INSTRUCTOR MANUAL FOR g g
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek Cha
g g g g g g g g g
pter 1-25
g
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and Bu
g g g g g g g g g g g g
sinessgEthics
1. CHAPTERgOVERVIEW
Chapterg1glaysgthegfoundationgforgthegtextbook.gThegtextbookgemphasizesgwaysgingwhichgbusinessgl
awgintersectsgwithgthegsixgfunctionalgareasgofgbusiness.gThroughoutgthegtextbook,gthegauthorsgwillge
ncouragegstudentsgtog―connectgtogthegcore,‖gandgremembergthegwaysgingwhichglawgintersectsgwithgot
hergareasgofgstudy,gincludinggcorporategmanagement,gproductiongandgtransportation,gmarketing,gres
earchgandgdevelopment,gaccountinggandgfinance,gandghumangresourcegmanagement.
Thisgmanualgsupportsgtheg―connectinggtogthegcore‖gthemegbyggivinggideasgforgassignmentsgthatgenc
ouragegstudentsgtogintegrategtheirgbusinessglawgknowledgegwithgknowledgegtheygaregacquiringgfrom
gtheirgothergbusinessgclasses.gThegmanualgalsogencouragesgprofessorsgtogimprovegtheirgteachinggskill
s.g Finally,gthegmanualgsuggestsgteachinggideasgforgbothgbeginninggandgexperiencedgteachers.
2. LEARNINGgOBJECTIVES
Aftergreadinggthisgchapter,gstudentsgwillgbegablegtoganswergthegfollowinggquestions:
1. Whatgisgbusinessglaw?
2. Howgdoesgbusinessglawgrelategtogbusinessgeducation?
3. Whatgaregthegpurposesgofglaw?
4. Whatgaregalternativegwaysgtogclassifyglaw?
5. Whatgaregthegsourcesgofglaw?
6. Whatgaregthegvariousgschoolsgofgjurisprudence?
3. LECTUREgNOTESgWITHgDEFINITIONS
a. Ingthegnews…
Teachinggtip:g Forgeachgchapter,gconsidergaskinggstudentsgtogrelategcurrentgnewsgitemsgtogmaterialgf
romgthegchapter.
Ingadditiongtogideasgstudentsgcomegupgwithgongtheirgown,gconsidergweavinggingnewsgstoriesg
providedgbygthegMcGraw-Hill.g StoriesgaregavailablegviagagMcGraw-
HillgDVD,gandgongthegpublisher‘sgwebgsite.
1-1
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
,ForgChaptergOne,gMcGraw-Hillgoffersgthegfollowinggstories:
―SmokinggBan:g TobaccogTyrants:gGonegToogFar?gManygStatesgAregPuttinggStrongergRestrictionsg
ongWheregYougCangSmoke‖
Havegstatesggonegtoogfargingbanninggsmoking?
Whoseginterestsgaregstateglegislaturesglookinggoutgforgingbanninggsmoking?
―CollegegOfficergDealingsgWithgLendersgScrutinized.‖
Shouldgregulatorsgtakegagmoregcarefulglookgatgcollegegofficers?
Whygcreatedgchangesgingthegwaysgcollegegofficersginteractgwithglenders?
b. Whatgisgbusinessglaw?
Businessglawgconsistsgofgthegenforceablegrulesgofgconductgthatggoverngthegactionsgofgbuyersgandgsel
lersgingmarketgexchanges.
c. Howgdoesgbusinessglawgrelategtogbusinessgeducation?
Businessglawgappliesgtogthegsixgfunctionalgareasgofgbusiness:
Management
Productiongandgtransportation
Marketing
Researchgandgdevelopment
Accountinggandgfinance
Humangresourcegmanagement
d. Whatgaregthegpurposesgofglaw?
Providinggorder
Servinggasgangalternativegtogfighting
Facilitatinggagsensegthatgchangegisgpossible
Encouraginggsocialgjustice
Guaranteeinggpersonalgfreedoms
Servinggasgagmoralgguide
e. Whatgaregalternativegwaysgtogclassifyglaw?
Onegwaygtogclassifyglaw:
Privateglawginvolvesgdisputesgbetweengprivategindividualsgorggroups.
Publicglawginvolvesgdisputesgbetweengprivategindividualsgorggroupsgandgtheirggovernment.
Agsecondgwaygtogclassifyglaw:
Civilglawgisgthegbodygofglawsgthatggoverngthegrightsgandgresponsibilitiesgeithergbetweengpersonsgorg
betweengpersonsgandgtheirggovernment.
Criminalglawgisgthegbodygofglawsgthatginvolvegthegrightsgandgresponsibilitiesgangindividualghasgwit
hgrespectgtogthegpublicgasgagwhole.
1-2
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
,Teachinggtip:g Askgstudentsgtoggivegangexamplegofgagfactgsituationgthatgledgtogbothgcriminalgandgciv
ilglawsuits,ge.g.,gthegO.J.gSimpsongtrials.
f. Whatgaregthegsourcesgofglaw?
Sourcesgofgbusinessglawgare:
1. Constitutions
Constitutionalglawgrefersgtogtheggeneralglimitsgandgpowersgofggovernmentsgasgstatedgingtheirgwritte
ngconstitutions.
2. Statutesgorglegislativegactions
Statutesgorglegislativegactionsgrefergtogthegassortmentgofgrulesgandgregulationsgputgforthgbyglegislat
ures.
3. Cases
Caseglawg(orgcommonglaw)gisgthegcollectiongofglegalginterpretationsgmadegbygjudges.gPrecede
ntgisgagtoolgusedgbygjudgesgtogmakegrulingsgongcasesgongthegbasisgofgkeygsimilaritiesgtogpreviousg
cases.
Staregdecisisgisgagprinciplegstatinggthatgrulingsgmadeginghighergcourtsgaregbindinggprecedentgforglo
wergcourts.
Teachinggtip:g Thegfirstgtimegyourgstudentsgencountergangappellategcasegingthegreadings,gshowgt
hemgwhatgstaregdecisisglooksglikegingthegcontextgofgagrealgcase.
4. Administrativeglaw
Administrativeglawgisgthegcollectiongofgrulesgandgdecisionsgmadegbygadministrativegagenciesgtogfil
lgingparticulargdetailsgmissinggfromgconstitutionsgandgstatutes.
5. Treaties
Agtreatygisgagbindinggagreementgbetweengtwogstatesgorginternationalgorganizations.
6. Executivegorders
Angexecutivegordergisgagdirectivegthatgcomesgfromgthegpresidentgorgstateggovernor.
g. Whatgaregthegvariousgschoolsgofglegalginterpretation?
Somegschoolsgofglegalginterpretationginclude:
IdentificationgwithgthegVulnerable—
gemphasisgongfairnessgandglookinggoutgforgthosegwithgthegleastgpower.
HistoricalgSchool/gTradition—emphasisgongthegusegofgtraditionsgandgstaregdecisis.
LegalgRealism—judgesgconsidergcontextgsuchgasgsocialgandgeconomicgconditions.
Cost-benefitgAnalysis—
emphasisgisgongassigninggmonetarygvaluesgtogcostsgandgbenefitsgofgtheglawgingordergtogmak
egcalculationsgtogmaximizegthegratiogofgbenefitsgtogcosts.
Teachinggtip:g Considergusingg―ThegCasegofgthegSpelunceangExplorersg(linkgbelow)gtogmakegthegsc
hoolsgofgjurisprudencegcomegalive.
h. AppendixgongCriticalgThinkinggandgBusinessgLaw
Criticalgthinkinggincludesgthegapplicationgofgevaluativegstandardsgtogassessgthegqualitygorgthegreaso
ninggbeinggofferedgtogsupportgthegconclusion.g Criticalgthinkersgwillgfollowgthisgpatterngofgcarefulgth
inkinggwhengtheygreadgangargument:
1. Findgthegfacts.
2. Lookgforegthegissue.
1-3
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
, 3. Identifygthegjudge‘sgreasonsgandgconclusion.
4. Locategingthegdecisiongthegrulesgofglawgthatggoverngthegjudge‘sgreasoning.
5. Applygcriticalgthinkinggtogthegreasoning.g Evaluategthegreasoning.
Lookgforgpotentialgambiguity.
Considergthegstrengthgofganalogies.
Checkgthegqualitygofgthegjudge‘sgreasoning.
Decidegwhethergimportantginformationgisgmissing.
Considergthegpossibilitygofgrivalgcauses.
4. TEACHINGg SKILLS:g BLOOM’Sg TAXONOMYg SETSg THEg STAGEg TOgT
HINKgABOUTgTHEgKINDSgOFgQUESTIONSgTOgASKgYOURgSTUDENTS
BenjamingBloom,ginghisgTaxonomygofgEducationalgObjectives,*gdevelopedgaghierarchygofgcogniti
vegfunctions.g Hisgworkgsetsgthegstagegforgteachersgtogunderstandgwhygitgisgimportantgtogthinkgcarefu
llygaboutgthegkindsgofgquestionsgtheygaskgingclass.
ThegObjective Samplegquestions
Knowledge Whatgisgbusinessglaw?
Lowestglevelgofglearninggandgisgmostlygmemory.g Whatgaregthegfourgelementsgofgagnegligenceg
Thegstudentgrecognizesgandgrecallsginformation. claim?
Comprehension Whatgisgyourgunderstandinggofgthegconceptg
Lowestglevelgofgunderstanding.gThegstudentgparap ofgstaregdecisis?
hrasesgorgexplainsgsomething. Whatgdoesgyourgtextbookgmeangbyg
deontology?
Application Howgwouldgagnaturalglawgthinkergrespondg
Studentgdemonstratesghergunderstandinggofgabstra togthisgparticulargfactgpattern?
ctgrules,gprinciples,gorggeneralizationsgbygusinggth Usegagparticulargcasegrulegtogdetermine
emgtogsolveglife-likegproblems. whethergthegplaintiffgwillgbegsuccessfulginghe
rgclaim.
Analysis Providegthegreasoninggforgthegfollowinggst
Studentgbreaksgdowngagcommunicationgtogdiscove atement:gAllgcontractsgdognotgneedgtogbegin
rgtheghiddengstructuregasgwellgasgassumptions. gwritinggtogbegenforceable.
Breakgdowngagparticulargjudge‘sgopiniongto
understandgthegassumptionsgthegjudgegisgmaki
ng.
Synthesis Explainghowgtwogparticulargschoolsgofglegalg
Studentgcreativelygcombinesgelementsgandgpartsgt interpretationgaregrelated.
ogformgagwholegnewgstructure. Makegagconnectiongbetweengduressgandg
insanity.
Evaluation Identifygandgexplaingagreasoninggflawgingtheg
Highestglevelgofglearning.gStudentgmakesgagcritic judge‘sgargument.
algjudgmentgaboutgthegvaluegofgthe Evaluategthegfollowinggstatement:
*gBENJAMINgBLOOM,gTAXONOMYgOFgEDUCATIONALgOBJECTIVES:gTHEgCLASSIFIC
ATIONgOFgEDUCATIONALgGOALSg(1954).
1-4
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
Dynamic Business Law The Essentials, 5th Edition, Nancy Kubasek Cha
g g g g g g g g g
pter 1-25
g
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and Bu
g g g g g g g g g g g g
sinessgEthics
1. CHAPTERgOVERVIEW
Chapterg1glaysgthegfoundationgforgthegtextbook.gThegtextbookgemphasizesgwaysgingwhichgbusinessgl
awgintersectsgwithgthegsixgfunctionalgareasgofgbusiness.gThroughoutgthegtextbook,gthegauthorsgwillge
ncouragegstudentsgtog―connectgtogthegcore,‖gandgremembergthegwaysgingwhichglawgintersectsgwithgot
hergareasgofgstudy,gincludinggcorporategmanagement,gproductiongandgtransportation,gmarketing,gres
earchgandgdevelopment,gaccountinggandgfinance,gandghumangresourcegmanagement.
Thisgmanualgsupportsgtheg―connectinggtogthegcore‖gthemegbyggivinggideasgforgassignmentsgthatgenc
ouragegstudentsgtogintegrategtheirgbusinessglawgknowledgegwithgknowledgegtheygaregacquiringgfrom
gtheirgothergbusinessgclasses.gThegmanualgalsogencouragesgprofessorsgtogimprovegtheirgteachinggskill
s.g Finally,gthegmanualgsuggestsgteachinggideasgforgbothgbeginninggandgexperiencedgteachers.
2. LEARNINGgOBJECTIVES
Aftergreadinggthisgchapter,gstudentsgwillgbegablegtoganswergthegfollowinggquestions:
1. Whatgisgbusinessglaw?
2. Howgdoesgbusinessglawgrelategtogbusinessgeducation?
3. Whatgaregthegpurposesgofglaw?
4. Whatgaregalternativegwaysgtogclassifyglaw?
5. Whatgaregthegsourcesgofglaw?
6. Whatgaregthegvariousgschoolsgofgjurisprudence?
3. LECTUREgNOTESgWITHgDEFINITIONS
a. Ingthegnews…
Teachinggtip:g Forgeachgchapter,gconsidergaskinggstudentsgtogrelategcurrentgnewsgitemsgtogmaterialgf
romgthegchapter.
Ingadditiongtogideasgstudentsgcomegupgwithgongtheirgown,gconsidergweavinggingnewsgstoriesg
providedgbygthegMcGraw-Hill.g StoriesgaregavailablegviagagMcGraw-
HillgDVD,gandgongthegpublisher‘sgwebgsite.
1-1
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
,ForgChaptergOne,gMcGraw-Hillgoffersgthegfollowinggstories:
―SmokinggBan:g TobaccogTyrants:gGonegToogFar?gManygStatesgAregPuttinggStrongergRestrictionsg
ongWheregYougCangSmoke‖
Havegstatesggonegtoogfargingbanninggsmoking?
Whoseginterestsgaregstateglegislaturesglookinggoutgforgingbanninggsmoking?
―CollegegOfficergDealingsgWithgLendersgScrutinized.‖
Shouldgregulatorsgtakegagmoregcarefulglookgatgcollegegofficers?
Whygcreatedgchangesgingthegwaysgcollegegofficersginteractgwithglenders?
b. Whatgisgbusinessglaw?
Businessglawgconsistsgofgthegenforceablegrulesgofgconductgthatggoverngthegactionsgofgbuyersgandgsel
lersgingmarketgexchanges.
c. Howgdoesgbusinessglawgrelategtogbusinessgeducation?
Businessglawgappliesgtogthegsixgfunctionalgareasgofgbusiness:
Management
Productiongandgtransportation
Marketing
Researchgandgdevelopment
Accountinggandgfinance
Humangresourcegmanagement
d. Whatgaregthegpurposesgofglaw?
Providinggorder
Servinggasgangalternativegtogfighting
Facilitatinggagsensegthatgchangegisgpossible
Encouraginggsocialgjustice
Guaranteeinggpersonalgfreedoms
Servinggasgagmoralgguide
e. Whatgaregalternativegwaysgtogclassifyglaw?
Onegwaygtogclassifyglaw:
Privateglawginvolvesgdisputesgbetweengprivategindividualsgorggroups.
Publicglawginvolvesgdisputesgbetweengprivategindividualsgorggroupsgandgtheirggovernment.
Agsecondgwaygtogclassifyglaw:
Civilglawgisgthegbodygofglawsgthatggoverngthegrightsgandgresponsibilitiesgeithergbetweengpersonsgorg
betweengpersonsgandgtheirggovernment.
Criminalglawgisgthegbodygofglawsgthatginvolvegthegrightsgandgresponsibilitiesgangindividualghasgwit
hgrespectgtogthegpublicgasgagwhole.
1-2
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
,Teachinggtip:g Askgstudentsgtoggivegangexamplegofgagfactgsituationgthatgledgtogbothgcriminalgandgciv
ilglawsuits,ge.g.,gthegO.J.gSimpsongtrials.
f. Whatgaregthegsourcesgofglaw?
Sourcesgofgbusinessglawgare:
1. Constitutions
Constitutionalglawgrefersgtogtheggeneralglimitsgandgpowersgofggovernmentsgasgstatedgingtheirgwritte
ngconstitutions.
2. Statutesgorglegislativegactions
Statutesgorglegislativegactionsgrefergtogthegassortmentgofgrulesgandgregulationsgputgforthgbyglegislat
ures.
3. Cases
Caseglawg(orgcommonglaw)gisgthegcollectiongofglegalginterpretationsgmadegbygjudges.gPrecede
ntgisgagtoolgusedgbygjudgesgtogmakegrulingsgongcasesgongthegbasisgofgkeygsimilaritiesgtogpreviousg
cases.
Staregdecisisgisgagprinciplegstatinggthatgrulingsgmadeginghighergcourtsgaregbindinggprecedentgforglo
wergcourts.
Teachinggtip:g Thegfirstgtimegyourgstudentsgencountergangappellategcasegingthegreadings,gshowgt
hemgwhatgstaregdecisisglooksglikegingthegcontextgofgagrealgcase.
4. Administrativeglaw
Administrativeglawgisgthegcollectiongofgrulesgandgdecisionsgmadegbygadministrativegagenciesgtogfil
lgingparticulargdetailsgmissinggfromgconstitutionsgandgstatutes.
5. Treaties
Agtreatygisgagbindinggagreementgbetweengtwogstatesgorginternationalgorganizations.
6. Executivegorders
Angexecutivegordergisgagdirectivegthatgcomesgfromgthegpresidentgorgstateggovernor.
g. Whatgaregthegvariousgschoolsgofglegalginterpretation?
Somegschoolsgofglegalginterpretationginclude:
IdentificationgwithgthegVulnerable—
gemphasisgongfairnessgandglookinggoutgforgthosegwithgthegleastgpower.
HistoricalgSchool/gTradition—emphasisgongthegusegofgtraditionsgandgstaregdecisis.
LegalgRealism—judgesgconsidergcontextgsuchgasgsocialgandgeconomicgconditions.
Cost-benefitgAnalysis—
emphasisgisgongassigninggmonetarygvaluesgtogcostsgandgbenefitsgofgtheglawgingordergtogmak
egcalculationsgtogmaximizegthegratiogofgbenefitsgtogcosts.
Teachinggtip:g Considergusingg―ThegCasegofgthegSpelunceangExplorersg(linkgbelow)gtogmakegthegsc
hoolsgofgjurisprudencegcomegalive.
h. AppendixgongCriticalgThinkinggandgBusinessgLaw
Criticalgthinkinggincludesgthegapplicationgofgevaluativegstandardsgtogassessgthegqualitygorgthegreaso
ninggbeinggofferedgtogsupportgthegconclusion.g Criticalgthinkersgwillgfollowgthisgpatterngofgcarefulgth
inkinggwhengtheygreadgangargument:
1. Findgthegfacts.
2. Lookgforegthegissue.
1-3
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
, 3. Identifygthegjudge‘sgreasonsgandgconclusion.
4. Locategingthegdecisiongthegrulesgofglawgthatggoverngthegjudge‘sgreasoning.
5. Applygcriticalgthinkinggtogthegreasoning.g Evaluategthegreasoning.
Lookgforgpotentialgambiguity.
Considergthegstrengthgofganalogies.
Checkgthegqualitygofgthegjudge‘sgreasoning.
Decidegwhethergimportantginformationgisgmissing.
Considergthegpossibilitygofgrivalgcauses.
4. TEACHINGg SKILLS:g BLOOM’Sg TAXONOMYg SETSg THEg STAGEg TOgT
HINKgABOUTgTHEgKINDSgOFgQUESTIONSgTOgASKgYOURgSTUDENTS
BenjamingBloom,ginghisgTaxonomygofgEducationalgObjectives,*gdevelopedgaghierarchygofgcogniti
vegfunctions.g Hisgworkgsetsgthegstagegforgteachersgtogunderstandgwhygitgisgimportantgtogthinkgcarefu
llygaboutgthegkindsgofgquestionsgtheygaskgingclass.
ThegObjective Samplegquestions
Knowledge Whatgisgbusinessglaw?
Lowestglevelgofglearninggandgisgmostlygmemory.g Whatgaregthegfourgelementsgofgagnegligenceg
Thegstudentgrecognizesgandgrecallsginformation. claim?
Comprehension Whatgisgyourgunderstandinggofgthegconceptg
Lowestglevelgofgunderstanding.gThegstudentgparap ofgstaregdecisis?
hrasesgorgexplainsgsomething. Whatgdoesgyourgtextbookgmeangbyg
deontology?
Application Howgwouldgagnaturalglawgthinkergrespondg
Studentgdemonstratesghergunderstandinggofgabstra togthisgparticulargfactgpattern?
ctgrules,gprinciples,gorggeneralizationsgbygusinggth Usegagparticulargcasegrulegtogdetermine
emgtogsolveglife-likegproblems. whethergthegplaintiffgwillgbegsuccessfulginghe
rgclaim.
Analysis Providegthegreasoninggforgthegfollowinggst
Studentgbreaksgdowngagcommunicationgtogdiscove atement:gAllgcontractsgdognotgneedgtogbegin
rgtheghiddengstructuregasgwellgasgassumptions. gwritinggtogbegenforceable.
Breakgdowngagparticulargjudge‘sgopiniongto
understandgthegassumptionsgthegjudgegisgmaki
ng.
Synthesis Explainghowgtwogparticulargschoolsgofglegalg
Studentgcreativelygcombinesgelementsgandgpartsgt interpretationgaregrelated.
ogformgagwholegnewgstructure. Makegagconnectiongbetweengduressgandg
insanity.
Evaluation Identifygandgexplaingagreasoninggflawgingtheg
Highestglevelgofglearning.gStudentgmakesgagcritic judge‘sgargument.
algjudgmentgaboutgthegvaluegofgthe Evaluategthegfollowinggstatement:
*gBENJAMINgBLOOM,gTAXONOMYgOFgEDUCATIONALgOBJECTIVES:gTHEgCLASSIFIC
ATIONgOFgEDUCATIONALgGOALSg(1954).
1-4
©g2021gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
g HillgEducation.
