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Dynamic Business Law, 6th Edition
aa aa aa aa
By Nancy Kubasek
aa aa
,Chapteraa1aa-aaAnaaIntroductionaatoaaDynamicaaBusinessaaLaw
CHAPTERaa OVERVIEW
Chaptera a Onea a laysa a thea a foundationa a fora a thea a textbook.a a Makea a surea a youa a looka a ona a the
a a publisher‘sa a weba a sitea a fora a informationaaaboutaahowaa businessaalawaaintersectsaa withaatheaa sixaa fu
nctionalaa areasaaofaabusiness.aaTheaaaaauthorsa a encourageaastudentsaatoaa―connectaatoaatheaacore,‖aaa
ndaarememberaatheaawaysaainaawhichaalawaaintersectsaawithaaotheraaareasa a ofa a study,a a includinga a cor
poratea a management,a a productiona a anda a transportation,a a marketing,a a researcha a anda a develo
pment,aaaccountingaaandaafinance,aaandaahumanaaresourceaamanagement.
Thisa a manuala a supportsa a thea a ―connectinga a toa a thea a core‖a a themea a bya a givinga a ideasa a fora a assi
gnmentsa a thata a encouragea a studentsaatoa a integratea a theira a businessa a lawa a knowledgea a witha a k
nowledgea a theya a area a acquiringa a froma a theira a othera a businessa a classes.aa Thea a manualaa alsoaa en
couragesa a professorsa a toa a improvea a theira a teachingaa skills.a a Finally,aa thea a manuala a suggestsaateachi
ngaaideasaaforaabothaabeginningaaandaaexperiencedaateachers.
LEARNINGa a OBJECTIVES
Afteraareadingaathisaachapter,aastudentsaawillaabeaaableaato:
1-1 Defineaabusinessaalaw.
1-2 Relateaatheaafunctionalaaareasaaofaabusinessaatoaatheaarelevantaaareasaao
faabusinessaalaw1-a a 3aaRecallaa theaapurposesaaofaalaw.
1-4 Distinguishaaamongaatypesaaofaalaw.
1-5 Differentiateaabetweenaasourcesaaofaatheaalaw.
1-6 Identifyaatheaavariousaaschoolsaaofaajurisprudence.
LECTUREaa NOTESa a WITHa a DEFINITIONS
Inaatheaanews… Teachingaa tip:aaForaaeachaachapter,aaconsideraaaskingaastudentsaa toaarelateaacurrenta
a newsa a itemsaatoaamaterialaafromaatheaachapter.
Ina a additiona a toa a ideasa a studentsa a comea a upa a witha a ona a theira a own,a a considera a we
avinga a ina a newsaastoriesaaprovidedaabyaatheaaMcGrawaaHill.
ForaaChapteraaOne,aaMcGrawaaHillaaoffersaatheaafollowingaastories:
―SmokingaaBan:aaTobaccoaaTyrants:aaGoneaaTooaaFar?aaManyaaStatesaaAreaaPu
ttinga a StrongeraaRestrictionsaaonaaWhereaaYouaaCanaaSmoke‖
Haveaastatesaagoneaatooaafaraainaabanningaasmoking?
, Whosea a interestsa a area a statea a legislaturesa a lookinga a outa a f
ora a ina a banninga a smoking?
―CollegeaaOfficeraaDealingsaaWithaaLendersaaScrutinized.‖
Shouldaaregulatorsaatakeaaaaamoreaacarefulaalookaaataacollegeaaofficers?
Whyaacreatedaachangesaainaatheaawaysaacollegeaaofficersaainteractaawit
1- Business haaalenders?
a lawa a consistsa a ofa a thea a enforceablea a rulesa a ofa a condu
1a a Definea a busin cta a thata a governa a commercialaarelationships.
ess
1- a a law. Businessaalawaaappliesaatoaatheaasixaafunctionalaaareasaaofaabusiness:
2aaRelateaathea a f Corporateaamanagement
unctionalaaareasa Productionaaandaatransportation
aofa a businessaatoa
athea a relevantaaa
Marketing
reasaaofa a busines Researchaaandaadevelopment
saalaw. Accountingaaandaafinance
Humanaaresourceaamanagement
1- Providingaaorder
3aaRecallaa thea Servingaaasaaanaaalternativeaatoaafighting
a purposesaaofaa
Facilitatingaaaaasenseaathataachangeaaisaapossible
law.
Encouragingaasocialaajustice
Guaranteeingaapersonalaafreedoms
Servingaaasaaaaamoralaaguide
1- Oneaawayaatoaaclassifyaalaw:
4aaDistinguisha a a Privateaalawaainvolvesaadisputesaabetweenaaprivateaaindividualsaaoraagroups.
mongaatypesaaofaal Publica a lawa a involvesa a disputesa a betweena a privatea a individualsa a ora a g
aw. roupsa a anda a theira a government.
Aaasecondaawayaatoaaclassifyaalaw:
Civilaalawaainvolvesaatheaarightsaa andaaresponsibilitiesaainvolvedaainaarelation
shipsbetweena a personsaaandaabetweenaapersonsaaandaatheiraagovernment.
Criminalaalawaa involvesaa incidentsaainaawhichaa someoneaa commitsa a anaaac
taaagainstaa thea a publicaaasaaaaaunit.
Teachinga a tip:a a Aska a studentsa a toa a givea a ana a examplea a ofa a aa a facta a sit
uationa a thata a leda a toa a bothaacriminalaaandaacivilaalawsuits,aae.g.,aatheaaO.J.
1- Simpson
Sources
aa aatrials.
aa ofaabusinessaalawaaare:
5aaDifferentiatea 1. Constitutions
a betweenaasource
Constitutionala a lawa a refersa a toa a thea a generala a limitsa a anda a powersa a ofa
saaofa a theaalaw. a governmentsa a asa a statedaainaatheiraawrittenaaconstitutions.
2. Statutesaaoraalegislativeaaactions
3. Cases
Casea a lawa a (ora a commona a law)a a isa a thea a collectiona a ofa a legala a interpre
tationsa a madea a bya a judges.
Stareaadecisisaameansaacourtsaaareaarelyingaaonaaprecedent.
Teachinga a tip:a a Thea a firsta a timea a youra a studentsa a encountera a ana a appellate
a a casea a ina a the
, readings,aashowaathemaawhataastareaadecisisaalooksaalikeaainaatheaacontextaaofaaa
aarealaacase.
4. Administrativeaalaw
Administrativea a lawa a isa a thea a collectiona a ofa a rulesa a anda a deci
sionsa a madea a bya a administrativeaaagencies.
5. Treaties
Aa a treatya a isa a aaaaabindinga a agreementa a betweena a twoa a state
sa a ora a internationala a organizations.
6.aaa a Executiveaaorders
Anaaexecutiveaa orderaaisaa aaadirectiveaathataacomesaa fromaatheaa presidentaa ora
1- a stategovernor.
Schools aa ofaajurisprudenceaaareaacommonaaguidesaatoaalegalaainterpretation.
6aaIdentifyaathea Naturala a law—
a variousaaschools certaina a ethicala a lawsa a anda a principlesa a area a morallya a righta a and
aaofa a jurispruden
―above‖aatheaalawsaadevisedaabyaahumans.
ce.
Legala a Positivism—
assumesa a thea a legitimatea a politicala a authoritya a deservesa a ouraa
obedienceaawhenaaitaaissuesaaaaarule.
IdentificationaawithaatheaaVulnerable—
emphasisaa onaafairnessaa andaalookinga a outaaforaathoseaawithaatheaale
astaapower.
HistoricalaaSchool/Tradition—
emphasisaaonaatheaauseaaofaastareaadecisis.
LegalaaRealism—judgesaaconsideraasocialaaandaaeconomicaaconditions.
Cost-benefitaaAnalysis—
Globalaaanda a C Ata a thismake
a a pointa a ina a thea a textbook,a a studentsa a shoulda a merelya a havea a
aa calculationsaa toaa maximizeaatheaa ratioaa ofa a benefitsaa toa
omparativeaaLa ana a awareness
acosts.
a a thata a globalizationa a hasa a affecteda a thea a scopea a ofa a bus
w inessa a law.a a Consequently,a a wea a highlighta a theaadefinitionsaatoaatheaafollowi
ng aakeyaaterms
Teaching a a tip:aa
aathat aawillaaaa
Consider a acome
usingaaa aupaalater
―The inaathe
Case
a aaa ofbook:
a a aa a a thea a Spelunceana
a Explorersa a (linka a below)aatoaamakeaatheaaschoolsaa ofaajurisprudenceaacom
Trade,a a i.e.a a thea a exchangea a ofa a goodsa a ora a services,a a ona a aa a glo
eaaalive.
bala a scalea a hasa a ledtoa a thea a creationa a ofa a tradea a agreementsa a that
a a servea a asa a dea a factoa a rulesa a governingaathea a globalaa businessaa envi
ronment.
Comparativeaalaw—
AppendixaaonaaCrit Criticalthe a a fieldaa
a a thinking a aofaalawaathat
includes aastudies
a a the a a andaaacompares
a a application aa lawsaain
a ofa a evaluative a differe
a aa standar
icala a Thinkingaaand dsa a toantaaaassess
countries.
a a thea a qualitya a ora a thea a reasoninga a beinga a offereda a toa a su
a a Business pporta a thea a conclusion.a a Criticala a thinkersa a willaafollowaathisaapatternaaofaaca
refulaathinkingaawhenaatheyaareadaaaaanaaargument:
1. Findaatheaafacts.
2. Lookaaforaatheaaissue.
3. Identifyaatheaajudge‘saareasonsaaandaaconclusion.
4. Locateaainaatheaadecisionaatheaarulesaaofaalawaathataagovernaatheaajudge‘saare
asoning.
5. Applyaacriticalaathinkingaatoaatheaareasoning.aaEvaluateaatheaareasoning.
Lookaaforaapotentialaaambiguity.
Consideraatheaastrengthaaofaaanalogies.
a
Dynamic Business Law, 6th Edition
aa aa aa aa
By Nancy Kubasek
aa aa
,Chapteraa1aa-aaAnaaIntroductionaatoaaDynamicaaBusinessaaLaw
CHAPTERaa OVERVIEW
Chaptera a Onea a laysa a thea a foundationa a fora a thea a textbook.a a Makea a surea a youa a looka a ona a the
a a publisher‘sa a weba a sitea a fora a informationaaaboutaahowaa businessaalawaaintersectsaa withaatheaa sixaa fu
nctionalaa areasaaofaabusiness.aaTheaaaaauthorsa a encourageaastudentsaatoaa―connectaatoaatheaacore,‖aaa
ndaarememberaatheaawaysaainaawhichaalawaaintersectsaawithaaotheraaareasa a ofa a study,a a includinga a cor
poratea a management,a a productiona a anda a transportation,a a marketing,a a researcha a anda a develo
pment,aaaccountingaaandaafinance,aaandaahumanaaresourceaamanagement.
Thisa a manuala a supportsa a thea a ―connectinga a toa a thea a core‖a a themea a bya a givinga a ideasa a fora a assi
gnmentsa a thata a encouragea a studentsaatoa a integratea a theira a businessa a lawa a knowledgea a witha a k
nowledgea a theya a area a acquiringa a froma a theira a othera a businessa a classes.aa Thea a manualaa alsoaa en
couragesa a professorsa a toa a improvea a theira a teachingaa skills.a a Finally,aa thea a manuala a suggestsaateachi
ngaaideasaaforaabothaabeginningaaandaaexperiencedaateachers.
LEARNINGa a OBJECTIVES
Afteraareadingaathisaachapter,aastudentsaawillaabeaaableaato:
1-1 Defineaabusinessaalaw.
1-2 Relateaatheaafunctionalaaareasaaofaabusinessaatoaatheaarelevantaaareasaao
faabusinessaalaw1-a a 3aaRecallaa theaapurposesaaofaalaw.
1-4 Distinguishaaamongaatypesaaofaalaw.
1-5 Differentiateaabetweenaasourcesaaofaatheaalaw.
1-6 Identifyaatheaavariousaaschoolsaaofaajurisprudence.
LECTUREaa NOTESa a WITHa a DEFINITIONS
Inaatheaanews… Teachingaa tip:aaForaaeachaachapter,aaconsideraaaskingaastudentsaa toaarelateaacurrenta
a newsa a itemsaatoaamaterialaafromaatheaachapter.
Ina a additiona a toa a ideasa a studentsa a comea a upa a witha a ona a theira a own,a a considera a we
avinga a ina a newsaastoriesaaprovidedaabyaatheaaMcGrawaaHill.
ForaaChapteraaOne,aaMcGrawaaHillaaoffersaatheaafollowingaastories:
―SmokingaaBan:aaTobaccoaaTyrants:aaGoneaaTooaaFar?aaManyaaStatesaaAreaaPu
ttinga a StrongeraaRestrictionsaaonaaWhereaaYouaaCanaaSmoke‖
Haveaastatesaagoneaatooaafaraainaabanningaasmoking?
, Whosea a interestsa a area a statea a legislaturesa a lookinga a outa a f
ora a ina a banninga a smoking?
―CollegeaaOfficeraaDealingsaaWithaaLendersaaScrutinized.‖
Shouldaaregulatorsaatakeaaaaamoreaacarefulaalookaaataacollegeaaofficers?
Whyaacreatedaachangesaainaatheaawaysaacollegeaaofficersaainteractaawit
1- Business haaalenders?
a lawa a consistsa a ofa a thea a enforceablea a rulesa a ofa a condu
1a a Definea a busin cta a thata a governa a commercialaarelationships.
ess
1- a a law. Businessaalawaaappliesaatoaatheaasixaafunctionalaaareasaaofaabusiness:
2aaRelateaathea a f Corporateaamanagement
unctionalaaareasa Productionaaandaatransportation
aofa a businessaatoa
athea a relevantaaa
Marketing
reasaaofa a busines Researchaaandaadevelopment
saalaw. Accountingaaandaafinance
Humanaaresourceaamanagement
1- Providingaaorder
3aaRecallaa thea Servingaaasaaanaaalternativeaatoaafighting
a purposesaaofaa
Facilitatingaaaaasenseaathataachangeaaisaapossible
law.
Encouragingaasocialaajustice
Guaranteeingaapersonalaafreedoms
Servingaaasaaaaamoralaaguide
1- Oneaawayaatoaaclassifyaalaw:
4aaDistinguisha a a Privateaalawaainvolvesaadisputesaabetweenaaprivateaaindividualsaaoraagroups.
mongaatypesaaofaal Publica a lawa a involvesa a disputesa a betweena a privatea a individualsa a ora a g
aw. roupsa a anda a theira a government.
Aaasecondaawayaatoaaclassifyaalaw:
Civilaalawaainvolvesaatheaarightsaa andaaresponsibilitiesaainvolvedaainaarelation
shipsbetweena a personsaaandaabetweenaapersonsaaandaatheiraagovernment.
Criminalaalawaa involvesaa incidentsaainaawhichaa someoneaa commitsa a anaaac
taaagainstaa thea a publicaaasaaaaaunit.
Teachinga a tip:a a Aska a studentsa a toa a givea a ana a examplea a ofa a aa a facta a sit
uationa a thata a leda a toa a bothaacriminalaaandaacivilaalawsuits,aae.g.,aatheaaO.J.
1- Simpson
Sources
aa aatrials.
aa ofaabusinessaalawaaare:
5aaDifferentiatea 1. Constitutions
a betweenaasource
Constitutionala a lawa a refersa a toa a thea a generala a limitsa a anda a powersa a ofa
saaofa a theaalaw. a governmentsa a asa a statedaainaatheiraawrittenaaconstitutions.
2. Statutesaaoraalegislativeaaactions
3. Cases
Casea a lawa a (ora a commona a law)a a isa a thea a collectiona a ofa a legala a interpre
tationsa a madea a bya a judges.
Stareaadecisisaameansaacourtsaaareaarelyingaaonaaprecedent.
Teachinga a tip:a a Thea a firsta a timea a youra a studentsa a encountera a ana a appellate
a a casea a ina a the
, readings,aashowaathemaawhataastareaadecisisaalooksaalikeaainaatheaacontextaaofaaa
aarealaacase.
4. Administrativeaalaw
Administrativea a lawa a isa a thea a collectiona a ofa a rulesa a anda a deci
sionsa a madea a bya a administrativeaaagencies.
5. Treaties
Aa a treatya a isa a aaaaabindinga a agreementa a betweena a twoa a state
sa a ora a internationala a organizations.
6.aaa a Executiveaaorders
Anaaexecutiveaa orderaaisaa aaadirectiveaathataacomesaa fromaatheaa presidentaa ora
1- a stategovernor.
Schools aa ofaajurisprudenceaaareaacommonaaguidesaatoaalegalaainterpretation.
6aaIdentifyaathea Naturala a law—
a variousaaschools certaina a ethicala a lawsa a anda a principlesa a area a morallya a righta a and
aaofa a jurispruden
―above‖aatheaalawsaadevisedaabyaahumans.
ce.
Legala a Positivism—
assumesa a thea a legitimatea a politicala a authoritya a deservesa a ouraa
obedienceaawhenaaitaaissuesaaaaarule.
IdentificationaawithaatheaaVulnerable—
emphasisaa onaafairnessaa andaalookinga a outaaforaathoseaawithaatheaale
astaapower.
HistoricalaaSchool/Tradition—
emphasisaaonaatheaauseaaofaastareaadecisis.
LegalaaRealism—judgesaaconsideraasocialaaandaaeconomicaaconditions.
Cost-benefitaaAnalysis—
Globalaaanda a C Ata a thismake
a a pointa a ina a thea a textbook,a a studentsa a shoulda a merelya a havea a
aa calculationsaa toaa maximizeaatheaa ratioaa ofa a benefitsaa toa
omparativeaaLa ana a awareness
acosts.
a a thata a globalizationa a hasa a affecteda a thea a scopea a ofa a bus
w inessa a law.a a Consequently,a a wea a highlighta a theaadefinitionsaatoaatheaafollowi
ng aakeyaaterms
Teaching a a tip:aa
aathat aawillaaaa
Consider a acome
usingaaa aupaalater
―The inaathe
Case
a aaa ofbook:
a a aa a a thea a Spelunceana
a Explorersa a (linka a below)aatoaamakeaatheaaschoolsaa ofaajurisprudenceaacom
Trade,a a i.e.a a thea a exchangea a ofa a goodsa a ora a services,a a ona a aa a glo
eaaalive.
bala a scalea a hasa a ledtoa a thea a creationa a ofa a tradea a agreementsa a that
a a servea a asa a dea a factoa a rulesa a governingaathea a globalaa businessaa envi
ronment.
Comparativeaalaw—
AppendixaaonaaCrit Criticalthe a a fieldaa
a a thinking a aofaalawaathat
includes aastudies
a a the a a andaaacompares
a a application aa lawsaain
a ofa a evaluative a differe
a aa standar
icala a Thinkingaaand dsa a toantaaaassess
countries.
a a thea a qualitya a ora a thea a reasoninga a beinga a offereda a toa a su
a a Business pporta a thea a conclusion.a a Criticala a thinkersa a willaafollowaathisaapatternaaofaaca
refulaathinkingaawhenaatheyaareadaaaaanaaargument:
1. Findaatheaafacts.
2. Lookaaforaatheaaissue.
3. Identifyaatheaajudge‘saareasonsaaandaaconclusion.
4. Locateaainaatheaadecisionaatheaarulesaaofaalawaathataagovernaatheaajudge‘saare
asoning.
5. Applyaacriticalaathinkingaatoaatheaareasoning.aaEvaluateaatheaareasoning.
Lookaaforaapotentialaaambiguity.
Consideraatheaastrengthaaofaaanalogies.
