of law. FL FL FL FL
1-5 Differentiate between sources of the law. FL FL FL FL FL
1-6 Identify the various schools of jurisprudence. FL FL FL FL FL
LECTURE NOTES WITH DEFINITIONS FL FL FL
In the news…
FL FL Teaching tip: For each chapter, consider asking students to relate current newsi
FL FL FL FL FL FL FL FL FL FL FL L
F
tems to material from the chapter.
FL FL FL FL FL
In addition to ideas students come up with on their own, consider weaving i
FL FL FL FL FL FL FL FL FL FL FL FL FL
nnews stories provided by the McGraw Hill.
L
F FL FL FL FL FL FL
For Chapter One, McGraw Hill offers the following stories:
FL FL FL FL FL FL FL FL
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStrong
FL FL FL FL FL FL FL FL FL FL L
F
er Restrictions on Where You Can Smoke‖
FL FL FL FL FL FL
Have states gone too far in banning smoking? FL FL FL FL FL FL FL
, Whose interests are state legislatures looking out for in banningsm
F L F L F L F L F L F L F L F L F L L
F
oking?
―College Officer Dealings With Lenders Scrutinized.‖ FL FL FL FL FL
Should regulators take a more careful look at college officers? FL FL FL FL FL FL FL FL FL
Why created changes in the ways college officers interact with lenders? FL FL FL FL FL FL FL FL FL FL
1- Business law consists of the enforceable rules of conduct that governco F L F L F L F L F L F L F L F L F L F L L
F
1 Define businesslaw. mmercial relationships.
F L F L L
F FL
1- Business law applies to the six functional areas of business: FL FL FL FL FL FL FL FL FL
2 Relate the functi
FL
Corporate management
FL FL
FL
onal areas ofbusin
Production and transportation
FL FL L
F
ess to the relevant
FL FL FL FL
FL FL
areas of business l
FL
Marketing
FL FL
aw. Research and development FL FL
Accounting and finance FL FL
Human resource management FL FL
1- Providing order FL
3 Recall the pur
FL
Serving as an alternative to fighting
FL FL
FL FL FL FL FL
poses of law.
Facilitating a sense that change is possible
FL FL
FL FL FL FL FL FL
Encouraging social justice FL FL
Guaranteeing personal freedoms FL FL
Serving as a moral guide FL FL FL FL
1- One way to classify law: FL FL FL FL
4 Distinguish amon
FL
Private law involves disputes between private individuals or groups.
FL
FL FL FL FL FL FL FL FL
g types of law.
FL
Public law involves disputes between private individuals or groups and thei
FL FL
FL FL FL FL FL FL FL FL FL FL
rgovernment. L
F
A second way to classify law:
FL FL FL FL FL
Civil law involves the rights and responsibilities involved in relationshipsbetween
FL FL FL FL FL FL FL FL FL L
F
persons and between persons and their government.
FL FL FL FL FL FL FL
Criminal law involves incidents in which someone commits an act against thep
FL FL FL FL FL FL FL FL FL FL FL L
F
ublic as a unit. FL FL FL
Teaching tip: Ask students to give an example of a fact situation that led
FL FL FL FL FL FL FL FL F L FL FL FL FL
toboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
FL L
F FL FL FL FL FL FL FL FL FL
1- Sources of business law are: FL FL FL FL
5 Differentiate bet
FL FL
1. Constitutions
ween sources ofthe FL FL L
F F
Constitutional law refers to the general limits and powers of governments a
FL FL FL FL FL FL FL FL FL FL FL
law.
L
sstated in their written constitutions.
L
F FL FL FL FL
2. Statutes or legislative actions FL FL FL
3. Cases
Case law (or common law) is the collection of legal interpretations made
FL F L FL FL FL FL FL FL F L FL FL FL
byjudges. L
F
Stare decisis means courts are relying on precedent.
FL FL FL FL FL FL FL
Teaching tip: The first time your students encounter an appellate case in t
FL FL FL FL FL FL FL FL FL FL FL FL
he
, readings, show them what stare decisis looks like in the context of a real case.
FL FL FL FL FL FL FL FL FL FL FL FL FL FL
4. Administrative law FL
Administrative law is the collection of rules and decisions made byad
F L F L F L F L F L F L F L F L F L F L L
F
ministrative agencies. FL
5. Treaties
A treaty is a binding agreement between two states or internationalor
F L F L F L F L F L F L F L F L F L F L L
F
ganizations.
6. Executive orders
F L FL
An executive order is a directive that comes from the president or stategovern
FL FL FL FL FL FL FL FL FL FL FL FL L
F
or.
1- Schools of jurisprudence are common guides to legal interpretation.
FL FL FL FL FL FL FL FL
6 Identify the vari
FL FL FL
Natural law—certain ethical laws and principles are morally right and
FL FL FL FL FL FL FL FL FL
ous schools ofjuri
FL FL L
F
―above‖ the laws devised by humans. FL FL FL FL FL
sprudence.
Legal Positivism— F L
assumes the legitimate political authority deservesour obedience when
F L F L F L F L F L L
F FL FL F
it issues a rule.
L FL FL FL
Identification with the Vulnerable— FL FL FL
emphasis on fairness and lookingout for those with the least power.
FL FL FL FL L
F FL FL FL FL FL FL
Historical School/Tradition—emphasis on the use of stare decisis. FL FL FL FL FL FL FL
Legal Realism—judges consider social and economic conditions.
FL FL FL FL FL FL
Cost-benefit Analysis— FL
make calculations to maximize the ratio ofbenefits to costs.
FL FL FL FL FL FL L
F FL FL
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link b
FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FLFL FL
elow) to make the schools of jurisprudence come alive.
FL FL FL FL FL FL FL FL
Global and Comp
FL FL At this point in the textbook, students should merely have an awareness that glo
FL FL FL FL FL FL FL FL FL FL FL FL FL
arative LawFL balization has affected the scope of business law. Consequently, we highlight th
FL FL FL FL FL FL FL FL F L FL FL
e definitions to the following key terms that will come up later in the book:
FL FL FL FL FL FL FL FL F L FL FL FL FL FL
Trade, i.e. the exchange of goods or services, on a global scale has le
FL FL FL FL FL FL FL FL FL FL FL FL FL
dto the creation of trade agreements that serve as de facto rules governin
L
F FL FL FL FL FL FL FL FL FL FL FL FL
gthe global business environment.
L
F FL FL FL
Comparative law— FL
the field of law that studies and compares laws in different countries.
FL FL FL FL FL FL FL FL FL FL FL
Appendix on Critical
FL FL L
F Critical thinking includes the application of evaluative standards to assess the qua
FL FL FL FL FL FL FL FL FL FL FL
Thinking and Busine
FL FL lity or the reasoning being offered to support the conclusion. Critical thinkers wi
FL FL FL FL FL FL FL FL FL FL FL FL
ss ll follow this pattern of careful thinking when they read an argument:
FL FL FL FL FL FL FL FL FL F L FL
1. Find the facts. FL FL
2. Look for the issue. FL FL FL
3. Identify the judge‘s reasons and conclusion.FL FL FL FL FL
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
FL FL FL FL FL FL FL FL FL FL FL FL
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
FL FL FL FL FL FL FL FL
Look for potential ambiguity. FL FL FL
Consider the strength of analogies. FL FL FL FL
