LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 1 Laws and Their Ethical Foundation Laws and Legal Systems Types of Laws Ethical Bases for Laws

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 2 1-1Laws 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 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 3 WHAT IS LAW? Stages in the growth of law Revenge Force people to accept award instead Power is given to system of courts Courts act to prevent and punish wrongs instead of revenge Common law versus positive law Common law is based on current standards or customs of people Positive law is set down by a sovereign or other to prevent disputes and wrongs from occurring. Hammurabi Law

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. King Hammurabi's Laws  If a man has accused another of laying a nertu [death spell?] upon him, but has not proved it, he shall be put to death.  If he has borne false witness in a civil law case, he shall pay the damages in that suit.  If a man has stolen a child, he shall be put to death.  If a man has broken into a house he shall be killed before the breach and buried there.  If a man has committed highway robbery and has been caught, that man shall be put to death.  If a man has taken a wife and has not executed a marriage contract, that woman is not a wife. Chapter 1 SLIDE 4

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Laws continued…….  If a man has committed incest with his daughter, that man shall be banished from the city.  If a man, after his father's death, has lain in the bosom of his mother, they shall both of them be burnt together.  If a son has struck his father, his hands shall be cut off.  If a builder has built a house for a man, and has not made his work sound, and the house he built has fallen, and caused the death of its owner, that builder shall be put to death.  If a man has let his boat to a boatman, and the boatman has been careless and the boat has been sunk or lost, the boatman shall restore a boat to the owner. Chapter 1 SLIDE 5

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 6 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? English common law King’s Bench Advantage of English common law is that it created uniformity while maintaining an ability to adapt to changes in society. Equity: An alternative to common law Common law could only give remedy Equitable remedies for all citizens

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1-1 Assessment True/False Substitution of damages for revenge is the first stage in the evolution of law. False An organized group of laws is referred to as a code. True Most American law courts can use either damages or an injunction or both as remedies in civil cases. True Chapter 1 SLIDE 7

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 8 1-2Types 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 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Laws to abide by: Rules at school Rules at home Chapter 1 SLIDE 9

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 10 WHAT ARE THE SOURCES OF LAW? Constitutions (sets forth framework of a government) Statutes (laws enacted by state & federal legislatures) Ordinances (laws enacted by a town or city council) Case law (based on legal issues arising from rulings made by a lower court) Administrative law (rules enacted by Administrative Agencies: SSA, DMV, Homeland Security)

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 11 WHAT HAPPENS WHEN LAWS CONFLICT? Constitutions and validity (no statute is valid if it conflicts with the federal Constitution) Statutes and validity (does the law’s enactment exceed the scope of the powers of the body that authored it? Administrative regulations and validity (same as statutes) Case law and validity (legislature can rewrite the law in a form that complies with the court’s decision) What’s Your Verdict? Page 12: What happens when laws conflict?

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 12 WHAT ARE THE MAIN TYPES OF LAWS? Civil Laws: groups of laws that allow individuals to seek legal remedies for wrongs done to them. Criminal laws: covers offenses to citizens’ right to live in peace. Procedural Laws: determines what remedies are available in a lawsuit. Substantive Laws: defines offenses such as murder, theft, breach of contract and negligence. Business law: covers rules that apply to business situations and transactions. Uniform business laws: consistent laws for all states.

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 13 TYPES OF LAW Constitutional lawBased on constitutions Statutory lawEnacted by legislative bodies Administrative lawRules and regulations made by administrative agencies Civil lawAddresses wrongs done to individuals Criminal lawAddresses wrongs done to society Procedural lawDeals with methods of enforcing legal rights and duties Substantive lawDefines legal rights and duties Business lawRules that apply to business situations and transactions

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Section 1-2 Assessment 1.The first ten amendments to the US Constitution are know as the __________? Bill of Rights 2. A crime is considered an offense against a. Its victims b. Those who commit it c. The state 3.Legislative enactments by a city government are called ________? Ordinances 4.Stare Decisis is the doctrine that requires lower courts to adhere to existing case law in their decisions. True Chapter 1 SLIDE 14

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5.Torts are private wrongs committed against individuals or organizations. True 6.Business activities are at times governed by criminal law. true 7. Businesses cannot commit torts. False 8.The statutory definition of murder is a a. Substantive law b. Procedural law c. Prohibitive law Chapter 1 SLIDE 15

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 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 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Let’s Discuss This Quote: “The ethical man knows it is wrong to cheat against his wife, the moral man wouldn’t” What are Ethics? Collection of standards of conduct & moral judgment forming the basis for a reasoned, impartial decision as to what is right or wrong. Chapter 1 SLIDE 17

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 18 ETHICS AND THE LAW Basic forms of ethical reasoning Consequences-based ethical reasoning An act that produces good consequences is good; an act that produces bad consequences is bad. Rule-based ethical reasoning Acts are either right or wrong. (You can’t justify lying by showing that it produces good consequences.) Ethics reflected in laws

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What compels you to obey the law? To avoid punishment or It is the right thing to do Civil Disobedience: peaceful violation of a law to protest its alleged injustice. What famous person engaged in civil disobedience? Chapter 1 SLIDE 19

LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 20 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 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 21 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 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1-3 Assessment 1. An ethical decision as to what is right or wrong must be reasoned and _________? Impartial 2. The two forms of ethical reasoning almost never reach the same conclusions. False 3. Which of the following best describes the elements involved in civil disobedience? A. Violating the law B. violating the law openly C. violating the law openly & peacefully D. Violating the law openly, peacefully, & accepting punishment for the violation. 4. Majority rule usually involves which of the following types of ethical reasoning? A. reasoning based on consequences B. Rule based reasoning Chapter 1 SLIDE 22