1.1 Law for Business, 15e by Ashcroft Slide presentation prepared by Jimidene Murphey Chapter 1: Introduction to Law Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

1.2 Learning Objectives  Define law.  Explain why we have laws.  List four sources of law.  Distinguish among crimes, torts, and ethics.

1.3 What is Law? Blackstone’s definition is famous: “Law is a rule of civil conduct, commanding what is right and prohibiting what is wrong.”

1.4 INTRODUCTION  Business Law is concerned with what is right or wrong regarding business transactions.  The law is also concerned with establishing a framework in which society can operate as smoothly as possible to avoid disputes.

1.5 Types of Law  Common law - customs that gradually became law. Colonists brought this concept of law to America from England.  Equity law - system based on fairness in which money damages sometimes are not sufficient. This gave rise to the following:  Restraining orders  Injunctions

1.6 Sources of Law  Judicial decisions  Constitutional interpretation  Statutory law  Administrative agency orders Constitution

1.7 Torts  Torts are private or civil wrong or injury for which there may be an action for damages  May be intentional or it may be caused by negligence  Example of tort that is not a crime  A business negligently leaving debris in an area of customer traffic  Examples of torts that can also be crimes  Fraud, assault

1.8 Ethical Principles Seriousness of consequences  Laws do not reflect everything we believe about right or wrong; less serious matters are not addressed. Consensus of majority  Laws can’t possibly reflect every individual’s concept of right or wrong. Change in ethical standards  Behavior evolves as society evolves.

1.9 Do you have any questions?