SolutionManual
c
DynamicBusinessLaw,6thEdition
c c c c
ByNancyKubasek
c c
,Chapter1- An Introduction to Dynamic Business Law
c c c c c c c c
CHAPTER OVERVIEW c
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s
c c c c c c c c c c c c c c
cweb site for information about how business law intersects with the six functional areas of business.
c c c c c c c c c c c c c c c
The authors encourage students to ―connect to the core,‖ and remember the ways in which law
c c c c c c c c c c c c c c c c c
intersects with other areas of study, including corporate management, production and
c c c c c c c c c c c
ctransportation, marketing, research and development, accounting and finance, and human c c c c c c c c c
resource management.
c c
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that
c c c c c c c c c c c c c c
cencourage students to integrate their business law knowledge with knowledge they are
c c c c c c c c c c c
cacquiring from their other business classes. The manual also encourages professors to improve
c c c c c c c c c c c c
their teaching skills. Finally, the manual suggests teaching ideas for both beginning and experienced
c c c c c c c c c c c c c c
teachers.
c
LEARNING OBJECTIVES c
After reading this chapter, students will be able to:
c c c c c c c c
1-1 Define business law. c c
1-2 Relate the functional areas of business to the relevant areas of business
c c c c c c c c c c c
law1- 3 Recall the purposes of law.
c c c c c c c
1-4 Distinguish among types of law. c c c c
1-5 Differentiate between sources of the law. c c c c c
1-6 Identify the various schools of jurisprudence. c c c c c
LECTURE NOTES WITH DEFINITIONS c c c
In the news…
c c Teaching tip: For each chapter, consider asking students to relate current news c c c c c c c c c c c
items to material from the chapter.
c c c c c c
In addition to ideas students come up with on their own, consider weaving in
c c c c c c c c c c c c c
cnews stories provided by the McGraw Hill. c c c c c c
For Chapter One, McGraw Hill offers the following stories:
c c c c c c c c
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting c c c c c c c c c c
Stronger Restrictions on Where You Can Smoke‖
c c c c c c c
Have states gone too farin banning smoking? c c c c c c c
, Whose interests are state legislatures looking out for in c c c c c c c c
banning smoking?
c c
―CollegeOfficerDealingsWithLenders Scrutinized.‖ c c c c c
Should regulators take a more careful look at college officers? c c c c c c c c c
Why created changes in the ways college officers interact with lenders? c c c c c c c c c c
1-1 Define c Business law consists of the enforceable rules of conduct that c c c c c c c c c
business law.
c c govern commercial relationships.
c c c
1-2 Relate the
c c Business law applies to the six functional areas of business:
c c c c c c c c c
functional areas
c c
Corporate management c
of business to the
c c c c
Production and transportation
relevant areas
c c
Marketing
c c
of business law.
c c c
Research and development c c
Accounting and finance c c
Human resource management c c
1-3 Recall the
c c
Providing order c
cpurposes of c Serving as an alternative to fighting c c c c c
law.
c
Facilitating a sense that change is possible c c c c c c
Encouraging social justice c c
Guaranteeing personal freedoms c c
Serving as a moral guide c c c c
1-4 Distinguish
c One way to classify law:
c c c c
camong types of c c
Private law involves disputes between private individuals or groups.
c c c c c c c c
law.
c
Public law involves disputes between private individuals or groups
c c c c c c c c
and their government.
c c c
A second way to classify law:
c c c c c
Civil law involves the rights and responsibilities involved in
c c c c c c c c
relationshipsbetween persons and between persons and their government.
c c c c c c c c
Criminal law involves incidents in which someone commits an act against
c c c c c c c c c c
the public as a unit.
c c c c c
Teaching tip: Ask students to give an example of a fact situation that
c c c c c c c c c c c c
led to both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
c c c c c c c c c c c c
1-5 Differentiate
c Sources of business law are: c c c c
between sources
c c
1. Constitutions
of the law.
c c c
Constitutional law refers to the general limits and powers of c c c c c c c c c
governments as stated in their written constitutions.
c c c c c c c
2. Statutes or legislative actions c c c
3. Cases
Case law (or common law) is the collection of legal interpretations
c c c c c c c c c c
made by judges.
c c c
Stare decisis means courts are relying on precedent.
c c c c c c c
Teaching tip: The first time your students encounter an appellate case in
c c c c c c c c c c c
the
c
, readings, show them what stare decisis looks like in the context of a real case.
c c c c c c c c c c c c c c
4. Administrative law c
Administrative law is the collection of rules and decisions c c c c c c c c
cmade by administrative agencies.
c c c
5. Treaties
A treaty is a binding agreement between two states or
c c c cc c c c c c
cinternational organizations. c
6. Executive orders
c c c
An executive order is a directive that comes from the president or
c c c c c c c c c c c
stategovernor.
c
1-6 Identify the
c c Schools of jurisprudence are common guides tolegal interpretation.
c c c c c c c c
various schools
c c
Natural law—certain ethical laws and principles are morally right c c c c c c c c
of
c
and c
jurisprudence.
c
―above‖thelawsdevisedbyhumans. c c c c c
Legal Positivism—assumes the legitimate political authority c c c c c
deserves our obedience when it issues a rule.
c c c c c c c c
Identification with the Vulnerable—emphasis on fairness and c c c c c c
looking out for those with the least power.
c c c c c c c c
Historical School/Tradition—emphasis on the use of stare decisis. c c c c c c c
Legal Realism—judges consider social and economic conditions. c c c c c c
Cost-benefit Analysis—make calculations to maximize the c c c c c
ratio of benefits to costs.
c c c c c
Teaching tip: Consider using ―The Case of the Speluncean Explorers
c c c c c c c c c
Global and c At
(linkthis
c
point
below)c in the schools
to makec
textbook, students come
of jurisprudencec should merely have an
alive. c c
c c
c c
c
c c
c
c
c
c
c c c
Comparative
c cawareness that globalization has affected the scope of business law. c c c c c c c c c
Law
c Consequently, we highlight the definitions to the following key terms that will
c c c c c c c c c c c c
come up later in the book:
cc c c c c c
Trade, i.e. the exchange of goods or services, on a global scale c c c c c c c c c c c
has ledto the creation of trade agreements that serve as de facto
c c c c c c c c c c c c
rules governingthe global business environment.
c c c c c c
Comparative law—the field of law that studies and compares laws c c c c c c c c c
in different countries.
c c c
Appendix on c Critical thinking includes the application of evaluative standards to
c c c c c c c c
Critical Thinking
c c cassess the quality or the reasoning being offered to support the
c c c c c c c c c c
and Business
c c conclusion. Critical thinkers will follow this pattern of careful thinking when
c c c c c c c c c c c
they read an argument:
c c cc c
1. Find the facts. c c
2. Look for the issue. c c c
3. Identify the judge‘s reasons and conclusion. c c c c c
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
c c c c c c c c c c c c
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
c c c c c c c c
Look for potential ambiguity. c c c
Consider the strength of analogies. c c c c
c
DynamicBusinessLaw,6thEdition
c c c c
ByNancyKubasek
c c
,Chapter1- An Introduction to Dynamic Business Law
c c c c c c c c
CHAPTER OVERVIEW c
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s
c c c c c c c c c c c c c c
cweb site for information about how business law intersects with the six functional areas of business.
c c c c c c c c c c c c c c c
The authors encourage students to ―connect to the core,‖ and remember the ways in which law
c c c c c c c c c c c c c c c c c
intersects with other areas of study, including corporate management, production and
c c c c c c c c c c c
ctransportation, marketing, research and development, accounting and finance, and human c c c c c c c c c
resource management.
c c
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that
c c c c c c c c c c c c c c
cencourage students to integrate their business law knowledge with knowledge they are
c c c c c c c c c c c
cacquiring from their other business classes. The manual also encourages professors to improve
c c c c c c c c c c c c
their teaching skills. Finally, the manual suggests teaching ideas for both beginning and experienced
c c c c c c c c c c c c c c
teachers.
c
LEARNING OBJECTIVES c
After reading this chapter, students will be able to:
c c c c c c c c
1-1 Define business law. c c
1-2 Relate the functional areas of business to the relevant areas of business
c c c c c c c c c c c
law1- 3 Recall the purposes of law.
c c c c c c c
1-4 Distinguish among types of law. c c c c
1-5 Differentiate between sources of the law. c c c c c
1-6 Identify the various schools of jurisprudence. c c c c c
LECTURE NOTES WITH DEFINITIONS c c c
In the news…
c c Teaching tip: For each chapter, consider asking students to relate current news c c c c c c c c c c c
items to material from the chapter.
c c c c c c
In addition to ideas students come up with on their own, consider weaving in
c c c c c c c c c c c c c
cnews stories provided by the McGraw Hill. c c c c c c
For Chapter One, McGraw Hill offers the following stories:
c c c c c c c c
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are Putting c c c c c c c c c c
Stronger Restrictions on Where You Can Smoke‖
c c c c c c c
Have states gone too farin banning smoking? c c c c c c c
, Whose interests are state legislatures looking out for in c c c c c c c c
banning smoking?
c c
―CollegeOfficerDealingsWithLenders Scrutinized.‖ c c c c c
Should regulators take a more careful look at college officers? c c c c c c c c c
Why created changes in the ways college officers interact with lenders? c c c c c c c c c c
1-1 Define c Business law consists of the enforceable rules of conduct that c c c c c c c c c
business law.
c c govern commercial relationships.
c c c
1-2 Relate the
c c Business law applies to the six functional areas of business:
c c c c c c c c c
functional areas
c c
Corporate management c
of business to the
c c c c
Production and transportation
relevant areas
c c
Marketing
c c
of business law.
c c c
Research and development c c
Accounting and finance c c
Human resource management c c
1-3 Recall the
c c
Providing order c
cpurposes of c Serving as an alternative to fighting c c c c c
law.
c
Facilitating a sense that change is possible c c c c c c
Encouraging social justice c c
Guaranteeing personal freedoms c c
Serving as a moral guide c c c c
1-4 Distinguish
c One way to classify law:
c c c c
camong types of c c
Private law involves disputes between private individuals or groups.
c c c c c c c c
law.
c
Public law involves disputes between private individuals or groups
c c c c c c c c
and their government.
c c c
A second way to classify law:
c c c c c
Civil law involves the rights and responsibilities involved in
c c c c c c c c
relationshipsbetween persons and between persons and their government.
c c c c c c c c
Criminal law involves incidents in which someone commits an act against
c c c c c c c c c c
the public as a unit.
c c c c c
Teaching tip: Ask students to give an example of a fact situation that
c c c c c c c c c c c c
led to both criminal and civil lawsuits, e.g., the O.J. Simpson trials.
c c c c c c c c c c c c
1-5 Differentiate
c Sources of business law are: c c c c
between sources
c c
1. Constitutions
of the law.
c c c
Constitutional law refers to the general limits and powers of c c c c c c c c c
governments as stated in their written constitutions.
c c c c c c c
2. Statutes or legislative actions c c c
3. Cases
Case law (or common law) is the collection of legal interpretations
c c c c c c c c c c
made by judges.
c c c
Stare decisis means courts are relying on precedent.
c c c c c c c
Teaching tip: The first time your students encounter an appellate case in
c c c c c c c c c c c
the
c
, readings, show them what stare decisis looks like in the context of a real case.
c c c c c c c c c c c c c c
4. Administrative law c
Administrative law is the collection of rules and decisions c c c c c c c c
cmade by administrative agencies.
c c c
5. Treaties
A treaty is a binding agreement between two states or
c c c cc c c c c c
cinternational organizations. c
6. Executive orders
c c c
An executive order is a directive that comes from the president or
c c c c c c c c c c c
stategovernor.
c
1-6 Identify the
c c Schools of jurisprudence are common guides tolegal interpretation.
c c c c c c c c
various schools
c c
Natural law—certain ethical laws and principles are morally right c c c c c c c c
of
c
and c
jurisprudence.
c
―above‖thelawsdevisedbyhumans. c c c c c
Legal Positivism—assumes the legitimate political authority c c c c c
deserves our obedience when it issues a rule.
c c c c c c c c
Identification with the Vulnerable—emphasis on fairness and c c c c c c
looking out for those with the least power.
c c c c c c c c
Historical School/Tradition—emphasis on the use of stare decisis. c c c c c c c
Legal Realism—judges consider social and economic conditions. c c c c c c
Cost-benefit Analysis—make calculations to maximize the c c c c c
ratio of benefits to costs.
c c c c c
Teaching tip: Consider using ―The Case of the Speluncean Explorers
c c c c c c c c c
Global and c At
(linkthis
c
point
below)c in the schools
to makec
textbook, students come
of jurisprudencec should merely have an
alive. c c
c c
c c
c
c c
c
c
c
c
c c c
Comparative
c cawareness that globalization has affected the scope of business law. c c c c c c c c c
Law
c Consequently, we highlight the definitions to the following key terms that will
c c c c c c c c c c c c
come up later in the book:
cc c c c c c
Trade, i.e. the exchange of goods or services, on a global scale c c c c c c c c c c c
has ledto the creation of trade agreements that serve as de facto
c c c c c c c c c c c c
rules governingthe global business environment.
c c c c c c
Comparative law—the field of law that studies and compares laws c c c c c c c c c
in different countries.
c c c
Appendix on c Critical thinking includes the application of evaluative standards to
c c c c c c c c
Critical Thinking
c c cassess the quality or the reasoning being offered to support the
c c c c c c c c c c
and Business
c c conclusion. Critical thinkers will follow this pattern of careful thinking when
c c c c c c c c c c c
they read an argument:
c c cc c
1. Find the facts. c c
2. Look for the issue. c c c
3. Identify the judge‘s reasons and conclusion. c c c c c
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
c c c c c c c c c c c c
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
c c c c c c c c
Look for potential ambiguity. c c c
Consider the strength of analogies. c c c c
