Essentials of the Legal Environment today, 5E Roger LeRoy Miller © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business and the legal environment Chapter 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

learning objectives What are the four primary sources of law in the United States? What is the common law tradition? What is a precedent? When might a court depart from precedent? What is the difference between remedies at law and remedies in equity? What are some important differences between civil law and criminal law? © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Introduction Law consists of enforceable rules governing relationships among individuals and between individuals and rest of their society. Laws establish rights, duties, and privileges consistent with the value system of a society or of its ruling group. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business activities and the legal environment Many Different Laws Affect a Single Business Transaction Linking Business Law to the Six Functional Fields of Business Corporate management Production and transportation Marketing Research and development Accounting and finance Human resource management © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1.1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business activities and the legal environment The Role of Law in a Small Business The small business owner is the most general of managers. All of the different managerial roles of a small business owner are linked to the law. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1.2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Sources of American law Constitutional Law United States Constitution is the supreme law of the land. Also found in case decisions and text arising from federal and state constitutions. LO-1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Sources of American law Statutory Law Laws enacted by the United States Congress and by state legislatures. Local ordinances. Uniform laws and codes, such as the Uniform Commercial Code. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Sources of American law Administrative Law Federal or state agencies Agency creation Administrative agencies can be independent regulatory agencies, such as the Food and Drug Administration. Rulemaking Rules, orders and decisions of administrative agencies. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Sources of American law Case Law and Common Law Doctrines Case law - Rules and decisions made by courts Governs all areas of law not covered by statutory or administrative law. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The common law tradition Early English Courts King’s courts established the common law – the body of general legal principles applied throughout England. King’s courts used precedent to build the common law. LO-2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Common law tradition Stare Decisis Deciding new cases based on precedent. A higher court, or an earlier decision by the same level court, is a precedent that has binding authority on the lower court. Departure from precedent only if good reason. What if there is no precedent? LO-3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Common law tradition Equitable Remedies and Courts of Equity Remedy: Enforcing a right or compensating for injury to that right. Remedies in equity: Based on justice and fair dealing, a chancery court, or court of equity, does what is right. Merging of law and equity Most courts today can award remedies in law or equity. LO-4 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1.3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The common law tradition Schools of Legal Thought Jurisprudence: The science or philosophy of law. A judge’s philosophical approach to law can determine how he or she will apply the law to a particular case. Natural law school “Higher” law System of moral and ethical principles Dates back to Aristotle and the ancient Greeks Natural rights © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The common law tradition Legal positivism Positive law, written law of society at a particular time There is no higher law than a nation’s positive law. Whether law is “good” or “bad” is irrelevant. Historical school Emphasizes the evolutionary process of law by concentrating on the origin and history of legal systems. The laws that have withstood the test of time are the best laws. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The common law tradition Legal realism Law is just one of many institutions in society shaped by social forces and needs. Judges should take human and economic factors into account when deciding cases. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Classifications of law Substantive law: Laws that define and regulate rights and duties. Procedural law: Laws that establish methods for enforcing and protecting rights. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Classifications of law Civil Law and Criminal Law Civil law: The branch of law dealing with the definition and enforcement of all private or public rights, as opposed to criminal matters. Criminal law: The branch of law that defines and punishes wrongful actions committed against society. LO-5 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Classifications of law National and International Law National law: Law that pertains to a particular nation. International law: The body of written and unwritten laws, and treaties, observed by nations when dealing with each other. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Finding and analyzing the law Appendix to Chapter 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Finding statutory and administrative law United States Code State Codes Administrative Rules © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Finding case law State Court Decisions Regional Reporters: published by West Group National Reporter System divides the country into: Atlantic, North Eastern, North Western, Pacific, South Eastern, South Western, and Southern reporters. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

EXHIBIT 1A.1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Finding case law Federal Court Decisions Unpublished Opinions West’s Federal Supplement (F.Supp or F.Supp.2d), United States Reports (U.S.) and West’s Reporter (S.Ct.) Unpublished Opinions Old Case Law © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1A.2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1A.2 (cont’d) © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1a.2 (cont’d) © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Reading and understanding case law Case Titles and Terminology Legal cases are identified by a “legal citation” (or a “cite”) as the example below: United States v. Jones, 132 S. Ct. 945 (2012). Title: First part is Plaintiff, second part is Defendant. The parties are either italicized or underlined. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Reading and understanding case law Example continued: United States v. Jones, 132 S. Ct. 945 (2012). Case can be found in the Supreme Court Reports published by West, Volume 132, page 945, decided 2012. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1a.3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1a.3 (cont’d) © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1a.3 (cont’d) © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Exhibit 1a.3 (cont’d) © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.