Solution Manual For
The Legal And Regulatory Environment Of Business, 19th Edition
By Marisa Pagnattaro, Daniel Cahoy, Julie Manning Magid, Peter
Shedd
,Teaching Outline
I. Introduction
A. Why Law And Regulations Are Fundamental Foundations For Business
(Lo 1-1)
Emphasize:
• That By Studying The Legal And Regulatory Environment Of Business, Students
Will Gain An Understanding Of Basic Legal Vocabulary And Gain The Ability
To Identify Problematic Situations That Could Result In Liability.
• That Because Of The Positive Role Lawyers Can Play, They Are Increasingly
Being Asked To Join Corporate Boards.
• Sidebar 1.1 Titled ‗Sustainability And Integrity: Cautionary Tales Of Legal Liability.‘
II. Law, The Rule Of Law, And Property
A. Law
Emphasize:
• The Simple Definition Of Law. It Can Be Elaborated By Observing That Law Is
A Rule-Based, State-Enforced Formal Ordering System With Moral Elements.
• That Adequate Law And Legal Institutes Promote The Certainty And Trust
Necessary For Complex, Long-Term Business Arrangements. In An Economic
Sense, They Lower The Costs Of Transacting Business.
Additional Matters For Discussion:
• Discuss That Law Formalizes Values And Traditions And That Law Is More
Needed In A Large, Heterogeneous Modern Nation Than In A Smaller,
Homogeneous Nation. Compare The U.S. And Japan.
• It Is Not Too Early In This Chapter To Ask Students Whether Or Not Lack
Of Law And Strict Regulation Facilitated The Economic Crash And
Recession That Began In 2008.
• Ask Students To Comment On How Mistrust Of Law And Lawmakers Precipitated
The
―Occupy Wall Street‖ And Other ―Occupy…‖ Movements That Arosein 2011.
• Discuss How The Law Impacts The Covid 19 Restrictions On Businesses Opening In
2020.
B. The Rule Of Law
Emphasize:
• That Under A Rule Of Law, Laws Are Generally And Equallyapplicable.
• That Lack Of The Rule Of Law Internationallyhas Produced Hundreds Of Calls For It
In The
, Last Several Years By Business And Political Leaders. Get Students To Search For
Rule-Of- Lawreferences In Computer Databases.
• That The Complete Rule Of Law Is An Ideal Rather Than A Fact In Even The
Most Democratic Societies.
Additional Matters For Discussion:
• Get Students To Discuss Why The Managing Director Of J.P. Morgan And
Co. Called The Rule Of Law ―A Cornerstone Of Free Trade.‖
• Ask Students Why The Rule Of Law Tends To Produce Rules That Benefit
Everyone. Answer: Because Laws Apply Generally And Equallyto Everyone,
The Only Waylawmakers Can Benefit Themselves Is By Benefitting Everyone.
This Answer Is Theoretical, Of Course. Lawmakers Are Often Benefited
Individuallyfor Makinglaws That Favor Special Interests.
• Ask Students To Imagine How Society Would Be With No Laws. What If The
Governor Of One‘S State Announced That Tomorrow Would Be No-Law Day
And That Nothing Would Be
Penalized Or Enforced, No Police Would Be Present And No Penalties Would
Result From Anyone‘S Actions. What Would The Students Do? One Is Likely
To Find That After A Few Fleeting And Whimsical Thoughts, They Would
Agree That They Would Primarily Act To Protect Their Real And Personal
Property.
C. Property (Lo 1-2)
Emphasize:
• The Two Meanings Of Property.
• That Propertyis Not The Resource Or Thing Itself. It Is A Right (Or Series Of Rights).
• That The Propertyright Gives A Major Incentive To Develop Resources.
• That The Exclusionary Right Of Propertyprovides A Basis For The Private
Market And Modernbusiness.
Additional Matters For Discussion:
• Ask Students To Discuss The Incentive To Grow And Prosper And The
Incentive To Innovate And Progress Under A System With A Right To Private
Property Ownership And A Communist
System Where Private Ownership Of Propertyis Greatly Diminished For Most.
Would They Even Be In School If Accumulation Of Propertyrights Were Not
Attainable?
D. Property In Its Broadest Sense
Emphasize:
• Howinitsbroadestsense―Property‖Isthecentral Conceptofwesternlegalsystems.
• How Property Can Be Thought Of As The Hub Of A Wheel And The Various
, Legal Topics Studied In The Text As Spokes Of The Wheel. Law And The Rule
Of Law Provide The Unifying
The Legal And Regulatory Environment Of Business, 19th Edition
By Marisa Pagnattaro, Daniel Cahoy, Julie Manning Magid, Peter
Shedd
,Teaching Outline
I. Introduction
A. Why Law And Regulations Are Fundamental Foundations For Business
(Lo 1-1)
Emphasize:
• That By Studying The Legal And Regulatory Environment Of Business, Students
Will Gain An Understanding Of Basic Legal Vocabulary And Gain The Ability
To Identify Problematic Situations That Could Result In Liability.
• That Because Of The Positive Role Lawyers Can Play, They Are Increasingly
Being Asked To Join Corporate Boards.
• Sidebar 1.1 Titled ‗Sustainability And Integrity: Cautionary Tales Of Legal Liability.‘
II. Law, The Rule Of Law, And Property
A. Law
Emphasize:
• The Simple Definition Of Law. It Can Be Elaborated By Observing That Law Is
A Rule-Based, State-Enforced Formal Ordering System With Moral Elements.
• That Adequate Law And Legal Institutes Promote The Certainty And Trust
Necessary For Complex, Long-Term Business Arrangements. In An Economic
Sense, They Lower The Costs Of Transacting Business.
Additional Matters For Discussion:
• Discuss That Law Formalizes Values And Traditions And That Law Is More
Needed In A Large, Heterogeneous Modern Nation Than In A Smaller,
Homogeneous Nation. Compare The U.S. And Japan.
• It Is Not Too Early In This Chapter To Ask Students Whether Or Not Lack
Of Law And Strict Regulation Facilitated The Economic Crash And
Recession That Began In 2008.
• Ask Students To Comment On How Mistrust Of Law And Lawmakers Precipitated
The
―Occupy Wall Street‖ And Other ―Occupy…‖ Movements That Arosein 2011.
• Discuss How The Law Impacts The Covid 19 Restrictions On Businesses Opening In
2020.
B. The Rule Of Law
Emphasize:
• That Under A Rule Of Law, Laws Are Generally And Equallyapplicable.
• That Lack Of The Rule Of Law Internationallyhas Produced Hundreds Of Calls For It
In The
, Last Several Years By Business And Political Leaders. Get Students To Search For
Rule-Of- Lawreferences In Computer Databases.
• That The Complete Rule Of Law Is An Ideal Rather Than A Fact In Even The
Most Democratic Societies.
Additional Matters For Discussion:
• Get Students To Discuss Why The Managing Director Of J.P. Morgan And
Co. Called The Rule Of Law ―A Cornerstone Of Free Trade.‖
• Ask Students Why The Rule Of Law Tends To Produce Rules That Benefit
Everyone. Answer: Because Laws Apply Generally And Equallyto Everyone,
The Only Waylawmakers Can Benefit Themselves Is By Benefitting Everyone.
This Answer Is Theoretical, Of Course. Lawmakers Are Often Benefited
Individuallyfor Makinglaws That Favor Special Interests.
• Ask Students To Imagine How Society Would Be With No Laws. What If The
Governor Of One‘S State Announced That Tomorrow Would Be No-Law Day
And That Nothing Would Be
Penalized Or Enforced, No Police Would Be Present And No Penalties Would
Result From Anyone‘S Actions. What Would The Students Do? One Is Likely
To Find That After A Few Fleeting And Whimsical Thoughts, They Would
Agree That They Would Primarily Act To Protect Their Real And Personal
Property.
C. Property (Lo 1-2)
Emphasize:
• The Two Meanings Of Property.
• That Propertyis Not The Resource Or Thing Itself. It Is A Right (Or Series Of Rights).
• That The Propertyright Gives A Major Incentive To Develop Resources.
• That The Exclusionary Right Of Propertyprovides A Basis For The Private
Market And Modernbusiness.
Additional Matters For Discussion:
• Ask Students To Discuss The Incentive To Grow And Prosper And The
Incentive To Innovate And Progress Under A System With A Right To Private
Property Ownership And A Communist
System Where Private Ownership Of Propertyis Greatly Diminished For Most.
Would They Even Be In School If Accumulation Of Propertyrights Were Not
Attainable?
D. Property In Its Broadest Sense
Emphasize:
• Howinitsbroadestsense―Property‖Isthecentral Conceptofwesternlegalsystems.
• How Property Can Be Thought Of As The Hub Of A Wheel And The Various
, Legal Topics Studied In The Text As Spokes Of The Wheel. Law And The Rule
Of Law Provide The Unifying
