Business Law - Lerfald Where Does the Law Come From? Do you know the difference between right and...

Business Law - Lerfald

Where Does the Law Come From?

Do you know the difference between right and wrong?

How?


Morals vs Ethics

Morality refers to a society’s values and beliefs about right and wrong.

Ethics refers to the rules used to determine the difference between right and wrong.


Where Do Ethics Come From?

1. The Greatest Good (utilitarianism)

2. The Golden Rule

3. Real-World Ethics (feelings/opinions)

– People just know instinctively

– Individuals decide what is right and wrong


Ethics

The Greatest Good

– The greatest good for the greatest # of people

– Can be misapplied (is it okay to sacrifice 1 person to save 10?)


Ethics

Real-World Ethics (Feelings/Opinions)

– Nathan comes from a poor family, while Erin’s family is wealthy. Nathan believes that Erin has more money than she needs. When she leaves her purse unattended in the school cafeteria, Nathan steals her billfold. Nathan defends the theft by saying that he feels he deserves the money more than Erin, who can always get more from her father.

– Isn’t stealing always wrong?


Ethics

The Golden Rule (Do unto others as you would have them do unto you)

Apply empathy – put yourself in someone else’s shoes


Ethics

The Golden Rule applied correctly:– Steve is the star pitcher on Franklin High School’s varsity baseball team.

However, he is having a bad outing against the Vikings of St. Joseph High. Frustrated, Steve throws two pitches at St. Joseph’s best batter. When the umpire ejects Steve from the game, Franklin’s coach does not argue. Instead, he tells Steve, “You were wrong to throw those pitches at that kid. If it’s right for you to throw at their batters, then it would be right for their pitchers to throw at our batters.” Steve agrees that he would not want to be a pitchers target either.

The Golden Rule gone wrong:– When law tests are handed out in Mrs. Martin’s class, Max accidentally

receives two copies of the exam. He fills out one and returns it, but keeps the other. After class, he gives the copy to his friend, Bob, who will have a chance to look at it before his afternoon law test. Max justifies his conduct by saying he would want Bob to give him the test if Bob had been the one to receive the extra copy.


Ethics

So what about businesses and corporations? Are they bound by ethics

too?


Social Responsibility of Business

Decisions made by business have far-reaching effects on society.

In the past, many business decisions were made solely on a cost-benefit analysis.

– “Bottom line” impact.

Such decisions may cause negative externalities for others.

Corporations owe some degree of social responsibility.


TheoriesTheory Social Responsibility

Maximizing profits To maximize profits for stockholders.

Moral minimum To avoid causing harm and to compensate for harm caused.

Stakeholder interest To consider the interests of all stakeholders, including stockholders, employees, customers, suppliers, creditors, and local community.

Corporate citizenship To do good and solve social problems.

Social Responsibility of Business


Section 1.1 The Foundations of Law

People do not always behave morally or ethically, so we need law.

Law is a system of rules established by a government according to the values of society and having legal force.


Law and Ethics

Ethical and Legal Conflicts

– There are times where your ethics could be in conflict with the law.

• Clark is the editor of the Franklin High Herald. Rita tells Clark that another student is selling drugs on campus. She asks Clark not to reveal her identity in his news article or to the police. Clark agrees. When the article appears and the student is arrested, Clark has to testify at the trial. Clark refuses to identify Rita even though the judge orders him to do so. Clark is held in contempt of court and is fined

• Other examples might include: abortion, anti-war sentiment, etc.


5 Sources of the Law

There are five main sources of law:

constitutional law

common law

statutory law

court decisions

administrative law


1: Constitutions

Constitutions

•US Constitution and State Constitutions

•Which do you think are more powerful?

•A constitution is a formal document that lays out the basic principles that govern society.


US Constitution

US Constitution

– The Supreme Law (Supremacy Clause)

– 1st 10 amendments = The Bill of Rights

• What are your rights?

• What does the 1st amendment guarantee?


Bill of Rights

1st Amendment-Freedom of Speech (+ religion, press, assembly)

– Fully Protected Speech

• political, symbolic

– Limited

• Offensive speech, commercial (limited and restricted)

– Unprotected

• Dangerous, defamatory, obscene, child pornography


2: Common Law

Common Law

Common law is the set of laws created over time through customs and judgments by courts, which later courts must follow.

• Establishes precedent

• We know what will happen based on what has happened before


Common Law

Common Law

Law Courts Chancery Courts


3: Statutory Law

Statutory Law

Statutory law is the set of laws created by a governing body, called a legislature, whose purpose is to pass new laws.

•Congress makes the laws


4: Court Decisions

Court Decisions

Courts make laws in three ways:

through the common law tradition

by interpreting statutes

through judicial review, or deciding whether some laws conflict with the Constitution


Court Decisions

Court decisions also establish precedent

– Stare Decisis = To stand by the decision

– All cases with similar circumstances will be decided in a similar way

– The higher the court, the more important the precedent

Roe v Wade Brown v Board of Education

Miranda v State of Arizona


5: Administrative Law

Administrative Law

Administrative law is the set of laws created by government agencies.

• FTC, FDA, IRS, etc.

• They make their own rules

• Investigate their own rules

•Determine guilt/innocence of who violates their rules


Section 1.2

The Court System and Trial Procedures


Section 1.2 The Court System and Trial Procedures

The United States has two major court systems: the federal and the state courts.

The power a court has to hear a case and make a judgment is called jurisdiction.



The federal court system consists of:

district courts

appellate courts

special U.S. courts

the Supreme Court



Most state court systems consist of:

local trial courts

general trial courts

special courts, such as juvenile courts

intermediate appellate courts

state supreme courts



An appellate court is not a trial court, but reviews the decision of a lower court.



Courts hear two types of cases:

criminal

civil



Civil cases are brought by one individual against another.

Criminal cases are brought by the government for offenses committed against the public.



A civil case begins with one individual suing another. The plaintiff is the person bringing the lawsuit. The defendant is the person being sued.



A criminal case begins with the arrest and arraignment of a person.



An arrest is when a person is legally deprived of his or her freedom.

An arraignment is when a person is read the charges and asked to plead guilty or not guilty.



There are several steps to a trial:

selecting the jury

arguments and evidence by the lawyers

judge’s instructions to the jury

verdict and judgment



If the defendant is found liable in a civil case, the plaintiff is granted a remedy, often in the form of money.



If the defendant is convicted in a criminal case, the defendant is punished in the form of a fine, imprisonment, or both.



In either case, if the defendant is found liable or convicted, the defendant has the right to appeal the judgment to an appellate court.

Business Law - Lerfald Where Does the Law Come From? Do you know the difference between right and...

Documents

Transcript of Business Law - Lerfald Where Does the Law Come From? Do you know the difference between right and...