1. Five Main Sources of Law
Business Law Chapter 1
Five Main Sources of Law

2. Why is Law Necessary? Ethics tell us what we ought to do.
Law – system of rules of conduct established by the govt. of a society to maintain stability and justice.
Law & Ethics do conflict

3. 5 Main Sources of Law Federal and State Constitutions
English Commom Law
Statutes
Court Decision
Administrative Law

4. 1. Federal and State Constitutions
Supreme Law of the Land
Most Fundamental
2. English Common Law
Originated in England
History
All states rooted in this law except Louisiana

5. 3. Statutes
Statutes - laws specifically passed by a governing body that has been created for the purpose of making laws.
Found in state and federal statutes, city ordinances, and town bylaws.
The Supreme Court may declare any statute that goes against the Constitution unconstitutional, or invalid.

6. 4. Court decisions Aka case law and judge-made law
Precedent - judge is required to follow an earlier court decision when deciding a case with similar circumstances
Stare decisis - let the decision stand

7. 5. Administrative Law Established by regulatory agencies
Administrative agencies have the power to - make, enforce, investigate violations, and decide guilt or innocence of those who violate their rules.

8. Vocabulary
Morality-values that govern a society’s attitude toward right and wrong.
Ethics-means of determining what society’s values ought to be
Honesty-being open and truthful in dealing with others
Justice-treating others equal and fair
Compassion-sympathetic to the difficulties of others and wants to help alleviate their problems

9. Vocabulary (con’t)
Integrity-willing to do the right thing regardless of personal consequences