1. CHAPTER 1 INTRODUCTION TO LAW
DAVIDSON, KNOWLES & FORSYTHE Business Law: Cases and Principles in the Legal Environment (8th Ed.)

2. THE RELATIONSHIP BETWEEN LAW, ORDER, AND JUSTICE
Law: enforceable rules created for social control.
Criminal law: body of law dealing with public wrongs.
Negligence: failure to do something a reasonable person would do.
Substantive law: portion of law that creates and defines legal rights.
Procedural law: methods of enforcing rights.
Injunction: court order prohibiting a person from doing a certain thing.

3. THE RELATIONSHIP BETWEEN LAW, ORDER, AND JUSTICE
Order: absence of chaos resulting when laws are obeyed.
Justice: process legal system uses to achieve fairness.
Commutative justice: treating everyone the same.
Distributive justice: treating people as individuals.

4. LAW AS AN ARTIFICIAL LANGUAGE
Terms may have different connotations when used in our legal system:
Legal terms are often not synonymous with everyday words;
Legal terms often have more than one meaning;
Legal terms often have no relation to everyday language.

5. ORIGINS OF THE LAW OF BUSINESS
Historically, began as a private system in England to influence commerce.
Originated in the English Law Merchant.
Administered by Merchant Courts established in various merchant guilds.
Merchant Courts were integrated into English Common Law.

6. ORIGINS OF THE LAW OF BUSINESS
Today, the Law of Business focuses on maintaining a competitive environment;
Regulates specific marketing and business activities;
Includes contract and sales law, commercial paper, negotiability, secured transactions, agency, employment, and property law, as well as, laws regulating business organizations.

7. WHY STUDY THE LAW OF BUSINESS?
Preventive Law: law designed to prevent harm or wrongdoing before it occurs.
How to avoid legal problems.
How to resolve problems quickly as they arise.
Proactive: identifying potential problems and participating in resolving them.
Helps develop valuable decision-making skills.
Can’t be expected to know everything.
If it’s in writing, it’s binding; otherwise it isn’t.

8. THE NEEDS OF A LEGAL SYSTEM
To be Reasonable;
To be Definite;
To be Flexible;
To be Practical;
To be Published;
To be Final.

9. PURPOSES OF A LEGAL SYSTEM
Achieve Justice;
Provide Police Power;
Maintain Peace and Status Quo;
Provide Answers;
Provide Protection;
Enforce Intent;
Provide Rehabilitation;
Facilitate Commerce.

10. JURISPRUDENCE Natural Law: source of law is Nature, God, or Reason.
There are certain legal values or value judgements.
These values are absolute.
These values can be determined by human reason.
Once values are determined they supersede any form of human law.

11. JURISPRUDENCE Legal Positivism: the source of law is the legislature.
Sociological: the source of law is contemporary opinion and customs.
Historical: law evolves over time based on custom and social traditions.

12. JURISPRUDENCE
Law and Economics: classical economic theory should be applied to all areas of the law
Feminist Legal: believes that the law does not treat women equally.
Critical Legal Studies: law is a combination of legal and non-legal beliefs.

13. CHANGE IN THE LEGAL SYSTEM
Distinguish these three questions:
What is the law about this topic?
How do people and businesses behave?
What should the law be on this topic?
Answers will vary based on geographical area, views about jurisprudence, and values.

14. SOURCES OF LAW IN THE U.S. LEGAL SYSTEM
Constitutions;
Treaties;
Statutes;
Ordinances;
Administrative Regulations;
Common Law and Law Merchant;
Case Law;
Equity.

15. HOW IS THE LAW CLASSIFIED?
Federal vs. State Law.
Common vs. Statutory Law.
Civil vs. Criminal Law.
Substantive vs. Procedural Law.
Public vs. Private Law.

16. LEGAL SYSTEMS IN OTHER COUNTRIES
Judges rely primarily on codes and secondarily on statutes passed by the legislative bodies.
Legal systems based on religious teachings and writings.

17. THE ATTORNEY-CLIENT RELATIONSHIP
Hiring an Attorney.
Attorney has an obligation to client to keep client confidence.
Ask questions before hiring an attorney.
Resolving Problems with Legal Counsel.
Communicate effectively with your attorney.