,Chapter 1 - An Introduction to Dynamic Business Law
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CHAPTER OVERVIEW vx
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for inform
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
ation about how business law intersects with the six functional areas of business. The authors encourage stud
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ents to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study, inclu
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
ding corporate management, production and transportation, marketing, research and development, accountin
vx vx vx vx vx vx vx vx vx vx
g and finance, and human resource management.
vx vx vx vx vx vx
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage st
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
udents to integrate their business law knowledge with knowledge they are acquiring from their other business
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests t
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
eaching ideas for both beginning and experienced teachers.
vx vx vx vx vx vx vx
LEARNING OBJECTIVES vx
After reading this chapter, students will be able to:
vx vx vx vx vx vx vx vx
1-1 Define business law. vx vx
1-2 Relate the functional areas of business to the relevant areas of business law1-
vx vx vx vx vx vx vx vx vx vx vx vx xv
3 Recall the purposes of law.
vx vx vx vx vx
1-4 Distinguish among types of law. vx vx vx vx
1-5 Differentiate between sources of the law. vx vx vx vx vx
1-6 Identify the various schools of jurisprudence.
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LECTURE NOTES WITH DEFINITIONS vx vx vx
In the news…
vx vx Teaching tip: For each chapter, consider asking students to relate current newsite
vx vx vx vx vx vx vx vx vx vx vx xv
ms to material from the chapter.
vx vx vx vx vx
In addition to ideas students come up with on their own, consider weaving in
vx vx vx vx vx vx vx vx vx vx vx vx vx xv
news stories provided by the McGraw Hill.
vx vx vx vx vx vx
For Chapter One, McGraw Hill offers the following stories:
vx vx vx vx vx vx vx vx
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronge
vx vx vx vx vx vx vx vx vx vx xv
r Restrictions on Where You Can Smoke‖
vx vx vx vx vx vx
• Have states gone too far in banning smoking? vx vx vx vx vx vx vx
, • Whose interests are state legislatures looking out for in banningsmo
v x v x v x v x v x v x v x v x v x xv
king?
―College Officer Dealings With Lenders Scrutinized.‖
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• Should regulators take a more careful look at college officers? vx vx vx vx vx vx vx vx vx
• Why created changes in the ways college officers interact with lenders?
vx vx vx vx vx vx vx vx vx vx
1- Business law consists of the enforceable rules of conduct that governcom
v x v x v x v x v x v x v x v x v x v x xv
1 Define businesslaw.
v x v x xv mercial relationships. vx
1- Business law applies to the six functional areas of business:
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2 Relate the functi
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• Corporate management vx
onal areas ofbusine
• Production and transportation
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ss to the relevant a
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vx vx
reas of business la
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• Marketing
w. • Research and development vx vx
• Accounting and finance vx vx
• Human resource management vx vx
1- • Providing order vx
3 Recall the pur
vx vx vx
• Serving as an alternative to fighting vx vx vx vx vx
poses of law.
• Facilitating a sense that change is possible
vx vx
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• Encouraging social justice vx vx
• Guaranteeing personal freedoms vx vx
• Serving as a moral guide vx vx vx vx
1- One way to classify law:
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4 Distinguish among
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Private law involves disputes between private individuals or groups.
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types of law.
vx vx vx
Public law involves disputes between private individuals or groups and their
vx v x v x v x vx vx v x v x v x vx xv
government.
A second way to classify law:
vx vx vx vx vx
Civil law involves the rights and responsibilities involved in relationshipsbetween
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persons and between persons and their government.
vx vx vx vx vx vx
Criminal law involves incidents in which someone commits an act against thepu
vx vx vx vx vx vx vx vx vx vx vx xv
blic as a unit.
vx vx vx
Teaching tip: Ask students to give an example of a fact situation that led t
vx v x vx v x v x v x v x v x v x v x v x v x vx v x
oboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
xv vx vx vx vx vx vx vx vx vx
1- Sources of business law are: vx vx vx vx
5 Differentiate bet
vx vx
1. Constitutions
ween sources ofthe vx vx xv vx
Constitutional law refers to the general limits and powers of governments ass vx vx vx vx vx vx vx vx vx vx vx xv
law. tated in their written constitutions.
vx vx vx vx
2. Statutes or legislative actions vx vx vx
3. Cases
Case law (or common law) is the collection of legal interpretations made byj
v x v x v x vx v x vx v x vx v x v x v x vx xv
udges.
Stare decisis means courts are relying on precedent.
vx vx vx vx vx vx vx
Teaching tip: The first time your students encounter an appellate case in the
vx vx vx vx v x vx vx vx vx vx vx vx
, readings, show them what stare decisis looks like in the context of a real case.
vx vx vx vx vx vx vx vx vx vx vx vx vx vx
4. Administrative law vx
Administrative law is the collection of rules and decisions made byadmi v x v x v x v x v x v x v x v x v x v x xv
nistrative agencies. vx
5. Treaties
A treaty is a binding agreement between two states or internationalorg
v x v x v x v x v x v x v x v x v x v x xv
anizations.
6. Executive orders
v x vx
An executive order is a directive that comes from the president or stategovernor.
vx vx vx vx vx vx vx vx vx vx vx vx xv
1- Schools of jurisprudence are common guides to legal interpretation.
vx vx vx vx vx vx vx vx
6 Identify the vari
vx vx vx
• Natural law—certain ethical laws and principles are morally right and vx vx vx vx vx vx vx vx vx
ous schools ofjuris
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―above‖ the laws devised by humans. vx vx vx vx vx
prudence.
• Legal Positivism— v x
assumes the legitimate political authority deservesour obedience when i v x v x v x v x v x xv vx vx vx
t issues a rule. vx vx vx
• Identification with the Vulnerable— vx vx vx
emphasis on fairness and lookingout for those with the least power. vx vx vx vx xv vx vx vx vx vx vx
• Historical School/Tradition—emphasis on the use of stare decisis. vx vx vx vx vx vx vx
• Legal Realism—judges consider social and economic conditions. vx vx vx vx vx vx
• Cost-benefit Analysis— vx
make calculations to maximize the ratio ofbenefits to costs.
vx vx vx vx vx vx xv vx vx
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link belo
vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vx
w) to make the schools of jurisprudence come alive.
vx vx vx vx vx vx vx vx
Global and Comp
vx vx At this point in the textbook, students should merely have an awareness that globa
vx vx vx vx vx vx vx vx vx vx vx vx vx
arative Lawvx lization has affected the scope of business law. Consequently, we highlight the de
vx vx vx vx vx vx vx vx v x vx vx vx
finitions to the following key terms that will come up later in the book:
vx vx vx vx vx vx vx v x vx vx vx vx vx
• Trade, i.e. the exchange of goods or services, on a global scale has ledt
vx vx vx vx vx vx vx vx vx vx vx vx vx xv
o the creation of trade agreements that serve as de facto rules governingth
vx vx vx vx vx vx vx vx vx vx vx vx xv
e global business environment.
vx vx vx
• Comparative law— vx
the field of law that studies and compares laws in different countries.
vx vx vx vx vx vx vx vx vx vx vx
Appendix on Critical vx vx xv Critical thinking includes the application of evaluative standards to assess the quali
vx vx vx vx vx vx vx vx vx vx vx
Thinking and Busines
vx vx ty or the reasoning being offered to support the conclusion. Critical thinkers will f
vx vx vx vx vx vx vx vx vx vx vx vx vx
s ollow this pattern of careful thinking when they read an argument:
vx vx vx vx vx vx vx vx v x vx
1. Find the facts. vx vx
2. Look for the issue. vx vx vx
3. Identify the judge‘s reasons and conclusion. vx vx vx vx vx
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
vx vx vx vx vx vx vx vx vx vx vx vx
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
vx vx vx vx vx vx vx vx
• Look for potential ambiguity. vx vx vx
• Consider the strength of analogies. vx vx vx vx
vx vx vx vx vx vx vx vx
CHAPTER OVERVIEW vx
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site for inform
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
ation about how business law intersects with the six functional areas of business. The authors encourage stud
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
ents to ―connect to the core,‖ and remember the ways in which law intersects with other areas of study, inclu
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
ding corporate management, production and transportation, marketing, research and development, accountin
vx vx vx vx vx vx vx vx vx vx
g and finance, and human resource management.
vx vx vx vx vx vx
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that encourage st
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
udents to integrate their business law knowledge with knowledge they are acquiring from their other business
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
classes. The manual also encourages professors to improve their teaching skills. Finally, the manual suggests t
vx vx vx vx vx vx vx vx vx vx vx vx vx vx vx
eaching ideas for both beginning and experienced teachers.
vx vx vx vx vx vx vx
LEARNING OBJECTIVES vx
After reading this chapter, students will be able to:
vx vx vx vx vx vx vx vx
1-1 Define business law. vx vx
1-2 Relate the functional areas of business to the relevant areas of business law1-
vx vx vx vx vx vx vx vx vx vx vx vx xv
3 Recall the purposes of law.
vx vx vx vx vx
1-4 Distinguish among types of law. vx vx vx vx
1-5 Differentiate between sources of the law. vx vx vx vx vx
1-6 Identify the various schools of jurisprudence.
vx vx vx vx vx
LECTURE NOTES WITH DEFINITIONS vx vx vx
In the news…
vx vx Teaching tip: For each chapter, consider asking students to relate current newsite
vx vx vx vx vx vx vx vx vx vx vx xv
ms to material from the chapter.
vx vx vx vx vx
In addition to ideas students come up with on their own, consider weaving in
vx vx vx vx vx vx vx vx vx vx vx vx vx xv
news stories provided by the McGraw Hill.
vx vx vx vx vx vx
For Chapter One, McGraw Hill offers the following stories:
vx vx vx vx vx vx vx vx
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are PuttingStronge
vx vx vx vx vx vx vx vx vx vx xv
r Restrictions on Where You Can Smoke‖
vx vx vx vx vx vx
• Have states gone too far in banning smoking? vx vx vx vx vx vx vx
, • Whose interests are state legislatures looking out for in banningsmo
v x v x v x v x v x v x v x v x v x xv
king?
―College Officer Dealings With Lenders Scrutinized.‖
vx vx vx vx vx
• Should regulators take a more careful look at college officers? vx vx vx vx vx vx vx vx vx
• Why created changes in the ways college officers interact with lenders?
vx vx vx vx vx vx vx vx vx vx
1- Business law consists of the enforceable rules of conduct that governcom
v x v x v x v x v x v x v x v x v x v x xv
1 Define businesslaw.
v x v x xv mercial relationships. vx
1- Business law applies to the six functional areas of business:
vx vx vx vx vx vx vx vx vx
2 Relate the functi
vx vx vx
• Corporate management vx
onal areas ofbusine
• Production and transportation
vx vx xv
ss to the relevant a
vx vx vx vx
vx vx
reas of business la
vx vx vx
• Marketing
w. • Research and development vx vx
• Accounting and finance vx vx
• Human resource management vx vx
1- • Providing order vx
3 Recall the pur
vx vx vx
• Serving as an alternative to fighting vx vx vx vx vx
poses of law.
• Facilitating a sense that change is possible
vx vx
vx vx vx vx vx vx
• Encouraging social justice vx vx
• Guaranteeing personal freedoms vx vx
• Serving as a moral guide vx vx vx vx
1- One way to classify law:
vx vx vx vx
4 Distinguish among
vx vx
Private law involves disputes between private individuals or groups.
vx vx vx vx vx vx vx vx
types of law.
vx vx vx
Public law involves disputes between private individuals or groups and their
vx v x v x v x vx vx v x v x v x vx xv
government.
A second way to classify law:
vx vx vx vx vx
Civil law involves the rights and responsibilities involved in relationshipsbetween
vx vx vx vx vx vx vx vx vx xv vx
persons and between persons and their government.
vx vx vx vx vx vx
Criminal law involves incidents in which someone commits an act against thepu
vx vx vx vx vx vx vx vx vx vx vx xv
blic as a unit.
vx vx vx
Teaching tip: Ask students to give an example of a fact situation that led t
vx v x vx v x v x v x v x v x v x v x v x v x vx v x
oboth criminal and civil lawsuits, e.g., the O.J. Simpson trials.
xv vx vx vx vx vx vx vx vx vx
1- Sources of business law are: vx vx vx vx
5 Differentiate bet
vx vx
1. Constitutions
ween sources ofthe vx vx xv vx
Constitutional law refers to the general limits and powers of governments ass vx vx vx vx vx vx vx vx vx vx vx xv
law. tated in their written constitutions.
vx vx vx vx
2. Statutes or legislative actions vx vx vx
3. Cases
Case law (or common law) is the collection of legal interpretations made byj
v x v x v x vx v x vx v x vx v x v x v x vx xv
udges.
Stare decisis means courts are relying on precedent.
vx vx vx vx vx vx vx
Teaching tip: The first time your students encounter an appellate case in the
vx vx vx vx v x vx vx vx vx vx vx vx
, readings, show them what stare decisis looks like in the context of a real case.
vx vx vx vx vx vx vx vx vx vx vx vx vx vx
4. Administrative law vx
Administrative law is the collection of rules and decisions made byadmi v x v x v x v x v x v x v x v x v x v x xv
nistrative agencies. vx
5. Treaties
A treaty is a binding agreement between two states or internationalorg
v x v x v x v x v x v x v x v x v x v x xv
anizations.
6. Executive orders
v x vx
An executive order is a directive that comes from the president or stategovernor.
vx vx vx vx vx vx vx vx vx vx vx vx xv
1- Schools of jurisprudence are common guides to legal interpretation.
vx vx vx vx vx vx vx vx
6 Identify the vari
vx vx vx
• Natural law—certain ethical laws and principles are morally right and vx vx vx vx vx vx vx vx vx
ous schools ofjuris
vx vx xv
―above‖ the laws devised by humans. vx vx vx vx vx
prudence.
• Legal Positivism— v x
assumes the legitimate political authority deservesour obedience when i v x v x v x v x v x xv vx vx vx
t issues a rule. vx vx vx
• Identification with the Vulnerable— vx vx vx
emphasis on fairness and lookingout for those with the least power. vx vx vx vx xv vx vx vx vx vx vx
• Historical School/Tradition—emphasis on the use of stare decisis. vx vx vx vx vx vx vx
• Legal Realism—judges consider social and economic conditions. vx vx vx vx vx vx
• Cost-benefit Analysis— vx
make calculations to maximize the ratio ofbenefits to costs.
vx vx vx vx vx vx xv vx vx
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link belo
vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vxvx vx
w) to make the schools of jurisprudence come alive.
vx vx vx vx vx vx vx vx
Global and Comp
vx vx At this point in the textbook, students should merely have an awareness that globa
vx vx vx vx vx vx vx vx vx vx vx vx vx
arative Lawvx lization has affected the scope of business law. Consequently, we highlight the de
vx vx vx vx vx vx vx vx v x vx vx vx
finitions to the following key terms that will come up later in the book:
vx vx vx vx vx vx vx v x vx vx vx vx vx
• Trade, i.e. the exchange of goods or services, on a global scale has ledt
vx vx vx vx vx vx vx vx vx vx vx vx vx xv
o the creation of trade agreements that serve as de facto rules governingth
vx vx vx vx vx vx vx vx vx vx vx vx xv
e global business environment.
vx vx vx
• Comparative law— vx
the field of law that studies and compares laws in different countries.
vx vx vx vx vx vx vx vx vx vx vx
Appendix on Critical vx vx xv Critical thinking includes the application of evaluative standards to assess the quali
vx vx vx vx vx vx vx vx vx vx vx
Thinking and Busines
vx vx ty or the reasoning being offered to support the conclusion. Critical thinkers will f
vx vx vx vx vx vx vx vx vx vx vx vx vx
s ollow this pattern of careful thinking when they read an argument:
vx vx vx vx vx vx vx vx v x vx
1. Find the facts. vx vx
2. Look for the issue. vx vx vx
3. Identify the judge‘s reasons and conclusion. vx vx vx vx vx
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
vx vx vx vx vx vx vx vx vx vx vx vx
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
vx vx vx vx vx vx vx vx
• Look for potential ambiguity. vx vx vx
• Consider the strength of analogies. vx vx vx vx
