Law for Business and Personal Use © South-Western, a part of Cengage Learning What is Law?...
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Law for Business and Personal Use © South-Western, a part of Cengage Learning What is Law? “……still need the same protection from the conduct of others.” From what type of behaviors do we still need to be protected? Slide 1 Chapter 1
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Transcript of Law for Business and Personal Use © South-Western, a part of Cengage Learning What is Law?...
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
What is Law?
“……still need the same protection from the conduct of others.”
From what type of behaviors do we still need to be protected?
Slide 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 2
Chapter 1Laws and TheirEthical Foundation
1-1 Laws and Legal Systems
1-2 Types of Laws
1-3 Ethical Bases for Laws
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 3
1-1 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
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 4
WHAT IS LAW?
Enforceable rules of conduct in a society Reflects the culture & circumstances that
create them
Laws grouped in an organized form are CODES
Hammurabi, King of Babylon
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 5
Stages in the Growth of Law
Individuals free to take revenge Wild West, little kids, Gangs
Sovereign (Leader) acquires power……convinces the wronged to accept goods/money
Sovereign gives this power to a system of courts
Leader (central authority) acts to prevent/punish wrongs
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 6
Stages in the Growth of Law
“The more insecure the
society the more severe
the criminal punishment”
Law for Business and Personal Use
© South-Western, a part of Cengage Learning Slide 7
Chapter 1
LawsReflect the wisdom-or lack thereof-of
their creators
Laws should be both predictable and flexible.
In what ways are the rules at CLS predictable/flexible?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning Slide 8
Chapter 1
LawsWhat happens when a legal system is
too controlling/rigid?
What is the best system of laws?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
WHAT IS LAW?
Common Law Based on current
standards & customs Evolves slowly,
appropriate to current standards of the people
Positive Law Set forth by sovereign or
other central authority to PREVENT disputes in the first place
Slide 9
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 10
WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM?
Louisiana, Anyone?
ROMAN CIVIL LAW Comprehensive codes Only changed by central government Judges must enforce them, not change them
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 11
WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM?
The rest of the U.S. uses….Anyone?
ENGLISH COMMON LAW In the beginning…….
Feudal barons settled disputes…. ……problems with this?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 12
WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM?
ENGLISH COMMON LAW Then…….
King’s (Queen’s) Bench Created Good Weather? Bad Weather?
Jurisdiction – Power to decide a case Jury – to respect local customs/standards
-- used local citizens
King Henry II
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Tell Me About Gwen and William…..
Ruling?
Williams reaction?
Then what?
Slide 13
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 14
English Common Law
Advantages? Uniform, common laws, stability Precedents – use prior case law as guide to settle
current case
Disadvantages? Rigid adherence Only remedy of damages – harm must be done
before action taken
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Courts of Equity
Originally only available to who? Addresses a major problem w/
Courts of Law Do not have to suffer damages Injunction Can also COMPEL specific actions US courts have merged the two
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Comparison of Courts
Court of Laws Provides monetary
damages when that will repair wrong created by defendant Everything not covered in
C.O.E.
Jury
Court of Equity Provides fairness &
justice when money will not fix problem Family Law Probate Trusts
Specific performance No Jury
Legal Focus Page 16
Law for Business and Personal Use
© South-Western, a part of Cengage Learning Slide 17
Chapter 1
Equity
Equity = Fairness
Use precedent cases for application of the law fairly.
Fairness ≠ Same
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 18
On which early legal system is the U.S. legal system based?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 19
1-2 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
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 20
WHAT ARE THE SOURCES OF LAW?
Constitutions Statutes Case law Administrative law
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 21
WHAT ARE THE LEVELS OF GOVERNMENT?
Federal State Local
All create laws, but who has supremacy?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Minimum Wage
For instance: federal minimum wage is $7.25.
Illinois state is $8.25.
Wisconsin state is $7.25
http://www.dol.gov/esa/minwage/america.htm#Illinois
Slide 22
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 23
Constitutions
Supreme Law of the Land Creates framework and relationship to the
people U.S. Constitution and state constitutions
apply concurrently
Which is superior?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 24
Constitutional Law
Highest source of law Adopted Amended Interpreted (courts)
U.S. Supreme Court is final interpreter
All laws must be in line with Federal Constitution
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 25
Allocation of Power….. Between people and their government
Bill Of Rights (1st Ten Amendments) What does this protect you from?
Between Federal and State Governments Example: Commerce
Foreign & INTERstate = Federal INTRAstate = State
Among Branches of Government System of Checks and Balances
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 26
Statutes Pending Legislation in Illinois
Laws enacted by legislative branches of state and federal (Congress)
Inferior to the U.S. Constitution
Elected officials represent the citizens
Local governments create ordinances that effect their communities
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 27
Case Law NEW CASE LAW(S)
Laws enacted by judicial branches Trial ended and appeals exhausted
Stare Decisis – “Let it Stand” Important Because:
Don’t Start from scratch Biases have less chance to interfere Makes system more efficient More stability
Who is not bound by Stare Decisis?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Precedents
Why Overturn? Reasoning No Longer Valid Publicity
School Prayer Women in certain occupations Segregation Speed Limit Restrictions
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 29
Administrative Law
Created by Legislature, controlled by Executive Branch
Rules and regulations made by appropriately empowered Administrative Agencies Legislative Powers – create rules/regs Judicial Powers – hold hearings
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 30
What are the four sources of law?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 31
What Happens When Laws Conflict?
Federal
State
Local
What source of law is the highest authority?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 32
What Happens When Laws Conflict?
Constitutional Validity Unconstitutional means what? Is the U.S. Supreme Court the ultimate authority?
Statute and Administrate Validity Constitutional? Does law exceed scope of power?
Case Law and Validity Legislative body can nullify courts interpretation
by rewriting statute
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 33
Which source of law in the United States is the highest authority?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 34
WHAT ARE THE MAIN TYPES OF LAWS?
Civil and criminal laws Procedural and substantive laws Business law
Uniform business laws
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
CIVIL LAW
Wrongs against individuals
Police do not take action
Seek remedy for wrongs done
Wrongs against society
Gov’t investigates/ prosecutes
Conviction results in fines/ imprisonment/ execution
Slide 35
CIVIL LAW
TORTS
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Some actions are both civil & criminal
Bill takes a watch from a counter display in a retail store and leaves the store without paying for it. A security guard gives chase and bumps into a pedestrian injuring her. Bill jumps into a stranger’s car, pulls a knife and orders her to help him escape. As they attempt to leave she hits a pedestrian and then a parked car. The guard catches up and pulls Bill out. Bill slashes the guard’s arm with his knife; takes off running….. Slide 36
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
PROCEDURAL
How legal rights and responsibilities must be exercised in the legal system
What remedies are allowed
Criminal Procedures? Civil Procedures?
Defines legal rights and duties
Defines crimes What is the
difference between assault and battery?
Slide 37
SUBSTANTIVE
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Procedure Law Procedural law issues are argued by the
attorney before a judge rather than before a jury. The judge will decide procedural issues because they are questions of law. Evidence issues such as hearsay “Objection your honor”. “On what grounds?”
Failure to follow proper procedure can cause an otherwise winning case to be lost.
Slide 38
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Substantive LawSubstantive law defines duties, establishes rights, and
prohibits wrongs. It is concerned with all rules of conduct.
The law against taking another’s life is a part of substantive law.
The law protecting you from discrimination in housing, schooling and the like is part of substantive law.
1. Murder
2. Theft
3. Breach of contract
4. Negligence
Slide 39
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Business Law Covers rules that apply to business
situations and transactions. Mostly Civil law
Contracts (Breach) Commercial torts
Cease & Desist Gator Mascot
Criminal law for business activities Bernie Madoff Enron Martha Stewart
Slide 40
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
The Uniform Commercial Code - UCC
A uniform law enacted in part by all fifty states to create certainty in the area of commercial contracts and to make the law consistent with common business practice.
Is this good? Why? Makes doing business easier Uniformity
Law for Business and Personal Use
© South-Western, a part of Cengage Learning Slide 42
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
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 43
1-3 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
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 44
ETHICS is a decision……
.....Of right or wrong Affects you or others
…..Is reasoned Not emotion May use established authority as source
The Law Religious texts
…..Is impartial Applies to everyone
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Consequences-based ethical reasoning
Rightness or wrongness is based only on the results of the action. Particular acts have no ethical, or moral, character. It was right to do that, because I didn’t get caught. I did it because I was financially rewarded. I did it for justice.
Slide 45
Chapter 1
What is a major consideration in this reasoning process?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Rule-based ethical reasoning Acts are judged to be either right or wrong.
Example anyone?
What are the STANDARDS FOR JUDGING based on?
1. A recognized authorityFrequently a religious source (ten commandments)
2. Human reasoningUniversalizing – what if everyone was doing this?
Slide 46
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Real World Business Enron Corporation employed approximately
22,000 people One of the world's leading electricity,
natural gas, pulp and paper, and communications companies
Claimed revenues of $111 billion in 2000. Offshore accounts were hiding losses for the
company which the Executives and insiders at Enron knew about and the investors (stock holders) knew nothing about.
Slide 47
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Real World Business In 2001 it was revealed that their accounting
firm, Arthur Anderson, was practicing irregular accounting.
Enron was on the verge of bankruptcy Enron shares dropped from over $90.00 to
less than 50¢ Arthur Anderson, one of the world's top five
accounting firms was dissolved.
Slide 48
Chapter 1
Video
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Ethics Reflected in Laws
Both ethics based on consequences and ethics based on rules conclude that we are obligated to obey the law.
Consequence based reasoning usually results in more people being injured than are benefited.
Rule based reasoning, if we break the rule, we are breaking our promise to obey the rules, usually affects one person.
Slide 49
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Ethics Reflected in Laws
MAJORITY RULE! (consequence-based) To be re-elected, representatives need to vote for
the majority opinion of their people
PROTECT WELL-BEING OF MINORITIES (rule-based) Individual rights preserved by the Bill of Rights
Slide 50
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
What are SCOFFLAWS?
Slide 51
Are YOU a Scofflaw?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Tell me about Dr. Martin Luther King, Jr.
Slide 52
Chapter 1
VIDEO
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Civil Disobedience When is Civil disobedience ethical ?• A written law is in conflict with ethical reasoning• No effective political methods are available to
change the law• The civil disobedience is nonviolent• The civil disobedience does not advance a
person’s immediate self-interest• The civil disobedience is public and one
willingly accepts the punishment for violating the law
Slide 53
Chapter 1
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 54
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
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 55
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.
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 56
WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM?
English common law King’s Bench Jury An example Advantages of English common law
Equity: An alternative to common law
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 57
Compare and contrast criminal and civil law and substantive and procedural law.
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 58
In the U.S. system of democracy, how are ethics reflected in laws?
Law for Business and Personal Use
© South-Western, a part of Cengage Learning
Chapter 1
Slide 59
How does common law differ from positive law?
