1. Chapter 1 An Introduction to Dynamic Business Law Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 1-2 Chapter 1 Ethical Dilemma As indicated in Exhibit 1-2 of the textbook, there are many purposes fulfilled by the law, including: 1. Providing order such that one can depend on a promise or an expectation of obligations; 2. Serving as an alternative to fighting; 3. Facilitating a sense that change is possible; 4. Encouraging social justice; 5. Guaranteeing personal freedoms; and 6. Serving as a moral guide by indicating minimal expectations of citizens and organizations. Based on your personal ideology, rank the foregoing purposes of law from most to least important, and discuss your rankings with fellow students. To what extent are your rankings determined by your political affiliation? In your reasoned opinion, is it possible to achieve all of the purposes of law simultaneously, or are certain purposes mutually exclusive (for example, “providing order” versus “guaranteeing personal freedoms”)? Chapter 1 Ethical Dilemma As indicated in Exhibit 1-2 of the textbook, there are many purposes fulfilled by the law, including: 1. Providing order such that one can depend on a promise or an expectation of obligations; 2. Serving as an alternative to fighting; 3. Facilitating a sense that change is possible; 4. Encouraging social justice; 5. Guaranteeing personal freedoms; and 6. Serving as a moral guide by indicating minimal expectations of citizens and organizations. Based on your personal ideology, rank the foregoing purposes of law from most to least important, and discuss your rankings with fellow students. To what extent are your rankings determined by your political affiliation? In your reasoned opinion, is it possible to achieve all of the purposes of law simultaneously, or are certain purposes mutually exclusive (for example, “providing order” versus “guaranteeing personal freedoms”)?

3. 1-3 Chapter 1 Case Hypothetical and Ethical Dilemma John Harrison is the owner of Harrison Enterprises, Inc., a small metal fabrication shop located in Poughkeepsie, New York. Andrew Jameson, an employee of Harrison Enterprises, has approached John with a request. Andrew is the proud parent of a newborn son, and he would like to take the next two (2) weeks off from work in order to “bond” with his new child. John knows that Andrew does not have any accrued vacation time (shortly before his son was born, Andrew had taken a final “two-person family” trip to Florida with his wife, Sara). He also knows that Harrison Enterprises is not legally required to comply with the Family and Medical Leave Act (FMLA), since the company only has seventeen (17) employees (FMLA mandates that businesses employing more than fifty people provide their workers with up to twelve weeks’ unpaid leave every year for a host of specified reasons, including the birth of a child). John wonders whether his company has an ethical obligation to comply with the “spirit” of the Family and Medical Leave Act, even though he does not have a technical, legal obligation of compliance. Advise John whether his company has such an ethical obligation. Should John Harrison allow Andrew Jameson to take his requested two (2) weeks of leave from work?

4. 1-4 Chapter 1 Case Hypothetical A group of attorneys, judges and law professionals have collaborated to write a uniform criminal code. The code would create uniformity in criminal law across the United States, defining what constitutes a misdemeanor, what constitutes a felony, how crimes are defined, and what the punishment for particular crimes will be. The code also proposes that the death penalty be abolished, and that the maximum punishment for murder be life imprisonment. Would you favor the adoption and implementation of such a code? What advantages would result from a uniform criminal code? What disadvantages would result? What is the likelihood that all states would favor its adoption and implementation, as opposed to the traditional practice of each state defining criminal law within its own jurisdiction? (Reference: http://www.law.upenn.edu/fac/phrobins/intromodpencode.pdf) Chapter 1 Case Hypothetical A group of attorneys, judges and law professionals have collaborated to write a uniform criminal code. The code would create uniformity in criminal law across the United States, defining what constitutes a misdemeanor, what constitutes a felony, how crimes are defined, and what the punishment for particular crimes will be. The code also proposes that the death penalty be abolished, and that the maximum punishment for murder be life imprisonment. Would you favor the adoption and implementation of such a code? What advantages would result from a uniform criminal code? What disadvantages would result? What is the likelihood that all states would favor its adoption and implementation, as opposed to the traditional practice of each state defining criminal law within its own jurisdiction? (Reference: http://www.law.upenn.edu/fac/phrobins/intromodpencode.pdf) http://www.law.upenn.edu/fac/phrobins/intromodpencode.pdf

5. Business Law Definition: Enforceable rules of conduct that govern commercial relationships 1-5

6. 1-6 Functional Areas of Business Affected By Business Law Corporate Management Corporate Management Production and Transportation Production and Transportation Marketing Marketing Research and Development Research and Development Accounting and Finance Accounting and Finance Human Resource Management Human Resource Management

7. 1-7 Purposes of the Law Providing order Providing order Serving as an alternative to altercation Serving as an alternative to altercation Facilitating a sense that change is possible Facilitating a sense that change is possible Encouraging social justice Encouraging social justice Guaranteeing personal freedoms Guaranteeing personal freedoms Serving as a moral guide Serving as a moral guide

8. 1-8 Classification of Law Private Law: Involves disputes between private individuals or groups Private Law: Involves disputes between private individuals or groups Public Law: Involves disputes between private individuals or groups and their government Public Law: Involves disputes between private individuals or groups and their government

9. 1-9 Classification of Law Civil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their government Civil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their government Criminal Law: Involves incidents in which someone commits an act against the public as a whole Criminal Law: Involves incidents in which someone commits an act against the public as a whole

10. 1-10 Sources of Business Law Constitutions Constitutions Statutes Statutes Cases Cases Administrative Law Administrative Law Treaties Treaties Executive Orders Executive Orders

11. 1-11 Major Federal Administrative Agencies (Independent) Commodity Futures Trading Commission Commodity Futures Trading Commission Consumer Product Safety Commission Consumer Product Safety Commission Equal Employment Opportunity Commission Equal Employment Opportunity Commission Federal Trade Commission Federal Trade Commission Federal Communications Commission Federal Communications Commission National Labor Relations Board National Labor Relations Board National Transportation Safety Board National Transportation Safety Board Nuclear Regulatory Commission Nuclear Regulatory Commission Securities and Exchange Commission Securities and Exchange Commission

12. 1-12 Major Federal Administrative Agencies (Executive) Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation Occupational Safety and Health Administration Occupational Safety and Health Administration General Services Administration General Services Administration National Aeronautics and Space Administration National Aeronautics and Space Administration Small Business Administration Small Business Administration U.S. Agency for International Development U.S. Agency for International Development National Science Foundation National Science Foundation Veterans Administration Veterans Administration Office of Personnel Management Office of Personnel Management

13. 1-13 Schools of Jurisprudence Natural Law Natural Law Legal Positivism Legal Positivism Identification with the Vulnerable Identification with the Vulnerable Historical School: Tradition Historical School: Tradition Legal Realism Legal Realism Cost-Benefit Analysis Cost-Benefit Analysis