Ch. 1 Ethics and the Law Business Law

CH. 1.1 DEFINING ETHICS O HOW ETHICAL DECISIONS ARE MADE O How do you define what is right and what is wrong? O What are some methods you choose to decide what the right thing to do is? O Morality: In practical usage, the word morals usually applies to principles of right and wrong in personal behavior O morals are more abstract, subjective, and often personal or religion-based. O Ethics: And ethics usually applies to social, professional and business practices O ethics are more practical, conceived as shared principles promoting fairness in social and business interactions

CH. 1.1 Defining Ethics O HOW ETHICAL DECISIONS ARE MADE O Feelings and Opinions O What physical symptoms guide your decisions? O Do you see any problems with people using their own personal opinions to guide decisions ?

CH. 1.1 Defining Ethics O HOW ETHICAL DECISIONS ARE MADE O The Greatest Good O Alice knows that 10 of her 20 classmates cheated on their last law exam. The teacher mistakenly believes that only one innocent student is guilty of cheating. She will keep silent because doing so will ensure the greatest good for the greatest number of people O Is the theory misapplied here?

CH. 1.1 Defining Ethics O Empathy: the heart of the golden rule O Abused due to self interest O Can be hard to understand O Can be misapplied HOW ETHICAL DECISIONS ARE MADE O The Golden Rule

CH. 1.1 Defining Ethics O ETHICAL CHARACTER TRAITS O Can you think of any ethical people? O What traits do they share to make them this way?

CH. 1.1 Defining Ethics O Ethical Character Traits O Honesty: a person who is open and truthful in dealings with others O While it is difficult to be honest all the time people with this character trait: O Can be trusted O Keeps promises O Consistently honest

CH. 1.1 Defining Ethics O Ethical Character Traits O Justice: a person is just if s/he treats people fairly and equally O “Fair share” O Fair vs. equal

CH. 1.1 Defining Ethics O Ethical Character Traits O Compassion: having sympathy for others O Help alleviate peoples’ issues O Respect others’ decisions O Non-judgmental O Understanding

CH. 1.1 Defining Ethics O Ethical Character Traits O Integrity: willing to do the right thing, regardless of personal consequences O Stand up for their moral beliefs O Honorable and upstanding O Working to high standards O Clear conscience

Ch. 1.1 Defining Ethics O THE RELATIONSHIP BETWEEN ETHICS AND LAW O Why is Law Necessary (in the real world) O Law: the system of rules and conduct established by the government of a society to maintain stability and justice O Defines legal rights and duties of people O Provides a means of enforcing rights and duties O People have choices – but there are consequences for them

O World Cars, Inc. advertises its cars by saying “They’re the best on the market!” even though it knows that, while functional and safe, they are quite ordinary. Best Auto Corp., a competitor, uses a similar slogan, but its cars violate several safety laws and are frequently involved in accidents. O Which company is unethical, which is performing illegal practices?

Ch. 1.1 Defining Ethics O THE RELATIONSHIP BETWEEN ETHICS AND LAW O Ethical and Legal Conflicts O Laws are made by people – people are imperfect O Sometimes legislatures and courts bring personal opinion in the law-making process

O Clark is the editor of the Richmond High Herald. Rita tells Clark that another student is selling drugs on campus, but 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. He refuses to identify his source and is held in contempt of court. O What is the ethics vs. law struggle here?

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Constitutional Law O Review: laws are created by government to maintain stability and justice in a society O constitution: defines the principles by which the government operates O U.S. Constitution = most fundamental law O What does fundamental mean?

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Constitutional Law O Sets forth rights of citizens O Defines jurisdiction and limits of lawmaking for federal and state government O Describes functions of our branches/divisions of government O Consists of seven articles and 27 amendments

Congress, House of Rep, Senate Powers of the State ARTICLE 1 Legislative Branch President, VP Powers, duties, impeachment ARTICLE 2 The Executive Branch Federal Courts Treason ARTICLE 3 The Judicial Branch

Full faith and credit Accept laws of other states ARTICLE 4 Relations Among States How Constitution can be changed Process ARTICLE 5 The Amending Process Supreme law of land Treaties included ARTICLE 6 National Supremacy Approval Occurred in 1787 ARTICLE 7 The Ratification

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Constitutional Law O Limits powers of government O Protects rights of individuals and those accused of crimes

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O State Law O Each state has its own Constitution O More protective, specific, narrower, restrictive O Cannot go against Constitution O What are some laws in state constitutions?

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Common Law O Most states are rooted by English laws O No written law – laws based on traditions of society O No legal compilation of laws O Based on precedent – when judges follow court decisions of earlier, similar court cases O Precedents are documented and maintained O Rulings in judge’s discretion

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Statutory Law O Statutes: written law specifically passed by a governing body O In complete contrast of common law O Declares law on a certain issue O Orders people to do something O Forbids people to do something O Passed by legislatures: body of lawmakers that has the job of creating statutory law under their given powers

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Statutory Law O Federal Statutes: Laws passed by Congress and signed by the President O Supreme Court can declare statutes as unconstitutional O State Statutes: each state has its own legislature O Cannot pass laws that are unconstitutional

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Court Decisions O Case law O Court decisions O Judge-made law O Make decisions based on common law, interpreting statutes and judicial review

Ch. 1.2 Sources of Law O THE FIVE MAIN SOURCES OF LAW O Administrative Agencies O Administrative law: rules and procedures established by regulatory agencies O Power is given and can be taken away