Ch. 1-1 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 1 The Legal Environment of Business A Critical Thinking Approach 5 th Edition Nancy K. Kubasek Bartley A. Brennan M. Neil Browne

Ch. 1-2 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 2 THE LEGAL ENVIRONMENT OF BUSINESS CHAPTER 1 Critical Thinking and Legal Reasoning

Ch. 1-3 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 3 Legal Reasoning – reasoning with a purpose Example:  Do tobacco manufacturers have liability for the deaths of smokers? Conclusion - A position or stance on a particular issue. Example:  Yes – accountability for their product.  No – freedom of choice

Ch. 1-4 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 4 The 8 Steps to Legal Reasoning

Ch. 1-5 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 5 Critical thinking focuses on the quality of someone’s reasoning Definition :  Understand the argument  Apply evaluative criteria  Assess the quality of the reasoning

Ch. 1-6 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 6 The Demand for Better Critical Thinking Skills:  Competitive Pressure  Business Ethics  Understanding the Law

Ch. 1-7 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 7 United States of America v. Martha Stewart and Peter Bacanovic United States District Court for the Southern District of New York 2004 A Critical Thinking Case

Ch. 1-8 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 8 Facts:  Martha Stewart sold stocks on 12/27/01  ImClone announced FDA rejection on 12/28/01  Stewart and Bacanovic convicted  Expert witness accused of perjury  Perjury should be grounds for new trial

Ch. 1-9 THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 9 Issues:  When can a court grant a new trial?  Does perjury of a witness mean that defendants should have a new trial?  Do the regulations associated with Rule 33 and relevant case law permit the defendant to have a new trial?

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 10 Reasons and Conclusion:  Reasons: Under Rule 33, perjury is not sufficient basis for new trial, unless  The government knew about it.  The perjured testimony was material.  Without the testimony, acquittal was likely.  Conclusion:  The defendants did not show evidence of these conditions.  The jury would have still convicted.  Therefore, motion for a new trial is denied.

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 11 Rules of law cited in the Martha Stewart case:  Rule 33 and regulations  United States v. Wallach  Case law

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 12 Courts can grant a new trial if:  It is in the “interest of justice” or  “reasonable likelihood” (probability that the alleged perjury could have affected the verdict) Ambiguity – Capable of having more than one meaning

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 13 FORMS To act without restriction from rules imposed by others. To possess the capacity or resources to act as one wishes. To possess a large enough supply of goods and services that basic needs are met. To be safe from those wishing to interfere with your property rights. To achieve the psychological condition of self-confidence such that risks are welcomed. To receive the product of your labor. To treat all humans identically, regardless of class, race, gender, age, and so on. To provide resources in proportion to need. To possess anything that someone else was willing to grant you. To maximize the amount of wealth in our society. To get the most from a particular input. To minimize costs. Clarifying the Primary Ethical Norms ETHICALNORM ETHICAL NORM Freedom Security Justice Efficiency

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 14 Analogies Is the strength of the independent evidence found in the Stewart case equivalent to that in the Wallach case?

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 15 Missing Information  Was the jury’s verdict affected by the perjured testimony?  What was the congressional intent behind Rule 33?  Are there any similar cases in which the court has ruled differently?

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 16 Using Critical Thinking to Make Legal Reasoning Come Alive Facts: Just the Relevant FactsFacts: Just the Relevant Facts Issue: The Question of the CaseIssue: The Question of the Case Reasons and Conclusion: The AnswerReasons and Conclusion: The Answer Relevant Rules of Law: The Legal ContextRelevant Rules of Law: The Legal Context Ambiguity: The Limits of WordsAmbiguity: The Limits of Words Ethical Norms: The Basis for EvaluationEthical Norms: The Basis for Evaluation Legal Analogies: The Role of PrecedentLegal Analogies: The Role of Precedent Missing Information: Practical LimitsMissing Information: Practical Limits

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 17 Applying the Critical Thinking Approach  Use systematic, methodical approach  Apply to all cases you read  Apply also to other news and editorial pieces

Ch THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education Inc. publishing as Prentice Hall 18 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall