1. Laws & Their Ethical Foundation
Business Law
Chapter 1

2. Law and Their Ethical foundation
What is law?

3. Laws and Legal Systems Laws-enforceable rules of conduct in a society
Stages in forming legal systems:
1. Individuals take revenge fro wrongs done to them
2. Leader substitutes an award for revenge
3. Leader gives power to a system of courts
4. Leader acts to prevent and punish wrongs

4. 2 SYSTEMS OF LAW IN THE WORLD
English Common Law
Roman Civil Law
English Common law-law based on the current standards or customs of the people
common law = system of jury and appeals
-jurisdiction =the official power to make legal decisions and judgments
- Jury = group of peers determining right and wrong
Ex: William vs Gwen pg 7.
-ultimately created a uniform set of laws

5. Advantages of Common law
Uniformity while maintaining an ability to adapt to changes in society
Precedents= developed and followed; used prior cases as guidelines
Disadvantages:
The courts had to wait until the harm had occurred to take action

6. Positive law Positive law-dictated from above by a central authority
= no jury and no system of appeals

7. Sources of Law 1. Constitutions-federal and state
Local laws are not valid if it conflicts with federal Constitution
Interstate commerce-occurs between two or more states
Intrastate commerce-occurs within one state
2. State level laws
Statutes-laws enacted by state or federal legislators

8. Ordinances-local statutes
3. local level laws:
Ordinances-local statutes
4. Case law-made after a trial has ended and 1 of the parties has appealed the result to higher court.
The ruling on that case may change laws at Federal or State level
Stare Decisis: “let the decision stand” lower courts must follow this decision(precedents) made in this case when deciding similar cases
Ex of case law: pg11.
4. Administrative regulations-carried out by administrative agencies (ex. Zoning commission)

9. When Federal and State law conflict:
Within state and federal systems:
When laws conflict:
Federal law prevails over state law
State law prevails over local (city & county) laws
Constitutional law prevails over statutory law
Statutory law prevails over administrative law
Higher court’s decision prevails over lower court’s
Constitutions and Validity
If any type of law conflicts with the constitution it is declared invalid and unconstitutional
A governing body can review such cases and nullify a courts interpretation of a statue or ordinance by rewriting the statue (supreme court)

10. Types of Laws
1. Civil law-laws that make up for wrongs against individual persons(private offenses)
Example: landlord suing tenant for unpaid rent
Police do not take action in Civil Suit
Tort (business)-private wrongs against people or organizations
What is a Crime?
Crime-offense against society
2. Criminal law-sets punishments for offenses against society

11. Something may be both a crime and civil offense?
If during the result of the crime private injuries were inflicted
Ex, Worthington pg.13
3. Procedural law-deals with methods of enforcing legal rights and duties
Doctirine of Stare Decisis
4. Substantive law-defines rights and duties
It also defines offenses such as murder, robbery etc

12. Type of Laws Cont’d
5. Business law-covers rules that apply to business situations and transactions
Most business transactions involve a merchant and consumer
Mainly dealing with contracts(Civil law)
UCC (Uniform Commercial Code)-widely adopted uniform business law

13. Commonwealth v. Snyder Read Commonwealth vs. Snyder
Write down claims made by the school district (plaintiff)
Write down on separate lines claims made by Snyder (defendant)
Is this law fair,
10 minutes to discuss with a classmate
Rest of class to right a ¾ to 1 page brief of the case.
Is it constitutional or unconstitutional and why?

14. Ethics
What are ethics?

15. Ethics? Do not write this
Are based on ones culture.
Shared values, beliefs, and behaviors
Values- reflect the goals of a culture/society and what they consider as important
Culture expresses a society’s ethics:
each culture will develop a set of laws based on the ethical values expressed at the time.

16. 3 elements of Ethics A decision about right and wrong
A decision is reasoned
Decision is impartial
What is impartiality?
treating all rivals or disputants equally; fair and just.
Ex: lose of 20 dollars.
I drop 20 dollars on the floor by accident and walk away, you walk by later and pick up the 20 dollars do you
Keep it
Turn it
Why or why not? What are the consequences? Who is affected?

17. Ethical Bases for Laws
Ethics-practice of deciding what is right or wrong in a reasoned, impartial manner
- ethical decision have to be made with reason not emotion
- decision usually provides consistency
Business ethics-ethical principles used in making business decisions
?why is ethics important in business?
The general idea of business is profit maximization
moving a company offshore for cheaper labor ethical?

18. Forms of Ethical Reasoning
1. Consequences-based ethical reasoning
Look for alternative ways to alter the situation
Attempts to forecast consequences
Select alternatives that will generate “greatest good”
2. Rule-based reasoning
The act in itself is judge as right or wrong
Standard comes from 1.recognized authority or 2.human reasoning

19. Ethics in Laws
According to the way our judicial system is set up most laws are consequence based.
Laws are ruled on how they affect the majority
Why do we obey laws?
1. to avoid punishment
2. it is the right thing to do 3.
Civil disobedience-open, peaceful, violation of a law to protest its alleged injustice
ex. Martin Luther King
is civil disobedience
ethical?

20. Reasoning What is Consequence Based Reasoning?
Ruling for the greatest good
What is Rule Based Reasoning?
Law based
Human reasoning

21. Ethics exercise 1. civil disobedience
2. hit some ones car in the parking lot no one sees it
3. killing a murderer
4. finding a wallet
5. seeing someone steal
Same 4 scenarios
What conclusions and
answers do you come up with using both reasoning skills? Are the same conclusion or different.
Consequence Based Reasoning
Rule Based Reasoning

22. Assignment
Pg 19.
1-3 Assessment

23. Laws
Common law
Positive law
Statutes
Case law
Intrastate commerce
Interstate commerce
Administrative regulations
Ordinance
tort
Substantive law
Procedural law
Criminal law
Civil law
Business law
Ethics
Consequences-based reasoning
Rule-based reasoning
Civil disobedience