Business Law Chapter 1 Exam Review Chapter 1 -Knowing About the Law Business Law-Council Rock HS North Mr. Sherpinsky

Terms and Definitions Morality-involves the values that govern a society’s attitude toward right and wrong. Morality-involves the values that govern a society’s attitude toward right and wrong.

Terms and Definitions Ethics- are the means for determining what a society’s values ought to be. Ethics- are the means for determining what a society’s values ought to be.

How Ethical Decisions are Made Two (2) basic forms of ethical reasoning Two (2) basic forms of ethical reasoning Consequences-based Consequences-based Rightness and wrongness is based only on the results of the action. An act that produces good consequences is good and an act that produces bad consequences is bad. Rightness and wrongness is based only on the results of the action. An act that produces good consequences is good and an act that produces bad consequences is bad. Rule-based Rule-based Acts are considered either right or wrong. For example: Telling the truth is always right, and lying is always wrong. Good consequences do not justify wrong or bad acts. Acts are considered either right or wrong. For example: Telling the truth is always right, and lying is always wrong. Good consequences do not justify wrong or bad acts.

How Ethical Decisions are Made Feelings and Opinions The Greatest Good The Golden Rule Ethical Character Traits

How Ethical Decisions are Made Feelings and Opinion don’t always work Feelings and Opinion don’t always work Some people can “feel” what is right or wrong Some people can “feel” what is right or wrong Others have opinions on what is right or wrong Others have opinions on what is right or wrong The Problem with this: The Problem with this: If ethics were just a matter of opinion or feelings, than no one can ever do anything wrong… If ethics were just a matter of opinion or feelings, than no one can ever do anything wrong… Doesn’t sound right does it? Doesn’t sound right does it?

So…….. We also have the Greatest Good to guide us in ethical decision making. We also have the Greatest Good to guide us in ethical decision making. Will the action create the greatest good for the greatest number of people? Ex) Seatbelts Will the action create the greatest good for the greatest number of people? Ex) Seatbelts The problem with this…it is often misapplied The problem with this…it is often misapplied

So… We turn to the Golden Rule We turn to the Golden Rule “Do unto others as you would have them do unto you” “Do unto others as you would have them do unto you” “Would I want to be treated this way?” “Would I want to be treated this way?” The problem with this: The problem with this: Difficult to fully understand Difficult to fully understand Some abuse the rule by placing their own self interest first Some abuse the rule by placing their own self interest first Empathy: The heart of Golden Rule; means putting yourself in another person’s position and understanding how they feel. Empathy: The heart of Golden Rule; means putting yourself in another person’s position and understanding how they feel.

Ethical Character Traits All of the above are easy to follow if the person making the ethical decisions has the necessary ethical character traits All of the above are easy to follow if the person making the ethical decisions has the necessary ethical character traits HONESTY HONESTY JUSTICE JUSTICE COMPASSION COMPASSION INTEGRITY INTEGRITY Figure 1.1 pg. 11 Figure 1.1 pg. 11

Terms and Definitions Honesty- Character trait of a person who is open and truthful in dealings with others Honesty- Character trait of a person who is open and truthful in dealings with others

Terms and Definitions Justice- Treating people fairly and equally. Justice- Treating people fairly and equally. Equity- Means basic fairness Equity- Means basic fairness

Terms and Definitions Compassion- When someone is sympathetic to the difficulties of others and wants to help alleviate their problems Compassion- When someone is sympathetic to the difficulties of others and wants to help alleviate their problems

Terms and Definitions Integrity- When a person is willing to do the right thing, regardless of the personal consequences. Integrity- When a person is willing to do the right thing, regardless of the personal consequences.

Terms and Definitions Law- is the system of rules of conduct established by the government of a society to maintain stability and justice. Law- is the system of rules of conduct established by the government of a society to maintain stability and justice. Often referred to as a ”Code” Often referred to as a ”Code”

Ethical and Legal Conflicts Ethics and law will sometimes conflict Ethics and law will sometimes conflict Since the law is made by people it is imperfect. Legislators and judges bring their own personal opinions and their own views on ethics and morality to the lawmaking process. Meaning people are bias!

Sources of Law Law in the U.S. comes from 5 main sources Law in the U.S. comes from 5 main sources 1. Federal and State Constitutions 2. English Common Law 3. Statutes 4. Court Decisions 5. Administrative Law

Constitutional Law Constitution- Document that spells out the principles by which the government operates. Articles, which establish national government Articles I, II, III Articles I, II, III 3 branches of the Federal Government 3 branches of the Federal Government Article IV Article IV Relations among states Relations among states Article V Article V How the constitution can be amended or changed How the constitution can be amended or changed Article VI – Supremacy Clause Article VI – Supremacy Clause The U.S. Constitution and the laws of the U.S. are the Supreme laws of the land The U.S. Constitution and the laws of the U.S. are the Supreme laws of the land Article VII - Ratification Article VII - Ratification

Constitutional Law Bill of Rights- Bill of Rights- The first ten (10) Amendments of the Constitution were ratified in They limit the power of government. The purpose of the Bill of Rights is to protect two (2) kinds of rights: The purpose of the Bill of Rights is to protect two (2) kinds of rights: 1. Rights of individual liberty 2. Rights of persons accused of crimes.

State Constitutions Each state has its own constitution Each state has its own constitution It is… It is… More Protective More Protective Narrower (Scope) Narrower (Scope) More Restrictive More Restrictive Who and what religious group help build and shape Pennsylvania?

Common Law - *except Louisiana In early English history, judges or Justices traveled around the countryside deciding cases. (Virtually all courts) In early English history, judges or Justices traveled around the countryside deciding cases. (Virtually all courts) They shared their decisions with other judges so that they could all share the same law. They shared their decisions with other judges so that they could all share the same law. These laws were written down to be referred back to in deciding cases. These laws were written down to be referred back to in deciding cases. These first cases were known as precedents. These first cases were known as precedents. It is also called Stare Decisis which means let the decision stand. It is also called Stare Decisis which means let the decision stand.

Statutory Law Statutes – (Made by a body of lawmakers, “Legislature” Federal & State) Statutes – (Made by a body of lawmakers, “Legislature” Federal & State) Laws passed by the governing body for the purpose of making laws. Laws passed by the governing body for the purpose of making laws. Designed to command, prohibit, & declare certain things…. Designed to command, prohibit, & declare certain things…. May not pass laws that conflict with the U.S. Constitution or would be considered unconstitutional May not pass laws that conflict with the U.S. Constitution or would be considered unconstitutional Ordinances- Local laws passed by municipal governing bodies Ordinances- Local laws passed by municipal governing bodies

Statutory Law Legislature=Body of lawmakers) Legislature=Body of lawmakers) Article 1, Section 8, Clause 3 gives the Congress the power to make laws regulating commerce among states. Article 1, Section 8, Clause 3 gives the Congress the power to make laws regulating commerce among states. Known as the Commerce Clause Known as the Commerce Clause Given Congress very broad powers. Given Congress very broad powers.

Statutory Law Legislature=Body of lawmakers) Body of lawmakers that has the job of creating statutory law under the powers given to the federal government by Article 1 of the Constitution such as the power to tax, spend, and borrow money. Legislature=Body of lawmakers) Body of lawmakers that has the job of creating statutory law under the powers given to the federal government by Article 1 of the Constitution such as the power to tax, spend, and borrow money.

Unconstitutional Laws unconstitutional, or invalid. Federal and state statutes cannot conflict with the U.S. Constitution, or they may be ruled unconstitutional, or invalid.

Court Decisions Court-made or Case Law Court-made or Case Law Courts make law in 3 ways Courts make law in 3 ways 1. Through common law tradition 2. Interpreting statutes 3. Judicial review

Court Decisions Court-made or Case Law Court-made or Case Law Procedural Law - laws that define rights and duties Procedural Law - laws that define rights and duties Positive law - law dictated through authority Positive law - law dictated through authority

Administrative Law An administrative agencies or regulatory agencies focuses on individual activities An administrative agencies or regulatory agencies focuses on individual activities Example: Example: FCC – Federal Communications Commission – regulates broadcasting FCC – Federal Communications Commission – regulates broadcasting

EXAM on Wednesday 40 Questions 40 Questions True & False True & False Multiple Choice Multiple Choice Drop Down Box Drop Down Box Fill in Blank Fill in Blank Work Packet is Next Class! Work Packet is Next Class!