Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 1 Chapter 1 Laws...

Law for Business and Personal Use

© South-Western, a part of Cengage Learning Slide 1

Chapter 1

Chapter 1Laws and TheirLaws and TheirEthical FoundationEthical Foundation

1-11-1 Laws and Legal Systems

1-21-2 Types of Laws

1-31-3 Ethical Bases for Laws



Chapter 1

1-11-1 Laws and Legal Systems

GOALS Explain the stages in the growth of law Describe the differences between common

law and positive law Identify the origin of the U.S. legal system



Chapter 1

WHAT IS LAW?

The first law code set down 4,000 years ago is similar to that found in our current law codes.

Why?

Enforceable rules of conduct in a society that reflects the culture and circumstances that create them.


© South-Western, a part of Cengage Learning

Stages in the Growth of Law Individuals are free to take revenge for

wrongs done to them. A leader acquires enough power to be able

to force revenge-minded individuals to accept an award of goods or money instead.

The leader gives this power to a system of courts.

The leader or central authority acts to prevent and punish wrongs that provoke individuals to seek revenge.

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Common Law vs. Positive Law

Common Law is based on the current standards or customs of the people. Usually formed from the rules used by judges to

settle people’s disputes

Positive Law are laws set down by a sovereign or other central authority to prevent disputes and wrongs from occurring in the first place.

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How does common law differ from positive law?



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WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM?

Read “What’s Your Verdict?” Pg. 6 Is LaBonne Correct?

Two great systems of Law English Common Law Roman Civil Law

Roman Civil Law Adopted, written, well organized, comprehensive

set of statues in code form. Only changed by central government, not by judges.



English Common Law

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Brought by colonist from England to the US King’s Bench Jury An example p. 7 Advantages of English common law



Equity: An Alternative to Common Law

Common Law courts follow precedent Courts use prior cases as a guide for deciding

similar cases Following precedent helps to provide stability in

the law

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Disadvantages of Early Common Law

Rigid adherence to proper form Courts could only grant damages Inability to stop wrong before it caused damage Nobles could go directly to the King (unequitable)

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King sensed a need for access to equitable remedies for all citizens, so he created a system of equity courts.In the US today, law courts and equity courts are merged, except Delaware, Mississippi, and Tennessee



Chapter 1

On which early legal system is the U.S. legal system based?

Read “Cyber Law” on pg. 8 and discuss



Assignment

Complete and turn in 1-1 Assessment (hand-written)

Different Country’s Legal Systems: See handout

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Chapter 1

1-21-2 Types of Laws

GOALS Identify the four sources of law Discuss how conflicts between laws are

resolved Compare and contrast criminal and civil law,

and substantive and procedural law



What’s Your Verdict

Read “What’s Your Verdict” on p. 10 What part of the US Constitution contains

most of these guarantees? Bill of Rights

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Laws are created at all three levels of government:

Federal State Local

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Chapter 1

WHAT ARE THE SOURCES OF LAW?

Constitutions Statutes Case law Administrative law



Constitution

A document that sets forth the framework of a government and it’s relationship to the people it governs. Supreme law of the land Creates governmental framework and relationship

to the people US Constitution and state constitutions apply

concurrently US Constitution superior to any and all state

constitutions

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US Constitution, Article VI

Constitutions are the highest sources of law, and the federal Constitution is “the supreme law of the land” Any federal, state, or local law is not valid if it

conflicts with the federal Constitution. Constitutions are concerned primarily with

defining and allocating certain powers in our society

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Constitutions allocate powers:

Between people and their governments Bill of Rights (First 10 amendments)

Between Federal and State Governments Power to regulate both foreign and interstate

commerce

Among the branches of Government Executive, Legislative and Judicial Ensures that no branch becomes too powerful

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Statutes

State and federal legislatures are composed of elected representatives of the people Acting for their citizens, these legislatures enact

laws called statutes Local governments also can create legislation on

matters. These pieces of legislation created by a town or city are referred to as ordinances.

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Case Law

The judicial branches of governments create case law.

Usually made after a trial has ended and one of the parties has appealed the result to a higher court.

The rules or opinions published by the appellate court are then used in deciding other cases like it.

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Administrative Law

Rules and regulations made by appropriately empowered agencies (Administrative Agencies)

Legislative branch delegates it power to agencies

Rules have power of law

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Chapter 1

What are the four sources of law?



Chapter 1

WHAT HAPPENS WHEN LAWS CONFLICT?

Read p. 12 “What happens when laws conflict” Legal Rules are used the determine which

statement of the law is superior

Constitutions and validity Statutes and validity Administrative regulations and validity Case law and validity



Constitutions and Validity

Constitutions are the highest sources of the law, and the federal Constitution is “the supreme law of the land”. If a local, state or federal statute conflicts with the

constitution, it is not valid (unconstitutional)

These can be appealed to the highest court. The people have the power to amend

constitutions if they disagree with the courts interpretation.

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Statutes and Validity

Must be constitutional to be valid

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Administrative Regulations and Validity

Can also be reviewed by courts Can be invalidated by courts

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Case Law and Validity

A legislative body has the power to nullify a courts interpretation of a statute or ordinance by rewriting the statute

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Chapter 1

Which source of law in the United States is the highest authority?



Chapter 1

WHAT ARE THE MAIN TYPES OF LAWS?

Read “What’s Your Verdict” p. 13 Civil and criminal laws

Is this Civil, Criminal or both?

Procedural and substantive laws Business law

Mainly civil law Uniform business laws

Uniform Commercial Code (UCC)



Chapter 1

Compare and contrast criminal and civil law and substantive and procedural law.



Chapter 1

TYPES OF LAW

Constitutional law Based on constitutions

Statutory law Enacted by legislative bodies

Administrative law Rule-makings by administrative agencies

Civil law Addresses wrongs done to individuals

Criminal law Addresses wrongs done to society

Procedural law Deals with methods of enforcing legal rights and duties

Substantive law Defines legal rights and duties

Business law Rules that apply to business transactions



Assignment

Complete Assessment 1-2 on p. 15 Questions 1-11

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Chapter 1

1-31-3 Ethical Bases for Laws

GOALS Define ethics Compare and contrast consequences-based

ethics with rule-based ethics Discuss ways in which ethics are reflected in

laws



Chapter 1

ETHICS AND THE LAW

What does Ethics mean? (Focus)

Three elements of ethics

1. Decisions about right and wrong

2. Decision is reasoned (consistent and established)

3. Decision is impartial (fair) An ethical decision is one that is reasoned out typically

by referring to an established authority that provides consistency. (law is such an authority).



Ethics (Continued)

Ethic decisions should be impartial Impartiality is the idea that the same ethical

standards are applied to everyone.

Business Ethics are the ethical principals used in making business decisions Often not considered in business decisions

(video)

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Forms of Ethical Reasoning

Read “In This Case” p. 16 Basic forms of ethical reasoning

Consequences-based ethical reasoning Right or wrong is based on the results of the action

Rule-based ethical reasoning Acts are either right or wrong (judging comes from an

authority [law] or human reasoning)

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What kinds of ethical decisions do you have to make?

Give some examples Apply consequence based reasoning and

rule based reasoning to each situation. Compare the results Is one superior to the other? Why?

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Ethics reflected in laws

Discuss “A Question of Ethics” p. 17 Representatives must vote for laws that are

acceptable to the majority of the people (that’s how they get re-elected).

Laws are judged to be right or good when they affect the majority of people positively (Consequence Based Ethics)

“Provides the greatest good for the greatest number”

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Ethics reflected in laws (continued)

Constitution also protects the well-being of minority groups.

Done through the first 10 Amendments (Bill of Rights) and other civil rights laws.

This reflects ethics based on rules. Both consequence and rule based ethics

conclude that we are obligated to obey the law.

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Breaking Laws

Even if unethical, it can be tempting Some don’t even obey minor laws Some assess the risk of being caught against the

benefits Shows a lack personal integrity

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Civil Disobedience

Some care passionately about ethical behavior, human rights, and justice

They participate in an open, peaceful, violation of a law Protest it’s injustice

Read “What’s Your Verdict” p. 16

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Dr King’s belief on Civil Disobedience

He believed it’s ethical when: The law is in conflict with ethical reasoning

Letter from a Birmingham Jail

No effective political methods are available to change the law

It is nonviolent Does not advance a persons immediate self-

interest It’s public and one willingly accepts the

punishment for violating the law.

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Chapter 1

In the U.S. system of democracy, how are ethics reflected in laws?

Reflected in the Constitution which is drawn from the values of the people who elect the majority of the legislatures making the rules for our country.



Assignment

Ch 1-3 Assessment p. 19 Questions 1-9

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Chapter 1

PREVENT LEGAL DIFFICULTIES

As a citizen . . . When moving to a new location, find out how the

laws in that county or city may affect you. Before beginning a new business, consult an

attorney to learn about city, county, state, and federal laws and how they may affect you.

Study business law so you can become an informed citizen who is knowledgeable about legal matters.

Continued on the next slide



Chapter 1

PREVENT LEGAL DIFFICULTIES

Recognize that fulfilling your duties as a citizen is the greatest guarantee of your maintaining your individual rights and liberties. These duties include: The duty to obey the law. The duty to respect the rights of others. The duty to inform yourself on political issues. The duty to vote in elections. The duty to serve on juries if called. The duty to serve and defend your country. The duty to assist agencies of law enforcement.

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