SOLUTION MANUAL Dynamic Business Law: The Essentials, 5th Edition Kubasek, Browne, All Chapters 1-25),

TABLE OF CONTENTS PART 1: The Legal Environment of Business C h. 1 An Introduction to the Fundamentals of Dynamic Business Law Ch. 2 Business Ethics and Social Responsibility Ch. 3 The U.S. Legal System and Alternative Dispute Resolution Ch. 4 Administrative Law Ch. 5 Constitutional Law Ch. 6 Criminal Law and Business Ch. 7 Tort Law Ch. 8 Real, Personal, and Intellectual Property PART 2: Contract Law Ch. 9 Introduction to Contracts and Agreement Ch. 10 Consideration Ch. 11 Capacity and Legality Ch. 12 Reality of Assent Ch. 13 Contracts in Writing and Third-Party Contracts Ch. 14 Discharge and Remedies Part 3: Domestic and International Sales Law Ch. 15 Formation and Performance of Sales and Lease Contracts Ch. 16 Sales and Lease Contracts: Performance, Warranties, and Remedies PART 4: Negotiable Instruments and Banking Ch. 17 Negotiable Instruments: Negotiability and Transferability Ch. 18 Holder in Due Course, Liability, and Defenses PART 5: Creditors' Rights and Bankruptcy Ch. 19 Secured Transactions and Bankruptcy PART 6: Agency Ch. 20 Agency and Liability to Third Parties PART 7: Business Organizations Ch. 21 Forms of Business Organization Ch. 22 Corporations: Formation and Organization Ch. 23 Securities Regulation PART 8: Government Regulation Ch. 24 Employment and Discrimination Law Ch. 25 Consumer Law Chapter 1 - An Introduction to Dynamic Business Law CHAPTER OVERVIEW Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for information about how business law intersects with the six functional areas of business. The authors 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. LEARNING OBJECTIVES After reading this chapter, students will be able to: 1-1 Define businesslaw. 1-2 Relate the functional areas of business to the relevant areas of business law1-3 Recall the purposes of law. 1-4 Distinguish among types of law. 1-5 Differentiate between sources of the law. 1-6 Identify the various schools of jurisprudence. LECTURE NOTES WITH DEFINITIONS 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. 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? 1-1 Define business law. Business law consists of the enforceable rules of conduct that govern commercial relationships. 1-2 Relate the functional areas ofbusiness to the relevant areas of business law. Business law applies to the six functional areas of business: • Corporate management • Production and transportation • Marketing • Research and development • Accounting and finance • Human resource management 1-3 Recall 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 1-4 Distinguish among types of 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 involves the rights and responsibilities involved in relationships between persons and between persons and their government. Criminal law involves incidents in which someone commits an act against the public as a unit. 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. 1-5 Differentiate between sources ofthe law. Sources of business law are: 1. Constitutions Constitutional law refers to the general limits and powers of governments as stated in their written constitutions. 2. Statutes or legislative actions 3. Cases Case law (or common law) is the collection of legal interpretations made by judges. Stare decisis means courts are relying on precedent. Teaching tip: The first time your students encounter an appellate case in the readings, show 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. 5. Treaties A treaty is a binding agreement between two states or international organizations. 6. Executive orders An executive order is a directive that comes from the president or state governor. 1-6 Identify the various schools of jurisprudence. Schools of jurisprudence are common guides to legal interpretation. • Natural law—certain ethical laws and principles are morally right and ―above‖the laws devised by humans. • Legal Positivism—assumes the legitimate political authority deserves our obedience when it issues a rule. • Identification with the Vulnerable—emphasis on fairness and looking out for those with the least power. • Historical School/Tradition—emphasis on the use of stare decisis. • Legal Realism—judges consider social and economic conditions. • Cost-benefit Analysis—make calculations to maximize the ratio of benefits to costs. Teaching tip: Consider using ―The Case of the Speluncean Explorers (link below) to make the schools of jurisprudence come alive. Global and Comparative Law At this point in the textbook, students should merely have an awareness that globalization has affected the scope of business law. Consequently, we highlight the definitions to the following key terms that will come up later in the book: • Trade, i.e. the exchange of goods or services, on a global scale has led to the creation of trade agreements that serve as de facto rules governingthe global business environment. • Comparative law—the field of law that studies and compares laws in different countries. Appendix on Critical Thinking and Business Critical thinking includes the application of evaluative standards to assess the quality or the 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 for the issue. 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. • Check the quality of the judge‘s reasoning. • Decide whether important information is missing. • Consider the possibility of rival causes. TEACHING SKILLS: BLOOM’S TAXONOMY SETS THE STAGE TO THINK ABOUTTHE 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 think carefully about the kinds of questions they ask in class. The Objective Sample questions Knowledge Lowest level of learning and is mostly memory. The student recognizes and recalls information. • What is business law? • What are the four elements of a negligence claim? Comprehension Lowest level of understanding. The studentparaphrases or explains something. • What is your understanding of the concept of stare decisis? • What does your textbook mean by deontology? Application Student demonstrates her understanding of abstract rules, principles, or generalizations by using themto solve life-like problems. • How would a natural law thinker respond tothis particular fact pattern? • Use a particular case rule to determine whetherthe plaintiff will be successful in her claim. Analysis Student breaks down a communication to discoverthe hidden structure as well as assumptions. • Provide the reasoning for the following statement: All contracts do not need to be in writing to be enforceable. • Break down a particular judge‘s opinion to understand the assumptions the judge is making. Synthesis Student creatively combines elements and parts toform a whole new structure. • Explain how two particular schools of jurisprudence are related. • Make a connection between duress andinsanity. Evaluation Highest level of learning. Student makes a critical • Identify and explain a reasoning flaw in the judge‘s argument. * BENJAMIN BLOOM, TAXONOMY OF EDUCATIONAL OBJECTIVES: THE CLASSIFICATIONOF EDUCATIONAL GOALS (1954). The Objective Sample questions judgment about the value of the communication. • Evaluate the following statement: Arbitration and mediation are better forms of dispute resolution than litigation.